Organizational Effectiveness

Joe Matthews Library Assessment Conference Baltimore, MD 2010 Joe Matthews Library Assessment Conference Baltimore, MD 2010

Organizational Effectiveness Joe Matthews Library Assessment Conference Baltimore, MD 2010

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Primary Challenges Definition

Measurement

Determinants

The challenges of Organizational Effectiveness

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Kim Cameron

Goal Model

Internal Process Model

Open Systems Model Multiple Constituencies Model Goal Model – achievement of goals Internal Process Model – organizational health and stability Open Systems Model – acquiring resources Multiple Constituencies Model – meeting the needs of different groups Photo Flickr Gray Redfox

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Higher Ed Effectiveness

Higher Ed Effectiveness Student educational satisfaction Student academic achievement Student career development Student personal development Faculty & admin. employment satisfaction Quality of the faculty Community interaction & openness Ability to acquire resources Organizational health Peabody Library courtesy of David Green ARL email

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Competing Values Framework Individual flexibility

Clan Culture

Adhocracy Culture

Collaborate

Create

Internal maintenance

External positioning

Hierarchy Culture

Market Culture

Control

Compete Stability & control

Summarizing verb: Collaborate, Create, Control, Compete “One of the forty most important frameworks in the history of business” Leadership – performance – value creation Four dimensions Kim Cameron and Robert Quinn. Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. SF: Jossey-Bass, 2006.

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The Garbage Can Model Organized anarchy – collections of choices looking for problems, issues and feelings looking to be aired, solutions looking for problems, decision makers looking for work, organizations making choices with consistent shared goals, participants are constrained by the amount of time they can devote to an issue “To understand processes within organizations, one can view a choice opportunity as a garbage can into which various kinds of problems and solutions are dumped by participants as they are generated. The mix of garbage in a single can depends on the mix of cans available, on the labels attached to the alternative cans, on what garbage is currently being produced, and on the speed with which garbage is collected and removed from the scene.” Michael D. Cohen, James G. March, and Johan P. Olsen, "Garbage Can Model of Organizational Choice," Administrative Science Quarterly 17, no. 2 (1972): 1-25.

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Disconnect

Disconnect between organizational goals and the use of performance measures.

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Complexity of Analysis

Performance Measures Importance Of Use

Orr’s Input-Process-Output-Outcomes model Most organizations collect a plethora of measures Few organizations use performance measures to better manage the organization Should be a balance of financial and non-financial measures Most measures report past performance – driving with a rear-view mirror Performance measures are an imperfect indicator of an uncertain future A measure should be able to discriminate between good and bad performance Most measures are not linked to a model of organizational performance Measures not linked to how an organization adds value Good measures: Direct behavior Make performance visible Focus attention Clarifies expectations Increase objectivity Improve execution

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Specific Measureable Actionable Realistic Timely

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Dashboards – Display a collection of important (and few in number) performance measures Different gauges reflect different concerns Fuel gauge – resources Speedometer – risk Tachometer – institutional pulse Temperature – opportunity gauge Oil pressure – environmental scan – pressure points Mileage – trend statistics Warning lights – alerts Challenge – How to choose what measures to display?

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Sample dashboard from http://www.idashboards.com

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Performance Indicators

Key performance indicators – What performance measures can be used as a part of a model of organizational success? Typically key performance measures are not financial, they encourage appropriate action, they are predictive in nature, they indicate what action should be taken, they are acted upon by top management British Airlines

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Critical Success Factors

Critical success factors – identify what is important to organizational success What processes and activities are critical to the success of the organization How does the organization add value?? Walmart – supply chain management system, IT FedEx – own planes in a spoke & hub network, IT, empowered employees Critical success factors for your library ? Collection? Wayfinding? Services?

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Complexity of Analysis

Critical Success Factors Key Performance Indicators

Dashboards

Performance Measures

Importance Of Use

Total Quality Management

Edwards Deming and Phillip Crosby

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Process Improvement

Process improvement – involve workers in product/service quality Use statistical process control measures Six sigma – 3 errors out of 1 million events

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Quality Awards

Self-study – much like an accreditation visit Specific questions to address in each of the specified areas or topics

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Baldrige Award Strategic Planning

Workforce Focus

Leadership

Results

Customer Focus

Process Management

Measurement, Analysis & Knowledge Management

Malcolm Baldrige National Quality Award Univ of Wisconsin – Stout was a 2001 winner Some organizations focus on the award and lose sight of their customers!

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EFQM Excellence Model Enablers or Drivers

Results

People Results

People

Leadership

Policy & Strategy

Partnerships & Resources

Processes

Customer Results

Key Performance Results

Society Results

EFQM - European Foundation for Quality Management In other countries the award may be known as the Business Excellence Model Hard to identify cause-and-effect measures

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Kanji’s Business Excellence Model Principles

Core Concepts

Delight the customer

Customer satisfaction

Management by fact

All work is process

People-based management

Teamwork

Continuous improvement

Continuous improvement cycle

Gopal K. Kanji Written a number of books including Business Excellence in Higher Education (2001) Kingston Press, U.K. (with Abdul Malek)

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Complexity of Analysis

Critical Success Factors Key Performance Indicators

Dashboards

Performance Measures

Quality Awards Process Improvement Total Quality Management

Importance Of Use

Performance Measurement Frameworks

Performance

Performance Pyramid – see next slide

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Strategic Direction

Market

Customer Experience

Quality

Financial

Flexibility

Delivery

Productivity

Cost

Employee Satisfaction

10 areas of measurement

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Service Performance Scorecard

Service Performance Scorecard

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Performance

Performance Prism - 5 facets – Stakeholder satisfaction Strategies that deliver value Processes Capabilities Stakeholder contributions Neely, Andrew; Adams, Chris and Kennerley, Mike. The Performance Prism: The Scorecard for Measuring and Managing Business Success. London, Prentice Hall, 2002.

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Complexity of Analysis

Critical Success Factors Key Performance Indicators

Dashboards

Performance Measures

Holistic Frameworks Performance Measurement Frameworks

Quality Awards Process Improvement Total Quality Management

Importance Of Use

Results & Determinants Means

Results

Competitiveness

Flexibility

Resource Utilization

Financial Performance

Innovation

Results & Determinants Framework

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The 3Rs

Reach Results Resources The 3Rs

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Strategic Triangle Authorizing Environment

Operational Capacity

Public Value

Strategic Triangle Mark Moore has suggested that the point of all managerial activity is to create value and in a public context to create public value. This is accomplished by: Managing downward – improving library operations and facilities Managing outward – innovating and improving service to users Managing upward – Meeting stakeholder expectations and needs Performance measures should link strategies to outcomes and how systemic and situational factors affect performance Mark Weinberg et al. How Can Academic Librarians Create Value? Advances in Library Administration and Organization, 22, 2005, 297314.

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Triple Bottom Line

Triple Bottom Line – Social, Ecological, Financial

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Social Return on Investment Social

Ecological Financial

Social Return on Investment – Triple Bottom Line

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Enablers

Results

Direction

Stakeholder Satisfaction

Processes

Positive Impact

The Big Picture Developed by the Scottish Council for Voluntary Organizations

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Changes in society and economy Changes in quality of life Changes in specific behavior Changes in perceptions and confidence Changes in knowledge and skills

Gates Foundation Global Libraries Impact Planning and Assessment

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Intangible Assets

Intangible assets – equivalent to knowledge assets? Library’s total value – sum of real and intangible value Focuses on the added value intangibles create 3 Dimensions Human capital – training, experience, expertise, motivation Structural capital – systems, value of library’s collections, culture, processes, IT expertise Relational capital – collaboration, participation, trust, reputation, brand

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It’s a balancing act!

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Balanced Scorecard Financial “How do we look to resource providers?”

Customer

Processes

“How do our customers see us?”

“Are we productive & efficient?”

Learning & Growth “Are we ready to change & improve?”

Original Balanced Scorecard

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The Library Balanced Scorecard Customer Perspective

Service attributes & satisfaction

Information Resources Perspective Internal Processes Learning & Growth Financial Perspective

Collection (physical & electronic)

Efficiency & productivity

Staff skills, technology & climate for action

Accountability & value

Financial – good stewardship (benchmarking), secure funding (share of the pie), developing partnerships Learning & Growth – Right people, right skills, right job; up to date IT and other tools needed to do the job; Internal Processes – Efficiency (time or costs per activity), foster a culture of continuous improvement Information Resources – “right stuff” (physical & electronic), right services Customer Perspective – satisfaction, “the place to be”, demonstrate value to students, faculty & stakeholders Joseph R. Matthews. Scorecards for Results. Westport, CN: Libraries Unlimited, 2008.

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Sample Strategy Map Customer Perspective

Satisfaction

Information Resources Perspective Right Collection Productivity Improvements

Internal Processes Perspective Readiness Perspective

Financial Perspective

Skilled Staff

Funding

Strategy Map for the Balanced Scorecard

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• Leadership involvement is key • Clarifies cause & effect • A representation of the vision • Measures linked to strategy • Measures change over time • Helps monitor progress

The scorecard is … Frameworks, including the BSC, offer no direction for the selection of specific performance measures The value of performance measures to focus attention of moving towards meeting organizational goals Focusing on the selection of measures that make a difference is critical to the success of any framework The use of a framework and associated performance measures is a process and an investment – not a one-time event Share with and involve staff in refining the framework and the associated measures

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How Choose?

Fait accompli

Resonate

Focus

Perspective

Assessment takes time and the process of improvement is an iterative one Most effects of college or the university are indirect and the impact of the library is even more indirect The effects of college are varied for different groups of students and for residential colleges or commuter institutions

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All assessment is local

Davida Scharf

Photo from NASA Vela Supernova Remnant http://antwrp.gsfc.nasa.gov/apod/ap100910.html

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Value is Co-created The Library Collections, Service Offerings

& Attributes

Value /

Outcomes

of Service

Who is in the middle?

The Customer

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Performance measures are not prescriptive. Choose measures that reflect your strategy to deliver value to your customers. We should be working to better understand and communicate the value of the library in the life of our professors, our students, and the faculty’s research. Flickr photo by Sean Michael Felix Sr

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Questions

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