Designing the Self Managing Organization

Ronald E. Purser, Ph.D.

College of Business

San Francisco State Univ.

Designing the SMO: Basic Methods

• Democratize the Strategy Creation Process by using the Search Conference method

• Democratize the redesign of Business Processes using the Participative Design method

What is a Search Conference?

• Rapid Strategy Creation process

• Brings together 25-50 people for 3 days

• Produces a Strategic Vision for the Future of the Organization

• Builds commitment and energy for change

The Open System Translated into theSearch Conference

Figure 1

Changes in the world around usDesirable & Probable Future

History SessionPresent System AnalysisDesirable Future System

(Strategic Goals)

ConstraintsAction PlansFollow-Up

Diffusionand

Implementation

Environment

Integration ofSystem & Environment

Planning

Learning

SYSTEM

Classic Search Conference Funnel Classic Search Conference Funnel DesignDesign

EnvironmentDesirable and probable futures of the region

History of the system

Present system analysis

Desirable future for the system

ConstraintsDesirable and achievable

action plans

Implementation and diffusion

}}}}

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EnvironmentEnvironment

SystemSystem

Integration ofIntegration ofsystem and environmentsystem and environment

Case Study: Xerox of Illinois Search Conference

• Recovering from restructuring and downsizing

• Consolidation of 3 separate sales and service districts into largest Customer Business Unit (CBU) in the U.S.

• Employee Survey: Morale was low, with little sense of shared mission or goals

Xerox of IlinoisWelcome to the

SEARCHCONFERENCE

Millennium MoversCreating a

Bold New Vision

Search Conference PurposeSearch Conference Purpose

The Search Conference will develop a The Search Conference will develop a shared future direction for a market shared future direction for a market

driven CBU in the next 24-36 months.driven CBU in the next 24-36 months.

The Search Conference will develop a The Search Conference will develop a shared future direction for a market shared future direction for a market

driven CBU in the next 24-36 months.driven CBU in the next 24-36 months.

Search Conference Participants Search Conference Participants are:are:

MM MotivatedMotivated

OO Open MindedOpen Minded

VV VisionaryVisionary

EE EnthusiasticEnthusiastic

RR Risk TakersRisk Takers

Purpose:Purpose: Introductions to know who is here

Task Directions:Task Directions:

Shake hands and talk with as many people you don’t know during allotted time. Tell them who you are and where you are from.

Time:Time:10 minutes

IntroductionsIntroductions

Search Conference PremisesSearch Conference Premises

The expertise and experience neededto design the future of Xerox are in the room.

People of good will working together will make the best choices.

Common interests above special interests.

Puzzle LearningPuzzle Learning

Search Conference Roles:Search Conference Roles:

Conference ManagersConference Managers

RecorderRecorder

ReporterReporter

Data ManagersData Managers

Graphics IllustratorGraphics Illustrator

Search Conference:Search Conference:Ground RulesGround Rules

All perceptions are valid and recorded in thespeaker’s words

Everyone participates; no one dominates

Participation is equal and open, regardlessof status, position, title or discipline

People are self-managing and responsible for tasks, outcomes and implementation

Focus on strategic conversation and dialogue.

Disagreement can be productive (butdon’t make it personal).

Purpose:Purpose: Share Search Conference Expectations

Task Directions:Task Directions:Small group work - 25 minutesIn table groups, recorder charts each persons’ Search Conference expectations.Select a reporter to share a summary of expectations for the total group.Large group work - 3 minutes each

Time:Time:45 minutes

Why are you here?Why are you here?

Purpose:Purpose:Identify changes outside the boundary of Xerox that are having the most immediateimpact on the future of the CBU

Task Directions:Task Directions:Large group brainstorming session to answer the question:“What changes have you seen happening in the industry in the last 5-7 years that strike you as significant or novel?”

Time:Time:30 minutes

Environmental ScanEnvironmental Scan

Environmental Scan AreasEnvironmental Scan Areas

SocialSocialPoliticalPoliticalEconomicEconomic

DemographicDemographicEducational TrendsEducational TrendsCultural TrendsCultural Trends

LegalLegalIndustry EnvironmentIndustry EnvironmentWorld of WorkWorld of Work

Technological Trends and Changing Technological Trends and Changing Customer Expectations and RequirementsCustomer Expectations and Requirements

Purpose:Purpose: To analyze the probable future in the year 2001

Task Directions:Task Directions:Small group work - 45 minutes

Construct a list of 5 statements on your flip charts that are descriptive of what the probable future of the industry will look like if current trends continue. In other words, if we do nothing and current trends continue, what will the probable state of the industry be in the year 2001?

Large group work - 5 minute presentation from each small groupIntegration of information.

Time:Time:2 hours

Probable Future of the Global and Probable Future of the Global and Industry EnvironmentIndustry Environment

Purpose:Purpose: To envision a desirable future for the industry environment in the year

2001

Task Directions:Task Directions:Small group work - 45 minutes

Using your analysis of trends in the industry environment, come up with a list of 5 statements on your flip chart that describe the most desirable future for the year 2001.

Large group work - 5 minute presentation from each small groupIntegration of information

Time:Time:2 hours

Desirable Future of the Xerox Desirable Future of the Xerox Industry EnvironmentIndustry Environment

Purpose:Purpose: Discuss implications of industry trends for the Xerox CBU

Task Directions:Task Directions:Small group work - 45 minutes

Explore the implications about the shifting environmental patterns for the Xerox CBUWhy and how does the Xerox CBU organization need to change in order to become adaptive to the future? Chart 3-5 significant reasons.

Large group work - 30 minutesIntegration of small group discussion

Time:Time:75 minutes

Implications for the Xerox CBUImplications for the Xerox CBU

Purpose:Purpose: To learn how the history that has shaped Xerox

Task Directions:Task Directions:Large group work discussion- 90 minutes

“What are the milestones and turning points that have shaped the Xerox organization?”“What major events or historical developments over the years are significant to making the Xerox CBU what it is today?”“What is unique about the history and evolution of Xerox?”

(Graphic illustration)

Time:Time:90 minutes

History of Xerox of IllinoisHistory of Xerox of Illinois

Purpose:Purpose: To conduct a Congruence Analysis of the current organization

Task Directions:Task Directions:Small group session - 45 minutes

“What are the strengths and weaknesses of our current organization design:

1) Critical tasks and core work processes2) People (skills, competencies, needs)3) Culture (norms, values, beliefs)4) Formal Systems (structure, rewards, linkages)

Time:Time:90 minutes

Present System AnalysisPresent System Analysis

Purpose:Purpose: Describe the most desirable future for the CBU

Task Directions:Task Directions:Small group work: 90 minutes

In 5 - 6 key statements describe the most desirable future for the Xerox CBU in the year 2001.

Large group work: 10 minute presentation from each small group - 60 minutesIntegration of large group work to finalize Strategic Vision Elements

Time:Time:5 hours

Vision Elements: Desirable Vision Elements: Desirable Future for Xerox CBU in 2001Future for Xerox CBU in 2001

Characteristics of an Effective Characteristics of an Effective VisionVision

ImaginableImaginable Conveys a picture of what the future will look like

DesirableDesirable Appeals to the long-term interest of all who have a stake in the organization

FeasibleFeasible Realistic and attainable, not pie in the sky

FocusedFocused Clear enough to provide guidance in decision making

FlexibleFlexible General enough to allow individual initiative in light of changing conditions

CommunicableCommunicable Easy to communicate; can be successfully explained within five minutes

ImaginableImaginable

DesirableDesirable FeasibleFeasible

FocusedFocused FlexibleFlexible CommunicableCommunicable

Xerox CBU’s Strategic Vision (non-proprietary items)

• 1. Fully empowered employees who are accountable and have incentives to meet their customers' requirements

• 2. An organizational design based on cross-functional work teams to increase profits by 15 percent, and revenue growth by 20 percent per year.

• 3. Mastery of technology tools that fully support our business needs throughout the organization.

Purpose:Purpose: To develop Action Plans to realize the Strategic Goals

Task Directions:Task Directions:Small group work

One sentence description of strategic goal Identify key constraintsDevelop Action Plans

Time:Time:5 hours

Action PlanningAction Planning

1.2.3.4.5.

Xerox CBU Action PlanXerox CBU Action PlanStrategic Goal: Fill in Goal in this area

Key Competencies Needed:List the competencies you feel are needed in this area

Tasks

1.

2.

3.

4.

5.

Respon.person(s)

1.

2.

3.

4.

5.

Timelines

1.

2.

3.

4.

5.

Progress

1.

2.

3.

4.

5.

Resources to achieve

1.

2.

3.

4.

5.

Task Directions:Task Directions:Give input to the Leadership Team on the following questions:

What are our criteria for monitoring progress?How will we continue to be self-managing?How will we communicate our vision to others?How will we bring others along with us in the process?Who else needs to be included in the Action Planning?How will we organize our roles and functions to carry out the plan?

What will we selectively abandon in order to implement our new vision?

Time:Time:1 hour

Where do we go from here?Where do we go from here?

“It’s the INTERNET, Stupid.”

Bill Gates

Rapid Strategy Creation at Rapid Strategy Creation at MicrosoftMicrosoft

MICROSOFT'S INTERACTIVE MEDIA DIVISIONSEARCH CONFERENCE PROCESS

Business Unit SCs Integration Action Planning Cross-Divisional SCs

30People2.5 days

30 People1 day

6 reps @businessunit

40 People2 days

Critical Success Factors for a Search Conference: The 3 P’s

• Purpose: Getting a Clear Focus

• Participants: Who has Critical Knowledge?

• Pre-Work: Gathering relevant data

Exercise: Designing a Search Conference--Define Your 3 P’s

• Purpose: Getting a Clear Focus

• Participants: Who has Critical Knowledge?

• Pre-Work: Gathering relevant data