Total Organizational Excellence: Achieving World Class Performance

281 Pages·2001·1.58 MB·English

by  John S Oakland

Total Organizational Excellence
To the memory of Anne, my mother
and John Glover, my friend and colleague.
Total Organizational
Excellence
Achieving world-class performance
Professor John S. Oakland
Executive Chairman
Oakland Consulting plc
Professor of Business Excellence
Leeds University Business School
OXFORD AUCKLAND BOSTON JOHANNESBURG MELBOURNE NEW DELHI
Butterworth-Heinemann
Linacre House, Jordan Hill, Oxford OX2 8DP
225 Wildwood Avenue, Woburn, MA 01801-2041
A division of Reed Educational and Professional Publishing Ltd
A member of the Reed Elsevier plc group
First published 1999
Revised paperback edition 2001
© John S. Oakland 1999, 2001
All rights reserved. No part of this publication
may be reproduced in any material form (including
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means and whether or not transiently or incidentally
to some other use of this publication) without the
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Designs and Patents Act 1988 or under the terms of a
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Applications for the copyright holder’s written permission
to reproduce any part of this publication should be addressed
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British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN 0 7506 5271 3
Typeset by Avocet Typeset, Brill, Aylesbury, Bucks
Printed and bound in Great Britain
Contents
Preface vii
1 A framework for total organizational excellence 1
2 Leadership, commitment and culture 5
3 Strategic planning 21
4 Quality and processes 45
5 Process analysis 61
6 Process documentation and systems 83
7 Self-assessment – gap analysis 95
8 Benchmarking 113
9 Defining improvement opportunities and prioritizing 123
10 People – their development and teamwork 151
11 People – communications and training 193
12 Re-visioning and business process re-design 213
13 Continuous improvement 227
14 Performance measurement and feedback 245
Bibliography 261
Index 265
This Page Intentionally Left Blank
Preface
I wanted to call this book From Head to TOE(Total Organizational Excellence),
but my editor said, ‘It sounds like a book on fitness.’ My reply was not pro-
found, ‘It is – it’s a book on organizational fitness.’ The ‘head’ is, of course,
the top management in the organization – the chief executive and his/her col-
leagues who are responsible for the performance of the company, enterprise or
public sector organization. Organizational excellence must spread from the
top right through the body to the toe.
In the book, I have set down a framework or blue-print for achieving
world-class performance. Based on many years of research and advisory work
in Oakland Consulting plc and its research and education division, the
European Centre for Business Excellence, the book guides senior managers
through the framework, which has already achieved wide acclaim when pre-
sented at conferences and seminars throughout the world.
The first version of the framework was published in Cases in Total Quality
Management which I co-authored with my colleague Dr Les Porter. The
model appeared in the case study on goal deployment in Exxon Chemical,
from the work largely led by Alan Randall. A development of these initial
ideas then appeared in another book from the Oakland Consulting stable,
Assessing Business Excellence, by Les Porter and another colleague Dr Steve
Tanner.
The first chapter describes briefly the framework and each subsequent
chapter examines a part in detail, which is highlighted on the blue-print
diagram at the beginning of each chapter where appropriate.
The book has been written primarily for practising executives and managers
in both the private and public sectors, commercial and non-commercial.
Illustrations from real organizations are a feature of the book, which I have
tried to write in a down-to-earth, practical style. The book should also be suit-
able for students in business schools, particularly at post-graduate level.
I could not have written the book without the tremendous energy and
support of my close colleagues in Oakland Consulting. Several people have
directly contributed to the development of the framework and some of the
detail in the chapters. In particular I should like to mention Roy Broadhouse,
Danny Burke, Ken Gadd, Nigel Kippax, Susan Oakland, Les Porter and Steve
Tanner. Julie Wilson and Janet Selby have helped in keeping me sane whilst
getting the detail together.
John S. Oakland
This Page Intentionally Left Blank
Chapter 1
A framework for total
organizational
excellence
Key points
This introductory chapter shows how organizational excellence may be integrated
into the strategy of any business through an understanding of the core business
processes and involvement of the people. This leads through process analysis,
self-assessment and benchmarking, to identifying the improvement opportunities
for the organization, including people development.
The identified processes should be prioritized into those that require continuous
improvement, those which require re-engineering or redesign, and those which lead
to a complete re-think or visioning of the business.
Performance-based measurement of all processes and people development activ-
ities is necessary to determine progress so that the vision, goals, mission, and
critical success factors may be examined and reconstituted if necessary to meet
new requirements for the organization and its customers, internal and external.
This forms the basis of a new implementation framework for total organizational
excellence which provides the structure of the book.
Avoiding the confusion
‘Total quality management (TQM) is dead, long live business process re-
engineering (BPR)!’ ‘ISO9000 is too costly/narrow focused, you should
carry out self-assessment to the European Excellence or Baldrige Quality
Award models.’ ‘Statistical process control (SPC), failure mode and effect
analysis (FMEA) and benchmarking – these are things you should be
using.’ And what about measurement, culture change, teamwork, continu-
ous improvement, etc., etc.? My goodness, no wonder people are confused
and irritated by the conflicting messages (and combination of letters) they
now receive from consultants, academics, business leaders and even politi-
cians about what they should do to improve the performance of their
organization.