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                        Designing Organizational Cultures To Compete 
                                            In Global Markets
 

                                                                                                                                            © 2001 NOA Global, Inc.                 

    

Because of the rapid changing market demands it is important to use basic organizational principles to establish a dynamic culture. People need to learn and know how to apply these principles naturally. Edward Deming new this fact yet it has taken years for many of us to grasp this basic precept. By having the basics well developed this allows organizations the mobility of rapid changing market demands.

In designing your organizational culture you must have a clearly developed sense of your identity. This identity is whom you are and can be expressed in a few words by every member of your organization. You need to know the goals that support this identity and you need to be flexible enough to modify and or change these goals as market demands dictate. Everything must be measurable so that every member of the organization knows exactly how their production is affecting the work process.

Two final elements go into the design of a vibrant organizational culture. One is knowing the natural and technical skills of every employee and where to best maximize their efforts in the organization. Again flexibility to move people must always be part of the design. The last element of designing this culture is training every person in knowing their job, knowing the organizational philosophy and expectations, and training only in the areas necessary to get the work done. With this simple design process the Spirit of individuals rises to meet the demands of global markets.

Direction
The first level in designing an organization’s culture that can compete in the Global Marketplace, is to “Set the Direction”. This is a primary role of an organization’s leadership.
How do you “Set the Direction”?
By:
  • Defining the organization’s Mission, Vision, and Quality Policy.
  • Setting Leadership and Employee Expectations.
  • Defining Strategic Directions to guide the organization.
  • Developing Key Measures to determine how well the organization is doing.
 
These are the key elements that must be communicated to all people in the organization so that everyone knows why they are in business and what goals they are striving to meet.
 
People
The second level in designing an organizational culture that can compete in the Global Marketplace is to focus on the People that are needed to put the organization's Direction in place. This level is about:
 
Personality Styles
 
    Defining the people skills and traits needed to meet the directions and then selecting the right people that match the skills and traits defined.
     
POA - Politeness, Openness, Autocracy
CAC - Clarity, Alignment, Commitment
 
    Determining how each person in the organization needs to interact so that communications are effective resulting in actions that meet organizational and customer requirements.
     
Leadership Styles
 
    Providing the appropriate Leadership styles that will enhance efforts for creating an environment of Continuous Improvement.
     
Tools
The third level in designing an organizational culture that can compete in the Global Marketplace is to provide the people with the Tools needed for Continuous Process Improvement and meeting Quality commitments. The Tools are:
 
Effective Meetings
 
    Continuous Improvement and taking corrective action to maintain quality requirements, usually involves the need for work groups and process owners to meet in order to identify issues or problems, determine causes, develop solutions and implement solutions. For this to be time efficient and productive for the organizations, people need to learn how to run effective meetings.
     
Methods
 
    Methods for improving processes will greatly enhance the organization's ability to develop timely and effective improvements or resolving issues that are barriers to meeting goals and customer requirements. An organization pursuing Continuous Improvement needs to provide its people with a Problem Solving Model including basic improvement tools.
  •   Six Step Problem Solving Process
  •   Brainstorming
  •   Fishbone Diagrams
  •   Check Sheets
  •   Pareto Diagrams
  •   Run Charts
  •   Decision Matrices
Implement Change
 
    Following the initial training and education of the key leadership group, a plan for implementing Continuous Process Improvement must be developed with careful consideration given to whom should be involved, whom should be trained, the resources required, and the time frame for implementing. If this piece is not done properly and thoroughly, it will be difficult to sustain an environment of Continuous Improvement.
     
Engage
The fourth level in designing an organizational culture that can compete in the Global Marketplace is to engage and involve the natural workgroups in Continuous Process Improvement. This will be done by following the implementation plan developed in level three which includes the following steps.
 
Train Natural Workgroups
 
    Provide people with the Directions, the People Skills, and the Methods. It is important to check for understanding and clarity, especially on items such as Mission, Vision, and Quality Policy.
     
Key Measures for Natural Workgroups
 
    The Natural Workgroups must be involved in working with the organization to accomplish the Strategic Directions and Key Measures. The Strategic Directions are met through meeting annual objectives tied to the Strategic Directions. In order to determine if the goals are being met or at least making progress toward them, Key Measures must be defined. Every person's work at the organization is tied to one or more of the annual objectives. It is leaderships' role to get all employees engaged in meeting the annual goals and determining each workgroup's Key Measures for determining progress toward meeting goals. If this is not done, all the people are not Engaged in Continuous Process Improvement.
     
Anticipate
The fifth level in designing an organizational culture that can compete in the Global Marketplace is to anticipate the needs of the organization so that the Mission, Vision and Quality Policy can be achieved.
This is accomplished through defining Resources and Time needed and by continually Scanning the Global Marketplace to prepare for change.
 
Resources & Time
 
    Senior Leadership is responsible for ensuring that resources are available to support Continuous Improvement and meeting the Quality Policies. The people in the organization must be supported with the necessary resources and the time to make the changes or improvements. If resources are held back, the people will not support Continuous Process Improvement.
     
Scanning
 
    Senior Leadership must scan the Global Market place environment to keep up with the marketplace changes. Leadership needs to constantly look for and anticipate the changing needs and wants of the customer. The information gathered may require the Vision of the organization to change. It may change the Strategic Directions required, along with the products and services to be delivered. If Scanning is not done, the organization may find itself without customers to serve.
     
Sustain
The sixth level in designing an organizational culture that can compete in the Global Marketplace is to sustain the effort and momentum of the Continuous Improvement Process. This the Keystone to the Continuous Process Improvement structure.
 
Senior Leadership - Review and Support
 
    Senior Leadership must review the entire Continuous Improvement Process on a systematic regular basis. Just as the organization's financial status is reviewed at monthly leadership staff meetings, the Continuous Improvement Process and all the components need to be reviewed on at least a monthly basis. Leadership must check on progress being made on meeting annual objectives and meeting quality commitments to all customers. If Senior Leadership neglect this piece, Continuous Improvement efforts will not be sustained, but will turn into a wasted exercise.

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