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4 th Dimension of Management Alternative Solution to the Organizational Crisis & Economical Turmoil Dr. Ahmed Mukhtar, [email protected] Kingdom of Bahrain March 2009

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Alternative solution for organizational crises and economcal turmoil. A new (4th) management domain

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Page 1: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

4th Dimension of

Management

Alternative Solution to the

Organizational Crisis &

Economical Turmoil

Dr. Ahmed Mukhtar,

[email protected]

Kingdom of Bahrain

March 2009

Page 2: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

Index

Title Page

Beginning of New Era 3

Management Concepts 6

Globalization & Organization 6

Management Practices 9

Concept of Organizational Spirit Management 11

Basis of Definitions & Characteristics 12

Definition of Spirituality in Organizations 13

What is Organization Spirit 14

Leadership & Spirit Management 14

Strategies & Organizational Spirit Management 15

Tips for Successful Strategic Planning 17

Seven Management Planning Tools & Spirit Management 17

Organizational Strategy Implementation 18

Strategies of Organizational Spirit Management - ! 19

Compliance Systems & Strategies for Organizational Spirit Management

Implementation 21

Strategies of Organizational Spirit Management - II 21

Helpful Practices 24

Building Spirit 24

Page 3: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

Beginning of New Era

In my web-site www.ahmedmukhtar.com - is no longer active - as I kept my articles

through conferences and training seminars and workshops, I started the articles

following September 2003 New York incident; I have been digging the integration of

such eras for Organizational Development (OD). The global economic turmoil enhances

my previous management agonies that we do need new management conceptual

frameworks despite that if finance and economic are the causes, management process

of these two are integral to a holistic picture of business, finance, and economic of both

private and governmental sectors. The current global economical turmoil exploited how

much our finance system is weak and fragile. The fact that finance and management

systems within organizations are integrated and interrelated brings to our attention that

management system is also responsible for such global and economic catastrophe.

This is a sign that presence of such finance and management structure, systems,

processes, policies and operations could result of repetition of severe global

catastrophe in future. In this regard the governments, organizations and corporate are

desperately working for new global and local finance structure. The question comes

what about the management system and structure?

We usually fail to recognize the natural abilities of our team and individuals. We do have

to look for the source of the whole wheel for our organizational development (OD) that is

behind our management concept as whole. The fact of the three basics management

domains, finance, environment and social are not only the frameworks that

encompasses the organizational management is understood by several other factors

being which were not placed under clear domain shaping an incomplete picture of our

whole management understanding. Therefore our management concept is moving on

three legs rather on four or more.

Several authors and experts pinpointed and studied such factors and spirit management

is realized as integral part of management. My intention is to keep most of those factors

and parameters in a new domain as spirit domain. Such ignorance of these factors and

spirit management domain as the fourth domain of organization due to severe

management deficiency of some major parts of its contents that resulted in break down

and falling a part of major economic, political, finance, and other sectors as seen in

most of management, and economical crises affecting all levels and categories of

business and public sectors. High fuel costs. Weakening demand, subprime mortgages.

Meltdown, credit crunch, bailout of investment firms and banks, stock prices down,

recession, depression fears, etc are the major concerned in current situation. The

current incidence is part of continuous cycle of such events in this century, while being

severe it is not the end and it is the first. This shows how our economy and international

policies are deficient and there is a need for urgent reform of our finance and economic

structure. A look upon all these is the management concept that controls and runs such

Page 4: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

system locally and internationally. In one world we need to look at our management

system and concepts deeply and root reform is needed. There is turbulence and

uncertainty throughout the global economic system. We do need short and long term

solutions. While short solutions require immediate actions to stabilize our organizations

the long term are solutions are the integral part of organizational growth and stability.

Current situation requires bold move in our management and economic system for

some organizations. This is the time that the management consultant to look at their

holistic approach needed to help organizations to move beyond the current

management system to a new era of the four management domains; Finance,

environment, social and spirit.

Cash flow generation, general operations status, access to capital markets and rollover financing, commercial properties market outlook are some of economical status but all require a comprehensive management solutions in implementing, tracking, controlling and assessment to reform and select proper systems and solutions. We need to keep management’s prudence and capability in a crystallized picture. There is no one solution to our economic and management chaos and we do have some systems, methodologies and strategies to evolve and gather handy results. If Toyota, the architect of lean thinking is affected and other giant international companies affected is to the global management lack of enough policies, systems, strategies and no management concept alone can give the right remedy. Our management consultants have to come to the scenes and work globally to give such support.

Financial crises can originate in an industrial country, being with best infrastructure and economic policies in place, but financial standards did not tolerate such typhoon. The second is that a crisis in a systemically important country will project its impacts everywhere: giving it more of a regulatory, supervisory to our governmental and international organizations have changed our look at the financial and management systems. Global economic and management governance are needed. All these show we do lack an integral part of our holistic management domains.

Change management needs strategic reform and building domestic demand which is pushing the economy within our organizations need to be reformed, and ask ourselves what is lacking behind our current management systems. We do need awaken and visualize our management concepts.

China's role has made us to rethink about the success that China has made in the manufacturing sectors. The cost effectiveness has prompted the Western conglomerates to shift manufacturing bases to China, in order to remain competitive in the global market. This does not mean that China is going to be immune in such economical events in future but we do need to take deep look at the some countries economical culture that is behind such development. Do we need stick or by carrot!

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Transformation leadership will play the most important role to generate confidence in the mind of the stake holders. Organizations have to be revitalized, rejuvenated and it requires a well thought after balanced turnaround management process.

There are several management looks and concepts such as Blue Ocean strategy which

was formulated by the Insead Business School Professors Kim and Mauborgne clearly

explains that tomorrow’s leading companies success will not by fighting competitors, but

by creating “blue oceans” of uncontested market space which will enhance in terms of

market share and profitability and market capitalization growth. Such every day new

theories are still lacking the comprehensive approach for our management systems.

Despite we do need individual management concepts, models and systems for

individual organizations but these systems showed be comprehensive in its

implementation strategies. Whether organizations need the Blue Ocean system as a

new market place as it is absolutely new space for firms to cater to the un served

customers or the Red Ocean as a highly competitive market with lot many players

operating in that market place and firms margins are under pressure. Management

consultants are bombarded by daily new innovative and creative management models

and systems. In reality we do need to be bombarded by such new information and

management data. In same time we do need to relax and look at the organizational

management domains.

Management Conducts & Organizational Path

Organization

► Productivity Decrease

► LOW ROI

► No Profit and Lost of Capital

► Organization Collapse

Fragile Organization

► Economical Turmoil

►Bad Management & Finance Practices

► Weak Standards , Regulations & Control

systems

► Un appropriate Tools, Measures, &

Processes

► Four Management Domains Factors not

Considered

► Poor Spirit Management Conducts

► Good Management & Finance Practices

► High Standards, Clear Regulations & Control systems

► Proper Management Tools, Processes & Measures► Active Four Management Domains

► High Spirit Management Conducts

►High ROI and Profit

► High Productivity & Performance

► Systems Coherence

► Employees and Clients Satisfaction► High & Steady Growth

► Immune to Organizational Collapse & Fall

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Management Concepts

The world's most popular management approaches described by The 12manage Global

Top-10 (www.12manage.com) as a measurement of the current global popularity of

management concepts are as follow:

1. Five Forces (Porter)

2. 14 Principles of Management (Fayol).

3. Mind Mapping (Buzan)

4. SWOT Analysis.

5. Marketing Mix (McCarthy).

6. BCG Matrix.

7. 7-S Framework (Mckinsey).

8. Value Chain (Porter).

9. Competitive Advantage (Porter)

10. Balanced Scorecard (Kaplan)

These concepts make the border lines of organizational management structure as well

and measure the three dimensions of management while the spirit management is over

lapped with social and environmental. Thus spirit management is not taken as separate

identity and there is a need to seek such factors integrated in spirit management

dimension. The question relies that such concepts are needed to include the spirit

management components for both organizational and individuals. The lack of

comprehensive and integrated parts within our organizational management systems

and concepts makes our systems fragile and weak towards internal and external forces

and changes.

Globalization & Organization

Globalization and organization are parallel to each other while most organizations must

achieve high performance within a complex and competitive global environment.

Globalization refers to the complex economic networks of international competition,

resource suppliers, and product markets. The quality of regulation is a crucial

determinant of the competitiveness of financial markets. Such regulations are enhanced

by the organizational management development to cope with such crises and reduce

the risks and high light the prevention in future.

In the new knowledge-driven economy, people are the organizations most precious and

underutilized resource. They are the organizations repository of knowledge and they are

central to your company's competitive advantage. At all levels, the organization needs

people who can deliver at the frontier of performance. They must understand where

Page 7: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

your company is going and be able to influence this path. They must share in your

company's fortunes and be motivated to push for greater achievements. Better

understanding of the spirit concept of individuals, teams, and organization is needed. It

is understandable that such organizations have individual characters and the

interference of society and global spirit components are essential for organizational

growth. Thus clarifies that the current management systems needs to be developed,

revised, and revived to cope with current economical and political crises.

Our understanding and managing of religion, values, power distance, Individualism-

collectivism, Masculinity-femininity, attitudes toward the environment (inner-directed and

outer-directed cultures), ethics, motivation, behavior, parochialism and ethnocentrism

and culture within organizations locally and globally can influence the operations,

processes, systems, services and products. These were studied but specific measures

and systematic approaches are still needed.

Organizational leaders and management consultant probably need an urgent sauna and

refreshing spa with some stress management to realize how we are in not good picture.

Do we need to relax in the current global economic turmoil or to start intensive and

events?

Management Practices

In 2005 the Centre for Economic Performance, LSE, and McKinsey & Company used an innovative new approach to survey management practices in over 700 firms in the France, Germany, the UK and the US.

The research finds that:

• US multinational subsidiaries based in the UK, France and Germany are also better managed than either domestic firms or other non-US multinational subsidiaries

• Superior US management performance seems to be driven by more product market competition, higher levels of worker and management skills, and lower levels of labor regulation

• Countries have distinct management cultures - with German firms excelling at shopfloor management and US firms excelling at people management.

These results and other studies showed a compiling management practices amongst

different companies and organizations and different countries. The management

practices differences are based on individual organizations and country and this is a fact

that to be concerned and needed to suite each company and country but in same time

there are general management practices that to be followed in systematic manner. We

Page 8: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

do believe that each company and organization has its own culture and identity And in

another world it ha sits own spirit that to be considered.

I believe that the current global economic turmoil is the turn point for a drastic changes

in global economy, politics and role players of the developed countries that it will have

some of it effects to remain for several years to come even with economical

development within 1-2 years back. The geopolitics are related to such thing will

enhance the floor for new players in the economy and politics in the world. The

economy and politics are interrelated to the management practices, concepts,

processes and systems. This is the time for new era in management, the fourth domain.

Globalization & Organizations

Individuals

Organization

Society

Globalization

PoliticsEconomy

Spirit

Management

Management

Systems

Page 9: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

Spirit Management.

Spirit is rooted deeply in the individuals and organizations that empower both the organization and the workforce for mutual attraction. The word spirit as it attracts us to its own protected entity. It has taken the attention of several scientists, writers, managers and researchers. This protected entity clarifies the need for its exploration of the definitions towards the organizational development. To get a good insight to the spirit within workplace and organizations we have to emphasis on its characteristics, definitions, boundaries, and consensus.

Individuals usually look deeply in inside themselves searching their rooted values, vision, goals, experience, believes, practices, principles, personality, relationships, imagination, ideas, creativity, sacredness, and energy, as a holistic approach that is reflected towards others spirit and organizations.

Whether the spirit is reflected as holistic or partially within the workplace, it reflects on organization as whole. The individual spirit enhances the organizational spirit and its measurement becomes more complex and makes its management even more tangible and complicated.

What spirit?

Spirit and soul are two words that are commonly configured together in the enterprises. The spirit definition has many meanings and concepts. However the igniting the spirit of the workforce within the workplace will direct the spirit of the organization alignment to a unified vision, mission, values, goals, strategy, systems, processes, marketing, innovation, communication strategies.

In the part of individuals spirit involves mind, will, religious practice, feelings, mood, emotion, energy, courage, life, courage, ardour, vivacity, value, dedication, loyalty, enthusiasm, activity, temper , and intellectual or moral state. The belief is a strong issue of the individual spirit that includes sacred, unity and transformation.

The search for direction, meaning, inner wholeness and connection to others, to non-human creation, and to a transcendent defined by Gibbon’s (2000). Krishnakumar and Neck (2002) describe spirituality as being pluralistic.

Moch and Bartunek (2002) contend that spirituality and religion cannot be separated. . Pratt (2000) described that religious values deeply infusing into the organization. Tosey and Robinson, (2002) pointed that personal transformation that must take place in developing spirituality and its relationship to organizational transformations. Others have pointed that spirituality should be seen as separate from any religious context.

Howard (2002) mentions that business leaders who are open to spirituality and think more deeply about their impact on organizations serve as role models for employees and may lead to greater individual spirituality at work, resulting in benefits to the

Page 10: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

organization. McLaughlin (2001) claims that the most effective way to bring spiritual values into the workplace is to clarify the company’s vision and mission, and to align them with a higher purpose and commitment to service to both customers and community.

Dehler and Welsh (1994) mention that emotion and feeling as having an implicit role in organization transformation, thus forming the genesis for organizational spirituality. MacDonald, Kuentzel, and Friedman (1999) review ten different instruments purported to tap spirituality and related constructs ranging from the Expressions of Spirituality Inventory to the Psychomatrix Spirituality Inventory. Cacioppe (2002) describes that spirituality in the workplace is the only way leaders and organizations can succeed.

An organization as it is composed of a group of persons and teams could be focused on

their essential nature and strong royalty or dedication. In response the organization

commitment, respect and Value for each employee, client, and business partner A

prime consideration of their employees expectations, honesty, integrity, learning and

development, compassion, creativity, flexibility, behavioural, confidentiality,

professionalism ,expectations, and leadership based on the ground of the organizational

culture and values. In same respect the employees’ commitment to the organizational

vision and contribution of their best selves and peak performance to achieve the

organizational strategies and goals.

The integral part of the organizational spirit is a healthy, strong and quality relationship,

networking and communication both within the organization and externally toward

customers and vendors.

Can the organization be alive by itself? Yes, as it composed of certain systems and

employees that make its power to be alive. It grows and goes through all the up and

downs where the healing is needed. It is alive due to its culture, values, image, goals,

mission, operations, service, product, etc. As human beings it has its own spirit where it

is a collective of all its intra and extra structures and relationships.

The organization spirit progresses as the organization goes through certain

developmental and changes periods. We have to believe that it is as a living entity due

to its core, depth and roots that are integrated in the organization system. The

organization spirit is as it is not only a collective spirit of its group of employees but also

due to all components of its structure. This spirit could influence the employees, society

and environment. Therefore its spirit requires management to ensure its living among

other organizations within the society and environment locally and globally.

Page 11: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

So, what is Organizational Spirit?

Spirit as mentioned above is the root and base for all the organizational structure. It

holds and unifies all ingredients and components of the organization. As mentioned the

consideration of the employees expectations, religion, honesty, integrity, learning and

development, compassion, creativity, flexibility, behavioural, confidentiality,

professionalism expectations, and leadership, vision, goals, experience, believes,

practices, principles, personality, relationships, imagination, ideas, creativity,

sacredness, and energy, based on the ground of the organizational culture and values

will make the foundation of the organizational spirit. This is incorporated with

organizational values and culture and other organizational domains such as

organizational structure, processes, systems, activities and projects.

Concept of Organizational Spirit Management

Suggestion that the life of an organization is similar to the shape of a bell curve, that is,

the organization experiences a rise of health; it peaks, and then gradually declines.

Organizations are both spiritual and material in nature. In their youth, they possess

spiritual rather than material assets. In decline, this is reverse. Health is maintained by

unifying the spiritual and material assets.

Spirit Management Factors & Components

Expectations, religion, honesty, integrity,

learning and development, compassion,

creativity, flexibility, behavioral,

confidentiality, professionalism expectations,

and leadership, vision, goals, experience,

believes, practices, principles, personality,

relationships, imagination, ideas, creativity,

sacredness, and energy.

Employees

Organization

Culture

Values

Processes

Structure

Systems

Projects

Activities

Society

Culture, Believes, Religion, Customs,

Practices and Values

Page 12: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

Areas of focusing:

1. Organizational spirit management. 2. Transition and change management. 3. Strategy focusing and Implementation. 4. Systems, tools and techniques of strategic compliance of organizational spirit

management (e.g. Six Sigma, Balance Scorecard, EVA, ROI, ABM/C, SOX, Integrated mapping, TBL, KM, and VE).

5. Proposed model of organizational spirit management and quality strategies and systems implementation.

►Emphasis on Spirit’s:

►Characteristics,

►Definitions,

►Boundaries,

►Consensus.

The individual spirit enhances the organizational spirit and its measurement becomes

more complex and makes its management even more tangible and complicated.

Basis of Definitions and Characteristics:

1. Religious

2. Epiphany

Defines spiritual development as arising through a series of discontinuous awakening

experiences.

3. Manageable

(a) sees spirituality as affected by leadership and management. For example, an

individual=’s spirituality may be increased by the expression of a manager=’s values or

by behavioural incentives for individual or group actions.

(b) sees an individual=’s spiritual level as impervious to managerial actions or

incentives.

4. Teachable

(a) sees someone=’s spiritual development as impacted by external influences such as

formal courses on the concepts and principles of "A spirituality " or listening to

speakers/teachers on the subject.

Page 13: Strategic Management (4th Dimension of Management) - Economical Turmoil Alternative Solution

(b) sees someone=’s spiritual development occurring only or primarily through individual

or solitary actions: meditating, being in nature, reading spiritual and/or religious writings,

etc.

5. Individual Development

Ties spiritual development to a predetermined set of "A stages" of individual

development common to all people.

6. Organizational Development

Sees an organization collectively as being in a particular stage or level of development

common to all organizations.

7. Measurable

Sees the concept of spirituality as measurable, typically through a survey instrument.

8. Productive/Profitable

Offers claims/evidence that spirituality is correlated with organizational performance.

9. Nature of the phenomenon

(a) sees spirituality as strictly an individual concept.

(b) sees spirituality as both an individual and a collective concept.

Definitions of Spirituality in Organizations

Mohamed, Hassan, and Wisnieski (2001) claim there are more definitions of spirituality

than there are authors/researchers to write about it.

Howard (2002). Khanna and Srinivas (2000)

Margulies (1972)

Levine (1994)

Boozer (1998)

Levy (2000)

Mason and Welsh (1994)

Lichtenstein (1997)

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So, what is Organizational Spirit?

Spirit holds and unifies all ingredients and components of the organization. As

mentioned the consideration of the employees expectations, religion, honesty,

integrity, learning and development, compassion, creativity, flexibility, behavioral,

confidentiality, professionalism expectations, and leadership, vision, goals,

experience, believes, practices, principles, personality, relationships,

imagination, ideas, creativity, sacredness, and energy.

Based on the ground of the organizational culture and values will make the foundation

of the organizational spirit. This is incorporated with organizational values and culture

and other organizational domains such as organizational structure, processes, systems,

activities and projects.

An organization as it is composed of a group of persons and teams could be focused on

their essential nature and strong royalty or dedication.

The integral part of the organizational spirit is a healthy, strong and quality relationship,

networking and communication both within the organization and externally toward

customers and vendors.

Spirit composed of certain systems and employees that make its power to be alive. The

organization spirit progresses as the organization goes through certain developmental

and changes periods.

Humanistic Approach & Spirit Management

Humanistic Approach, based on the idea that human motivate by more than economic

rewards. They also required satisfying social relation and personal fulfillment. In 1924

by Elton Mayo undertook research at the Hawthorn Works Plant of the Western Electric

Company in Chicago. This research determined how economic incentives and the

physical conditions of the workplace affected the output of worker. This research found

human interactions in the workplace and influences to productivity. Spirit management

is a holistic approach looking at the humanistic as one ingredient to its complex nature

and individuals are the core components of organizational spirit.

Leadership & Spirit Management

There is a new era that has spread through the business world that involves rapid

changes. One rapid change is that management has increasingly become a leadership

task. Leaders help employees act on the vision of the company. In spirit management

the concept of leadership relies not only on top and middle management levels but

looks at each individual employee within organization as being a leader in his position

and tasks. It is believed that every employee has specific tasks and responsibilities and

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this has to play a role of leader in his profession and job. Thus leadership

responsibilities are broken down in the organizational structure to contribute to the

overall organizational middle and top leadership. Each individual has to be responsible

for his own tasks and be a leader in his individual job.

Strategies & Organizational Spirit Management

Strategies & TQM

Spirit as mentioned is the root and base for all the organizational structure. It holds and

unifies all ingredients and components of the organization. The concept of spirituality as

measurable is typically through a survey instrument.

Total Quality Management as a tool for spirit management could be fruitful and TQM

has proven to be an effective process for improving organizational functioning, its value

can only be assured through a comprehensive and well thought out implementation

process.

Principles of effective planned change implementation and suggest specific TQM

applications.

1. TQM is a viable and effective planned change method, when properly installed; 2. not all organizations are appropriate or ready for TQM;

3. preconditions (appropriateness, readiness) for successful TQM can sometimes

be created; and

4. leadership commitment to a large-scale, long-term, cultural change is necessary.

Organizational Spirit & Spirit Management

The rapid and continual innovation in technology is driving changes to organizational systems and processes. The increased expectations of employees as they move more freely between organizations, and, of course, globalization has seen the tearing down of previous international market barriers. In spite of the importance and permanence of organizational change, most change initiatives fail to deliver the expected organizational benefits. This failure occurs for a number of reasons.

Failed organizational change initiatives leave in their wake cynical and burned out employees, making the next change objective even more difficult to accomplish. It should come as no surprise that the fear of managing change and its impacts is a leading cause of anxiety in managers.

Current organizations require fundamental changes in their management concept and

systems. As most of the current management practices can not cope with dramatic and

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disastrous economical and organizational failures. The need for a comprehensive and

integrated change management model is more realistic than before. Looking at the

basics of individuals and corporate spirit components are the foundations for such

changes that should be incorporated.

Business

Spirit

Change Management

Leadership

Emotional

Intelligence

Individual

Spirit

Perceptions,

Experiences

Environmental Concepts

Organizational

Development

Social

Responsibilities

Corporate development & Individual Spirit Concepts

Corporate

Vision, Mission

& Strategies

Corporate

Spirit

Resistance to Change

C = (A + B + D + S) > X

C = Change

A = Level of dissatisfaction with the status quo

B = Desirability of proposed change

D = Practicality of the change

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S = Sprit Factors

X = Cost of changing

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to

a new system such as: identifying tasks to be done, creating necessary management

structures, developing strategies for building commitment, designing mechanisms to

communicate the change, and assigning resources.

Ledford (cited in Packard & Reid, 1990) has proposed a model including four processes

which are forces which determine whether a change will persist through the phases of

institutionalization: the change (TQM) with the organization, the change with other

changes initiated at the time, the change with environmental demands, and with the

level of slack resources in the organization.

Tips for Successful Strategic Planning

1. Set up a solid and benchmarking structure

2. Use a strategic plan to drive accountability and alignment.

3. Involve every associate in the planning process.

4. Obtain formal agreement from everyone involved in the process.

5. Implement the three Cs: consistency, communication, and clarity.

*Creating a Strategy That Promotes Alignment, Agility, and Accountability Best-practice

Report, February 2004 by APQC.

Strategic Control systems are primarily concerned with monitoring and managing

strategy implementation, part of which will be determining and calibrating the focus of

related operational control systems.

Operational Control systems are management processes used to track and respond to

progress towards targets at for defined situations, typically at 'lower levels' of the

organization.

Seven Management & Planning Tools & Spirit Management:

The seven management & planning (MP) tools can be used for as enhancers for spirit management innovation, communicate such information and plan major projects. The following seven MP listed in an order that moves from abstract analysis to detailed planning, are:

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1. Affinity diagram: organizes a large number of ideas into their natural relationships.

2. Relations diagram: shows cause-and-effect relationships and helps you analyze the natural links between different aspects of a complex situation.

3. Tree diagram: breaks down broad categories into finer and finer levels of detail, helping you move your thinking step by step from generalities to specifics.

4. Matrix diagram: shows the relationship between two, three or four groups of information and can give information about the relationship, such as its strength, the roles played by various individuals, or measurements.

5. Matrix data analysis: a complex mathematical technique for analyzing matrices, often replaced in this list by the similar prioritization matrix. One of the most rigorous, careful and time-consuming of decision-making tools, a prioritization matrix is an L-shaped matrix that uses pair wise comparisons of a list of options to a set of criteria in order to choose the best option(s).

6. Arrow diagram: shows the required order of tasks in a project or process, the best schedule for the entire project, and potential scheduling and resource problems and their solutions.

7. Process decision program chart (PDPC): systematically identifies what might go wrong in a plan under development.

Excerpted from Nancy R. Tague’s The Quality Toolbox, Second Edition, ASQ Quality

Press, 2004.

Quality Strategy Implementation within Organizational Spirit Management

However, neither EVA nor CFROI concepts can help organizations with strategy

implementation activities on a daily basis.

Another concept put forward by Kaplan and Cooper was Activity Based Costing (ABC)

and resulting Activity Based Management (ABM).

Organizational Strategy Implementation

Bob Paladino, VP of Global Excellence for Crown Castle International, cites reports that

show 9 out of 10 companies fail to implement their business strategies.

What accounts for such an astonishing failure rate? He says there are four barriers:

-The Vision Barrier: Only 5% of the workforce understands the strategy

-The Management Barrier: 85% of executive teams spend less than one hour per month

discussing strategy

-The People Barrier: Only 25% of the managers have incentives linked to strategy

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-The Resource Barrier: 60% of organizations don't link budgets to strategy

The strategy implementation in the organizational level is accompanied with integrated

spirit factors and components of both organizational and individual levels and coherent

to the society factors. This requires a deep analysis of such components and

awareness of a holistic picture of organizational spirit management.

Strategic Focusing

The focal igniting the spirit of the organization through organizational alignment around

a common vision, values and strategy. Turnaround and growth through strategic

business development, marketing & communications strategies, and scenario planning

are ways to explore the strategic focusing.

Dashboards

The Dashboard is where an organization's "Key Performance Indicators" are displayed. Key Performance Indicators are essentially data summaries that translate and communicate concise, credible information that can be readily understood and used by decision makers at all levels of an organization. Such technology could be utilized for data collection, analysis, KPIs and parameters of spirit management within organizations with adopted measurement tools and systems. There are several systems such as spirit management surveys and matrix data analysis: a complex mathematical technique for analyzing matrices, often replaced in this list by the similar prioritization matrix. These data simplified into precise actions that could enhance overall organizational management and individuals. Spirit management surveys, tools and parameters could be utilized for measuring major organizational spirit factors and components in relation to production, performance and process. The dashboards are systemized techniques for recording and exploring the related and performance factors thus facilitating the control and follow up with corrective decisions. Software and new programs are needed for spirit management analysis in comparison to the organizational KPis and KPRs.

Strategies & Organizational Spirit Management - I:

The strategy implementation in the organizational level is accompanied with integrated

spirit factors and components of both organizational and individual levels and coherent

to the society factors. This requires a deep analysis of such components and

awareness of a holistic picture of organizational spirit management.

Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to

represent standard deviation in statistics) from mean. Six Sigma methodology provides

the techniques and tools to improve the capability and reduce the defects in any

process.

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Six Sigma methodology improves any existing business process by constantly

reviewing and re-tuning the process. To achieve this, Six Sigma uses a methodology

known as DMAIC (Define opportunities, Measure performance, Analyze opportunity,

Improve performance, Control performance).

Value Engineering (VE) may be defined as an organized effort directed at analyzing and

evaluating systems and components of systems, to establish essentiality and efficiency

in the performance of essential tasks.

Social Model

The social model is a way of thinking that views an organization as a society of

individuals, each with individual purposes, each of whom has the ability to think and

learn. Because they depend on each other for mutual adaptation, there should be a

great interaction among them.

The job of Top management is to manage the interactions to create a learning

organization: to design a desirable future and find ways to achieve it by aligning the

purposes of individuals with those of the overall society.

*Thomas H, Lee, shoji and Robert Champen Wood. Think Globally Act Locally), Center

for Quality Management Journal, volume 8, No 3, winter 1999: 23-54.

Triple Bottom Line (TBL)

The reporting system that includes the three parameters:

1. Economical 2. Environmental 3. Social

The base of such parameters is lacking behind the fourth Spiritual. This is the core of

any organizational status and basic of individuals within organizations. Such careless in

years for more in depth understanding and analysis of this parameter has resulted and

will result in low performance, incomplete management solutions, processes lagging,

weak organizations, and systematic disability. Our ignorance for spirit management as

integral parameter of organization is one of the major breakdown of our management

systems, economical turmoil, and political uncertainty.

What is a relevant measure?

Firstly, the word 'relevance' implies that there is a relationship between the measure

and something.

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Secondly, it is important to understand the difference between 'counting' and

'measuring'

Combined with process mapping (a required activity for SOX), a balanced scorecard

can reveal process measures and key performance indicators .

Compliance Systems & Strategies for Organizational Spirit Management

Implementation:

1. Social Model & Psychometrics. 2. TBL, VE, KM and Six Sigma 3. Spirit Management Survey & domains.

For the most effective companies, organizational spirit or culture is a major competitive advantage. Companies can purchase the same equipment, technologies, products, people, brands, facilities and other tangible assets as their competitors. Team spirit is the key that every organization needs to achieve outstanding performance. Strategic plans, marketing, technology and capital investment are clearly important, but spirit of the people using the tools and executing the plans is what determines whether it could succeed or sink. Spirit is a source of many evolving knowledge domains with relevance to all aspects of our organizations.

Strategies & Organizational Spirit Management – II

This model is based on a comprehensive approach and describes few management practices and systems that build up the organizational structural level. The model is based on the following domains:

1. Finance. 2. Environmental. 3. Social. 4. Spirit.

Each organizational domain is inter-related to the specific departmental, team, and individual factors and components. The organizational domains are also integrated with external factors of each domain. This model represents simple management practices and systems and specific standards and systems are required upon individual organization.

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The model shows the implementation and utilization of certain systems, practices and

strategies in the context of spirit management. These are basics and other systems and

practices as mentioned previously are applicable for specific purposes and needs. The

above systems are simplified as following:

Layer 1: Finance, Operational and Process Management Systems:

a. Core: Investment Analysis, EVA, CFROI, Spirit Management Surveys.

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b. Process and Operational: KM, VE, and Process mapping.

c. Cost saving: ABM, and ABC.

d. Revenue Generating: BSC.

Layer 2: Social & Psychometric Parameters: several measurement tools and systems

could be utilized upon specific organizational requirements of factors and components.

These measures are based on the organizational analysis of such parameters.

Layer 3: Spirit Management Domain: Spirit surveys and measurement tools and

systems. There are some tools and surveys that could be utilized for analysis of spirit

components and factors identification, and quantification. The current available tools

and systems are not adequate for in depth analysis and determinants of spirit

management for organizational level. Thus there is a need for comprehensive works

and studies for each organization. Surveys are the basic and simple tools for spirit

management.

Economical

Environmental

Social / Emotional Intelligence

Spiritual / Spiritual Intelligence

Organizational Strategic Thinking & Visioning Pyramid

Organizational Core Base

Management Strategy

In strategic implementation and visioning of the organizational holistic approach we do

think that the four domains are the bases and principles for successful organizational

growth and development. The prioritization is based from top (Management Strategy) to

bottom (Organizational Core Base) and also from bottom to top as feedback and cycle

system. The base is composed of individuals as the middle represents the departments

and teams while top represents the top management and board of organization.

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Helpful Practices

There are several tools, strategies and tips that could help in implementation of such

four domains that facilitates the organizational performance and development:

1. Creating departmental, team and individual visions that are coherent with

organizational vision.

2. Determine the goals and objectives of departmental in accordance to the

organizational goals and objectives.

3. Determine the role and responsibilities of teams and individuals.

4. Develop a plan work in accordance with the overall vision and vision of the

organization.

5. Create specific, definable, and measurable results that would ensure that the

organization and your personal vision are achieved.

6. Consider the most important factors, components and determinants of the four

domains into your goals, strategies and plan.

7. Involve all the concerned departments and individuals in the implementation.

8. Support those you manage by connecting their expectations of success to the

organization’s objectives as part of their performance review.

9. Utilize feasible and standard practices, tools and systems.

10. Make the needed measurements and indices. Dashboards are useful tools.

11. Make the feedback system and measure the overall organizational analysis,

KPIs and KPRs.

12. Put the organization’s and individual’s success as the focal point in every step.

13. Demonstrate more confidence in others and appreciate individuals as emotional

need is to feel appreciated.

14. Social gatherings, parties, ceremonies, sport activities, trips and enjoying good

times with organizational individuals, families, and society members outdoors are

of great value.

15. Provide the individual spirit needs and their satisfaction is the major factors for

enhancement of individual roles and responsibilities within organizations.

16. Inspirations — take few minutes everyday to meditate, pray, or reflect (e.g., seek

guidance regarding a situation or opportunity that requires attention.).

Building Spirit

In organizations in which people are disrespected and poorly treated, higher pay becomes a key way of compensating for the soul-destroying drudgery of the job. In contrast, highly spirited and well-led organizations are often competitive in their financial pay scales but way ahead of their counterparts in "psychic pay" via higher levels of pride and satisfaction.

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There are many ways that strong leaders can build organization spirit. Here are a few suggestions (Team Spirit Built from the Top by Author: Jim Clemmer):

• Meetings to identify non-value-added work and to take that work out of the

organization's systems and processes.

• Build a highly customer-focused organization.

• Keep things simple and direct. Keep business units small and give teams

autonomy.

• Encourage and promote humor to release tension in a situation and keep people

looking at the lighter side of things.

• Lead change with examples of how your organization has gone through tough

times or major changes like these before. Appeal to a proud heritage.

• Look for every opportunity to recognize and celebrate significant

accomplishments and milestones reached.

References:

• Cacioppe, R. (2000). Creating spirit at work: Re-visioning organization development and leadership B Part I. Leadership & Organization Development Journal, 21(1), 48-54.

• Dehler, G.,& Welsh, M. (1994). Spirituality and organizational transformation: implications for the new management paradigm. Journal of Managerial Psychology, l9(6), 17-26.

• Gibbons, P. (2000). Spirituality at work: definitions, measures, assumptions, and validity claims. Proceedings of the Academy of Management, USA, 2000.

• Howard, S. (2002). A spiritual perspective on learning in the workplace. Journal of Management Psychology, 17(3), 230-242.

• Howard, S. (2002). A spiritual perspective on learning in the workplace. Journal of Management Psychology, 17(3), 230-242.

• Krishnakumar, S., & Neck, C. (2002). The "what", "why" and "how" of spirituality in the workplace. Journal of Managerial Psychology, 17 (3), 153-164.

• MacDonald, D. A, Kuentzel, J. G., & Friedman, H. L. (1999). A survey of measures of spiritual and transpersonal constructs: Part two – additional instruments. The Journal of Transpersonal Psychology, 31(2), 155-177.

• McLaughlin, C. (2001). Spirituality in business. [On-line] Available: http://www.visionarylead.org/.

• Moch, M., & Bartunek, J. (2002, August). Linking business, spirituality and religion. Manuscript submitted for publication.

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• Pratt, M. (2000). Building an ideological fortress: The role of spirituality, encapsulation and sensemaking. Studies in Cultures, Organizations & Societies, 6(1), 35-53.

• Tosey, P. & Robinson, G. (2002). When change is no longer enough: What do we mean by "transformation" in organizational change work? The TQM Magazine, 14(2), 100-109.