Measurement of Organizational Change
Dr. Bob Miller
February 14, 2010
Managing organizational change and improvement is one of the most complex tasks of leadership. Leaders need to understand the change process in order to lead and manage change and improvement efforts effectively. Leaders must learn to overcome barriers and cope with the chaos that naturally exists during the complex process of change. Managers and other organizational leaders should assist workers and other stakeholders build effective teams by developing new organizational structures and creating a shared vision that focuses on mission accomplishment and developing new organizational structures and creating a shared vision that focuses on mission accomplishment and attainable objectives. When such inspired and informed leadership is applied, organizations can improve performance. As noted by Harrison (1993) use of the process-oriented approach to managerial decision making with its strong managerial emphasis and its objectives-oriented outcomes is the model recommended for decisions with discernible levels of uncertainty attendant on the outcome. Such decisions include those made at middle and upper levels of management both in the private and the public sectors where the consequences are of high levels of significance to the total organization. Included in this category are all decisions of a strategic nature and those involving appreciable commitments of resources directed towards the long-term enhancement of the corporation or institution. “The process model is ideal for these kinds of decision because it is forward looking in that it has a planning emphasis not apparent in the other models of decision making. The process model is oriented towards innovation and organizational change with a particular emphasis on long-term results. It relies principally on the judgment of the decision maker, but not to the exclusion of computation or compromise to fit special decision-making situations” (Harrison, 1993). According to Alexa Michael (2009) “a company needs accurate, reliable and timely information on performance, which must flow up through an organization regularly. It should be simple, easy to measure and focused on the long term”. One solution for managing organizational change and improvement according to David Blanchard (2009) “is developing a set of highly descriptive key performance indicators (KPIs) that include precise times, quantities and other numerical measurements so that everyone is on the same page about what it will take to achieve acceptable on-time, accurate and cost-effective performance levels”. Using a range of KPIs that include financial and non-financial measures to gauge how successful the business is in achieving its goals will improve its performance. The KPIs should be simple, easy to measure and focused on the long term. A company also needs to address the issue of cash-flow management. Managing cash-flow variability tops the agenda for most companies. “Identifying and fixing friction points that hinder operating capital as it flows across the balance sheet from inventory and payables to accounts receivable” (Driscoll, 2009) is an organizational change critical to a company’s long-term viability. Another organizational change for improvement is the idea of Lean Performance Improvement. Successful lean performance improvement initiatives have front-line workers generating, processing and implementing ideas. Using the high-performance idea system front-line employees drive the lean improvement process with regular and ongoing engagement with daily problems and opportunities. With successful organizational change a company can use this process-focused approach to build their own lean...