Organizational
Effectiveness
Joe Matthews
Library Assessment Conference
Baltimore, MD 2010 Joe Matthews
Library Assessment Conference
Baltimore, MD 2010
Organizational Effectiveness
Joe Matthews
Library Assessment Conference
Baltimore, MD 2010
1
Primary Challenges
Definition
Measurement
Determinants
The challenges of Organizational Effectiveness
2
Kim Cameron
Goal Model
Internal Process
Model
Open Systems Model
Multiple
Constituencies
Model
Goal Model – achievement of goals
Internal Process Model – organizational health and stability
Open Systems Model – acquiring resources
Multiple Constituencies Model – meeting the needs of different
groups
Photo Flickr Gray Redfox
3
Higher Ed Effectiveness
Higher Ed Effectiveness
Student educational satisfaction
Student academic achievement
Student career development
Student personal development
Faculty & admin. employment satisfaction
Quality of the faculty
Community interaction & openness
Ability to acquire resources
Organizational health
Peabody Library courtesy of David Green ARL email
4
Competing Values Framework
Individual flexibility
Clan Culture
Adhocracy Culture
Collaborate
Create
Internal maintenance
External positioning
Hierarchy Culture
Market Culture
Control
Compete
Stability & control
Summarizing verb: Collaborate, Create, Control, Compete
“One of the forty most important frameworks in the history of
business”
Leadership – performance – value creation
Four dimensions
Kim Cameron and Robert Quinn. Diagnosing and Changing
Organizational Culture: Based on the Competing Values Framework.
SF: Jossey-Bass, 2006.
5
The Garbage Can Model
Organized anarchy – collections of choices looking for problems,
issues and feelings looking to be aired, solutions looking for
problems, decision makers looking for work, organizations making
choices with consistent shared goals, participants are constrained by
the amount of time they can devote to an issue
“To understand processes within organizations, one can view a
choice opportunity as a garbage can into which various kinds of
problems and solutions are dumped by participants as they are
generated. The mix of garbage in a single can depends on the mix of
cans available, on the labels attached to the alternative cans, on
what garbage is currently being produced, and on the speed with
which garbage is collected and removed from the scene.”
Michael D. Cohen, James G. March, and Johan P. Olsen, "Garbage
Can Model of Organizational Choice," Administrative Science
Quarterly 17, no. 2 (1972): 1-25.
6
Disconnect
Disconnect between organizational goals and the use of
performance measures.
7
Complexity
of Analysis
Performance
Measures
Importance
Of Use
Orr’s Input-Process-Output-Outcomes model
Most organizations collect a plethora of measures
Few organizations use performance measures to better manage the
organization
Should be a balance of financial and non-financial measures
Most measures report past performance – driving with a rear-view
mirror
Performance measures are an imperfect indicator of an uncertain
future
A measure should be able to discriminate between good and bad
performance
Most measures are not linked to a model of organizational
performance
Measures not linked to how an organization adds value
Good measures:
Direct behavior
Make performance visible
Focus attention
Clarifies expectations
Increase objectivity
Improve execution
8
Specific
Measureable
Actionable
Realistic
Timely
9
Dashboards – Display a collection of important (and few in number)
performance measures
Different gauges reflect different concerns
Fuel gauge – resources
Speedometer – risk
Tachometer – institutional pulse
Temperature – opportunity gauge
Oil pressure – environmental scan – pressure points
Mileage – trend statistics
Warning lights – alerts
Challenge – How to choose what measures to display?
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Sample dashboard from http://www.idashboards.com
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Performance Indicators
Key performance indicators – What performance measures can be
used as a part of a model of organizational success?
Typically key performance measures are not financial, they
encourage appropriate action, they are predictive in nature, they
indicate what action should be taken, they are acted upon by top
management
British Airlines
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Critical Success Factors
Critical success factors – identify what is important to organizational
success
What processes and activities are critical to the success of the
organization
How does the organization add value??
Walmart – supply chain management system, IT
FedEx – own planes in a spoke & hub network, IT, empowered
employees
Critical success factors for your library ? Collection? Wayfinding?
Services?
13
Complexity
of Analysis
Critical Success
Factors
Key Performance
Indicators
Dashboards
Performance
Measures
Importance
Of Use
Total Quality Management
Edwards Deming and Phillip Crosby
15
Process Improvement
Process improvement – involve workers in product/service quality
Use statistical process control measures
Six sigma – 3 errors out of 1 million events
16
Quality Awards
Self-study – much like an accreditation visit
Specific questions to address in each of the specified areas or topics
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Baldrige Award
Strategic
Planning
Workforce
Focus
Leadership
Results
Customer
Focus
Process
Management
Measurement, Analysis & Knowledge Management
Malcolm Baldrige National Quality Award
Univ of Wisconsin – Stout was a 2001 winner
Some organizations focus on the award and lose sight of their
customers!
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EFQM Excellence Model
Enablers or Drivers
Results
People
Results
People
Leadership
Policy &
Strategy
Partnerships
& Resources
Processes
Customer
Results
Key
Performance
Results
Society
Results
EFQM - European Foundation for Quality Management
In other countries the award may be known as the Business
Excellence Model
Hard to identify cause-and-effect measures
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Kanji’s Business Excellence Model
Principles
Core Concepts
Delight the
customer
Customer
satisfaction
Management
by fact
All work is
process
People-based
management
Teamwork
Continuous
improvement
Continuous
improvement
cycle
Gopal K. Kanji
Written a number of books including Business Excellence in Higher
Education (2001) Kingston Press, U.K. (with Abdul Malek)
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Complexity
of Analysis
Critical Success
Factors
Key Performance
Indicators
Dashboards
Performance
Measures
Quality
Awards
Process
Improvement
Total
Quality
Management
Importance
Of Use
Performance Measurement
Frameworks
Performance
Performance Pyramid – see next slide
23
Strategic
Direction
Market
Customer
Experience
Quality
Financial
Flexibility
Delivery
Productivity
Cost
Employee
Satisfaction
10 areas of measurement
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Service Performance Scorecard
Service Performance Scorecard
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Performance
Performance Prism - 5 facets –
Stakeholder satisfaction
Strategies that deliver value
Processes
Capabilities
Stakeholder contributions
Neely, Andrew; Adams, Chris and Kennerley, Mike. The
Performance Prism: The Scorecard for Measuring and Managing
Business Success. London, Prentice Hall, 2002.
26
Complexity
of Analysis
Critical Success
Factors
Key Performance
Indicators
Dashboards
Performance
Measures
Holistic
Frameworks
Performance
Measurement
Frameworks
Quality
Awards
Process
Improvement
Total
Quality
Management
Importance
Of Use
Results & Determinants
Means
Results
Competitiveness
Flexibility
Resource
Utilization
Financial
Performance
Innovation
Results & Determinants Framework
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The 3Rs
Reach
Results
Resources
The 3Rs
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Strategic Triangle
Authorizing
Environment
Operational
Capacity
Public
Value
Strategic Triangle
Mark Moore has suggested that the point of all managerial activity
is to create value and in a public context to create public value. This
is accomplished by:
Managing downward – improving library operations and facilities
Managing outward – innovating and improving service to users
Managing upward – Meeting stakeholder expectations and needs
Performance measures should link strategies to outcomes and how
systemic and situational factors affect performance
Mark Weinberg et al. How Can Academic Librarians Create Value?
Advances in Library Administration and Organization, 22, 2005, 297314.
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Triple Bottom Line
Triple Bottom Line –
Social, Ecological, Financial
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Social Return on Investment
Social
Ecological
Financial
Social Return on Investment – Triple Bottom Line
32
Enablers
Results
Direction
Stakeholder
Satisfaction
Processes
Positive Impact
The Big Picture
Developed by the Scottish Council for Voluntary Organizations
33
Changes in society and economy
Changes in quality of life
Changes in specific behavior
Changes in perceptions and confidence
Changes in knowledge and skills
Gates Foundation Global Libraries Impact Planning and Assessment
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Intangible Assets
Intangible assets – equivalent to knowledge assets?
Library’s total value – sum of real and intangible value
Focuses on the added value intangibles create
3 Dimensions
Human capital – training, experience, expertise, motivation
Structural capital – systems, value of library’s collections,
culture, processes, IT expertise
Relational capital – collaboration, participation, trust,
reputation, brand
35
It’s a balancing act!
36
Balanced Scorecard
Financial
“How do we look to
resource providers?”
Customer
Processes
“How do our
customers see us?”
“Are we productive
& efficient?”
Learning &
Growth
“Are we ready
to change & improve?”
Original Balanced Scorecard
37
The Library Balanced Scorecard
Customer Perspective
Service attributes & satisfaction
Information Resources Perspective
Internal Processes
Learning & Growth
Financial Perspective
Collection (physical & electronic)
Efficiency & productivity
Staff skills, technology & climate for action
Accountability & value
Financial – good stewardship (benchmarking), secure funding (share
of the pie), developing partnerships
Learning & Growth – Right people, right skills, right job; up to date
IT and other tools needed to do the job;
Internal Processes – Efficiency (time or costs per activity), foster a
culture of continuous improvement
Information Resources – “right stuff” (physical & electronic), right
services
Customer Perspective – satisfaction, “the place to be”, demonstrate
value to students, faculty & stakeholders
Joseph R. Matthews. Scorecards for Results. Westport, CN:
Libraries Unlimited, 2008.
38
Sample Strategy Map
Customer Perspective
Satisfaction
Information Resources Perspective Right Collection
Productivity
Improvements
Internal Processes Perspective
Readiness Perspective
Financial Perspective
Skilled Staff
Funding
Strategy Map for the Balanced Scorecard
39
• Leadership involvement is key
• Clarifies cause & effect
• A representation of the vision
• Measures linked to strategy
• Measures change over time
• Helps monitor progress
The scorecard is …
Frameworks, including the BSC, offer no direction for the selection
of specific performance measures
The value of performance measures to focus attention of moving
towards meeting organizational goals
Focusing on the selection of measures that make a difference is
critical to the success of any framework
The use of a framework and associated performance measures is a
process and an investment – not a one-time event
Share with and involve staff in refining the framework and the
associated measures
40
How Choose?
Fait accompli
Resonate
Focus
Perspective
Assessment takes time and the process of improvement is an
iterative one
Most effects of college or the university are indirect and the impact
of the library is even more indirect
The effects of college are varied for different groups of students and
for residential colleges or commuter institutions
43
All assessment is local
Davida Scharf
Photo from NASA Vela Supernova Remnant
http://antwrp.gsfc.nasa.gov/apod/ap100910.html
44
Value is Co-created
The Library
Collections,
Service Offerings
& Attributes
Value /
Outcomes
of Service
Who is in the middle?
The Customer
45
Performance measures are not prescriptive. Choose measures that
reflect your strategy to deliver value to your customers. We should
be working to better understand and communicate the value of the
library in the life of our professors, our students, and the faculty’s
research.
Flickr photo by Sean Michael Felix Sr
46
Questions
49