Soft Productivity

Soft Productivity

Version 18 May 2012

Contents

 What do we mean by Productivity?
 HAS Based Soft Productivity
 Examples of HAS Based Soft Productivity Methodologies
1. Organisational Level
 1.1 Strategic planning
 1.2 Cultural design
 1.3 Organisational non alignment
2. Process Level
 2.1 Soft Process Methodology
 2.2 Network contribution
3. Role Level
 3.1 Team contribution
 3.2 Role holder contribution
Copyright David Alman 2012

What do we mean by
Productivity?


What do we mean by Productivity?
There are 3 ways of looking at Organisational productivity :
1. As an efficiency measure
Output (e.g. service or product)
Productivity (How much?)
Input (e.g. Resources)

2. As a combination of efficiency & effectiveness
Effectiveness
(Qualitative Measures, asks “How well?”)

Input (e.g. Resources) + Activity = Outcome Productivity
(based on value to customer)
Efficiency
(Quantitative Measure, asks “How Much?”) Based on the McGee Productivity Model

3. Anything that makes an organisation function better
Based on R.D Pritchard

Contemporary Productivity uses both “waste reduction” & “value adding” approaches
Productivity

Reduce Increase
Process value to
Waste customer

Waste reduction Value adding

Reduce Increase
Natural employee
Resource value
Waste contribution

Risk


Productivity involves optimise value from a system’s resources and outcomes in
achieving its purpose:

“Productivity is how well a system uses its resources to achieve its goals”
R.D Pritchard

A system is:
• A “System” is “any group of interacting, interrelated, or interdependent parts that form a
complex whole that has a specific purpose” (D. Kim in Introduction to Systems Thinking).

Characteristics of Systems:
 Systems have a Purpose

 All parts must be present for a system to carry out its purpose optimally

 The order in which the parts are arranged affects the performance of a system

 Systems attempt to maintain stability through feedback.
D. H. Kim



W. Edwards Deming 85/15 rule:
85% of employee effectiveness is determined by the system
they work in, only 15% by their own competence.


Focus of Productivity Systems - Examples
Productivity Internal Focus Customer Focus Sustainability
(Internal efficiency) (Internal efficiency & external Focus
System Matrix effectiveness) (Internal & external
efficiency &
effectiveness)
Continuous Improvement to system Improvement Improvement Improvement to
Improvement activity and interaction value to activity to activity & process, well-being,
System Categories
to Standards value interaction & natural resource
based systems value value
Human Designed  ISO 9000  Human Performance  Lean  Service
Systems (e.g. ITIL Systems (HPS) Service Blueprinting
engines, software,  Lean manufacturing  Vanguard
organisation  Lean Six Sigma Method  Soft
structure designs) Productivity  Organisational
 Soft Systems
(Proventive Sustainability
Social Systems (e.g. Methodology (SSM)
Solutions) (Proventive
teams, social
 Value Network analysis Solutions)
networks)
Natural Environment  ISO 14000
(e.g. eco & energy
systems)
*The term “soft” productivity covers productivity methodologies that address the value of Social System interactions

HAS Based Soft Productivity


Soft productivity seeks to optimise value from both human interactions and activities in
achieving valued outcomes. It is a systems approach that uses a Human Activity System
(HAS) framework across a wide range of methodologies at organisational, process, and role
levels.

Human Activity
System Interactional
Activity
(Human system
System Designed) (Social)

Based on a diagram from D Patching in
Practical Soft Systems Analysis


What is Organisational Health
The generic Human Activity System (HAS) model shown below integrates
Human Designed activity systems (Means) and Social interaction systems
(Relations & Meaning) to achieve its Purpose.
Means
e.g. processes, policies, plans,
organisational structures,
management systems,

Meaning
e.g. “world view”,
paradigms. beliefs, values,
Purpose
e.g. Clarity of goals, aims,
attitudes – culture &
targets
climate: the way we do
things around here

Relations
e.g. Social interactions and networks
between individuals and groups,
behaviours, conflicts.



What Kinds of problems can I address with a HAS?
Process Issues:
• I can reduce work delays & queues
• I can improve work productivity
• I can improve effectiveness of reports
• I can I improve employee competencies
• I can I cut costs
Attitude Issues Purpose Issues
I can improve underlying attitudes • I can meet customer needs & expectations
affecting: • I can improve customer satisfaction
• Customer service? • I can improve clarity of purpose
• Work practices?
• Relationships? Relationship Issues
I can improve cooperation & coordination:
• With people I work with
• Between teams & other employees
• With & between management
• With customers

Examples of Soft Productivity Systems

Soft Productivity Systems
can be identified at or 1. Organisational
between:
• Organisation
• Process, and
• Role levels. 2. Process

3. Role
3.1 Group
3.2 Employee


Examples of Soft Productivity Systems
Examples at organisational, process, and roles levels

Level Subject issue examples

1.1 Strategic Planning 1.2. Cultural Design
1. Organisational
1.3 Organisational non alignment

2. Process 2.1. Soft Service methodology 2.2. Network Contribution

3.1 Group Role 3.1 Team contribution

3.2 Employee Role 3.2 Role holder contribution


1. Organisational Level
1.1 Strategic Planning Example
Adding Value by identifying where to best invest resources


1.1 Strategic Planning using a Cost/Outcome
Analysis
Example a Value based Cost/Outcome approach to a Corporate Performance Management (CPM)
Framework, using an Issues Tree, reflecting HAS factors. See next slide for more detailed example
of an Issue Tree (Excluding KQIs)
Corporate Performance Management
Budgetary Key Performance Key Quality
(CPM) Framework
Framework Indicators Indicators
KPIs/ Targets KQIs

Issue Tree Performance Improvement Issue Tree
Projects –

Cost Effectiveness Outcome Achievements

Cost /Outcome
HAS Factors:
Relations (customer requirements) = KQIs
Purpose = CPM KPIs & Targets
Value Process = CPM & Budget Framework
Attitude = Value sought from cost/outcome

1.1 Strategic Planning using a
Cost/Outcome Analysis
More detailed Planning “Issue Tree” KPIs
(excluding KQIs) used to identify best  Patient intake (up)
value to invest resources Maximize access to care  Provider capacity (up)
 Specialty Services (up – as valued)
Patient Health KPIs
 Preventive service utilization (up)
Maximize utilization of  Emergency Services (down)
preventive services  Inpatient hospital services (down)
Value  Pharm. utilization (up – as valued)

KPIs
Optimize service cost  Maximize recovery capability
management  Optimize patient to service value
 Maximize eligibility accuracy
Cost Effectiveness
KPIs
 Improve record management
Improve support services
 Streamline provider relations
 Call centre management
*Based on material developed by Andrea L Dodge Chief Administrative Officer, Executive Office of Health and Human Services.
Commonwealth of Massachusetts.

1. Organisational Level:

1.2 Cultural design
Adding Value by improving alignment in work activities and relations


1.2 Cultural Design
Generic Organisational Cultural Designs using HAS Factors for internal alignment
System Factors Relationship Bureaucratic Performance Empowered Networked
(HAS) Alignment Organisation Organisation Organisation Organisation Organisation
Purpose Interpersonal Compliance Better Smarter Differentiated
Means: Plans, if any, linked to Compliance failure & Goal, objective, & Cross functional – lateral Orchestrated networks
Organisational level initiating actions. risk management focus measurement focus – and “outside in”. Planning inherent in
rather than Trends and decision making, with
opportunities for measurement used to continual review and
improvement. identify improvement improvement, with
Structure “top-down”, opportunities lessons shared openly
functional & vertical.
Means: Process level Processes informal, or Standard operating Performance Shared – collective- Ideas focus on new
partially documented – procedures documented. management systems, knowledge and systems services and products.
ad hoc. with independent used collaboratively to Measurement
“Ritualistic” practices. reviews. increase and continually comprehensively used
Use of process customise & improve and reviewed to build on
improvement initiatives services & products. continuous improvement
Means: Role level Responsibilities generic. Generalised performance Performance measures & Employee Transfer of knowledge
Individual contribution in objectives & feedback. accountability linked to empowerment. inherent, supported by
performing practices. owners. Training for personal mentoring and individual
Training uncoordinated. Generic training. Training focused on development & development.
raising role competence. performance
improvement.
Relations Relationship focused Directive leadership Coaching leadership Inspiring leadership style. Visionary leadership
leadership style. style. style. Collaborative based style.
Informal or respect Compliance focus. Performance relations and Network based relations.
based relations focus. Rule based. management focus. empowerment. Mutual gain and benefit.

Meaning e.g. values Good faith and good will Compliance, risk averse. Achievement, teamwork. Innovation and respect Imagination and
assumed. for others. relationships.

Based on Terry Lee, in The Power of Culture, and
other writers on Maturity Models.

1. Organisational Level:
1.3 Organisational non alignment
Adding Value by improving alignment in work activities and relations


1.3 Organisational Non Alignment
Example of multileveled non alignment issues

Organization Structure

Function A Function B Function C

Processes 1, 2, 3 Processes 4, 5, 6 Processes X1, X2, X3

Employees X1, X2, X3
Teams 1, 2, 3, 4, 5 Team 6, Employees 1, 2

Using a HAS (refer to Organisational Health Audit on next slide) to address non alignment
issues within organisations identified around:
Organizational Structure e.g. Area affected by a lack of accountability;
Function C e.g. Service Function area providing poor service;
Functions A & B e.g. Area with poor coordination across Functions that have
interdependent processes (1,2,3,4,5 & 6) in providing delivery to external customers;
Team 6 e.g. Unsatisfactory team performance.


1.3 Organisational Non Alignment
Using a HAS based Organisational Health Audit to assess alignment issues (Example)

1.1 Transactions (Cause) 1.2 Impact (Effect) 2.2 Cost Benefit Analysis
Overall Overall Perceived
cost/risk benefit value to
recipients

1. Situations/ events/activities:

2. HAS Gap Analysis.
2.1 Underlying cause(s) such as:
Purpose e.g. goals, aims, targets;
Means e.g. Reporting structure, role design ; Practices
e.g. management systems, processes, procedures,
standards, training , Rights e.g. policies, rules,
accountability;
Relations e.g. employee & group relations, leadership
styles;
Meaning e.g. values, beliefs, norms, attitudes.

3. Recommendations:


2. Process Level
2.1 Soft Service Methodology
Adding value and reducing waste in Role activities and interactions within a “system”


Soft Service Methodology (SPM) looks at Role value based on the effect “hard” process
activities and “soft” people interactions has on the overall system’s productivity.

HAS Processes
Role activity Role activity Role activity
“waste” & “gaps” “waste” & “gaps” “waste” & Gaps”
Role 1 Role 2 Role 3
HAS Attitudes Valued activities Valued activities Valued activities HAS Purpose:
and interactions and interactions and interactions
Customer Satisfaction
Role interaction Role interaction Role interaction
“waste” & “gaps” “waste” & “gaps” “waste” & “gaps”

HAS Relationships
The Soft Service Methodology involves:
• Clarifying the Purpose of what is needed to improve operational performance.
• Improving the value of Role activities by reducing “waste” from non valued adding activities and
“gaps” where the system fails to address a customer service requirement.
• Improving the value of Role interactions by addressing “waste” resulting in non and low valued
contribution, and “gaps” in the network of interactions that could improve service.

Mapping to identify “gaps” and “waste” in activities and interactions
How do role activities & interactions work together to provide services? Any “gaps” or “waste”?


Stages in a Soft Service Methodology
Step 1 Identify Purpose Step 2 Identify Role improvements Step 3 Develop
Improvement Program
Identify Purpose, Needs Identify role activity and interactions Develop
& Expectations “waste” and “gaps” affecting value. Improvement Plan

Identify: Identify: Identify improvements and:
a) The purpose of the a) Non productive “waste” and “gaps” in a) Ensure performance
service – from a customer role activities measurements measure
perspective b) Non or low value “waste” and lost value improvements sought.
b) Customer service needs & “gaps” in role contribution to other
expectations. roles and customer b) Action plan implements
sought changes in system
processes, and network
contacts.
State Identify value of role process activities in
Purpose Identify Review and develop
the service system.
of the customer measures of service performance
Service complaints e.g. KQIs related KPIs and targets.
Identify value of role interactions in the
Service network. Develop Performance Improvement
Plan, identifying Cost Benefits of
changes proposed


2. Process Level
2.2 Network Contribution
Adding Value by improving the way Roles contribute value to each other


Value Network Analysis (VNA) can be applied to analysing the value of
interactions between roles to determine if changes are needed.
“Disconnects” low value contribution Customer Account Manager

Product Expert
“Imbalance” between input and
output contribution.
“Value Reciprocity” between
roles Service Co-ordinator

“Overburdened” High Value
contribution
Customer Technology Manager Senior Technical Advisor

HAS Network Transaction Analysis
Interactions Values
Purpose Process Patterns
e.g. Contribution value e.g. Norms


What to look for in Network “Patterns” shown on the previous slide.
• Imbalances: Is there an appropriate balance of Tangible/Intangible inputs and outputs for
different Roles and in the network as a whole?

• Overburdened Roles and Participants: Are there particular Roles or Participants that are
unduly carrying the burden of network interactions where disruption could put the network
at risk?

• Work arounds: Are there patterns of intangibles that might indicate something is not working
in the formal processes or a Role is not functioning as effectively as it could?

• Value Reciprocity: Are there reciprocal value relationships between Roles?

• Disconnects: Are there missing or dead links? Where does a value flow get stuck or break
down? Where does a Role fail to transform inputs to appropriate outputs?

• Interdependencies: What are the structural interdependencies?

Drawn from Value Insights Help Library “Reciprocity in a Value Network”


3. Role Level
3.1 Team Contribution
Adding Value to Teams by improving the way roles contribute


3.1 Team Contribution
Example Teamwork comparison
Successful Teams Poor Teamwork
(High connectivity also (Low connectivity also
shown in variable rates) shown in variable rates)

Role Purpose
External focus Internal focus
Role Processes
Inquiry of issues Advocacy of position
Role Relations
HAS Role Perceived Value
Others issues Self issues
Purpose Value of outcome focus
Role Values
Processes Value of deliverable & transaction outputs

Relations Value of interactional contributions
Positive bias Negative bias
Value Value of orientation and Norms Source concept based on material by Marcial Losada


3. Role Level
3.2 Role holder contribution
Adding Value to a Role by improving the way a role can contribute


3.2 Role Holder Contribution
Example Employee Role Value Role Purpose
Contribution in “exchanges” Significant others requirements of the role
using HAS factors (in bold).
Are expectations Shared,
Uncertain, or Conflicting?

Role Processes Role Holder
Significant others view of:
Role Relations
Perceptions Significant others view
• Role Deliverables Of :
• Role Transactions of relationship:
• Competence • Value of interactional
• Empowerment contribution
• Recognition
Role Perceived Value
Purpose Value of role purpose

Processes Value of processes
and competences in
delivering outcomes
Relations Value of interactional Role Values
contribution Significant others acceptance of work attitudes
Values Value of Work Norms

For further advice please contact David Alman at Proventive Solutions

Contact details can be found on the Contact Page at
proventivesolutions.com.au

Please Note: This PowerPoint provides generic advice, details on application can vary.


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