TSDM-32 Organizational Assurance – are we getting there?

1. TSDM-32 Organizational Assurance – are we getting there?

2. Assess Decide Formulate Strategy Assure Execute Implement Who and Where Are We? Where Should We Go? Are We Getting There? How Do We Get There? ASSURE- are we getting there?

3. ARE WE GETTING THERE? HOW DO WE GET THERE? WHERE SHOULD WE GO? WHERE ARE WE? ASSURE- are we getting there?

4. Why do we measure? Check progress toward objectives Communicate priorities “Control,” or at least influence behavior ASSURE – Are We Getting There? ASSURE- are we getting there?

5. ASSURE- are we getting there?

6. Behn (Purpose of Measurement): Evaluate how well performing Control behaviors of “employees” Budget efficiency measures Motivate achieving production targets Promote organization’s worthiness Celebrate successes Learn why something is/is not working Improve the “raise the bar” reason ASSURE- are we getting there?

7. Peter Drucker Measurement is neither objective nor neutral ─ changes both event & observer. How we measure and what we do with it is as important as what we measure. Results exist only in the external environment. Much that is important is not measurable. Insistence on quantification can cause dysfunction. ASSURE- are we getting there?

8. Outcomes occur external to the organization • Efficiency reflects how well an organization’s processes (activities and behaviors) use its inputs (people, equipment, money, and time) to produce a set of outputs (services or products). • Effectiveness relates how well an organization’s outputs cause or create a desired set of effects (outcomes) or set of conditions that are important to the organization and its stakeholders. • Value refers to how well key or important stakeholders appreciate and continue to desire the outcomes or results being produced by an organization’s outputs. ASSURE- are we getting there?

9. Efficiency, Effectiveness, & Value Efficiency = Output fn {Outcome} Effectiveness = Input Value = Stakeholder appreciation of outcome ASSURE- are we getting there?

10. Strategic Planning Management Control Operating Control Strategy Strategic Plan Execution Plan Strategy Goals Objectives Intended Performance Organizations are ‘Machines’ Feedback Strategy Deliberate Strategy Feedback Strategy Actions Taken Intended Strategy “Executed Strategy” Actions Taken Unrealized Strategy Emergent Strategy Levels of Performance  Feedback Actions Taken Feedback Feedback The Need for Feedback from all Levels Feedback ASSURE- are we getting there?

11. Simon’s Four Levers Diagnostic systems measure progress toward goals and seek to keep critical performance variable within prescribed limits. Belief systems strive to inspire and promote commitment to an organization’s core values and mission Boundary systems set limits on acceptable activity by stating what not to do Interactive controls enable the leader to learn about threats and opportunities as conditions change and to respond to them effectively ASSURE- are we getting there?

12. BOUNDARY SYSTEMS BELIEFS SYSTEMS RISKS TO BE AVOIDED CORE VALUES STRATEGY CRITICAL PERFORMANCE VARIABLES MAJOR CONCERNS INTERACTIVE CONTROL SYSTEMS DIAGNOSTIC CONTROL SYSTEMS Simons’ Levers of Control ASSURE- are we getting there?

13. Diagnostic Control Systems • Measure Outputs vs. Preset Standards • Eliminate Burden of Constant Monitoring “… control panel of an airplane …” ASSURE- are we getting there?

14. Beliefs Systems • Concise, Value Laden, Inspirational • Mission as a Living Document • Organization’s Deeply Rooted Values Effectiveness lies in: Communication plus Leadership Example ASSURE- are we getting there?

15. Boundary Systems • Organization’s “Brakes” • Generally “what not to do” • Rules of the Game … enforced clearly & unambiguously • Codes of Conduct, Ethical Guidelines Most effective when tied with Belief System ASSURE- are we getting there?

16. Interactive Control Systems • Leaders Involved in Lower Level Decision Making Process • Not Micromanagement • Focus Attention/Learning • Characteristics: 1. Potentially Strategic Information 2. Attention at all Levels of Organization 3. Face-to-Face Meetings 4. Catalyst for Ongoing Re-assessment “… track uncertainties that keep senior leaders awake at night …” ASSURE- are we getting there?