CREATING A HIGH-INVOLVEMENT CULTURE THROUGH A VALUE-DRIVEN CHANGE PROCESS

A MONOGRAPH BY ROBERT W. ROGERS, AND B. JEAN FERKETISH, PH.D.

TABLE OF CONTENTS
THE MOVE TOWARD HIGH INVOLVEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 CRITICAL SUCCESS FACTORS PROVIDE THE FOCUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 VISION AND VALUES DEFINE THE BEHAVIOR CHANGE

1. Creating the Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 2. Values Drive the Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

DESIGN FOR HIGH INVOLVEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 FOUR THRUSTS TO HIGH INVOLVEMENT AND EMPOWERMENT

3. Thrust #1: Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 4. Communications and Systems Alignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 5. Thrust #2: Skills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 6. Skills and Systems Alignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 7. Thrust #3: Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 8. Functional Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 9. Cross-Functional Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 10. Self-Directed Work Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 11. Accountability and Systems Alignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 12. Thrust #4: Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
IMPLEMENTATION

13. The Challenge of Juggling the Four Thrusts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

MEASUREMENT AND COMMITMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 CONTINUOUS IMPROVEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30 ABOUT THE AUTHORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Development Dimensions International, Inc., MCMXCIV-MMV. All rights reserved under U.S., International, and Universal Copyright Conventions. Reproduction in whole or part without written permission from DDI is prohibited.

THE MOVE TOWARD HIGH INVOLVEMENT

Business today operates in an environment of change. This environment challenges leaders to redirect their organizations from watching return on investment to watching return on customers; from emphasizing productivity rates to emphasizing process improvement; and from satisfying short-term financial goals to satisfying employees by providing long-term opportunities. The chaos created by competition, deregulation, technological advances, mergers, acquisitions, the domestic economy, and the global marketplace is exacerbated by chaos within organizations. Employee expectations and commitment are different today than they were a decade ago. No longer can employers offer job security in exchange for company loyalty. Leveraged buy-outs during the 1980s and downsizing in the 1990s have taught employees new values about loyaltyif companies dont give it, they wont get it in return. Employees are less likely today than in the past to sacrifice quality of life for promotion into leadership roles. Financial rewards and job security no longer top the list in surveys of what employees want from their jobs. Their new priorities are autonomy, involvement, challenge, and personal growth. In order to succeed, todays leaders must prepare their organizations to meet the challenges of the new competitive

environment while incorporating the revised priorities of employees, which is not an easy task. Yet an organization can achieve this balance and attain success in the marketplace by building a high-involvement culture that provides autonomy and moves decision making down through the organizational structure. In such an environment, employees have a high degree of involvement and ownership in their work. They make decisionsnot recommendationsthat reduce cycle time, improve customer service, and prevent ideas from being killed by corporate bureaucracy. The results are continuous improvement, innovation, and financial success. Organizations do not achieve a cultural change by accident. They achieve it with a defined strategy for high involvement and a measurable action plan. Many link their strategy for high involvement to initiatives that already are taking place in the organization such as Total Quality Management or Total Service Quality. As a result, the language and approach might vary among firms, but the intent is the same: Organizations are trying to achieve a culture change, or a collective change in behavior. Moving to a high-involvement culture means finding ways to unleash the talent and energy of employees at every level of the organization, while keeping them focused in a common direction. Most culture changes dont succeed because organizations dont translate their vision and values into daily behavior. Organizational leaders are not sure how to align critical success factors, values, and behaviors, all of which will be discussed later.

Value-Driven Change Process

Identify Critical Success Factors

Vision & Values

Design for High Involvement

Implementation

Continuous Improvement

> Communication > Skills > Accountability > Systems

Meaurement & Commitment

Figure 1

This monograph describes an approach for building a high-involvement culture that is based solely on unleashing talent, not introducing bureaucracy. It is based on behavioral change, not banners. It is based on alignment and results, not activity. The Value-Driven Change Process shown in Figure 1 provides an overview of the approach. The first step in implementing a high-involvement strategy using the Value-Driven Change Process takes place when an organization identifies its critical success factors. Next, the vision and values are developed, clarifying the desired situation and describing how it will be achieved.

The high-involvement strategy helps turn the values into daily behavior by strengthening communications, skills, accountability, and organizational systems. To be successful, the strategy and implementation plan need to be carefully designed and planned before implementation in order to fit the unique history and needs of each organization. The remainder of this monograph looks at each phase of the model in detail and provides ideas and recommendations for building a high-involvement culture by translating your organizations values into behavior.

CRITICAL SUCCESS FACTORS PROVIDE THE FOCUS

In order for change to succeed, peopleand organizationsneed sound reasons why that change first became necessary. In a culture change these reasons are explained by the critical success factors, which describe the current situation and provide a focus for the change. Critical success factors can be externally focused (such as technical advances by a

competitor) or internally focused (such as long cycle times). They are important because they:
>

Serve as the catalyst and the reason for the change. Become the focus of the change efforts. Critical success factors help employees at all levels of the organization understand the current situation and the focus of the change effort. Give your organization a competitive advantage. Examples might include new production technology, supplier partnerships, and so on.

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Linking Culture Change to Critical Success Factors Critical Success Factor Customer Retention Symptoms Losing 20% of customers each year. Sales emphasis on new customers. Reduction in profit. Reduction in market share. Cycle Time Reduction Long lead times. Opportunities missed due to late entry into the market. Deadlines missed. Retention of Employees High turnover. Competitors taking key employees. Training and recruiting costs rising. New Products and Services Loss of market share. Shrinking markets. New competitors. Cultural Characteristics Customer service not important. Innovation not occurring to meet customer needs. Teamwork not existing between field and headquarters operations. Decisions bogged down in multiple approval layers. Employees not having the ability or responsibility to make decisions. Employees not challenged. Employees treated like pairs of hands. Employees not trusted to make decisions. Innovation not occurring. Ideas not encouraged. Ideas criticized quickly and not given a chance to live. Not-invented-here attitude.
Figure 2

Some organizations consider financial measures (revenues, profits, and the various financial ratios such as ROI, ROE, ROA) to be among their critical success factors. Others consider poor financial results an early symptom that the leadership of an organization is not giving the critical success factors enough attention. Other symptoms can include loss of market share, loss of customers and employees, and missed delivery dates. All can be indications that the organization is ignoring critical success factors. In order to improve an organizations performance, some aspect of its culture needs to be strengthened or changed, and the critical success factors become a focal point. Figure 2 (page 4) provides examples of how critical success factors might be indicated by a symptom or measure, and then highlights the cultural characteristics that might need to be changed or strengthened to achieve success. The Value-Driven Change Process focuses this change effort on critical success factors, and helps to avoid a major problem accompanying many change efforts: lack of focus. Due to lack of focus, organizations get caught up in the activity of training and improvement teams but see little impact from them. Critical success factors are identified by conducting formal or informal scans of the external and internal environments. The external scan involves gathering customers opinions and feedback as well as analyzing the market. The internal scan involves gathering opinions from employees regarding the organizational barriers to their success. Formal feedback provides quantitative data that get the attention of executives and keeps the focus on what the majority of customers want. Informal feedback provides rich

qualitative data upon which an organization can build its uniqueness, leading to customer satisfaction. Gathering a combination of formal and informal information is the best way to understand thoroughly what the customer finds important. For the external scan, formal feedback can include customer surveys, market research on a particular industry, project reviews for major customers, complaint tracking, lost sales analysis, service audits (such as mystery shoppers), and competitive analyses of strengths and weaknesses. Informal feedback comes from one-to-one conversations between customers and a companys executive, sales force, or field service people. For the internal scan, formal feedback includes surveys, cultural audits, quality audits, exit interviews, internal feedback cards on service between departments, and focus group meetings. Informal feedback comes from hallway conversations and impromptu discussions.
The Critical Success Factors Scanning Cycle

AWAR E
FOCUS
External Scan Internal Scan

N
ES
S

AN
Figure 3

S A LY

It is the combination of formal and informal data that provides a thorough understanding of what is helping and hindering the effectiveness of the organization. It is important to combine data from the external and internal scans to identify critical success factors. The external scan emphasizes whats important to the customer; the internal scan identifies organizational barriers to meeting customers requirements and expectations.

Focusing on external scans without addressing internal barriers only creates frustration within the organization. The continual process of external and internal scans starts the cycle of awareness, analysis, and focus. This cycle in Figure 3 (see page 5) generates critical success factors that focus and refocus the change effort.

VISION AND VALUES DEFINE THE BEHAVIOR CHANGE

CREATING THE VISION

vision or appreciating the visions of others is easier than articulating your own. Many executives have difficulty creating a vision for their organizations in terms that can be transferred easily to all employeesbut the power of a strong vision in a change effort is undeniable. Although using the word vision with regard to businesses is relatively new, visions have been used throughout history to focus the energy of large groups of people. Figure 4 shows several historical events and business examples and describes the vision and the mission in order to clarify the difference between the two. Business leaders develop an organizations vision from the information gathered during the internal and external scan, as well as by benchmarking best practices. For example, if customers complain about service, reputation for customer service excellence becomes part of the vision.

After the critical success factors have been identified and the current situation is understood, the next vital step of the culture change is determining a new direction for the organization and a vision of the future. A vision is simply a desired future state. The word vision came into common use in business in the late 1970s and often is confused with a mission statement. The vision expresses the greatness toward which an organization strives, whereas the mission describes the business the organization is in and its goals. Understanding the importance of a

The Differences Between Vision and Mission

Historical Event The Crusades World War I NASA Space Program Organization An Ice Cream Company A Computer Company Vision To create a free Holy Land. To be the war to end all wars. To launch the new frontier. Vision To be the premier ice cream of choice. To have a home for every computer; a computer in every home. To treat you (the customer) in such a way that we are worthy of your highest esteem. Mission To find kingdoms for the second sons of noblemen. To clarify the boundaries of countries. To land a man on the moon. Mission To grow 20 percent per year. To increase market share.

A Retailer

To increase customer retention by 20 percent.

Figure 4
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The mission, on the other hand, might be to improve customer retention by 20 percent. If employees complain about a lack of authority, empowerment becomes part of the vision, while the mission might be to increase the level of employee authority in the coming year. Empowerment is a good example of the link between critical success factors, vision, and mission. When layers of approval disappear, decisions are made more quickly, and cycle time (a critical success factor) improves. As a result, the organization moves closer to its vision for customer satisfaction. An organizations vision statement describes its macro goal and strategic advantage in the marketplace while providing an inspiration to employees. Answering a few key questions about the organizations position five years in the future will get the wording started: 1. What will your market position be? 2. What will customers say about your organization? 3. What will competitors say about your organization? 4. What will employees say about your organization? 5. How will the organization operate with regard to decision making, structure, communications, etc.? 6. What wording will be inspirational to your associates? An organizational vision acts as the homing beacon by which every department, team, and individual aligns their actions. This alignment of visions and action strengthens the focus of the culture change. The next step is to encourage values and behaviors that move the organization toward the vision.

VALUES DRIVE THE CHANGE

A clear vision identifies and clarifies the direction in which the company is heading and why it is important. The critical success factors identify some of the key areas for results. But employees also need to know how the vision will be achieved. The how is determined by the values of an organization. Values are the attitudes, mind-sets, and beliefs that determine how work is accomplished and how employees interact with each other and with customers. They are the subtle control mechanisms that informally sanction or prohibit behaviors. An organizations culture is based on the shared values that are reflected in the behaviors of the leaders and employees at every level. Every organization has values that might or might not be defined explicitly. Simply ask an employee,Whats important around here? The answer will provide either a positive or negative insight into that organizations values. Examples might include:
> > > >

Working as a team. Service to customers. Its best not to rock the boat. Shipment dates are met without regard for quality.

Values develop from the past actions and communications of leaders, or arise spontaneously as the organization develops from one stage to another. Figure 5 (page 9) lists some common values that leaders use to drive change. Most organizations identify one driving value and four facilitating values in order to keep the priorities sharp. It is important to identify a driving value because cultural values often come into conflict. For example, when an organization values customer satisfaction, service, and product quality, it can run into conflict when meeting a customers requirements. Prompt

delivery dates might need to be sacrificed in order to achieve quality, or quality might take second place to service speed. The decision is easier to make if a driving value has been identified to help set priorities.
Common Values
> Teamwork/Collaboration > Empowerment/Involvement > Innovation > Quality > Sense of urgency > Risk taking > Customer service > Concern for people > Meeting customer needs > Maximizing resources/Cost consciousness > Continuous improvement > Trust

Many people ask why profit is not listed among the common values of Figure 5. Profit is a measure, it is a result, but it is not a belief or an attitude. A quick example illustrates the point. At a recent conference, 150 Japanese business people were asked to select one predominant guiding value in their organizations from the choices of quality, service, profit, innovation, and concern for people. Seventy-five percent of the attendees listed quality, and 25 percent listed innovation as the value that guided organizational behavior. At a similar conference in the United States, 75 percent of the participants selected profit. This overemphasis on profit in the United States promotes short-term thinking and explains why many U.S. companies are facing crises of one kind or another. In a culture change, the leaders of the organization need to determine what values are required to drive the organization toward its vision. After values have been determined, employees need help changing their behavior to reflect these new values. If values are communicated, their importance is explained, and they are linked to organizational practices. Values then can help guide decisions that normally would be made by referring to policy manuals and rules.

Figure 5

Empowerment
By definition, empowerment means creating a sense of ownership of jobs or projects by providing clear expectations, control of resources, responsibility, and coaching; it means offering help without removing responsibility. Empowerment means that all associates take ownership of their work and willingly accept responsibility for taking action and making decisions that reflect our clients and our best interests. Importance As we continue to grow, our associates must have the freedom, competence, and confidence to take action to meet our customers needs. Empowerment is a competitive advantage that generates total quality, quality of life for associates, and customer satisfaction. Practices > Leaders and associates will work together to establish clear goals, expectations, and accountabilities. > Coaching, reinforcing, and recognizing our associates will be an integral part of our day-to-day activities. > Decision making will occur at the lowest possible level. > Risk taking will be encouraged within delineated degrees of freedom. Mistakes will be treated as learning opportunities. > Associates will have the data to measure their own progress. > Associates will own their jobs and will take the necessary actions to continue improving themselves, their work, and our organization.

DESIGN FOR HIGH INVOLVEMENT

In order to move the organization toward its vision, leaders employ multiple strategies. Some of these are related to market share, mergers, acquisitions, or divestitures; others are related to technology, research, or capital investment. When the values are communicated, it is also important to describe the high-involvement strategy that will be used to close the gaps. The high-involvement strategy weaves these multiple approaches together and unleashes the human talent that creates success. It can be described as the internal plan to appropriately involve and empower people throughout the organization to make decisions that relate to their areas of expertise. Focusing on key words emphasizes the scope of the definition. First, the internal plan refers to a systematic rather than an ad hocapproach to empowerment. The leaders of the organization design the high-involvement strategy to focus on critical success factors. Without such a plan, good intentions disintegrate into unclear roles and responsibilities, multiple teams with overlapping charters, and activity without results. A rush to high involvement without a plan can result in chaos. Second, saying that a high-involvement strategy is the plan to appropriately involve and empower people embeds a warning that the answer to all involvement decisions is not necessarily more people and more teams. Some of the early lessons learned in highinvolvement strategies include knowing when to:

Figure 6

When links between values and organizational practices are evident, the values become more concrete and practical. Employees know what to do to support them, and behavior change can begin. Figure 6 provides an example of how one organization linked the empowerment value to practices. Communicating values does not always constitute good news. Unfortunately, this communication quickly identifies any gaps between organizational practices and values.
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Empower a small group of people rather than a large one. Trade long-term buy-in and acceptance for short-term speed. Implement permanent structures (selfdirected teams) that increase empowerment rather than temporary ones (cross-functional teams). Inappropriate involvement can bog down decision making.

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Empowerment is based on a systems point of view, an understanding of the connectedness of all aspects of the organization. This understanding becomes visible when those who are gaining power stress the interdependence of the organization by keeping people informed of, and involved in, their actions. Fourth, make decisions that relate to their area of expertise refers to expertise as a moving target and a continually expanding resource. The ability to empower employees is based on their knowledge and skills. In order to increase empowerment, the knowledge and skills of prospective team members must increase first. It makes little sense to empower a group of engineers to make decision on pricing when those engineers dont understand profit margins. By giving them knowledge, you also give people power that forms the basis for making decisions. High involvement and empowerment constitute a journey, not an event. Figure 7 (pages 12-13) the Development Continuum for the High-Involvement Organization, provides a snapshot of this journey. There is no best place to be on the continuum, and different organizations start at different places and have different destinations. The idea through all this is to improve by moving to the right. The journey will differ in the pace and scope of implementation for each organization. The journey will be similar in approach as organizations juggle and manage the four thrusts of a culture change.

Third, involve and empower refers to leaders giving decision-making power to levels below them, and those levels accepting power. Both need to understand that empowerment means interdependence, not independence. Empowerment means creating a sense of ownership in jobs or projects by providing clear expectations, control of resources, and coaching. It means that managers offer help without removing responsibility for action, and employees take action willingly and make decisions in the best interests of customers. Empowerment doesnt release managers from accountability and responsibility. In fact, it places a greater demand on leadership than does the traditional organization. In a high-involvement culture, empowerment needs to increase at every level of the organization: Executives need to empower middle managers, who need to empower supervisors, who need to empower professional, frontline, and administrative workers. These newly empowered levels need to know that a high-involvement strategy does not mean an attitude of do what you please.

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Development Continuum for the High-Involvement Organization 1

> Focus on profit, sales, and authority > Values questioned

Transition of Values

Communications Thrust

> Formal communications are limited

> Formal communications sporadic and

content deals with light issues

> Symbols that reinforce status/hierarchy > Meetings dominated by most senior person

> Symbols questioned > Increasing frequency of meetings,

but not effectiveness

> Leaders behaviors inconsistent > Leaders aware of importance of their

behaviors

Skills Thrust

> No emphasis on skills or development;

> Skills learned ad hoc; no training

time for training discouraged

plan exists

> Interactive and leadership skills ignored

> Interactive and leadership skills

introduced to leaders

> Competition between functions and

> Teamwork emphasized but not achieved

departments

Accountability Thrust

> Hierarchical, multilayer structure > Narrow jobs focused on tasks

> Organizational structure questioned > Job narrow; some job rotation and

job enrichment
> Managers making decisions and > Teams used for specialty functions

controlling work

such as safety, fire, housekeeping, and medical emergencies

> Objectives set predominantly at the top

> Performance objectives set at top

Systems Thrust

> Viewed as isolated policies and

> Conflict between systems and values

procedures

questioned

Figure 7
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3
> Values articulated but not practiced

4
> Conflict between values resolved

5
> Focus on customer satisfaction through

consistently

empowered employees

> Communications help employees

> Annual communications plan

> Communications open and frequent

understand business issues; financial information is shared

> Negative symbols eliminated > Meeting effectiveness questioned

implemented; information supports teams

and go directly to people who need it

> Positive symbols introduced proactively > Meeting process improved

> Symbols reinforce values > Meeting participation balanced

> Leaders begin behavioral change and

> Leaders frequently achieve behavioral

> Leaders consistently model values

occasionally use new behaviors

change, even under stress

> Plan exists but is still one of the first

> Team members and leaders have

> Skills are identified and acquired

areas affected by a budget cut

input into training plan and cross train each other

> Interactive and leadership skills training

systematically; training viewed as an investment

> Team members trained in interactive and

> Interactive skills introduced to employees

for both team members and leaders is linked to values

leadership skills; leaders have strong coaching skills and view employees as internal customers
> Functions and departments work as

> Concept of internal customers and

> Teamwork and internal partners

partners introduced

emphasized and achieved sporadically

partners

> Restructuring begins > Job design questioned

> Layers reduced > Redesign of jobs begins

> Flat organizational structure > Jobs and teams designed broadly to

encompass entire process/product

> Natural and cross-functional teams > Natural work teams take on operational > Teams make and implement decisions

have input and make recommendations on decisions

> Individuals have input into objectives

responsibility; cross-functional teams form, complete projects, and disband easily

> Objective setting shared > Teams set objectives in line with vision

and values

> System alignment begins

> Some systems aligned; most flagrant

> Systems aligned and integrated;

mixed messages are eliminated

continuous improvement a way of life

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FOUR THRUSTS TO HIGH INVOLVEMENT AND EMPOWERMENT

Designing a high-involvement strategy means planning actions around four organizational thrusts: communications, skills, accountability, and systems. These four thrusts are like the thrusters on a rocket that are used to change direction and speed. The four thrusts of a culture change serve the same purpose. Changing the thrusts speeds up or slows down the rate of change. The change effort can go off course or stall out if more attention is paid to one thrust than to the others. For example, if the leaders in an organization communicate the new values without providing training to change behavior or without aligning systems to support the values, frustration can result. In addition, actions taken to strengthen the thrusts must be monitored and adjusted continuously to assure they are achieving the desired outcomes. The thrusts are not separate. Each affects and is affected bythe others, particularly systems alignment. Systems are the channels within an organization that enable the other

three thrusts to be managed and the values to be supported and reinforced. Systems either promote or hinder communications, skills, and accountability. Systems alignment is treated as a separate thrust to assure that it receives significant emphasis in designing the high-involvement strategy. Empowerment is either encouraged or discouraged by the systems in organizations. If leaders concentrate on actions with regard to communications, skills, and accountability and fail to align systems, long-lasting empowerment cant occur. To emphasize this connection, the systems that need to be aligned in order to strengthen the four thrusts are highlighted as each thrust is described in this monograph.
THRUST #1: COMMUNICATIONS

Every event or action in an organization communicates something. When actions run parallel to what the leadership is saying, trust and credibility build. When actions and speech-making are disconnected, trust and credibility are weakened. This simple formula is the basis for the clich,walking the talk. The communications thrust is simple to understand but difficult to manage. Like success itself, organizations never can have enough communication. A first step to managing this thrust is to understand the major arenas of communication and the role of systems in communications, as shown in Figure 8.

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Communications: Arenas for Action

The Formal Communications Process Includes official releases of information through newsletters, brochures, videos, formal meetings, and memos. The Rituals and SymbolsIncludes the subtle, and not so subtle, messages that are sent by the ways things are done . . . who parks where . . . who is called by first names and who is not . . . what awards are given to whom by whom . . . and who is sent to which meetings and how are they run. The Behavior of LeadersIncludes every aspect of the behavior of leaders, from the CEO to supervisors and team leaders. They walk the talk. The Informal Communications Process Includes the grapevine or rumor mill. Systems to AlignPriorities include communications, compensation, promotion, and recognition systems.

skeptical. Leaders use the word process instead of program. But it has a slogan, mugs, and pins, so it must be a program. Everyone uses the souvenirs; nothing changes. When formal communications processes are used as advertising, they actually hinder the change instead of helping it. What works for soap doesnt work for culture change because our entire society teaches us to be skeptical of advertising. We cant advertise our way into a culture change. If the formal communications process delivers a message the organization is not living, the credibility gap merely widens. Instead of advertising, formal communications need to focus on recognizing how the values are coming alive in the organization. Instead of long essays in newsletters and posters that extol the virtues of teamwork, publish stories and pictures showcasing teams that have achieved success. For example,TRWs newsletter recognizes individuals and groups that find a better way. Thats recognition of their values in action. Instead of giving everyone in the organization mugs and pins, make them available to anyone who wants to recognize a co-workers efforts. The message thus changes from a gimmicky new program to an ongoing effort. Thats recognition of values in action. Instead of developing communications with a group of media experts, employees need to get involved. At Lantech, a manufacturing firm in Louisville, a group of employees write, produce, and approve the newsletter. More values in action. Instead of concentrating on top-down communication during round-table luncheons that are as impromptu as press conferences, events can be set up during which executives do more listening than talking and seek employee insights. Several plant managers have commented that this is one of their best learning experiences. And, its the value of listening in action.
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Figure 8

The challenge inherent in the formal communications process is to change it from the traditional advertising orientation to a reinforcing and encouraging orientation. Traditionally, organizational leaders decide that change needs to occur and improvements need to be made. To get the message out, they call in the message experts who develop slogans and imprint them on everything from mugs to umbrellas. With all good intentions, the message experts create a new program; with the same good intentions, executives implement the program. The problem is that managers and employees are burned out on programs, having been down this path before. Therefore, they are

The second area of communications is organizational rituals and symbols. Meetings are among the most commonand most importantcorporate rituals. Meetings are the stage on which corporate values are played out. While not quite a part of formal communications, their perceived spontaneity gives them increased credibility as a communications channel for values. Some participants will be active players and model the valuesor not. Others will watch the play, reading clearly the message of what is importantor not. And the critics will put reviews in the hallways and cafeterias reinforcing the valuesor not. Meetings send important symbolic messages. How effective they are or are not represents the overall effectiveness of the organization. How conflict is dealt with in meetings, the degree of openness, and the amount of followthrough on action items become symbols that the values are aliveor not.
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and discussion throughout the year, reinforcing the organizations value of customer service. Symbols abound throughout organizations. Who gets assigned parking? Where do people eat? Who gets an office? Who gets art on the wall? Who gets a metal desk? Who gets wood? Who needs a doctors excuse when absent? Who doesnt? Many aspects of our organizations become symbols. The language used is perhaps the most powerful. Weiler Brush Company, a manufacturer in eastern Pennsylvania, has been addressing the problem of language for years. In the Weiler Brush parking lot, you see signs for two types of parking: visitor and co-worker. The grievance procedure was updated and renamed disagreements. New employees are no longer on probation, but in the getting to know each other phase of employment The first, second, and third shifts were renamed day,evening, and night in an attempt to do away with the class connotation of the old names. The plant introduced cellular manufacturing, with employees in work cells, and communication is now open enough for co-workers to say, We dont like the word cell. It sounds too much like jail. And we dont consider our work to be like jail. The coworkers selected a new term: work centers. The language changes were simple; the message changes were powerful. The third area of communications, the behavior of leaders, is the strongest symbolic message in an organization. Do leaders live the values or not? Do their decisions enable customer satisfaction to be achieved? Do they act as a team with other executives? Do they involve employees in making and implementing decisions? Leaders hold the power, so they are responsible for leading the way to empowerment. All positive behavior of the

At Motorola in the 1980s, chairman Bob Galvin changed the order of topics at monthly executive meetings. The first two hours of every meeting were spent reviewing quality improvement results. Financial results were last on the agenda. If Bob needed to leave early, he never missed the improvement results, but would skip the financial. This sent an important message regarding first and second priorities. At Milliken, the CEO always begins visits to field sites with the question,What have you done lately to improve quality? People at all levels of the organization now make sure they are ready with an answer. At IBM, resolving the 10 most significant recurring complaints received in a year became part of the following years business planning process. The goal was to ensure that these problems were eliminated forever. Customer issues received repeated visibility

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leaders reflects the values of the organization and demonstrates commitment to them. Even showing up on time at meetings becomes a symbol that a leader cares about other peoples time. The last area of communications, the informal communication process, is important when the formal communication process in an organization breaks down and meetings dont deal with real issues. At this point the grapevine takes over to supply employees with the real news. Although the rumor mill can never be eliminated in organizations, it can only become truly harmful when it is the sole source of credible information. Leaders shouldnt be afraid to listen to the grapevine, though. It can help identify issues that are of concern so they can be addressed openly. It is a sign of strong communications in an organization when supervisors bring rumors up at a team meeting. I know theres a rumor going around that work will be transferred. Lets talk about it. Even if the message is not one that employees want to hear, open communications build trust. Rumors erode trust.
COMMUNICATIONS AND SYSTEMS ALIGNMENT

The first time someone does not live the new values (for example, achieving results at the expense of teamwork) and is promoted, the message communicated will be that the values are good as wall decorations, but not in the daily lives of employees. Compensation and promotion systems reward what really is important. Recognition systems communicate what is important, as well. Many organizations are moving away from employee-of-the-month systems that tend to lose credibility over time. Instead, they are using systems that provide recognition by peers as well as by superiors. These systems also encourage as-needed recognition and accommodate recognition for teams and individuals. Another example of a system that needs to be aligned is the customer service process, which requires so many forms and approval levels that real service often is delayed. The message sent is,The customer can wait. Examples of unaligned systems are plentiful in organizations. Asking the question,What is this system communicating about our values? helps determine how to align such systems. Aligning systems with organizational values ensures that the right message about desired behavior is communicated.
THRUST #2: SKILLS

If leaders are going to align organizational systems with values, they need to understand the systems from a communications perspective. The compensation system communicates quickly what is important. If salespeople are rewarded for new accounts rather than for client retention, they are sent the message that landing new accounts is more important than retaining old onesand that is what they will achieve. If plant managers are rewarded for production and not for quality, then theyll view production as more important. And if engineers are rewarded for speed of design and not for ease of manufacturing, then their future emphasis will be on speed.

Empowering people without providing them with the required skills is like driving down a dead-end street. Asking people to take on new decision-making responsibilities without preparation sets them up for failure. And failure discourages involvement. Figure 9 (page 18) outlines the major arenas to be considered for skill development in a highinvolvement strategy. Every job requires all types of skills.The skill areas are set up to help ensure that the full scope of skills is considered.

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Lack of skill in any arena significantly reduces an employees effectiveness. Skill arenas often overlap, with skills fitting into two areas. For example, customer service representatives might argue that the service skills specific to their jobs are more technical than interactive. This might be true, but the distinction might not be important. When considering the skills that need to be developed, leaders need to keep in mind that not all skills are learned through formal training classes. New skills need to be learned intentionally. This means that a need has been identified, the process for learning planned, and progress monitored. Such skills can be learned in training sessions, through such special assignments as participation on task forces, taking on the role of a trainer, and temporarily accepting new assignments. In addition, when providing training, leaders will want to keep in mind the difference between awareness and skills training. After awareness training, employees know about a topic (such as the organizations competitive situation); after skills training, they have the ability to perform a new task. The task can be technical, interactive, or team related. Awareness training makes people more receptive to new skills, but only skills training leads directly to behavioral change. Determining whether to provide awareness or skills training is often a return-on-investment decision. Awareness training takes less time (the investment) but also results in less behavioral change (the return). In addition, the decision will need to be made about the best mix of business, technical, interactive, and continuous improvement skill development. The word mix is key: A concentration in any one area wont be good enough.

Business knowledge helps employees understand how their jobs are related to the larger goals of the organization, why improvement is needed, and how the new values will drive the change. Organizations are becoming more open in sharing financial information, customer complaints, and competitive news. Business knowledge can be conveyed through awareness sessions, skills training, or regular communications channels. It is most powerful as an ongoing process and not a special event that is used only when a problem crops up.
Skills: Arenas for Action
Business KnowledgeIncludes knowledge of the organizations industry and competitive situation. Technical SkillsIncludes skills related to the particular job such as welding, budgeting, word processing, drafting, etc. Interactive SkillsIncludes skills that enable all interactions to occur in such a way that the values are supported, whether the interaction is one-to-one or in groups, or with peers, subordinates, superiors, customers, or suppliers. Continuous Improvement SkillsIncludes skills that enable employees to look at their outputs, job processes, and inputs, and then systematically analyze and improve them. Leadership SkillsIncludes coaching and reinforcing positive performance. In high-involvement organizations, leadership skills are required for team leaders and members, as well as managers. Systems to AlignPriorities include assessment, training plans, job rotation, career planning, and operational systems.

Figure 9

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Technical skills include those that enable employees to perform the basic tasks of their jobs. These include obvious skills such as assembling parts, using a computer, or writing a brochure. When asking employees to take on new responsibilities, these skills need to be examined more closely. Production employees might require skills in scheduling or budgeting. Engineers might require skills in price calculations and profit margins. Salespeople might require skills in contract language. Involving employees in identifying these skills is a first step in providing such skills. Interactive skills provide a direct link to turning new values into behaviors. Interaction is part of the process that helps work get done. For example, if the particular value being emphasized is teamwork, then interactions either build teamwork or they dont. In moving toward a high-involvement organization, interaction skills must be improved at all levels. As involvement increases, so do interactions, and interactive skills are essential. Continuous improvement skills include the systematic approach that every employee uses to make improvements in the organization. The steps for continuous improvement usually include assessing the situation, looking for causes, targeting ideas and solutions, implementing actions, and making these actions ongoing. The skills also include using tools such as cause-and-effect diagrams, run charts, and solution-implication diagrams. These skills become important as teams are formed to make improvements in an organization. Put 10 people on a team, and there will be 10 different approaches to problem solving. By providing training in one approach, teams can become efficient more quickly.

Empowered Team Member Skills

> Working in Teams > Self-Directed Teams > Participating in Meetings > Leading Effective Meetings > Rescuing Difficult Meetings > Valuing Differences > Reaching Agreement in Teams > Continuous Improvement Process

Figure 10

At this point, leaders need to put good management skills into action. In the highinvolvement organization, delegation must be appropriate. Leaders will find themselves seeking more information than they will give. Seeking, not telling, is the cornerstone of empowerment. It helps leaders fulfill their new role as coach rather than the traditional role as director. Successful performance will need to be reinforced. Being specific about this behavior leads to continuation of the behavior. Initiative, for example, should continue to be encouraged. The role of leader no longer will belong solely to traditional leaders. Professionals, frontline, and administrative employees all might be asked to lead cross-functional and project teams. With these new roles comes the need for new skills in leading meetings, reaching consensus, resolving conflict, and gaining buy-in for ideas. Figure 10 lists the skills required by team members in an empowered organization. Service skills are more important than ever. With the emphasis on the customer,empowered organizations encourage employees in manufacturing and engineering to meet the customer directly. In addition, continuous improvement efforts expand the definition of customer to include internal partners.
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Employees throughout the organization will be required to improve the way they meet both the personal and practical needs of their customers. They will need the skills to deal with dissatisfied customers and go one step further by encouraging customers to express their dissatisfaction.
SKILLS AND SYSTEMS ALIGNMENT

considered and aligned. Other systems need to change to allow time for learning. Nothing discourages using new skills like turning job enrichment into extra work by not shifting workloads or providing additional time so new assignments can be learned and enjoyed. If employees find it easy to acquire new skills, then management sends the message that it is serious about improvement. Asking the question,What is preventing skills from expanding? helps determine which systems need to be aligned to strengthen the skills thrust and enable values to become reality. The biggest barrier to strengthening the skills thrust is resources, and the resource of time is often a greater barrier than that of money. Organizations either provide time up front to teach skills, or time on the job as employees stumble, try again, and ultimately fail.
THRUST #3: ACCOUNTABILITY

For skills to be improved in an organization, systems need to exist that identify the need, plan for the development, encourage participation, and monitor progress. These systems include needs assessment, individual developmental plans, training plans, and performance management systems. Organizations today pay more attention to distinguishing between skills that are needed by all employees and those specific to certain groups. They provide training just in time for the skill to be applied on the job, and they understand that cascading some skills down the organization is a good way to develop skills and gain buy-in. Organizations that are serious about improving skills also understand that many operational systems need to be adjusted to encourage participation. For example, the production schedule might need to be rearranged, telephone coverage provided, and charge-back numbers made available. If the skills are more appropriately learned on the job or in special assignments rather than in the classroom, then systems featuring job rotation and career planning need to be

Empowerment does not mean that everyone (or, for that matter, no one) is responsible. It does mean that responsibilities and roles shift. In order to strengthen the accountability thrust in an organization, leaders will want to consider the arenas for actions outlined in Figure 11 (page 21). For change to occur and last, employees at every level of the organization need to know who is responsible for which objective, the expectations for how the objectives will be achieved, and the positive or negative consequences. An organizations performance management system plays a critical role in achieving accountability in the organizational structure.

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Accountability: Arenas for Action

Performance ManagementIncludes the process of clarifying expectations, providing coaching on fulfilling them, and tracking progress. This usually represents a key system to be aligned as well, but it is dealt with separately to emphasize its importance. Job DesignIncludes determining the tasks and responsibilities that are part of the job and what technical as well as interactive skills are needed. Organizational StructuresIncludes looking at non-traditional structures in order to improve the flexibility of the organization. Examples are networks, skunk works, and partnerships with support departments such as accounting, purchasing, and MIS. Team StructuresIncludes the use of functional, cross-functional, and self-directed teams in order to achieve improvement and empowerment. Systems to AlignPriorities include performance management, information management, compensation, promotion, and recognition.

They become twice as powerful when used to build a high-involvement culture by including behavioral feedback. An effective system clarifies expectations and provides feedback on objectives (the whats) and behaviors (the hows). The values can be reflected in both the whats and the hows. In a high-involvement organization, the objectives (the whats) are similar to those of traditional organizations; they still focus on critical success factors. In this case, however, the critical success factors have shifted. Instead of objectives that include just the quantity of products delivered or the number of customers served, they now include both quantity and quality goals and targets for customer satisfaction. These types of objectives reflect the values of quality and customer service. The values are also reflected in behavioral dimensions that determine how the objectives will be achieved. Although more difficult to measure, employees need to be held accountable for achieving objectives while living values such as teamwork, empowerment, and integrity. Although more difficult to measure, employees also need to be held accountable for such behaviors as running or participating in meetings, demonstrating initiative, interacting with internal customers, and willingness to contribute new ideas. Expectations and feedback in such areas make the values a daily reality. Figure 12 (page 22) shows how values can be demonstrated in both quantitative objectives and behavioral expectations. If both the whats and the hows are achieved, employees need to be rewarded and recognized. If the whats and hows are not achieved, employees need to receive coaching and development, or to have rewards withheld. Both the whats and the hows need to be linked clearly with the vision and values.
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Figure 11

The performance management system is a funnel that takes macro goals down to individual jobs and behaviors. Without such a system, critical business issues will fail to be addressed, and values will not turn into behaviors. In short, what gets measured and rewarded gets done. Recently, a Midwest retailer complained that a strategy to shift its merchandising efforts was not working. An investigation pointed out that the macro goal had never been broken into new purchasing goals, new promotional campaigns, and new shelving ideas. A strong performance management system would have corrected the problem. Performance management systems can be the linking mechanism for strategy implementation.

An effective system includes the full scope of contributions to the organization, both on the daily job and in cross-functional efforts. Such a system can be modified to include input from peers and internal customers. It is not a means of one-way communication. Employees need to be involved actively in generating objectives and expectations, tracking performance by having information available to them, soliciting feedback and assistance, handling reviews, and planning developmental activities. Feedback is an ongoing process, not an annual event. Employees who have had little or unsuccessful experiences with performance management systems can find them threatening. In order to decrease the threat, its important to have employees involved in designing and developing measures that track both objectives and behaviors. To measure progress toward the objectives, employees will need information on reject rates, complaints, scheduled delays, and so on. Information systems will need to be aligned to provide this type of data. Performance management systems play a strong role in providing the feedback that shapes the

new culture. Organizations moving toward high involvement also will want to analyze their jobs to ensure that opportunities for empowerment and involvement are inherently built into each job through job design. Job design includes looking at the responsibilities of the job from both a technical and a behavioral point of view. Responsibilities might shift in order to increase empowerment. For example, an organization might determine that purchasing supplies will shift from a management responsibility to a team members responsibility. This function of the managers job obviously has changed, but so have the required behaviors (the hows). Instead of handling purchasing, the manager now will coach others, passing along the learning gained from years of doing. This is a shift in responsibility, mindset, and behaviors. Jobs also need to be designed to include time for involvement in ongoing improvement efforts. This sends the message that involvement proactively looking for improvement areas, taking action on them, and developing the skills needed to become involvedis part of everyones job.

Linking Performance to Values

What
Number of customer requirements met Improvement in customer satisfaction levels Number and impact of process improvements

Values
> Quality > Service > Innovation > Collaboration

How
> Thoroughness and

completeness of work
> Treatment of

customers
> Exploration of new

ideas
> Seeking input and

offering assistance

Figure 12
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Just as job design can affect empowerment and involvement, so can other structural issues in the organization. An organizations structure provides the pathways by which interactions flow. In the move to high involvement, organizations often find that traditional structures do not provide flexibility. To achieve greater flexibility, the number of layers of management in a company is scrutinized and reduced over time. For example, a Japanese car manufacturer has seven layers of management between the factory worker and the CEO; American car manufacturers can have as many as 22. Other attempts to improve flexibility in the structure of organizations (while still maintaining strong accountability) include forming networks, skunk works, and partnerships that improve relationships between operations and support groups such as accounting, MIS, purchasing, and human resources. One of the most common structures for increasing flexibility, making improvements, and increasing both empowerment and accountability is the use of teams in the workforce. Teams can take many forms, but the most common are functional teams, crossfunctional teams, and self-directed teams. All need the guidance of managers and become highly empowered as they move from simply recommending responsibilities to, ultimately, implementing responsibilities. In other words, teams are accountable for implementing their own ideas.
FUNCTIONAL TEAMS

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The design department improving the process of tracking work in progress.

Any manager can encourage a functional team to begin looking at improvement opportunities within a department. Encourage is the key word, because these teams seldom will start on their own. Managers and supervisors can, of course, be part of these teams but will need to be careful not to dominate idea sessions.
CROSS-FUNCTIONAL TEAMS

Cross-functional teams focus on improving processes that cross organizational boundaries. Such teams are made up of members from various departments that affect, or are affected by, the process. Cross-functional team members should be selected from the employees who are closest to the work and really understand it. This often means that the teams not only are cross-functional but also represent a variety of levels. In addition, it is possible that the team might not be led by someone with traditional position power. Cross-functional teams have the capacity to confuse roles and responsibilities in an organization. Both employees and managers need to become comfortable with non-managers in leadership roles. Team leaders, no matter what their level in the traditional organization, now will need to hone skills once reserved for managers. These include facilitating meetings, dealing with conflict, and influencing others. Organizations struggle with how to integrate daily job duties with roles on cross-functional improvement teams. In addition, as teams move beyond recommending bodies to implementation, empowerment grows in the organization.
SELF-DIRECTED WORK TEAMS

A functional team is a department or staff that meets periodically for the expressed intention of improving the processes they own. Examples might include:
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The shipping department looking for ways to improve the process of pulling inventory. The claims department looking for ways to improve the process of documenting calls.

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A self-directed work team is an intact group of employees who are responsible for a whole work process or segment that delivers a product or service to an internal or external

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customer. To varying degrees, team members work together to improve operations, handle day-to-day problems, and plan and control work. They are responsible for getting work done and for managing themselves. This team structure pulls improvement efforts and empowerment into daily work more strongly than in the case of functional and cross-functional teams. In this structure, teams take on the accountability for improvement as part of the jobnot merely as an addition to the job. Many organizations are finding that self-directed teams provide a tremendous boost to the transformation of the organization and are directly addressing critical success factors. For example:
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These linking systems need to be aligned with the vision and values, just as the performance management system was. Compensation systems need to be aligned to ensure that pay and bonuses support values such as teamwork, acquiring new skills, and providing service to internal and external customers. Promotions need to go to people who live the values while meeting objectives. Career and development plans need to provide opportunities to strengthen behavioral dimensions such as team leadership, cooperation, analysis, and planning. Keeping expectations and accountabilities clear during times of change is especially challenging because they often are changing. Asking the question,Who is accountable, and how will they know they were making progress? helps determine which systems need to be aligned to strengthen the accountability thrust. The two most formidable barriers to strengthening the accountability thrust are assumptions and communications. As organizations get caught in the hectic pace of change, leaders assume that everyone knows where they are in the process, where they should be, and what has yet to be accomplished. Its only after the change stalls out that leaders stop assuming and start asking basic questions.
THRUST #4: SYSTEMS

A tire manufacturer that uses self-directed teams at its plant in Oklahoma produces twice as many tires with 35 percent fewer managers than its sister nonteams plant. A large insurance company increased productivity by 20 percent and reduced case processing time by as much as 75 percent within a year after implementing teams.

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Teams, regardless of their type, generate more ideas forand greater acceptance ofchange than can individuals. With teams, however, come the problems of unclear boundaries, overlapping responsibilities, and limited resources. These are all issues that organizational leaders need to address, and this often means looking at the systems that are creating barriers to success.
ACCOUNTABILITY AND SYSTEMS ALIGNMENT

One of the first systems that organizational leaders will want to align with the new vision and values is the performance management system. Due to its importance to the accountability thrust, it was handled in detail earlier. Performance management systems usually feed into compensation, promotion, and career planning and development systems.
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Organizational systems are both a cause and an effect of organizational values. Such systems enable specific behaviors to occur, and they reflect what is important to a company. For example, it is difficult to encourage the value of innovation when there is no system in place that encourages ideas to be suggested, developed, evaluated, and implemented. Similarly, even if an organization emphasizes the need for customer satisfaction, it is obviously not important when the existing systems highlight only issues of finance and quantity.

Systems need to be integrated to ensure that the values are reinforced consistently. Teamwork often is identified as a value. It becomes part of an integrated system when it forms a basis for decisions with regard to hiring, promotion, performance reviews, recognition, compensation, training, and career development. By making teamwork an important part of each of these systems, it integrates the systems, prevents the sending of conflicting messages, and both encourages and reflects the values (see Figure 13).
An Integrated Human Resource System

Performance ManagementWhat gets measured gets done. If the objectives of a performance management system dont link directly to the vision and values, there is little chance of making them a reality. CompensationOrganizations need to rethink their compensation plans to ensure they are rewarding behavior and objectives that support the vision and values. Salespeople need to be rewarded for customer retention; operations need to be rewarded for quality as well as quantity; and support groups, such as engineering, purchasing, and accounting, need to be rewarded for building internal partnerships. Information ManagementEmployees need more information if they are empowered to track and monitor their own performance. In the past, information systems have provided only financial information. In the high-involvement organization, they also need to provide information on the satisfaction of both internal and external customers. In addition, employees should receive information directly instead of through several layers of management, which might cause delays. RecognitionRecognition is a powerful reinforcer. Awards, recognition letters, and celebration luncheons symbolize our achievements. Recognition affects future behaviors. People are inclined to repeat actions for which they are rewarded. Organizations can shape behavior by recognizing behavior that demonstrates the values. PromotionsIn a high-involvement organization, people are promoted who lead in an empowering manner. This means promotions based not only on results but also on achieving results while supporting values. Few actions kill credibility faster than talking about the importance of certain behaviors and then promoting someone who is the antithesis of those behaviors.

Career Planning Assessment Succession Planning

Dimensions
Performance Appraisal

Recruitment and Selection

Training

Job and Team Design

Figure 13

Although we discussed each of the other thrusts and systems earlier, they are summarized again here. The summary emphasizes that the thrusts are not separate efforts. They must be coordinated, occur concurrently, and align with organizational values in order to achieve a culture change. CommunicationsFormal communications systems need to be changed to provide information on customers and examples of the values in action. Using many quotes from employees will provide recognition and add credibility.

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SelectionSelection systems need to be aligned so they can identify people whose behavior on the job demonstrates the values. It is a waste of time and effort to work on building a continuous improvement culture and then let just anyone into it. TrainingTraining communicates expectations as well as provides skills. If training that supports values such as customer service, continuous improvement, and teamwork is lacking, employees will doubt their importance. It is critical to provide skills training, as well as awareness, and to focus the training on the needs of the individual. Training should not take place cafeteria style, with employees picking and choosing what they want. It should be linked strategically to the change for which the organization is striving. Job RotationIf teamwork and flexibility are to be organizational values, then employees need to possess a variety of skills so they can rotate among various jobs. In addition to skills, job rotation systems add the diversity and challenge that fuels high involvement and empowerment. Career and Development PlanningPlans for personal development and organizational advancement need to include opportunities to strengthen behaviors as well as to acquire technical skills.

Operational Policies and Procedures Comparing operational policies, procedures, and processes against the values of the organization will identify standard operating systems that are in conflict with the values (such as multiple approval levels that not only slow cycle time but also demonstrate a lack of trust). Aligning organizational systems with values is a never-ending task. As leaders and employees gain more experience and comfort with empowerment, they are willing to address more and more systems to unleash talent. Early in the empowerment journey, for example, it might seem impossible to move from four levels of approval to two for a certain purchase. Later, one approval level becomes the obvious answer. Or, it might seem threatening to involve peers in the performance feedback process; later in the journey such involvement becomes typical. Although aligning systems is critical in the movement to high involvement, it is also often overlooked. This is because of a common viewpoint that holds,Weve always done it this way. This means that, in effect, the system has become invisible. By addressing all systems in each phase of a culture change and in all four thrusts, systems alignment becomes a priority and remains one throughout the change process.

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IMPLEMENTATION
THE CHALLENGE OF JUGGLING THE FOUR THRUSTS

Leaders often ask,Which thrust do I start with? and What is the proper sequence for each action? The logical approach would be communicate, provide skills training, hold accountable, and align systems. Change, unfortunately, isnt that easy. Although this is the basic flow, communication is continuous, the required skills keep expanding, accountability keeps changing, and systems are aligned and realigned throughout the process. In addition, anytime struggles or barriers are met, any or all of the thrusts are adjusted. It is crucial to get employees involved in the design as well as the implementation of the high-involvement strategy. Cross-functional teams can be set up to plan for the strengthening of each thrust. The leaders of the organization play a critical role in ensuring that teams stay focused and that their ideas and plans are integrated. If the plans are not integrated and prioritized, the effort degenerates quickly into much activity with little result. Implementation often will stall out because teams are structured only to make recommendations and not to help with implementation. For example, if a team is formed to determine how a performance management system can better support organizational values, the team might determine that the system doesnt promote teamwork or continuous improvement, and recommend that it be restructured. The organizations leaders then should choose how to implement this recommendation. They might thank the team and turn their recommendation for restructuring over to the human resources department for implementation. Or they might ask the team to stay together to lead the restructuring.

The second alternative takes another step toward high involvement, but it requires more alignment of accountabilities. The team, instead of a functional department, now researches systems and benchmarks other organizations. The team is involved in designing forms, communication, and training to support the new system. The team also monitors the effectiveness of their recommendations and adjusts their approach as necessary. The jobs of team members need to allow time for these added responsibilities, and performance feedback should include their contributions. Initially, the high-involvement strategy requires special attention, with carefully identified teams that have specified charters, members trained in a team process, and strong sponsors. This attention is important as organizations learn how best to use teams. Its important to achieve early success; this is easiest when dealing with a few teams rather than many. Organizations should start small and focused and encourage involvement and participation, with teams growing at a steady and somewhat controlled pace. Eventually the high-involvement strategy becomes a way of life. Teams will continue to have members with the right skills, and specified charters and sponsors. The organization will have learned what types of projects are best assigned to a team. The skills required to be part of a team will be so common that team start-up and progress is rapid. Teams will form and disband as new issues arise and are resolved. In a high-involvement organization, both leaders and employees know that the high-involvement strategy needs to be monitored and refined constantly. If ignored, it will deteriorate. In addition, once people experience the benefits of a high-involvement culture, they always are looking for ideas that will increase empowerment, and they remain curious about
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the benefits achieved by moving another step to the right on the Development Continuum (Figure 7, pages 12-13). As actions within the thrusts are implemented and the pace of change picks up, organizations can become unfocused and confused. The link

of the actions within each thrust to the vision, values, and critical success factors keeps organizations focused on the task. Measurements send messages that also help organizations stay focused and committed.

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MEASUREMENT AND COMMITMENT

In the Value-Driven Change Process, measurement might have been covered under communications, because thats one of its primary functions. It might have been included under skills because it will be new to many people. Some type of measurement would be an obvious way to strengthen accountability, and a system is needed to make it useful. The position of measurement in the process links it to commitment as a means of showing why it is important. Measurement lets people know that progress is being made. Think back to the games of your childhood. Remember the times when someone suggested,Lets play but not keep score. Those games were probably short and not much fun. Measurement adds to the interest (and fun) and certainly doesnt need to be a source of fear. During the change process, measures need to include more than financial numbers or information on production runs. Measurements need to demonstrate the link between values and the critical success factors. For example, they need to include the perceptions of external and internal customers, or indications that innovation or teamwork is improving. Leaders might think this is soft data, but even soft data are better than no data at all and can be strengthened over time. Figure 14 lists the criteria for effective measurement systems. Measurement also helps to build commitment. Measurement provides information on progress, and progress should be celebrated.

Celebrations combined with measurable progress and a sense of accomplishment also build commitment. Celebrations also provide recognition and encourage involvement.
Criteria for Effective Measurement Systems
1. Provide continuous data so employees can monitor progress daily. 2. Avoid measuring too many things. Measure whats importantthose things that link to the vision and values. Extraneous measures cause confusion and diffuse efforts. 3. Include measures of internal customer satisfaction; this strengthens the partnership chain that supports the external customer. These types of measures can be difficult, but soft measures are better than no measures in this area. 4. Include a comparison level or a bench mark. This communicates what is possible. 5. Make sure measurements are easy to use and understand.

Figure 14

Measurement deals with the head; commitment comes from the heart. Both the head and heart of an employee must be involved to make change work. The head wants information; the heart celebrates success and strives for greater achievement. Gaining commitment is a top-down, continuous process. Leaders need to be consistent in the message they send and the values they live. As their commitment is demonstrated through consistent action, commitment and trust grow in the organization. People will believe that high involvement is a reality, and continuous improvement will keep it alive.

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CONTINUOUS IMPROVEMENT
The following beliefs form the foundation of an empowering culture and can be used to trigger thinking about a move toward high involvement in your organization: 1. The customers needs are critical. 2. Anything can be improved. 3. Quality is everyones job. 4. The person doing the job knows it best. 5. People deserve respect. 6. Teamwork works. 7. There is value in differences. 8. Involvement builds commitment. 9. Support builds success. 10. You make the difference.

The journey to high involvement and continuous improvement never ends. New business issues will arise that refocus and energize the efforts. When continuous improvement becomes a cultural trait, an organization has made great progress in its strategy for high involvement. At this point employees at every level ask,How can we be even better? And no one fears the changes that come with answering this question. Our thanks to Jill George, Jeanne Wilson, John Hayden, and Rich Wellins for helping to shape the ideas in this monograph.

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ABOUT THE AUTHORS

Robert W. Rogers is President of Development Dimensions International. A recognized expert on assessment, leadership, performance management, and organizational change, he has presented at major conferences around the world and authored numerous articles, monographs, and book chapters. Bob was the lead author of the book Organizational Change That Works: How to Merge Culture and Business Strategies for Maximum Results.

B. Jean Ferketish, Ph.D., when this monograph was written, she was a senior consultant, quality improvement, in the Organizational Change Group at Development Dimensions International (DDI). Her responsibilities included leading total quality implementation projects, facilitating planning sessions with top executives and client implementation teams, and developing processes to address special implementation problems, such as plateaued efforts, ineffective teams, etc. Ms. Ferketish has a Ph.D. in instructional design and technology and an MBA from the University of Pittsburgh; she also holds a bachelors degree from Duquesne University.

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THE AMERICAS
WORLD HEADQUARTERS PITTSBURGH 412.257.0600 MEXICO CITY 52.55.1253.9000 TORONTO 416.601.5500 Other major offices in Atlanta, Chicago, Dallas, Detroit, Los Angeles, Monterrey, Montreal, New York, St. Louis, San Francisco, Santiago, and So Paulo

ABOUT DDI. Since 1970 Development Dimensions International has worked with some of the worlds most successful organizations to achieve superior business results by building engaged, high-performing workforces. We excel in two major areas. Designing and implementing selection systems that enable you to hire better people faster. And identifying and developing exceptional leadership talent

EUROPE/AFRICA
DSSELDORF 49.2159.91680 LONDON 44.1.753.616.000 PARIS 33.1.41.9686.86 Other major offices in Johannesburg, Utrecht, and Warsaw

crucial to creating a workforce that drives sustained success. What sets DDI apart is realization. We focus on the needs of our clients and have a passion for their success. The outcome? You bring the best people on board, who get up to speed faster, contribute more, and stay longergiving you the ultimate

ASIA-PACIFIC
HONG KONG 852.2526.1188 SINGAPORE 65.6226.5335 SYDNEY 61.2.9466.0300 Other major offices in Auckland, Bangkok, Jakarta, Kuala Lumpur, Manila, Melbourne, Seoul, Shanghai, Taipei, and Tokyo E-MAIL: INFO@DDIWORLD.COM WWW.DDIWORLD.COM

competitive advantage.

POWERING SELECTION SUCCESS

DEVELOPING EXTRAORDINARY LEADERS

UNLEASHING EXECUTIVE TALENT

*C32T*
C32T MKTCPMN06-1294-0205 Development Dimensions International, Inc., MCMXCIV. Revised MMV. All rights reserved.