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th

4 Dimension of
Management
Alternative Solution to the
Organizational Crisis &
Economical Turmoil

Dr. Ahmed Mukhtar,

ahmed@tomorrowconsultancy.com

Kingdom of Bahrain

March 2009
Index
Title Page

Beginning of New Era 3

Management Concepts 6

Globalization & Organization 6

Management Practices 9

Concept of Organizational Spirit Management 11

Basis of Definitions & Characteristics 12

Definition of Spirituality in Organizations 13

What is Organization Spirit 14

Leadership & Spirit Management 14

Strategies & Organizational Spirit Management 15

Tips for Successful Strategic Planning 17

Seven Management Planning Tools & Spirit Management 17

Organizational Strategy Implementation 18

Strategies of Organizational Spirit Management - ! 19

Compliance Systems & Strategies for Organizational Spirit Management

Implementation 21

Strategies of Organizational Spirit Management - II 21

Helpful Practices 24

Building Spirit 24
Beginning of New Era

In my web-site www.ahmedmukhtar.com - is no longer active - as I kept my articles


through conferences and training seminars and workshops, I started the articles
following September 2003 New York incident; I have been digging the integration of
such eras for Organizational Development (OD). The global economic turmoil enhances
my previous management agonies that we do need new management conceptual
frameworks despite that if finance and economic are the causes, management process
of these two are integral to a holistic picture of business, finance, and economic of both
private and governmental sectors. The current global economical turmoil exploited how
much our finance system is weak and fragile. The fact that finance and management
systems within organizations are integrated and interrelated brings to our attention that
management system is also responsible for such global and economic catastrophe.
This is a sign that presence of such finance and management structure, systems,
processes, policies and operations could result of repetition of severe global
catastrophe in future. In this regard the governments, organizations and corporate are
desperately working for new global and local finance structure. The question comes
what about the management system and structure?

We usually fail to recognize the natural abilities of our team and individuals. We do have
to look for the source of the whole wheel for our organizational development (OD) that is
behind our management concept as whole. The fact of the three basics management
domains, finance, environment and social are not only the frameworks that
encompasses the organizational management is understood by several other factors
being which were not placed under clear domain shaping an incomplete picture of our
whole management understanding. Therefore our management concept is moving on
three legs rather on four or more.

Several authors and experts pinpointed and studied such factors and spirit management
is realized as integral part of management. My intention is to keep most of those factors
and parameters in a new domain as spirit domain. Such ignorance of these factors and
spirit management domain as the fourth domain of organization due to severe
management deficiency of some major parts of its contents that resulted in break down
and falling a part of major economic, political, finance, and other sectors as seen in
most of management, and economical crises affecting all levels and categories of
business and public sectors. High fuel costs. Weakening demand, subprime mortgages.
Meltdown, credit crunch, bailout of investment firms and banks, stock prices down,
recession, depression fears, etc are the major concerned in current situation. The
current incidence is part of continuous cycle of such events in this century, while being
severe it is not the end and it is the first. This shows how our economy and international
policies are deficient and there is a need for urgent reform of our finance and economic
structure. A look upon all these is the management concept that controls and runs such
system locally and internationally. In one world we need to look at our management
system and concepts deeply and root reform is needed. There is turbulence and
uncertainty throughout the global economic system. We do need short and long term
solutions. While short solutions require immediate actions to stabilize our organizations
the long term are solutions are the integral part of organizational growth and stability.

Current situation requires bold move in our management and economic system for
some organizations. This is the time that the management consultant to look at their
holistic approach needed to help organizations to move beyond the current
management system to a new era of the four management domains; Finance,
environment, social and spirit.

Cash flow generation, general operations status, access to capital markets and rollover
financing, commercial properties market outlook are some of economical status but all
require a comprehensive management solutions in implementing, tracking, controlling
and assessment to reform and select proper systems and solutions. We need to keep
management’s prudence and capability in a crystallized picture. There is no one
solution to our economic and management chaos and we do have some systems,
methodologies and strategies to evolve and gather handy results. If Toyota, the
architect of lean thinking is affected and other giant international companies affected is
to the global management lack of enough policies, systems, strategies and no
management concept alone can give the right remedy. Our management consultants
have to come to the scenes and work globally to give such support.

Financial crises can originate in an industrial country, being with best infrastructure and
economic policies in place, but financial standards did not tolerate such typhoon. The
second is that a crisis in a systemically important country will project its impacts
everywhere: giving it more of a regulatory, supervisory to our governmental and
international organizations have changed our look at the financial and management
systems. Global economic and management governance are needed. All these show
we do lack an integral part of our holistic management domains.

Change management needs strategic reform and building domestic demand which is
pushing the economy within our organizations need to be reformed, and ask ourselves
what is lacking behind our current management systems. We do need awaken and
visualize our management concepts.

China's role has made us to rethink about the success that China has made in the
manufacturing sectors. The cost effectiveness has prompted the Western
conglomerates to shift manufacturing bases to China, in order to remain competitive in
the global market. This does not mean that China is going to be immune in such
economical events in future but we do need to take deep look at the some countries
economical culture that is behind such development. Do we need stick or by carrot!
Transformation leadership will play the most important role to generate confidence in
the mind of the stake holders. Organizations have to be revitalized, rejuvenated and it
requires a well thought after balanced turnaround management process.

There are several management looks and concepts such as Blue Ocean strategy which
was formulated by the Insead Business School Professors Kim and Mauborgne clearly
explains that tomorrow’s leading companies success will not by fighting competitors, but
by creating “blue oceans” of uncontested market space which will enhance in terms of
market share and profitability and market capitalization growth. Such every day new
theories are still lacking the comprehensive approach for our management systems.
Despite we do need individual management concepts, models and systems for
individual organizations but these systems showed be comprehensive in its
implementation strategies. Whether organizations need the Blue Ocean system as a
new market place as it is absolutely new space for firms to cater to the un served
customers or the Red Ocean as a highly competitive market with lot many players
operating in that market place and firms margins are under pressure. Management
consultants are bombarded by daily new innovative and creative management models
and systems. In reality we do need to be bombarded by such new information and
management data. In same time we do need to relax and look at the organizational
management domains.

Management Conducts & Organizational Path

►High ROI and Profit


►Bad Management & Finance Practices
► High Productivity & Performance
► Weak Standards , Regulations & Control
► Systems Coherence
systems
► Employees and Clients Satisfaction
► Un appropriate Tools, Measures, &
► High & Steady Growth
Processes
► Immune to Organizational Collapse & Fall
► Four Management Domains Factors not
Considered
► Poor Spirit Management Conducts

Organization

► Good Management & Finance Practices ► Productivity Decrease


► High Standards, Clear Regulations & Control ► LOW ROI
systems ► No Profit and Lost of Capital
► Proper Management Tools, Processes & Measures ► Organization Collapse
► Active Four Management Domains Fragile Organization
► High Spirit Management Conducts ► Economical Turmoil
Management Concepts

The world's most popular management approaches described by The 12manage Global
Top-10 (www.12manage.com) as a measurement of the current global popularity of
management concepts are as follow:

1. Five Forces (Porter)


2. 14 Principles of Management (Fayol).
3. Mind Mapping (Buzan)
4. SWOT Analysis.
5. Marketing Mix (McCarthy).
6. BCG Matrix.
7. 7-S Framework (Mckinsey).
8. Value Chain (Porter).
9. Competitive Advantage (Porter)
10. Balanced Scorecard (Kaplan)

These concepts make the border lines of organizational management structure as well
and measure the three dimensions of management while the spirit management is over
lapped with social and environmental. Thus spirit management is not taken as separate
identity and there is a need to seek such factors integrated in spirit management
dimension. The question relies that such concepts are needed to include the spirit
management components for both organizational and individuals. The lack of
comprehensive and integrated parts within our organizational management systems
and concepts makes our systems fragile and weak towards internal and external forces
and changes.

Globalization & Organization

Globalization and organization are parallel to each other while most organizations must
achieve high performance within a complex and competitive global environment.
Globalization refers to the complex economic networks of international competition,
resource suppliers, and product markets. The quality of regulation is a crucial
determinant of the competitiveness of financial markets. Such regulations are enhanced
by the organizational management development to cope with such crises and reduce
the risks and high light the prevention in future.

In the new knowledge-driven economy, people are the organizations most precious and
underutilized resource. They are the organizations repository of knowledge and they are
central to your company's competitive advantage. At all levels, the organization needs
people who can deliver at the frontier of performance. They must understand where
your company is going and be able to influence this path. They must share in your
company's fortunes and be motivated to push for greater achievements. Better
understanding of the spirit concept of individuals, teams, and organization is needed. It
is understandable that such organizations have individual characters and the
interference of society and global spirit components are essential for organizational
growth. Thus clarifies that the current management systems needs to be developed,
revised, and revived to cope with current economical and political crises.

Our understanding and managing of religion, values, power distance, Individualism-


collectivism, Masculinity-femininity, attitudes toward the environment (inner-directed and
outer-directed cultures), ethics, motivation, behavior, parochialism and ethnocentrism
and culture within organizations locally and globally can influence the operations,
processes, systems, services and products. These were studied but specific measures
and systematic approaches are still needed.

Organizational leaders and management consultant probably need an urgent sauna and
refreshing spa with some stress management to realize how we are in not good picture.
Do we need to relax in the current global economic turmoil or to start intensive and
events?

Management Practices

In 2005 the Centre for Economic Performance, LSE, and McKinsey & Company used
an innovative new approach to survey management practices in over 700 firms in the
France, Germany, the UK and the US.

The research finds that:

• US multinational subsidiaries based in the UK, France and Germany are also
better managed than either domestic firms or other non-US multinational
subsidiaries
• Superior US management performance seems to be driven by more product
market competition, higher levels of worker and management skills, and lower
levels of labor regulation
• Countries have distinct management cultures - with German firms excelling at
shopfloor management and US firms excelling at people management.

These results and other studies showed a compiling management practices amongst
different companies and organizations and different countries. The management
practices differences are based on individual organizations and country and this is a fact
that to be concerned and needed to suite each company and country but in same time
there are general management practices that to be followed in systematic manner. We
do believe that each company and organization has its own culture and identity And in
another world it ha sits own spirit that to be considered.

I believe that the current global economic turmoil is the turn point for a drastic changes
in global economy, politics and role players of the developed countries that it will have
some of it effects to remain for several years to come even with economical
development within 1-2 years back. The geopolitics are related to such thing will
enhance the floor for new players in the economy and politics in the world. The
economy and politics are interrelated to the management practices, concepts,
processes and systems. This is the time for new era in management, the fourth domain.

Globalization & Organizations

Globalization

Economy Society Politics

Organization

Management Individuals
Systems

Spirit
Management
Spirit Management.

Spirit is rooted deeply in the individuals and organizations that empower both the
organization and the workforce for mutual attraction. The word spirit as it attracts us to
its own protected entity. It has taken the attention of several scientists, writers,
managers and researchers. This protected entity clarifies the need for its exploration of
the definitions towards the organizational development. To get a good insight to the
spirit within workplace and organizations we have to emphasis on its characteristics,
definitions, boundaries, and consensus.

Individuals usually look deeply in inside themselves searching their rooted values, vision,
goals, experience, believes, practices, principles, personality, relationships, imagination,
ideas, creativity, sacredness, and energy, as a holistic approach that is reflected
towards others spirit and organizations.

Whether the spirit is reflected as holistic or partially within the workplace, it reflects on
organization as whole. The individual spirit enhances the organizational spirit and its
measurement becomes more complex and makes its management even more tangible
and complicated.

What spirit?

Spirit and soul are two words that are commonly configured together in the enterprises.
The spirit definition has many meanings and concepts. However the igniting the spirit of
the workforce within the workplace will direct the spirit of the organization alignment to a
unified vision, mission, values, goals, strategy, systems, processes, marketing,
innovation, communication strategies.

In the part of individuals spirit involves mind, will, religious practice, feelings, mood,
emotion, energy, courage, life, courage, ardour, vivacity, value, dedication, loyalty,
enthusiasm, activity, temper , and intellectual or moral state. The belief is a strong issue
of the individual spirit that includes sacred, unity and transformation.

The search for direction, meaning, inner wholeness and connection to others, to non-
human creation, and to a transcendent defined by Gibbon’s (2000). Krishnakumar and
Neck (2002) describe spirituality as being pluralistic.

Moch and Bartunek (2002) contend that spirituality and religion cannot be separated. .
Pratt (2000) described that religious values deeply infusing into the organization. Tosey
and Robinson, (2002) pointed that personal transformation that must take place in
developing spirituality and its relationship to organizational transformations. Others have
pointed that spirituality should be seen as separate from any religious context.

Howard (2002) mentions that business leaders who are open to spirituality and think
more deeply about their impact on organizations serve as role models for employees
and may lead to greater individual spirituality at work, resulting in benefits to the
organization. McLaughlin (2001) claims that the most effective way to bring spiritual
values into the workplace is to clarify the company’s vision and mission, and to align
them with a higher purpose and commitment to service to both customers and
community.

Dehler and Welsh (1994) mention that emotion and feeling as having an implicit role in
organization transformation, thus forming the genesis for organizational spirituality.
MacDonald, Kuentzel, and Friedman (1999) review ten different instruments purported
to tap spirituality and related constructs ranging from the Expressions of Spirituality
Inventory to the Psychomatrix Spirituality Inventory. Cacioppe (2002) describes that
spirituality in the workplace is the only way leaders and organizations can succeed.

An organization as it is composed of a group of persons and teams could be focused on


their essential nature and strong royalty or dedication. In response the organization
commitment, respect and Value for each employee, client, and business partner A
prime consideration of their employees expectations, honesty, integrity, learning and
development, compassion, creativity, flexibility, behavioural, confidentiality,
professionalism ,expectations, and leadership based on the ground of the organizational
culture and values. In same respect the employees’ commitment to the organizational
vision and contribution of their best selves and peak performance to achieve the
organizational strategies and goals.

The integral part of the organizational spirit is a healthy, strong and quality relationship,
networking and communication both within the organization and externally toward
customers and vendors.

Can the organization be alive by itself? Yes, as it composed of certain systems and
employees that make its power to be alive. It grows and goes through all the up and
downs where the healing is needed. It is alive due to its culture, values, image, goals,
mission, operations, service, product, etc. As human beings it has its own spirit where it
is a collective of all its intra and extra structures and relationships.

The organization spirit progresses as the organization goes through certain


developmental and changes periods. We have to believe that it is as a living entity due
to its core, depth and roots that are integrated in the organization system. The
organization spirit is as it is not only a collective spirit of its group of employees but also
due to all components of its structure. This spirit could influence the employees, society
and environment. Therefore its spirit requires management to ensure its living among
other organizations within the society and environment locally and globally.
So, what is Organizational Spirit?

Spirit as mentioned above is the root and base for all the organizational structure. It
holds and unifies all ingredients and components of the organization. As mentioned the
consideration of the employees expectations, religion, honesty, integrity, learning and
development, compassion, creativity, flexibility, behavioural, confidentiality,
professionalism expectations, and leadership, vision, goals, experience, believes,
practices, principles, personality, relationships, imagination, ideas, creativity,
sacredness, and energy, based on the ground of the organizational culture and values
will make the foundation of the organizational spirit. This is incorporated with
organizational values and culture and other organizational domains such as
organizational structure, processes, systems, activities and projects.

Concept of Organizational Spirit Management

Suggestion that the life of an organization is similar to the shape of a bell curve, that is,
the organization experiences a rise of health; it peaks, and then gradually declines.
Organizations are both spiritual and material in nature. In their youth, they possess
spiritual rather than material assets. In decline, this is reverse. Health is maintained by
unifying the spiritual and material assets.
Spirit Management Factors & Components

Society
Culture, Believes, Religion, Customs,
Practices and Values

Employees
Organization
Expectations, religion, honesty, integrity,
learning and development, compassion,
Culture creativity, flexibility, behavioral,
Values confidentiality, professionalism expectations,
Processes and leadership, vision, goals, experience,
Structure believes, practices, principles, personality,
Systems relationships, imagination, ideas, creativity,
Projects sacredness, and energy.
Activities
Areas of focusing:

1. Organizational spirit management.


2. Transition and change management.
3. Strategy focusing and Implementation.
4. Systems, tools and techniques of strategic compliance of organizational spirit
management (e.g. Six Sigma, Balance Scorecard, EVA, ROI, ABM/C, SOX,
Integrated mapping, TBL, KM, and VE).
5. Proposed model of organizational spirit management and quality strategies and
systems implementation.

►Emphasis on Spirit’s:

►Characteristics,

►Definitions,

►Boundaries,

►Consensus.

The individual spirit enhances the organizational spirit and its measurement becomes
more complex and makes its management even more tangible and complicated.

Basis of Definitions and Characteristics:

1. Religious

2. Epiphany

Defines spiritual development as arising through a series of discontinuous awakening


experiences.

3. Manageable

(a) sees spirituality as affected by leadership and management. For example, an


individual=’s spirituality may be increased by the expression of a manager=’s values or
by behavioural incentives for individual or group actions.

(b) sees an individual=’s spiritual level as impervious to managerial actions or


incentives.

4. Teachable

(a) sees someone=’s spiritual development as impacted by external influences such as


formal courses on the concepts and principles of "A spirituality " or listening to
speakers/teachers on the subject.
(b) sees someone=’s spiritual development occurring only or primarily through individual
or solitary actions: meditating, being in nature, reading spiritual and/or religious writings,
etc.

5. Individual Development

Ties spiritual development to a predetermined set of "A stages" of individual


development common to all people.

6. Organizational Development

Sees an organization collectively as being in a particular stage or level of development


common to all organizations.

7. Measurable

Sees the concept of spirituality as measurable, typically through a survey instrument.

8. Productive/Profitable

Offers claims/evidence that spirituality is correlated with organizational performance.

9. Nature of the phenomenon

(a) sees spirituality as strictly an individual concept.

(b) sees spirituality as both an individual and a collective concept.

Definitions of Spirituality in Organizations

Mohamed, Hassan, and Wisnieski (2001) claim there are more definitions of spirituality
than there are authors/researchers to write about it.

Howard (2002). Khanna and Srinivas (2000)

Margulies (1972)

Levine (1994)

Boozer (1998)

Levy (2000)

Mason and Welsh (1994)

Lichtenstein (1997)
So, what is Organizational Spirit?

Spirit holds and unifies all ingredients and components of the organization. As
mentioned the consideration of the employees expectations, religion, honesty,
integrity, learning and development, compassion, creativity, flexibility, behavioral,
confidentiality, professionalism expectations, and leadership, vision, goals,
experience, believes, practices, principles, personality, relationships,
imagination, ideas, creativity, sacredness, and energy.

Based on the ground of the organizational culture and values will make the foundation
of the organizational spirit. This is incorporated with organizational values and culture
and other organizational domains such as organizational structure, processes, systems,
activities and projects.

An organization as it is composed of a group of persons and teams could be focused on


their essential nature and strong royalty or dedication.

The integral part of the organizational spirit is a healthy, strong and quality relationship,
networking and communication both within the organization and externally toward
customers and vendors.

Spirit composed of certain systems and employees that make its power to be alive. The
organization spirit progresses as the organization goes through certain developmental
and changes periods.

Humanistic Approach & Spirit Management

Humanistic Approach, based on the idea that human motivate by more than economic
rewards. They also required satisfying social relation and personal fulfillment. In 1924
by Elton Mayo undertook research at the Hawthorn Works Plant of the Western Electric
Company in Chicago. This research determined how economic incentives and the
physical conditions of the workplace affected the output of worker. This research found
human interactions in the workplace and influences to productivity. Spirit management
is a holistic approach looking at the humanistic as one ingredient to its complex nature
and individuals are the core components of organizational spirit.

Leadership & Spirit Management

There is a new era that has spread through the business world that involves rapid
changes. One rapid change is that management has increasingly become a leadership
task. Leaders help employees act on the vision of the company. In spirit management
the concept of leadership relies not only on top and middle management levels but
looks at each individual employee within organization as being a leader in his position
and tasks. It is believed that every employee has specific tasks and responsibilities and
this has to play a role of leader in his profession and job. Thus leadership
responsibilities are broken down in the organizational structure to contribute to the
overall organizational middle and top leadership. Each individual has to be responsible
for his own tasks and be a leader in his individual job.

Strategies & Organizational Spirit Management

Strategies & TQM

Spirit as mentioned is the root and base for all the organizational structure. It holds and
unifies all ingredients and components of the organization. The concept of spirituality as
measurable is typically through a survey instrument.

Total Quality Management as a tool for spirit management could be fruitful and TQM
has proven to be an effective process for improving organizational functioning, its value
can only be assured through a comprehensive and well thought out implementation
process.

Principles of effective planned change implementation and suggest specific TQM


applications.

1. TQM is a viable and effective planned change method, when properly installed;
2. not all organizations are appropriate or ready for TQM;

3. preconditions (appropriateness, readiness) for successful TQM can sometimes


be created; and

4. leadership commitment to a large-scale, long-term, cultural change is necessary.

Organizational Spirit & Spirit Management

The rapid and continual innovation in technology is driving changes to organizational


systems and processes. The increased expectations of employees as they move more
freely between organizations, and, of course, globalization has seen the tearing down of
previous international market barriers. In spite of the importance and permanence of
organizational change, most change initiatives fail to deliver the expected organizational
benefits. This failure occurs for a number of reasons.

Failed organizational change initiatives leave in their wake cynical and burned out
employees, making the next change objective even more difficult to accomplish. It
should come as no surprise that the fear of managing change and its impacts is a
leading cause of anxiety in managers.

Current organizations require fundamental changes in their management concept and


systems. As most of the current management practices can not cope with dramatic and
disastrous economical and organizational failures. The need for a comprehensive and
integrated change management model is more realistic than before. Looking at the
basics of individuals and corporate spirit components are the foundations for such
changes that should be incorporated.

Corporate development & Individual Spirit Concepts

Change Management

Leadership Organizational
Development

Emotional Social
Business
Intelligence Responsibilities
Spirit

Individual Corporate
Spirit Vision, Mission
& Strategies
Perceptions, Corporate
Experiences Spirit

Environmental Concepts

Resistance to Change

C = (A + B + D + S) > X

C = Change

A = Level of dissatisfaction with the status quo

B = Desirability of proposed change

D = Practicality of the change


S = Sprit Factors

X = Cost of changing

Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition to
a new system such as: identifying tasks to be done, creating necessary management
structures, developing strategies for building commitment, designing mechanisms to
communicate the change, and assigning resources.

Ledford (cited in Packard & Reid, 1990) has proposed a model including four processes
which are forces which determine whether a change will persist through the phases of
institutionalization: the change (TQM) with the organization, the change with other
changes initiated at the time, the change with environmental demands, and with the
level of slack resources in the organization.

Tips for Successful Strategic Planning

1. Set up a solid and benchmarking structure

2. Use a strategic plan to drive accountability and alignment.


3. Involve every associate in the planning process.
4. Obtain formal agreement from everyone involved in the process.
5. Implement the three Cs: consistency, communication, and clarity.

*Creating a Strategy That Promotes Alignment, Agility, and Accountability Best-practice


Report, February 2004 by APQC.

Strategic Control systems are primarily concerned with monitoring and managing
strategy implementation, part of which will be determining and calibrating the focus of
related operational control systems.

Operational Control systems are management processes used to track and respond to
progress towards targets at for defined situations, typically at 'lower levels' of the
organization.

Seven Management & Planning Tools & Spirit Management:

The seven management & planning (MP) tools can be used for as enhancers for spirit
management innovation, communicate such information and plan major projects. The
following seven MP listed in an order that moves from abstract analysis to detailed
planning, are:
1. Affinity diagram: organizes a large number of ideas into their natural
relationships.
2. Relations diagram: shows cause-and-effect relationships and helps you analyze
the natural links between different aspects of a complex situation.
3. Tree diagram: breaks down broad categories into finer and finer levels of detail,
helping you move your thinking step by step from generalities to specifics.
4. Matrix diagram: shows the relationship between two, three or four groups of
information and can give information about the relationship, such as its strength,
the roles played by various individuals, or measurements.
5. Matrix data analysis: a complex mathematical technique for analyzing matrices,
often replaced in this list by the similar prioritization matrix. One of the most
rigorous, careful and time-consuming of decision-making tools, a prioritization
matrix is an L-shaped matrix that uses pair wise comparisons of a list of options
to a set of criteria in order to choose the best option(s).
6. Arrow diagram: shows the required order of tasks in a project or process, the
best schedule for the entire project, and potential scheduling and resource
problems and their solutions.
7. Process decision program chart (PDPC): systematically identifies what might go
wrong in a plan under development.

Excerpted from Nancy R. Tague’s The Quality Toolbox, Second Edition, ASQ Quality
Press, 2004.

Quality Strategy Implementation within Organizational Spirit Management

However, neither EVA nor CFROI concepts can help organizations with strategy
implementation activities on a daily basis.

Another concept put forward by Kaplan and Cooper was Activity Based Costing (ABC)
and resulting Activity Based Management (ABM).

Organizational Strategy Implementation

Bob Paladino, VP of Global Excellence for Crown Castle International, cites reports that
show 9 out of 10 companies fail to implement their business strategies.

What accounts for such an astonishing failure rate? He says there are four barriers:

-The Vision Barrier: Only 5% of the workforce understands the strategy

-The Management Barrier: 85% of executive teams spend less than one hour per month
discussing strategy

-The People Barrier: Only 25% of the managers have incentives linked to strategy
-The Resource Barrier: 60% of organizations don't link budgets to strategy

The strategy implementation in the organizational level is accompanied with integrated


spirit factors and components of both organizational and individual levels and coherent
to the society factors. This requires a deep analysis of such components and
awareness of a holistic picture of organizational spirit management.

Strategic Focusing

The focal igniting the spirit of the organization through organizational alignment around
a common vision, values and strategy. Turnaround and growth through strategic
business development, marketing & communications strategies, and scenario planning
are ways to explore the strategic focusing.

Dashboards

The Dashboard is where an organization's "Key Performance Indicators" are displayed.


Key Performance Indicators are essentially data summaries that translate and
communicate concise, credible information that can be readily understood and used by
decision makers at all levels of an organization. Such technology could be utilized for
data collection, analysis, KPIs and parameters of spirit management within
organizations with adopted measurement tools and systems. There are several systems
such as spirit management surveys and matrix data analysis: a complex mathematical
technique for analyzing matrices, often replaced in this list by the similar prioritization
matrix. These data simplified into precise actions that could enhance overall
organizational management and individuals. Spirit management surveys, tools and
parameters could be utilized for measuring major organizational spirit factors and
components in relation to production, performance and process. The dashboards are
systemized techniques for recording and exploring the related and performance factors
thus facilitating the control and follow up with corrective decisions. Software and new
programs are needed for spirit management analysis in comparison to the
organizational KPis and KPRs.

Strategies & Organizational Spirit Management - I:

The strategy implementation in the organizational level is accompanied with integrated


spirit factors and components of both organizational and individual levels and coherent
to the society factors. This requires a deep analysis of such components and
awareness of a holistic picture of organizational spirit management.

Six Sigma stands for Six Standard Deviations (Sigma is the Greek letter used to
represent standard deviation in statistics) from mean. Six Sigma methodology provides
the techniques and tools to improve the capability and reduce the defects in any
process.
Six Sigma methodology improves any existing business process by constantly
reviewing and re-tuning the process. To achieve this, Six Sigma uses a methodology
known as DMAIC (Define opportunities, Measure performance, Analyze opportunity,
Improve performance, Control performance).

Value Engineering (VE) may be defined as an organized effort directed at analyzing and
evaluating systems and components of systems, to establish essentiality and efficiency
in the performance of essential tasks.

Social Model

The social model is a way of thinking that views an organization as a society of


individuals, each with individual purposes, each of whom has the ability to think and
learn. Because they depend on each other for mutual adaptation, there should be a
great interaction among them.

The job of Top management is to manage the interactions to create a learning


organization: to design a desirable future and find ways to achieve it by aligning the
purposes of individuals with those of the overall society.

*Thomas H, Lee, shoji and Robert Champen Wood. Think Globally Act Locally), Center
for Quality Management Journal, volume 8, No 3, winter 1999: 23-54.

Triple Bottom Line (TBL)

The reporting system that includes the three parameters:

1. Economical
2. Environmental
3. Social

The base of such parameters is lacking behind the fourth Spiritual. This is the core of
any organizational status and basic of individuals within organizations. Such careless in
years for more in depth understanding and analysis of this parameter has resulted and
will result in low performance, incomplete management solutions, processes lagging,
weak organizations, and systematic disability. Our ignorance for spirit management as
integral parameter of organization is one of the major breakdown of our management
systems, economical turmoil, and political uncertainty.

What is a relevant measure?

Firstly, the word 'relevance' implies that there is a relationship between the measure
and something.
Secondly, it is important to understand the difference between 'counting' and
'measuring'

Combined with process mapping (a required activity for SOX), a balanced scorecard
can reveal process measures and key performance indicators .

Compliance Systems & Strategies for Organizational Spirit Management


Implementation:

1. Social Model & Psychometrics.


2. TBL, VE, KM and Six Sigma
3. Spirit Management Survey & domains.

For the most effective companies, organizational spirit or culture is a major competitive
advantage. Companies can purchase the same equipment, technologies, products,
people, brands, facilities and other tangible assets as their competitors. Team spirit is
the key that every organization needs to achieve outstanding performance. Strategic
plans, marketing, technology and capital investment are clearly important, but spirit of
the people using the tools and executing the plans is what determines whether it could
succeed or sink. Spirit is a source of many evolving knowledge domains with relevance
to all aspects of our organizations.

Strategies & Organizational Spirit Management – II

This model is based on a comprehensive approach and describes few management


practices and systems that build up the organizational structural level. The model is
based on the following domains:

1. Finance.
2. Environmental.
3. Social.
4. Spirit.

Each organizational domain is inter-related to the specific departmental, team, and


individual factors and components. The organizational domains are also integrated with
external factors of each domain. This model represents simple management practices
and systems and specific standards and systems are required upon individual
organization.
The model shows the implementation and utilization of certain systems, practices and
strategies in the context of spirit management. These are basics and other systems and
practices as mentioned previously are applicable for specific purposes and needs. The
above systems are simplified as following:

Layer 1: Finance, Operational and Process Management Systems:

a. Core: Investment Analysis, EVA, CFROI, Spirit Management Surveys.


b. Process and Operational: KM, VE, and Process mapping.
c. Cost saving: ABM, and ABC.
d. Revenue Generating: BSC.

Layer 2: Social & Psychometric Parameters: several measurement tools and systems
could be utilized upon specific organizational requirements of factors and components.
These measures are based on the organizational analysis of such parameters.

Layer 3: Spirit Management Domain: Spirit surveys and measurement tools and
systems. There are some tools and surveys that could be utilized for analysis of spirit
components and factors identification, and quantification. The current available tools
and systems are not adequate for in depth analysis and determinants of spirit
management for organizational level. Thus there is a need for comprehensive works
and studies for each organization. Surveys are the basic and simple tools for spirit
management.

Organizational Strategic Thinking & Visioning Pyramid

Management Strategy

Economical

Environmental

Social / Emotional Intelligence

Spiritual / Spiritual Intelligence

Organizational Core Base

In strategic implementation and visioning of the organizational holistic approach we do


think that the four domains are the bases and principles for successful organizational
growth and development. The prioritization is based from top (Management Strategy) to
bottom (Organizational Core Base) and also from bottom to top as feedback and cycle
system. The base is composed of individuals as the middle represents the departments
and teams while top represents the top management and board of organization.
Helpful Practices

There are several tools, strategies and tips that could help in implementation of such
four domains that facilitates the organizational performance and development:

1. Creating departmental, team and individual visions that are coherent with
organizational vision.
2. Determine the goals and objectives of departmental in accordance to the
organizational goals and objectives.
3. Determine the role and responsibilities of teams and individuals.
4. Develop a plan work in accordance with the overall vision and vision of the
organization.
5. Create specific, definable, and measurable results that would ensure that the
organization and your personal vision are achieved.
6. Consider the most important factors, components and determinants of the four
domains into your goals, strategies and plan.
7. Involve all the concerned departments and individuals in the implementation.
8. Support those you manage by connecting their expectations of success to the
organization’s objectives as part of their performance review.
9. Utilize feasible and standard practices, tools and systems.
10. Make the needed measurements and indices. Dashboards are useful tools.
11. Make the feedback system and measure the overall organizational analysis,
KPIs and KPRs.
12. Put the organization’s and individual’s success as the focal point in every step.
13. Demonstrate more confidence in others and appreciate individuals as emotional
need is to feel appreciated.
14. Social gatherings, parties, ceremonies, sport activities, trips and enjoying good
times with organizational individuals, families, and society members outdoors are
of great value.
15. Provide the individual spirit needs and their satisfaction is the major factors for
enhancement of individual roles and responsibilities within organizations.
16. Inspirations — take few minutes everyday to meditate, pray, or reflect (e.g., seek
guidance regarding a situation or opportunity that requires attention.).

Building Spirit

In organizations in which people are disrespected and poorly treated, higher pay
becomes a key way of compensating for the soul-destroying drudgery of the job. In
contrast, highly spirited and well-led organizations are often competitive in their financial
pay scales but way ahead of their counterparts in "psychic pay" via higher levels of
pride and satisfaction.
There are many ways that strong leaders can build organization spirit. Here are a few
suggestions (Team Spirit Built from the Top by Author: Jim Clemmer):

• Meetings to identify non-value-added work and to take that work out of the
organization's systems and processes.

• Build a highly customer-focused organization.

• Keep things simple and direct. Keep business units small and give teams
autonomy.

• Encourage and promote humor to release tension in a situation and keep people
looking at the lighter side of things.

• Lead change with examples of how your organization has gone through tough
times or major changes like these before. Appeal to a proud heritage.

• Look for every opportunity to recognize and celebrate significant


accomplishments and milestones reached.

References:

• Cacioppe, R. (2000). Creating spirit at work: Re-visioning organization


development and leadership B Part I. Leadership & Organization Development
Journal, 21(1), 48-54.
• Dehler, G.,& Welsh, M. (1994). Spirituality and organizational transformation:
implications for the new management paradigm. Journal of Managerial
Psychology, l9(6), 17-26.
• Gibbons, P. (2000). Spirituality at work: definitions, measures, assumptions, and
validity claims. Proceedings of the Academy of Management, USA, 2000.
• Howard, S. (2002). A spiritual perspective on learning in the workplace. Journal
of Management Psychology, 17(3), 230-242.
• Howard, S. (2002). A spiritual perspective on learning in the workplace. Journal
of Management Psychology, 17(3), 230-242.
• Krishnakumar, S., & Neck, C. (2002). The "what", "why" and "how" of spirituality
in the workplace. Journal of Managerial Psychology, 17 (3), 153-164.
• MacDonald, D. A, Kuentzel, J. G., & Friedman, H. L. (1999). A survey of
measures of spiritual and transpersonal constructs: Part two – additional
instruments. The Journal of Transpersonal Psychology, 31(2), 155-177.
• McLaughlin, C. (2001). Spirituality in business. [On-line] Available:
http://www.visionarylead.org/.
• Moch, M., & Bartunek, J. (2002, August). Linking business, spirituality and
religion. Manuscript submitted for publication.
• Pratt, M. (2000). Building an ideological fortress: The role of spirituality,
encapsulation and sensemaking. Studies in Cultures, Organizations & Societies,
6(1), 35-53.
• Tosey, P. & Robinson, G. (2002). When change is no longer enough: What do
we mean by "transformation" in organizational change work? The TQM Magazine,
14(2), 100-109.