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file time: 2008-02-16

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Robert Musson

Microsoft 

Issues of Organizational Structure and Leadership Associated with Process Deployment

 

Agenda 

A Brief History of Organizational Time Alfred Chandler, 1977, The Visible Hand Theory of Organizational Structure Henry Mintzberg, 1980,  Structure in 500 Leadership Behaviors Bernard Bass, 1985, Multifactor Leadership So what? Implications for TSP coaches  

Timeline 

Preindustrial Era 13,700,000,000 B.C. - late 170000 Governments Large Churches Military First Industrial Revolution  Late 170000 - late 180000 Early railroads Cottage Industries Second Industrial Revolution 1865 - early 190000 Large railroads Utilities Monopolies Manufacturing Revolution (Managerial Revolution) 192000  - present Assembly line Information Revolution (Knowledge-worker Revolution) 199000 - present   
 
 

History of Organizational Theory 

A train wreck The switch connected individual spurs  

By 1900 

Big companies followed the hierarchical model AT&T Commonwealth Edison Railroads IBM  

Early 190000 

Advent of mass production assembly lines Ford GM Harley-Davidson  
Regional control concepts do not transfer to the modern assembly line  

Modern Corporate Form  

M-form corporation Functional hierarchies replace regional control Often credited to Alfred Sloan of GM Simultaneously created by GM, Sears, DuPont, Standard Oil  
 

00tructure follows strategy00/i> 

A. Chandler, 1962

 

Organizational Structure 

IF structure follows strategy

  AND strategy is a response to the environment

  THEN structure must somehow follow the environment 

Henry Mintzberg, 1980  

  if  ((structure > strategy )

  && ( strategy == environment )

  {

         structure > environment;

  } 

 

, i.e. 卢 Static 
 

Environmental Factors 

Dynamism  Complexity  

Environmental Model 

Dynamism 

Complexity 

Low 

High 

High 

Machine Bureaucracy

 

Quick Aside on Bureaucracy 

Max Weber wrote on the concept in 192000 Weber00 original concept is to the common meaning of bureaucracy as Royce00 original concept is to the common meaning of the Waterfall Model Original work was not translated until late 194000 by which time the damage had already been done Bureaucracy = = Fulltime professional managers, i.e. bureaucrats replace plutocracy Rational management, i.e. rules govern rather than the whims of those in power Economic efficiency  

Adhocracy 

Adhocracy 

Organizational Archetypes 

Dynamism 

Complexity 

Low 

High 

High 

Machine Bureaucracy 

ProfessionalBureaucracy 

PSP 

PSP 

PSP 

Simple Structure 

ProfessionalBureaucracy 

TSP

 

Implications 

     Environment -> Strategy -> Structure

No, really00/font> Environment -> Strategy -> Structure Once more for emphasis . . .

Environment -> Strategy -> Structure

 

Implications 

     Environment -> Strategy -> Structure

No, really00/font> Environment -> Strategy -> Structure Once more for emphasis . . .

Environment -> Strategy -> Structure

 

Leadership and Structure 

Leadership cannot change the environment Leadership styles are independent of structure Leadership behavior can help drive deployment  

Leadership Behaviors 

Charismatic vs. Rational Transformational vs. Transactional Lassaize-faire Substitutes for leadership  

So What?

 

Implications for Coaches 

PSP increases the complexity an organization can handle TSP increases the dynamism BUT00/font> Organizations want stability with a predictable environment 00nd I want a toilet made out of solid gold but it's just not in the cards now is it?00nbsp; - Austin Powers The environment will drive the organizational structure The leadership behaviors will drive deployment  

Identifying the type of organization 

Clues exist in the structures politics behaviors industry characteristics  

Machine Bureaucracy 

Coordination Mechanism Standardized Work Processes Key Organizational Component Technostructure Design Parameters Formalized Behaviors Job Specialization (horizontal and vertical) Functional groupings Large operating units Plans, Plans, Plans Typical Company Situation Mature, large, regulated Simple, stable environment  

Professional Bureaucracy 

Coordination Mechanism Standardized Skills Key Organizational Component Operating Core Design Parameters Training Horizontal Job Specialization Decentralization Situation Complex, stable environment Non-regulated Non-sophisticated technical system  

Simple Structure 

Coordination Mechanism Direct Supervision Key Organizational Component Strategic Apex Design Parameters Centralization Organic Structure Situation Simple, dynamic environment Young company Unsophisticated technical systems Strong power needs for top managers  

Adhocracy 

Coordination Mechanism Mutual Adjustment Key Organizational Component Support Staff and/or the operating core Design Parameters Liaison Devices Organic Structure Some Decentralization Horizontal job specialization Training Functional grouping Situation Complex, dynamic environment Young company Sophisticated and automated technical systems Fashionable  

Divisionalized Form 

Similar to Professional Bureaucracy Middle managers are the loosely coupled units Standardized outputs Not a complete operating structure Divisions drawn to machine bureaucracies  

Example Deployment 

Developers, testers, and product managers report to single business unit manager  Product managers report progress weekly through email based on direct interaction with developers Unit manager determines strategy, gets weekly updates, focuses on tasks completed Plans use MS Project Simple structure with no acknowledgement of the increased environmental complexity Resulting behaviors were quite predicable Bickering between groups (vying for power) Data ignored Plans not used  

Conclusion 

Structure follows strategy Environment determines structure The structure determines how a new process must be deployed Only processes that fit within the constrains of a structure are deployable The manager with facilitate or retard deployment Tailor deployment to the existing environment  

Questions 

rmusson@microsoft.com  

Issues of Organizational Structure and Leadership Associated with Process Deployment

 

The CMM is often described as defining the 00hat00of process improvement without the 00ow00or 00hy00 The PSP provides one possible description of 00ow.00nbsp; The 00hy00 is associated with the strategy of the organization, but little guidance exists in either the CMM or the PSP as to the possible implications of new organizational capabilities.

 

This session will present a brief history of organizational theory and provide an overview on relevant current thinking.  It will relate elements of the CMM, PSP, and TSP to reasons for implementing various organizational structures and provide descriptions of a series of strategy challenges associated with the different structures. It will describe how various organization types address the needs of differing business environments. Finally, this session will describe the leadership attributes associated with deploying new practices comparing and contrasting to those required to realize results through higher product quality. The correlations between various leadership behaviors and quality will be presented. 
 

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This talk will begin with a brief history of time from the perspective of organizational theory. Then, one specific theory will be examined in detail, namely, one from Henry Mintzberg. Then, we will describe the behaviors theory define by Bass. 

One might ask, so what? At this point rather than wait until the end. Perhaps a better description is the implication for TSP coaches.  The CMM provides little guidance on organization. The idea of 00nstitutionalization00exists, and of course senior management verification, but nothing on fitting processes into the organizational structure. 

It is not really the place of the CMM to include descriptions of org structure. 

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Much of the modern organization was caused by a train wreck. In the 182000 and 3000, railroads consisted of short spurs of track, typically no more than 50 miles long. Trains would travel in one direction and then simply backup. There was only one train for each section of track. To go a great distance, one would need to switch trains several times. 

Then, about 1840, a new innovation that revolutionized the railroad was invented00amely switching technology. Multiple sections of railroad were consolidated to create the ability for trains to travel all over and have many different destinations. However, one unfortunate side effect was the possibility of two different trains traveling on the same track in opposite directions. In those days, trains did not go fast enough to simply pass through one another. In 1843, the inevitable happened. A head on collision occurred on a section of track, owned by a company that would later become the Pennsylvania Railroad, caused the deaths of 17 people and sparked a congressional investigation into the cause.  

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Charismatic leaders are the pep talk kind of leaders. They can get the improvement effort rolling, but they may not be as swayed by the data as rational leaders. Transformational leaders are great during times of change, but they may not be the best ones to have in place once the change is standardized. Like Rational leaders, Transactional leaders may be more adapt at using the information from the teams. 

Lassaize-faire leaders tend to be hands off, so they are nice to have during a grass roots deployment effort. The optimal organization is likely one that has an environment that is becoming more complex and senior leaders that are lassaize-faire and charismatic.  

Finally, there are what is known as 00ubstitutes for leadership00  Kerr (1976) proposed the term to describe cultural situations that are non-leader sources for direction. The concept of a self-managed team is an attempt to put into place substitutes for leadership. It may be the biggest reason that leaders oppose TSP, namely, TSP puts into place practices that are redundant with any of the other types of leadership. Rational, transactional leaders would not be needed in a fully deployed TSP organization. Charismatic leaders become little more than cheerleaders. Of course, this view is na茂ve and dangerous. TSP allows leaders to focus on important issues, like innovation, rather than mundane issues like task completion rates. 

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