These results don’t need to remain in the realm of business fantasy. They can be achieved by any enterprise, regardless of its level of sophistication and maturity…. but the managers and leaders of such organizations may need to change some of their thinking about their business, their customers, their leadership, and their human and business processes.
After 25 years of executive coaching and management consulting, we’ve identified a set of 10 determinants that, when implemented in an integrated, holistic way can drive significant performance improvement.
Redline’s Organizational Performance model represents the cumulative work of four scientists who have worked independently in the field of management science over the past 50 years:
- Eli Goldratt, who developed the Theory of Constraints (TOC) and associated systems thinking, which have enabled radical improvements in business processes.
- Elliot Jaques, who contributed a large body of knowledge about requisite organizational structures, managerial leadership processes and human capability, each critical to fostering high performance organizations.
- Robin Lawton, who developed an interest in quality and productivity management systems, contributed a model for creating customer-centered cultures. This model results in significant improvements to performance and competitive advantage through leadership in quality and customer satisfaction for knowledge and service work.
- Murray Wade, a physicist who early in his career developed a passion for studying complex human and industrial production systems, has synthesized the three unique bodies of knowledge contributed by Goldratt, Jaques, and Lawton into a unified, breakthrough model that significantly leverages the performance outcomes in people and organizational systems, beyond what is possible by using any one of the contributing bodies of knowledge independently.
Redline’s model, depicted above, is best thought of as a value creation chain, comprised of ten links, each of which is a determinant in elevating and sustaining human and organizational performance. The model as represented is a systems model, and it cares not to what system you apply it. This is important, because the same model can be applied to an individual, a team, a department, a business unit, a company, or a global enterprise. This means that organizations need adopt only one performance and change management model to enable:
- Leadership and managerial development
- Cross functional team work
- Organizational effectiveness
- Strategy development
- Structural design
- Business process improvement, and
- Human, fiscal and structural asset management, at any level within the enterprise.
We define a “determinant” as a necessary, but on its own not a sufficient process, that when executed, produces outcomes critical to advancing the performance of the system to which it has been applied. When these determinants are arranged in a sequential value chain and executed in succession, the set of outcomes produced represent the minimal set necessary and sufficient to create a sustainable high performance organizational system be it a high performing individual, a high performance team, or a high performance enterprise.
Organizational leaders feel the pain of less than desired organizational performance every time they look at the variance in financial, production, customer satisfaction, or other performance indicators. The source of leadership pain ultimately originates from one of three sources inadequacies in the design and integration of business and operational processes; people in roles for which they lack requisite capabilities to execute effectively; or, in inadequacies in the design of the human systems that enable people to engage in work to the full extent of their capability
Removing pain means leadership must answer three strategic questions:
- What to change?
- What to change to?, and
- How to cause the change to happen and to be sustained.
These questions are answered as one executes the various determinants within the model, starting from the one most associated with the current source of pain. Only by working through the model’s value chain are all three questions answered and the source of pain removed. In today’s business world you are either moving ahead or you are falling behind. You are either on an improvement loop or headed to oblivion. There is no such thing as “status quo.” Execution of successive loops gives rise to continuous performance improvement.
Redline Advisors recommends an integrated approach to performance improvement that is grounded within the working environment and conducted in real-time. Our consulting services are typically delivered through executive coaching and team based working sessions. We make use of advanced individual and organizational performance assessments to assist in the discovery of performance blocking constraints.
Each of Redline’s 10 determinants is described in more detail on the attached pages. We also provide an array of typical indicators and questions you can ask yourself so that you can decide how your organization is doing. If you’re improvement efforts are not delivering the results you need or you can’t figure out why something is not working, maybe its time to try a different approach one based on scientific principles and proven methods, not panaceas based on alchemy, wishes and hope.