Broad Overview of Various Programs and Movements to Improve Organizational Performance

 

Following Activities are Performance Improvement Efforts, Depending On How They Are Used
Any or all of the following approaches will improve organizational performance depending on if they are implemented comprehensively and remain focused on organizational results. Some of the following, e.g., organizational learning and knowledge management, might be interpreted more as movements than organization performance strategies because there are wide interpretations of the concepts, not all of which include focusing on achieving top-level organizational results. However, if these two concepts are instilled across the organization and focus on organizational results, they contribute strongly to organizational performance. On the other hand, the Balanced Scorecard, which is deliberately designed to be comprehensive and focused on organizational results, will not improve performance if not implemented from a strong design.

Choice of Approach Depends on Organization's Nature, Resources and Problems
The approaches listed below are some prominent approaches to improving organizational performance. Organizations may choose one or more of the approaches listed below. Most organizations establish overall organizational goals and results, first by using strategic planning. Many organizations use a management-by-objectives approach to translate strategic goals to subordinate objectives and track accomplishment of objectives by each department and employee.

For example, a large organization with highly standardized processes (such as a manufacturing company with assembly lines) can carry out numerous and ongoing measurements in a straightforward fashion. It also has extensive resources to conduct the measurements and analyze results. ISO9000 certification is a strong enhancement to a company's image. Therefore, the organization might pursue ISO9000 certification, including through use of continuous improvements in an overall Total Quality Management approach. The organization may establish numerous benchmarks for comparison to other organizations in the industry to get perspective on how well the organization is doing, what results to pursue, etc.

On the other hand, a risk management company specializing in consultation to protect against terrorism, has a bigger challenge to identify and track performance results. Management might believe, for example, that the organization's means for delivery of services are well out-of-date and that the organization is no longer resourced to advise organizations about increasing threats from terrorism that exist today. Therefore, the risk management company may choose to use business process reengineering to completely redesign their organization from the ground up.

Broad Overview of Various Approaches
The following descriptions are general and brief. Follow the link to get more information about each of the approaches.

NOTE: There certainly are other approaches than those listed below for a planned, comprehensive approach to increasing organizational performance. It may very well be that the vast majority of approaches used in organizations are highly customized to the nature of the organizations, and therefore not publicized or formalized in management literature.

Balanced Scorecard: Focuses on four indicators, including customer perspective, internal-business processes, learning and growth and financials, to monitor progress toward organization's strategic goals

Benchmarking: Using standard measurements in a service or industry for comparison to other organizations in order to gain perspective on organizational performance. For example, there are emerging standard benchmarks for universities, hospitals, etc. In and of itself, this is not an overall comprehensive process assured to improve performance, rather the results from benchmark comparisons can be used in more overall processes. Benchmarking is often perceived as a quality initiative.

Business Process Reengineering: Aims to increase performance by radically re-designing the organization's structures and processes, including by starting over from the ground up.

Continuous Improvement: Focuses on improving customer satisfaction through continuous and incremental improvements to processes, including by removing unnecessary activities and variations. Continuous improvement is often perceived as a quality initiative.

Cultural Change: Cultural change is a form of organizational transformation, that is, radical and fundamental form of change. Cultural change involves changing the basic values, norms, beliefs, etc., among members of the organization.

ISO9000: Is an internationally recognized standard of quality, and includes guidelines to accomplish the ISO9000 standard. Organizations can be optionally audited to earn ISO9000 certification. Another major quality standard is the Baldridge Award. ISO9000 is a quality initiative.

Knowledge Management: Focuses on collection and management of critical knowledge in an organization to increase its capacity for achieving results. Knowledge management often includes extensive use of computer technology. In and of itself, this is not an overall comprehensive process assured to improve performance. Its effectiveness toward reaching overall results for the organization depends on how well the enhanced, critical knowledge is applied in the organization.

Learning Organization: Focuses on enhancing organizations systems (including people) to increase an organization's capacity for performance. Includes extensive use of principles of systems theory. In and of itself, this is not an overall comprehensive process assured to improve performance. Its effectiveness toward reaching overall results for the organization depends on how well the enhanced ability to learn is applied in the organization.

Management by Objectives (MBO): Aims to align goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. Includes ongoing tracking and feedback in process to reach objectives. MBO's are often perceived as a form of planning.

Outcome-Based Evaluation (particularly for nonprofits): Outcomes-based evaluation is increasingly used, particulary by nonprofit organizations, to assess the impact of their services and products on their target communities. The process includes identifying preferred outcomes to accomplish with a certain target market, associate indicators as measures for each of those outcomes and then carry out the measures to assess the extent of outcomes reached.

Program Evaluation: Program evaluation is used for a wide variety of applications, e.g., to increase efficiencies of program processes and thereby cut costs, to assess if program goals were reached or not, to quality programs for accreditation, etc.

Strategic Planning: Organization-wide process to identify strategic direction, including vision, mission, values and overall goals. Direction is pursued by implementing associated action plans, including multi-level goals, objectives, time lines and responsibilities. Strategic planning is, of course, a form of planning.

Total Quality Management (TQM): Set of management practices throughout the organization to ensure the organization consistently meets or exceeds customer requirements. Strong focus on process measurement and controls as means of continuous improvement. TQM is a quality initiative.

NOTE: There are various other approaches that, if used comprehensively with strong focus on achieving organizational results, can be used to increase organizational performance, e.g., Statistical Process Control, Quality Circles, best practices, etc.