1st Edition

Performance Acceleration Management (PAM) Rapid Improvement to Your Key Performance Drivers

By H. James Harrington Copyright 2013
    220 Pages 45 B/W Illustrations
    by Productivity Press

    220 Pages
    by Productivity Press

    Organizations around the world are rating their improvement efforts as not producing the desired long-term results. Dr. Harrington’s research indicates that this occurs because organizations are using the latest improvement tools and approaches without first defining how they want to change their organization’s culture, environment, and key performance drivers.

    Organizations must first define what controllable factors drive business results. They then must define how they want to change these key performance drivers and behavioral patterns. Only then can they select a customized set of tools and approaches that will bring about the desired transformation.

    The first book in the Little Big Book Series, Performance Acceleration Management (PAM): Rapid Improvement to Your Key Performance Drivers, explains how to accelerate the rate of change and improvement in your organization to exceed your customers’ expectations. It introduces the PAM approach to accelerated performance improvement and explains how to use it to bring about significant change to your organization’s long-term performance. Supplying answers to commonly asked questions, the book provides you with the understanding to:

    • Conduct an improvement requirements assessment
    • Define key drivers and develop vision statements for each
    • Define desired behavioral patterns and performance goals
    • Develop individual key performance driver (KPD) transformation plans
    • Develop and implement a five-year combined PAM plan
    • Obtain approval from the executive team

    Delving into more than 50 years of experience helping organizations implement improvement approaches, H. James Harrington highlights key opportunities to add value to your organization. With over 1,400 different improvement tools available today, this book provides a set of tools to define how you want to change your organization’s key performance drivers and then develop a customized accelerated approach to achieve the desired transformation.

    Performance Acceleration Management: Its Theory and Practice
    Performance Improvement Plan versus Business Plan
         Why Do You Need a Detailed Plan to Manage Performance Improvement?
         What Factors Affect an Organization’s Culture?
         What Are the Key Performance Drivers?
    The Performance Acceleration Management Approach
         Phase I: Conducting an Improvement Requirements Assessment
         Phase II: Developing Vision Statements
         Phase III: Defining Desired Behavioral Patterns and Performance Goals
              Defining Desired Behavioral Patterns
              Defining Performance Goals
         Phase IV: Developing Individual KPD Transformation Plans
         Phase V: Developing a Five-Year Combined PAM Plan
         Phase VI: Implementing the Combined PAM Plan
         Phase VII: Continuously Improving

    Phase I: Conducting an Improvement Requirements Assessment
    Activity One: Organize for Performance Acceleration
    Activity Two: Define Present Status and Improvement Opportunities
         One-on-One Personal Interviews with Each
         Member of the Executive Team
         Focus Groups with Middle Managers, First-Line Managers, and Employees
         Researching Available Documentation
    Phase I Final Report
    Summary

    Phase II: Developing Vision Statements
    Overview of Phase II
         Offsite Meeting of the Steering Committee
         Activity One: Review and Upgrade, If Necessary, the Organization’s Mission Statement, Values, and Vision
         Activity Two: Review the Assessment Report Prepared during Phase I
         Activity Three: Define the AS IS Description for Each KPD
         Activity Four: Develop Preliminary KPD Vision Statements
         Activity Five: Conduct Focus Groups
         Activity Six: Conduct and Analyze an Organizational Change Management Survey
         Activity Seven: Prepare the Final KPD Vision Statements
         Activity Eight: Communicate Final KPD Vision Statements

    Phase III: Defining Desired Behavioral Patterns and Performance Goals
    Defining Desired Behavioral Patterns
         Activity One: Define the Desired Behaviors/Habits Related to the Vision Statements
         Activity Two: Define the Desired and Undesired Behaviors/Habits Related to the Activities as Performed within the Organization
         Activity Three: Define How to Measure Desired Behavioral Patterns
    Defining Performance Goals
         Activity Four: Define Key Performance Measurements
         Activity Five: Define Present Performance Levels of the Key Performance Measurements
         Activity Six: Define Competitors’ Present Performance Level for the Key Performance Measurements
         Activity Seven: Project Competitors’ Performance Level for the Key Performance Measurements
         Activity Eight: Finalize the Key Performance Goals for the Next Five Years

    Phase IV: Developing Individual KPD Transformation Plans
         Planning versus Problem Solving
         Activity One: Assign a Planning Team (Subcommittee) to Each KPD Vision Statement to Develop an Individual Transformation Plan
         Activity Two: Define Present-Day Problems
         Activity Three: Define Roadblocks to Evolving to the Desired Future-State Vision
         Activity Four: Select Tools/Methodologies to Address Defined Problems and Roadblocks
         Factors Impacting the KPD Transformation Plans
              Frequently Used Tools for Manufacturing Process Vision Statement
              Frequently Used Tools for Business Process
              Improvement Vision Statement
              Frequently Used Tools for Customer/Consumer Partnership Vision Statement
              Frequently Used Tools for Management Support/Leadership Vision Statement
              Frequently Used Tools for Supplier Partnership Vision Statement
              Frequently Used Tools for Total Quality Management System Vision Statement
         Assign a Knowledgeable Performance Improvement Specialist
         Activity Five: Develop an Implementation Timeline Chart for Each Tool/Methodology
         Activity Six: Obtain Approval of the Individual KPD Transformation Plan

    Phase V: Developing A Five-Year Combined PAM Plan
         Activity One: Define Resource Constraints
         Activity Two: Define Interrelated Tools/Methodologies
         Activity Three: Prioritize Individual Tools/Methodologies
         Activity Four: Combine the Individual KPD Transformation Plans into the Pam WBS
              Preparing a Five-Year Work Breakdown Structure

    Phase VI: Implementing the Combined PAM Plan
         Activity One: Develop Individual Detailed Implementation Plans for Each Tool/Methodology
         Activity Two: Combine the Individual Detailed Implementation Plans into a Rolling 90-Day WBS
         Activity Three: Prepare a Three-Year Financial Plan to Fund the PAM Project
         Activity Four: Establish the Tracking System to Ensure the Project Is on Schedule, within Costs, and Will Produce the Desired Results
         Activity Five: Establish a Measurement System That Will Measure the Impact the Project Is Having on the Organization’s Performance
         Activity Six: Evaluate Contributions Made by Individuals, Groups, and Teams, and Recognize Outstanding Performance

    Phase VII: Continuously Improving
    The Next Cycle of PAM
         Organizational Master Plan
    Two Major Continuous Improvement Methodologies
         Area Activity Analysis
              The Seven Phases of AAA
         Organization Alignment
              Phase I: Strategic Plan
              Phase II: Processes and Networks Design
              Phase III: Organizational Structure Design
              Phase IV: Staffing Phase
              Phase V: Rewards and Recognition
              Phase VI: Implementation
    PAM Process Summary

    Appendix A: Definition and Abbreviations
    Appendix B: List of over 1,400 Different Performance Improvement Tools and Methodologies
    Appendix C: Tools/Methodologies Interaction between KPDs

    Index

    Each chapter includes an introduction, summary, and references

    Biography

    H. James Harrington

    Dr. H. James Harrington is one of the world’s quality system gurus with more than sixty years of experience. In the book, Tech Trending (Amy Zuckerman, Capstone, 2001), Dr. Harrington was referred to as "the quintessential tech trender." The New York Times referred to him as having a "knack for synthesis and an open mind about packaging his knowledge and experience in new ways—characteristics that may matter more as prerequisites for new-economy success than technical wizardry." He has been involved in developing quality management systems in Europe, South America, North America, Middle East, Africa, and Asia.

    Dr. H. James Harrington is the chief executive officer for the Harrington Institute. He also serves as the chairman of the board for a number of businesses and as the US chairman of Chair on Technologies for Project Management at the University of Quebec in Montreal. Dr. Harrington is recognized as one of the world leaders in applying performance improvement methodologies to business processes.

    In February 2002, Dr. Harrington retired as the chief operating officer (COO) of Systemcorp A.L.G., the leading supplier of knowledge management and project management software solutions. Prior to this, he served as a principal and one of the leaders in the Process Innovation Group at Ernst & Young. Dr. Harrington was with IBM for over thirty years as a senior engineer and project manager. Dr. Harrington is past chairman and past president of the prestigious International Academy for Quality and of the American Society for Quality Control. He is also an active member of the Global Knowledge Economics Council.

    The Harrington/Ishikawa Medal presented yearly by the Asian-Pacific Quality Organization was named after Dr. Harrington to recognize his many contributions to the region. In 1997, the Quebec Society for Quality named their Quality Award "The Harrington/Neron Medal," honoring Dr. Harrington for his many contributions to the Quality Movement in Canada. In 2000 the Sri Lanka national quality award was named after him. The Middle East and Europe Best Quality Thesis Award was named "The Harrington Best TQM Thesis Award." The University of Sudan has established a Harrington Excellence Chair to study methodologies to improve organizational performance. The Chinese government presented him with the Magnolia Award for his major contribution to improving the quality of Chinese products.

    Dr. Harrington’s contributions to performance improvement around the world have brought him many honors and awards, including the Edwards Medal, the Lancaster Medal, the American Society for Quality’s Distinguished Service Medal, and many others. He was appointed the honorary advisor to the China Quality Control Association, and he was elected to the Singapore Productivity Hall of Fame in 1990. He has been named lifetime honorary president of the Asia Pacific Quality Organization and honorary director of the Association Chilean de Control de Calidad.

    Dr. Harrington has been elected a Fellow of the British Quality Control Organization and the American Society for Quality Control. He was also elected an honorary member of the quality societies in Taiwan, Argentina, Brazil, Colombia, and Singapore. He is also listed in "Who’s Who Worldwide" and "Men of Distinction Worldwide." He has presented hundreds of papers on performance improvement and organizational management structure at the local, state, national, and international levels.

    Dr. Harrington is a very prolific author, publishing hundreds of technical reports and magazine articles. He has authored 33 books and 10 software packages. His e-mail address is [email protected].