Rummler and Brache 1996

1
Rummler and Brache (1996)

• Most managers do not understand how their
  business gets products developed, made, sold and
  distributed
• Most managers explain their business in terms of
  an organizational chart that shows who works for
  whom
• Problems with organizational charts
• It doesnt show the customers
• We cant see the products and services provided
  to the customers
• We get no sense of the workflow through which we
  develop, produce, and deliver the product or
  service

2
Rummler and Brache

• The functional optimization often contributes to
  the suboptimization of the organization as a
  whole
• If one department optimizes and other cannot keep
  up, it results in the organization functioning
  poorly
• So, if the sales department sells a bunch of
  products and production cannot keep up, there
  will be many unsatisfied customers that are not
  receiving the product in a timely manner

3
Greatest Opportunities for Improvement

• R B say that the greatest opportunities for
  improvement lie in the functional interfaces
  those points where the baton is being passed from
  one department to another
• Organizational systems adapt or die
• If you pit a good performer against a bad system,
  the system will win almost every time

4
Total Performance System for Organization X
External Feedback Data or customer information
that reflects the evaluations of the
organizations products and services
5
Washing Dishes
Me
Puts dish in water and scrub with sponge
Hands dish to roommate
Fills sink with water and soap
Roommate
Rinses dish in water
Dries dish with towel
Puts dish away
Gets dish from roommate
Permanent Products
Clean dishes in cupboard
6
Washing Dishes
Me
Puts dish in water and scrub with sponge
Hands dish to roommate
Fills sink with water and soap
Roommate
Is the dish clean?
No
Rinses dish in water
Puts dish away
Dries dish with towel
yes
Permanent Products
Clean dishes in cupboard
7
Washing Dishes
Me
Puts dish in water and scrub with sponge
Hands dish to roommate
Fills sink with water and soap
Puts dishes away
Roommate
Rinses dish in water
Places dishes in drying rack
Gets dish from roommate
Opens all cupboards
Permanent Products
Clean dishes in cupboard
8
Process Mapping

• Disconnects Redundant or missing steps that
  make the process run less smoothly
• How do you identify disconnects
• Look for redundant or missing steps
• Look for steps that seem illogical
• Ask employees to look at the map and talk about
  areas where efficiency could be improved