Systems Analysis:
Organizations are
systems.
2 Types
•
We commonly think of at least 2 things when
we think of systems in organizations:
1. Most commonly we think of systematic
solutions
•
i.e., a solution that is automated, built into existing
practices, or supported in such a way so that it will
continue (“I need a system of organization”).
2. Less commonly, we think of systems as the
things that impact; and are impacted by the
pinpoint we select to improve.
3 Levels of Organizations
1. Performer level
 Performance management view
2. Process level
 Product or service creation view
3. Organizational level
 Total organization view
The Organizational Level
GENERAL ENVIRONMENTAL INFLUENCES:
9



Government
Economy
Culture
Processing System
(Organization)
1
Inputs
5
2
capital
$
11
10
raw materials
Resources
technology
10
Outputs
10
10
human
resources
3
10
6
7
products /
services
Competition
8
4
Receiving
System
products /
services
orders
From Rummler & Brache, 1995
Shareholders
Market
The Organizational Level
GENERAL ENVIRONMENTAL INFLUENCES:
9



Inputs
Government
Economy
Culture
Inputs
2
capital
$
11
technology
10
Outputs
10
10
human
resources
3
10
6
7
products /
services
Competition
8
4
Receiving
System
products /
services
orders
From Rummler & Brache, 1995
Shareholders
10
raw materials
Resources
Receiving
5
system
Processing
system
Processing System
(Organization)
1
Market
The Organizational Level:
The TPS View
Input
Processing
System
Output
Internal Feedback
External Feedback
From Brethower, 2000; Sasson & Austin, in press
Receiving
System
A TPS Example in Education
Children,
Teachers,
Curriculum
Resources
Elementary
School
(K-6)
Competent
Students
Middle School
Internal Feedback
External Feedback
Processing System
Functions (Silos)
Dept 1
Dept 2
Dept 3
Dept 4
Dept 5
Dept 6
Dept 7
Process 1
Process 2
Process 3
Processes
Ed Example - Processing
System
Functions (Silos)
Grade1
Grade2
Grade3
Grade4
Grade5
Grade6
Subject 1
Subject 2
Subject 3
Processes
OBM Network Newsletter Production Process
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Total Performance System Components
-1
• Mission: The major purpose or reason for
being a performance system
• Input: Information, technology, people,
money, or material that initiates or is a
resource for a work process
• Processing system: A system that
processes inputs, generating at least one
output valued by an external receiver
Total Performance System Components 2
• Internal Feedback: Information about the
performance of individuals, work groups, or
processes that is used to guide performance
• Output: Information, money, material, or added
value that is produced by a work task or process
• Receiving system: A set of systems that are
closely linked to a processing system and
receive its outputs
• External Feedback: Information from customers
and other external sources, used to guide
performance
The Process Level
• Process = “A series of steps
designed to produce a product or
service”
• Steps can be shared
• Across people
• Across departments
• Across organizations
• At least three different types of
processes are critical to a system’s
health
Customer Processes
• Result in a product or service that is
received by an organization’s customers
– Preparing meals at a restaurant
– Producing parts for an automobile that is sold
to an auto manufacturer
– Making payments to clients for an insurance
claim
Administrative Processes
• Produce products or services that are
invisible to the external customer but
essential to the effective operation of a
business
– Balancing a cash register at the end of the
day
– Paying bills
– Sending out paychecks
– Hiring/promoting/firing
Management Processes
• Processes that result in products or
services that ensure adequate
performance of customer and
administrative processes
– Performance measurement
– Goal setting
– Performance Feedback
– Resource Allocation
– Rewards
– Job Analysis and Design
OBM Network Newsletter Production Process
All Network
Officers
1. Recruit
articles on
an ongoing
basis
Editor
2. Set
submission
deadline
and notify
group
3.Construct
and copy
edit first
draft of
newsletter
4. Send
first draft of
newsletter
to asst.
editor
5.
Distribute
newsletter
to proofreaders
Asst. Editor
14. Make
changes /
send final
version to
asst. editor
6. Call
printer to
order
proper
paper
7. Contact
membership to print
labels
8. Request
a form of
payment for
printing /
stamps
13. Receive
reviewers
changes
and send to
editor
NO
17.
Proof
approved
?
19. Pick-up
and mail
newsletters
YES
9. Proof
newsletter
and return
to asst.
editor
Reviewers
10. Order
proper
paper
Printer
16. File
received by
printer and
proof is
created
18. All
newsletters
are printed
5 Days
4 Days
11. Print
labels and
return to
asst. editor
Membership
12. Provide
a form of
payment to
asst. editor
Treasurer
20. Receive
file and
post on
Website
Web master
Est. Timeline
15. Receive
final
version and
send to
printer/ WM
2 Weeks
1 Day
3 Days
3 Days
2 Days
2 Days
Process Management and
Process Mapping
• When people, departments, or organizations
share steps of a task, there is potential for
“disconnects”
– People may not know how their contribution benefits
the end result of the process
– Participants in the process may not know the goal or
ultimate result of their work
– People may make the wrong kind of contribution or
spend time producing extra products that are not
needed
– A person might hold up the process by not completing
their portion of the work
Minimizing “Disconnects”
• A process must be understood before it can be
managed or adjusted effectively
• Implementing a new process requires planning
for relationships and responsibilities
• People participating in a process must get
feedback from internal co-workers about their
individual contributions
• People participating in a process must get
feedback from those who receive the
services/products they produce
Mapping out a Process (“Is” map)
• Who are the participating parties (people,
departments, organizations)?
• What is the end result/product/service of the
process?
• Who receives the output of the process?
• THEN MAP: how does this process get
accomplished currently (not how we wish it was
accomplished, but how it IS accomplished)
• OR, how would we like this process to be
accomplished (“should” map)
The Performer Level
2. TASK SUPPORT

Can the performer easily recognize the input
requiring action?

Can the task be done without interference from
other tasks?

Are job procedures and work flow logical?

Are adequate resources available for
performance (time, tools, staff, information)?
1. PERFORMANCE SPECIFICATIONS
INPUT

Do performance standards exist?

Do performers know the desired output and
performance standards?

Do performers consider the standards
attainable?
OUTPUT
CONSEQUENCES
PERFORMER
FEEDBACK
5. SKILLS/KNOWLEDGE

Do performers have the necesssary
skills and knowledge to perform?

Do performers know why desired
performance is important?
3. CONSEQUENCES
4. FEEDBACK
Are performers physically, mentally,
and emotionally able to perform?
From Rummler & Brache, 1995
Are consequences aligned to support
organizational performance?

Do performers receive information
about their performance?

Are consequences meaningful from
performer's viewpoint?

Is the information they receive:
- relevant?
- accurate?
- timely?
- specific?
- easy to understand?

Are consequences timely?
6. INDIVIDUAL CAPACITY


Performer-Level Analysis
Dimensions
1.
2.
3.
4.
5.
6.
Performance specifications
Task support
Consequences
Feedback
Skills/knowledge
Capacity