Organizational Analysis


The following definition of performance analysis appeared in the introduction to this section, "Performance analysis is the process of identifying the organization's performance requirements and comparing them to its objectives and capabilities." [16] The HPT Model looks into the heart of the organization ”its vision, mission, values, goals, and strategies ”as the first step in the performance analysis process. "Proper strategic alignment of these organizational components is essential to facilitating an optimal performance environment." [17]

Definition

Organizational analysis is an examination of the stuff that strategic plans are made of ”organizational vision, mission, values, goals, and strategies (see Table 3-4). There are two major roadblocks to organizational analysis:

  1. Organizations vary in which words they use to communicate their strategic plan. For example, one organization developed a mission statement, goals, and strategies, but the organization's leaders did not feel that they needed to define their vision or values.

  2. Individual members of an organization vary in how they define the words that the organization has selected. For example, three strategic planners were asked to define vision, mission, and goals. [18] Their responses are listed in Table 3-5 below.

    Table 3-4: ORGANIZATIONAL ANALYSIS COMPONENT OF THE HPT MODEL
    • Vision

    • Mission

    • Values

    • Goals

    • Strategies

    Table 3-5: VARIOUS STRATEGIC PLANNING DEFINITIONS

    Term

    Respondent

    Definitions...

    Vision

    #1

    Overall future direction (like north on a compass)

    #2

    Where we want to be when we grow up (the picture of success)

    #3

    Desired destination

    Mission

    #1

    Focus (like a U.S. map of the Midwest)

    #2

    Reason for being; purpose

    #3

    How we are going to get there

    Goals

    #1

    Instructions on how to get there (directions)

    #2

    Milestones to achieve along the way

    #3

    Steps we will take now to support our mission and vision (the to-do list)

In the long run, however, words are less important than actions. What is really important is that (1) the organization defines itself using three " ingredients :" an end state, activities or strategies to reach the end state, and reasons for making the trip; and (2) the leaders and the employees understand and agree on these definitions. [19] As part of an organizational analysis, the PT practitioner may also examine the customer's current or future needs and expectations.

Purpose, Timing, and Scope

The purpose of the organizational analysis is to seek directions, "the performance and perspectives that the organization and its leaders are trying to put in place." [20] Directions need to be identified before conducting a gap analysis because they will set the standards for desired or optimal performance.

The major factors that set the direction for the organization vision, mission, values, goals, and strategies are often found in the organization's strategic plan. The PT practitioner may also need to analyze such factors as:

  • Organizational structure

  • Centrally controlled systems

  • Corporate strategies

  • Key policies

  • Business values

  • Corporate culture [21]

Conducting an Organizational Analysis

The PT practitioner usually begins an organizational analysis by reviewing existing documents such as the organization's strategic plan, history, bylaws, board meeting minutes, annual reports , new employee orientation material, etc. Then the PT practitioner should try to gather feelings and opinions from as many internal and external stakeholders as possible.

One major but often ignored stakeholder is the customer. Leaders of successful organizations use information on present and future customer requirements and expectations to help them set the course or direction for their organization. Figure 3-2 [22] illustrates how input from the customer helps to establish the desired performance state as a foundation for performance gap analysis.

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Figure 3-2: GRANT AND MOSELEY CUSTOMER-FOCUSED PERFORMANCE ANALYSIS MODEL

Tools

Time, cost, the culture of the organization, and the availability of resources are the prime considerations when selecting tools for conducting an organizational analysis. Since it is extremely important to gather both facts and perceptions when analyzing an organization, the major analysis tools are extant data analysis, interviews, surveys, and group processes.

Interviews are probably the most helpful tool for accessing both fact and perception. The following three strategies are particularly appropriate for interviews conducted during an organizational analysis:

  1. Let the flow of the other person's thoughts and ideas lead the conversation so that (the interviewer's) questions clarify, confirm, and guide rather than drive.

  2. Always ask questions about purposes, goals, objectives, priorities, or dreams. Not only does that help define success, it also uncovers problems that are almost always there, such as conflicting goals and priorities or a lack of consensus or clarity.

  3. A useful question is, Who else should I talk to? This enables the interviewer to find the key players, the opinion leaders, the technical experts, and the potential saboteurs. It also ensures that the analysis will be open and provides the basis for setting up an interview. [23]

Group processes such as brainstorming sessions, focus groups, and consensus activities, are also helpful tools for generating or prioritizing input from stakeholders. [24] The case study at the end of this section describes a group-process approach to organizational analysis.

Surveys are more anonymous than interviews and may also generate facts and perceptions about the directions established by the organization. The job aid at the end of this section contains a sample survey that may also be used as the script for interviewing internal and external stakeholders.

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Case Study: Statewide Professional Organization

Situation

The executive board of a statewide professional organization decided to redefine the organization due to decreased membership and feedback from members that the organization did not meet their needs or expectations. The organization's membership included professionals from the health services and social science fields (60 percent), volunteers (10 percent), and students (20 percent) who shared a desire to help a specific population of disadvantaged adults. The organization produced five newsletters and held two membership meetings per 10-month membership cycle.

The executive board was elected annually by the membership. No students or volunteers were represented on the board. The executive board met once per month to plan the membership meetings and the newsletter. At the final board meeting of the year, the board set annual goals for the next year and selected topics or formats for the two membership meetings and the newsletters.

The organization did not have vision, mission, values, or goals statements. The president-elect suggested calling upon an outside consultant to conduct a strategic planning session just before the board recessed for the summer. The board unanimously agreed.

Organizational Analysis

To gain some insights into the desired and actual performance of the organization, the consultant reviewed documentation that included a history of the organization, board meeting minutes, membership material, feedback from membership meetings, and committee reports. The consultant then developed an agenda and materials for a one-day strategic planning session during which she would partner with the board members to develop strategic direction for the organization.

After the consultant was introduced to the board, she made a brief presentation on strategic planning. Then the board members completed a matching test similar to the one in the sample job aid at the end of this section. The purposes of the activity were to:

  • Provide an opportunity for individual board members to focus on and define the terms vision, mission, values, goals, objectives, and strategies.

  • Reach consensus on the definitions.

  • Reach consensus on which terms to focus on during the strategic planning session, given the one-day time constraint.

The board decided to focus on producing vision, mission, values, and goals statements and, if time permitted, to brainstorm strategies for the following membership year to reach the goals.

The board then formed three subgroups of four members each. The subgroups participated in an activity designed to develop a vision statement for the organization based on past and present realities (the history of the organization) and future trends. Each subgroup wrote its vision statement on a white board. Then the entire board discussed the three statements and selected one statement for the organization.

The same procedure was repeated for developing mission and values statements.

Results

Although the board outwardly appeared to reach consensus on the vision, mission, and values statements, when it came time to brainstorm goals to support the broader statements, it soon became obvious that the board members were not in agreement about the organization's mission. The major problem involved the organization's desire or ability to meet the needs of members who were students or volunteers in the field. The board members brainstormed a set of tentative goals based on the mission statement they had chosen . Then the board members agreed to individually review the vision, mission, values, and goal statements, and hold a special meeting at one of the board member's summer home. During that meeting they would finalize the mission and goals statements and develop strategies for the upcoming membership year that would align with the new strategic plan. The board also agreed to introduce the strategic plan to the membership at the September general meeting and to seek membership approval for the plan.

Lessons Learned

  1. Time, money, and the availability of human and other resources were generally perceived as major drivers or causes of organizational performance, yet unacknowledged personal agendas were having an even stronger impact on the organization's future.

  2. Buy-in from the board and the membership was extremely important if the organization was to remain viable . However, buy-in could not be rushed, despite the pressure to save the organization from imminent atrophy and possible extinction .

  3. It was difficult to determine how far apart the board and the membership were in terms of strategic direction. Involving the membership was an important next step.

  4. The whole effort would collapse if the board failed to keep up the momentum that was achieved during the strategic planning session or if they failed to create a strategic plan that would set the course for "what should be."

This case study was written by Joan Conway Dessinger, Ed.D., The Lake Group. Used with permission.

end sidebar
 
Job Aid 3-1: ORGANIZATIONAL ANALYSIS SURVEY
start example

Select the terms or sections of this job aid that are appropriate for the organization you are analyzing. Use the selected sections as a survey instrument or as a group discussion guide. The target audience may include all levels of management, workers, external stakeholders, competitors , or customers. The goal is to identify both facts and perceptions from a broad range of internal and external stakeholders. This will help determine whether or not the organization's vision, mission, values, goals, or strategies are aligned with the desired and actual performance state.

Defining Organizational Analysis Terms

Pick the definition from Column A that you feel best matches the term in Column B and write the number in the parentheses () next to the term:

Column A: Definitions

Column B: Terms

  1. The reasons for making the trip

  2. Our principles and standards

  3. Our reason for being

  4. What we do

  5. The end state to be achieved

  6. Our notion of success

  7. Milestones along the way

  8. The means to be used

  9. The path to be taken

  10. Who we are

  1. ( ) Vision

  2. ( ) Mission

  3. ( ) Values

  4. ( ) Goals

  5. ( ) Objectives

  6. ( ) Strategies

Vision

What is the organization's vision?

 

Is the vision clearly defined?

___ Yes

___ No

Is the vision adequately communicated to all stakeholders?

___ Yes

___ No

Does the vision make sense in terms of internal strengths and weaknesses?

___ Yes

___ No

Does the vision make sense in terms of external threats and opportunities?

___ Yes

___ No

Mission

What is the organization's mission?

 

Is the mission clearly defined?

___ Yes

___ No

Is the mission adequately communicated to all stakeholders?

___ Yes

___ No

Does the mission make sense in terms of internal strengths and weaknesses?

___ Yes

___ No

Does the mission make sense in terms of external threats and opportunities?

___ Yes

___ No

Values

What are the organization's values?

 

Are the values clearly defined?

___ Yes

___ No

Are the values adequately communicated to all stakeholders?

___ Yes

___ No

Do the values match the mission and vision?

___ Yes

___ No

Do the values make sense in terms of internal strengths and weaknesses?

___ Yes

___ No

Do the values make sense in terms of external threats and opportunities?

___ Yes

___ No

Goals

What are the organization's goals?

  • Products and services:

  • Customers and markets:

  • Competitive advantage:

  • Product and market priorities:

Are each of the goals clearly defined?

___ Yes

___ No

Are each of the goals adequately communicated to all stakeholders?

___ Yes

___ No

Do each of the goals match the mission, vision, and values?

___ Yes

___ No

Do each of the goals make sense in terms of internal strengths and weaknesses?

___ Yes

___ No

Do each of the goals make sense in terms of external threats and opportunities?

___ Yes

___ No

Strategies

What are the organization's strategies for meeting its goals?

  • Products and services (What are we going to do?):

  • Customers and markets (Whom will we do it for?):

  • Competitive advantage(s) (Why will the customer buy from us?):

  • Product and market priorities (Where will we place our emphasis?):

Are each of the strategies clearly defined?

___ Yes

___ No

Are each of the strategies adequately communicated to all stakeholders?

___ Yes

___ No

Do each of the strategies match the mission, vision, values, and goals?

___ Yes

___ No

Do each of the strategies make sense in terms of internal strengths and weaknesses?

___ Yes

___ No

Do each of the strategies make sense in terms of external threats and opportunities?

___ Yes

___ No

This job aid is based on the work of Rummler and Brache [25] and Nickols. [26]

ISPI 2000 Permission granted for unlimited duplication for noncommercial use.

end example
 

[16] Rosenberg, 1996, p. 6

[17] Grant and Moseley, 1999, p. 15

[18] Nickols, 1996

[19] Nickols, 1996

[20] Rossett, 1998, pp. 33 “34

[21] Tosti and Jackson, 1997, p. 23

[22] Grant and Moseley, 1999, p. 16

[23] Brethower, 1997b, p. 21

[24] Zemke, 1987

[25] Rummler and Brache, 1995

[26] Nickols, 1996




Fundamentals of Performance Technology. A Guide to Improving People, Process, and Performance
Fundamentals of Performance Technology: A Guide to Improving People, Process, and Performance
ISBN: 1890289086
EAN: 2147483647
Year: 2004
Pages: 98

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