MOST Analysis

Mission Statement

This first workshop involves the top executive or Owner and his or her senior staff. The purpose of this workshop is to introduce this executive team to the components of the Business Optimization Process, referred to as the BOP, and to begin the first steps in implementing the BOP. The senior staff includes those who are responsible for the various disciplines within a company. These disciplines usually include sales, operations, distribution, financial management, and human resource management. Depending on the type and organizational structure of the company they can also include marketing, creative design, engineering and product development.

The BOP is mission driven. It is a corporate focused, team building process that teaches the types of skills needed to effectively improve an organization’s performance. It accomplishes this by training employees to systematically identify and solve the root cause of the problem that is most constraining the performance of the organization. It is a continuous improvement process that once implemented results in a higher level of satisfied customers and a more enjoyable work environment for the employees. These results lead to a financially stronger organization that brings long-term stability and better rewards and job security for everyone. The key components of the BOP include Systems Theory and Thinking, the Theory of Constraints, and Transformational Leadership principles.

The first objective in this workshop is to develop a mission statement for the BOP that is initiated by you, the Owner. This statement helps you explain why you are pursuing the BOP and provides clarity of purpose and direction for the organization during the implementation of the BOP.

Along with the BOP Mission Statement there needs to be a vision statement for the BOP. Whereas a mission statement clarifies the why, a vision statement shows the what. A vision inspires and challenges people to accomplish the mission. It is the vision that people grasp. Visions create the emotional energy necessary in motivating people to action. Visions let people see what it looks like when the mission is accomplished. Visions provide the realism and create the belief that accomplishing the mission is achievable. The BOP Vision Statement shows what it looks like when the mission of the BOP is accomplished.

Along with establishing the BOP Mission Statement and the BOP Vision Statement the participants in this workshop will begin to understand Systems Theory and Thinking as it applies to your organization. Organizations are systems and as such obey certain laws, have certain characteristics and follow certain principles that govern how systems function. Understanding these laws, characteristics, and principles make organizational change more successful. Therefore it is important that you begin to understand how the various parts of this organization interact and interconnect with each other.

In summary, the purpose of this workshop is to introduce you to the components of the BOP and guide you through the initial steps of the BOP beginning with developing the BOP Mission Statement and the BOP Vision Statement. Along with these initial steps you will learn the basics of System Theory and Thinking and how to incorporate System Theory and Thinking into your improvement efforts. Establishing a mission and vision at the beginning helps you tailor the BOP to the specific needs of your organization.

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Objectives

1) BOP Mission Statement: Develop the BOP Mission Statement that defines and clarifies why you, the Owner are implementing the BOP.

2) BOP Vision Statement: Develop the BOP Vision Statement that expands the mission statement with emotion-based and image-based words used to motivate and inspire the people in your organization to accomplish the BOP mission.

3) Initial Announcement: Develop a written introductory announcement explaining in general terms that your company is beginning the implementation of the BOP.

4) Top Concerns: A list from each participant of the top three concerns the participant has concerning the implementation of the BOP.

5) Suggestions: A list from each participant of three suggestions the participant thinks the company could do to overcome these concerns.

6) Entropy: A demonstrated understanding of organizational entropy with a list from each participant of four areas in which the participant believes entropy is most apparent within the organization.

7) Inertia: A demonstrated understanding of organizational inertia with a list from each participant of two areas in which the participant believes resistance to change will be the greatest and two where he or she thinks it will be the least resistant.

8) Synergy: A demonstrated understanding of organizational synergy with a list from each participant of two areas the participant believes synergy is the strongest and two areas the participant believes synergy is the weakest.

9) Permeability: A demonstrated understanding of permeability of the boundary that separates this company from the environment in which it exists with a list from each participant of two areas where the participant believes permeability is the best and where he or she thinks it is the poorest.

10) Controllability: A demonstrated understanding of the controllability of the permeability of organizational system boundaries with a list from each participant of the top three areas the participant believes employees have the greatest ability to affect and the least ability.

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Strategies

1) BOP Mission Statement:

a) A step-by-step process that guides you, the Owner in identifying your personal reasons for wanting to implement the BOP and using these personal reasons to create an initial draft of your mission statement for the BOP.

b) A step-by-step process that guides you and your senior staff is crafting a second draft of the BOP Mission Statement using your initial statement.

c) A process by which a few selected trusted and skilled employees edit this second draft that ends up being the approved BOP Mission Statement.

2) BOP Vision Statement

a) A step-by-step process that guides you and your senior staff in drafting the BOP Vision Statement based on the draft of the BOP Mission Statement.

b) A process by which a few selected trusted and skilled employees edit this second draft that ends up being the approved BOP Vision Statement.

3) Initial Announcement:

a) A process that guides you and your senior staff in drafting an initial communication message that gives an introduction of the BOP.

b) A process by which a few selected trusted and skilled employees edit this draft that ends up being approved for release to the rest of the organization.

4) Top Concerns: A form each participant fills out after the workshop after the mission and vision statements are approved. See Attached Form 1

5) Suggestions: The same form as above that each participant uses to list three suggestions the participant thinks would overcome these concerns. See Attached Form 1

6) Entropy: A form each participant follows after the workshop to review organizational entropy and to list three areas within the organization where the participant thinks entropy is the most apparent. See Attached Form 2

7) Inertia: A form that each participant follows after the workshop to review organizational inertia and to list two areas in which the participant believes resistance to change will be the greatest and two where he or she thinks it will be the least. See Attached Form 3

8) Synergy: A form that each participant uses after the workshop to review organizational synergy and to list two areas within the organization where the participant thinks synergy is the strongest and where he or she thinks it is the weakest. See Attached Form 4See Attached Form 5

10) Controllability: A form that each participant uses after the workshop to review boundary characteristics and to list three areas within the organization where the participant thinks employees have the least ability to effect. See Attached Form 6

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Tasks

1) BOP Mission Statement:

a) Prior to the workshop the Owner uses the process explained in the Planning section of the Introduction and writes his or her initial draft of the BOP Mission Statement and brings this draft to the workshop.

b) Prior to the workshop members of the senior staff work through the last part of the same process and bring their ideas about what they would like to see from the BOP to the workshop.

c) During the workshop participants will follow a decision making process and use a mission statement template to write a draft of the mission statement.

d) After the workshop three qualified and trusted employees will review and wordsmith this draft to help ensure that the mission statement will be understood and received positively by the employees.

e) The Owner will review and approve this version making it the official mission statement for the BOP.

2) BOP Vision Statement:

a) During the workshop participants will follow a vision writing and decision making process and use a vision statement template to write a draft of the BOP Vision Statement.

b) After the workshop three qualified and trusted employees will wordsmith this to help ensure that the vision statement will be motivational and inspirational and received positively by the employees.

c) The Owner will review and approve this version making it the official vision statement for the BOP.

3) Initial Announcement:

a) During the workshop participants will follow an example for an initial announcement and write a draft of the initial announcement of the BOP.

b) After the workshop three qualified and trusted employees will wordsmith this draft to help ensure that the announcement gives a general introduction to the employees concerning the BOP in a way that will be received positively and alleviate any potentially concerning thoughts or anxiety on the part the employees.

c) The Owner will review and approve this wordsmithed version making it official and ready for release.

4) Top Concerns: Each participant after the workshop reviews the final approved mission and vision statements and using a form (See attached Form 1) lists three concerns he or she has about implementing the Business Optimization Process.

5) Suggestions: Each participant after the workshop reviews his or hers concerns and using the same form as above (See attached Form 1) lists three suggestions that he or she thinks would alleviate or overcome these concerns.

6) Entropy: Each participant reviews the definition of organizational entropy and using a form (See attached Form 2) lists three areas within the organization where he or she thinks it is the most apparent.

7) Inertia: Each participant reviews the definition of organizational inertia and using a form (See attached Form 3) lists two areas in which the participant believes resistance to change will be the greatest and two where he or she thinks it will be the least.

8) Synergy: Each participant reviews the definition of organizational synergy and using a form (See attached Form 4) lists two areas within the organization where he or she thinks employees have the greatest ability to effect and two where he or she thinks employees have the least ability.

9) Permeability: Each participant reviews the definitions of boundary permeability and using a form (See attached Form 5) lists two areas within the organization where the participant thinks permeability is the best and two areas where he or she thinks it is the poorest.

10) Controllability: Each participant reviews boundary characteristics and using a form (See attached Form 6 lists to areas within the organization where the participant thinks employees have the greatest ability to affect the way the company operates and two areas where employees have the least ability.

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Introduction

Planning

The first order of business during the workshop is to develop the mission statement for the BOP. The reason this is first is that it is important to set the stage upfront for why the Company is embarking on the BOP. It is also important that the mission be driven by the Owner since it is the Owner who has decided to implement the BOP.

In order to make the best of everyone’s time and in order to tackle an aggressive agenda it is important that the owner prepare an initial draft prior to the workshop. This draft will be the foundation for developing the BOP Mission Statement that will be used throughout the implementation of the BOP.

In order for a mission statement to be meaningful and effective it must be supported by the members of the organization. It must become a shared mission for those in the organization. The best way to accomplish this is to have multiple people involved in developing the mission. Therefore, it is important that everyone involved in the workshop contribute to the development of the BOP Mission Statement.

Writing the initial draft of the BOP Mission Statement is an individual exercise by the Owner that the Owner will then bring to the workshop. To help you, the Owner concentrate on this task, you should schedule time when you are the most creative and able to relax. Along with scheduling time, you should also find a place that is away from interruptions or distractions. It should be a place that is comfortable and in an environment that is conducive to thinking creatively. This exercise should not be stressful. It should be fun and informative.

In order to help you write your initial draft of the mission statement in a time effective manner you are given a process to follow. The whole process should require no more than an hour or so of your time.

Before you can write your draft of the BOP Mission Statement you need to understand your personal reasons for embarking on the BOP. Only you know what you want to accomplish with the BOP. In order for the BOP to be successful in your mind it must further the success of your company as you define success. Therefore, the process begins with you defining your personal reasons for choosing the BOP. This definition is your personal mission statement. This statement is your beginning point.

The process of writing the initial draft of the BOP Mission Statement starts by answering the five questions below. These questions are aimed at helping you understand your personal mission. You will then use your answers to these questions to complete the three statements that follow. Next, you will apply how you completed these statements to seven questions that relate specifically to this company. You will use your answers to these seven questions to formulate your initial draft of the BOP Mission Statement.

Don’t stop and overthink or analyze how you answer the questions or complete the statements. Just answer them as fast and as simply as you can, minimizing the number of words.

To begin the process, take a clean sheet of paper and write the first question shown below. Then write your answer. Then write down the second question shown below and your answer. Continue through all five questions. Use any writing method that suits you best. You can use a tablet of paper and hand write or you can use a computer or digital tablet. Use what works best for you. The important thing is to accurately record your thoughts. Once you are set up, begin by answering the following five questions.

1) “What is important to me?” Think past your company and your job. Think about your social and community activities, your family and other relationships, or organizations with which you are involved. List no more than three things.

2) “What principles do I try to live my life by?” These are those ideals and values that are morally important to you, things that reflect your values and that apply to your day-to-day activities. Do not over think. Just do a brain dump. Do not spend a lot of time. List no more than three that come to mind.

3) “What are the reasons I do the things I do? This relates to the above questions but gets you thinking about why you do what you do, about what motivates you. List no more than three reasons.

4) “What are the things I want to accomplish with my life?” List no more than three things. The answer to this question is based on your answers to what is important to you, the principles that you try to live by and the reason you do what you do.

5) “How can the BOP help me accomplish these things?” List no more than three things.

After you have answered the above five questions complete the following statements.

I) “Based on what is important to me I would like to see the BOP accomplish:” List no more than three accomplishments you want for the focus of the BOP.

II) “Based on the principles by which I try to live my life, I would like to see the BOP be implemented in the following manner:” This statement has to do with how you want your customers and employees to be effected by the BOP, your priorities, your company’s participation in community activities, etc. List no more than three reasons.

III) “Based on the reason behind what I do, I would like the reasons for implementing the BOP to be based on:” List no more than three reasons.

After you finish these three statements answer the following seven questions based on your responses above.

A) “What are the top three benefits I think my company provides?”

B) “What are the top three things I admire about my company relating to how it provides these benefits?”

C) “What do I see as my company’s three main successes pertaining to the recipients of these benefits?”

D) “What three things would I like for my company to do to expand its customer base as a result of the BOP?”

E) “What three things would I like my company to do to improve the environment for its employees as a result of the BOP?”

F) “What three things do I think my company should do to improve its profitability as a result of the BOP?”

G) “What one thing would I like to see my company accomplish outside of business related areas?” These include such things as contributions or involvement in charitable organizations, community functions, professional organizations and political action committees.

Now write down your thoughts in the form of an initial mission statement. This form should address four criteria: 1) a reflection of who your company is, its personality, character, etc.; 2) a description of how your customers will benefit from the BOP; 3) a description of how your employees will benefit from the BOP; and 4) a description of how you as the Owner will benefit from the BOP. The following is a suggested template:

“We are embarking upon the Business Optimization Process to help (Your Company Name) provide (Answers to Question A) by (Answers to Question B) which has resulted in (Answers to Question C). By implementing the BOP we will increase our customer base by (Answers to Question D) and improve our work environment by (Answers to Question E). We will increase our profitability by (Answers to Question F). In addition, it will help us contribute to an outside cause by (Answer to Question G).

When you have completed this exercise your initial statement should be able to explain your purpose for wanting to pursue the BOP. We live in a dynamic world where companies grow and change, where technologies change rapidly, and where marketplaces fluctuate. Therefore, in order for the mission statement to be effective it must be based on current business opportunities and challenges so that everyone involved knows why you wat to implement the BOP and the direction you want the BOP to take.

You are to bring your initial draft to the workshop.

Another thing you are to bring to the workshop is a template of a draft of an announcement that will be given to the people in your company after the workshop. The template is in an attached Word document. The use of this document is detailed in the Communication section the Course Manual and in the Communication section of the Project Study. See Illustration 1

As Owner you need to establish the direction for the BOP by articulating your thoughts. In order to ensure that your thoughts are best articulated and supported, you will be soliciting input from your senior staff during the workshop. During the workshop a process will be followed where all participants will contribute their thoughts concerning the mission statement. These thoughts will help you finalize a draft of the BOP Mission Statement. To this end, your senior staff member should come prepared to the workshop with their answers to the seven questions A – G.

After the draft of the mission statement is completed everyone will follow a similar process to develop a vision statement based on the consensus of what everyone feels it looks like when the BOP mission is accomplished. While the mission is based on your reasons for wanting to implement the BOP, developing the vision statement is a joint effort where everyone equality participates. This vision statement reflects how as a group you see your company when the mission is accomplished.

During the workshop and after completing a draft of the mission and vision statements, the basic concepts of Systems Theory and Thinking will be explored. By definition every system is a subsystem of the environment in which it exists. Since a company is an organization and since organizations are systems your company is a system that functions within a defined environment. This environment includes the marketplace, the country in which your company operates and the community in which it is located.

Every system by definition has a permeable boundary through which inputs and outputs transfer. Inputs include labor, raw materials, subcontractor or other types of outside services, and information. Outputs include finished products and services, information, and scrap and waste.

In addition to having permeable boundaries every system consists of interrelated and interdependent activities that convert inputs into outputs. Inputs are drawn from the environment and outputs are injected back into the environment through the permeable boundary. In order to control the way a system functions, systems have communications processes that communicate information to the environment, receive information from the environment, and process information within the boundary of the system.

Systems Theory and Thinking as it applies to business organizations state that in order for anything to be produced, whether a product or a service, there must be a set of interrelated and interconnected activities. These activities work in conjunction with each other within the boundary of the organization and across the boundary into the environment in which the organization exists. It further states that each activity contributes in some way to the output of the organization. In order to predict and control the output from the organization, the activities associated with the organization and their interrelatedness must be understood. The effectiveness of an organization can only be improved by improving the activities associated with the organization, how these activities interrelate with each other within the organization, and how the organization as a whole relates with the environment within which it exists. These system characteristics will be further expanded during the workshop.

Prior to the workshop someone needs to print copies of the attached draft and ensure these copies are brought to the workshop. This draft will be massaged during the workshop and will be the first communication given to the employees concerning the BOP. See Illustration 1

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Development

As explained in the Planning section, during this workshop a draft of the mission and vision statements for BOP will be developed. After these are developed you will be introduced to the concepts of Systems Theory and Thinking as they apply to organizations. You will begin to understand the nuances of systems as they apply to organizations and in particular how they apply to your company.

The first order of business as explained in the Planning section will be to develop the draft of the BOP Mission Statement. The reason this is first is that it is important that as the Owner you define the purpose for why you want to implement the BOP. This purpose is the driver behind the BOP. Without knowing the reason behind pursuing the BOP there will be confusion and lack of direction. This will at best make the results fall short of what they could be. At worst, not having an articulated and understood mission could create more problems than the process is designed to solve because of the potential non-productive distractions that could be created.

The process of finalizing the BOP Mission Statement starts with the draft you bring to the workshop. Your statement will form the foundation for the finalized draft of the mission statement that will come out of the workshop. The most effective mission statements are those where the mission is supported by the employees and becomes the shared mission of those in the organization. Because of this it is important that your senior staff have a role in formulating the final mission statement draft.

This does not mean that the mission should incorporate everyone’s ideas of how the mission statement should read. This would be impossible and futile.

One of the reasons why everyone needs to contribute to the BOP Mission Statement is because if your senior staff is working with those who have significantly different ideas on what the mission should be they will more likely be at odds with each other. When this happens at the senior level your company’s ability to accomplish all that it can is diminished. This does not mean that your staff only works with those who are just like them. This would be impossible and detrimental to the organization. What it means is that you need to make sure that what everyone wants the BOP to accomplish is in line with what everyone else wants it to accomplish. To ensure that this is the case, you and your staff need to be on the same page concerning what you want for your company from the BOP. Differences are natural and healthy. But in the end the mission must be such that everyone can support it wholeheartedly.

The first step in finalizing a draft of the BOP Mission Statement will be to review the initial draft of what you bring to the workshop. Each participant will share their individual answers to the seven A through G questions from the Planning section. It is important for everyone in the workshop to understand how each of you think about what the mission should be. As a group you will use a decision making process to boil down your individual thoughts into some common statements that are aligned with your initial draft. This will allow everyone to identify those areas in which each of you agree or mostly agree and those areas where there is disagreement.

As a group each of you need to understand what each other wrote down so you can begin to identify patterns that reflect your common thoughts. These common thoughts will become the key points you will want to include in the final draft. As a group you will follow a process that helps sort through these patterns to come up with key points upon which everyone agrees. You will identify areas where there is consensus as to what the purpose of the BOP should be. You will also discover areas where there is consensus about what the purpose should not be. Through this exercise you may even discover things about your company that you want to expand upon or want to minimize.

As you develop the draft of the BOP Mission Statement you will begin to articulate your company’s defining characteristics, those characteristics that make your company what it is. You will begin to better understand what differentiates your company from your competition. You will be able to focus on why your company is the way it is. You will understand those things that as an organization you are doing right and what you are not doing right.

Your company will begin to become more personal to you. You will be able to define the personality of your company’s organization. You will discover those things that you feel strongly about. You will arrive at a consensus about what you want to accomplish with the BOP regardless of the obstacles that may be in the path. You will begin to realize what your company can do to better serve its customers, to develop a better place for its employees to work and to link more closely with your suppliers. As you dialog among yourselves you will begin to build a consensus of what you want the BOP to accomplish, those key characteristics and purposes that align everyone in your company.

After the draft of the BOP Mission Statement is finalized the next step will be to develop the BOP Vision Statement. This vision statement is written to express what the company looks like when it has accomplished the BOP mission. The mission statement is extremely important; however mission statements basically do not motivate people. They simply clarify why you are doing what you are doing. In order for people to be motivated toward helping accomplish a mission they need to see what it looks like when the mission is achieved. They need a vision.

The vision is what inspires and challenges people to accomplish the mission. It is the vision that people can grasp. Visions create the feelings that are necessary to motivate people to action. Since visions let people see what it looks like when the mission is accomplished, visions provide the realism and create the belief in the people that accomplishing the mission is achievable. This is true with this group as well. Each of you needs to see the vision and believe in the possibility that with your leadership this company can achieve the mission.

Successful mission and vision statements are not just plaques on a wall that look good and that people read from time to time. The mission statement defines and clarifies the purpose of doing something. The vision statement shows everyone what success looks like. Therefore, these statements must be written in a way that rallies everyone in the organization together to accomplish the mission and achieve the vision.

Speaking in military terms, let’s say the mission is to “take the hill”. Though this is the mission, charging the hill will not be successful unless the soldiers and their leaders believe they can take the hill. This belief comes from seeing what it looks like when they achieve victory. Once the BOP mission is understood, the vision shows what it looks like when the “hill is taken”.

You will use a similar process as used to develop the BOP Mission Statement. The difference is that you start from scratch developing the BOP Vision Statement based on your finalized draft of the BOP Mission Statement, as opposed to starting with a draft that the Owner brings to the workshop.

During the workshop all of you will work together to brainstorm how the company looks when the BOP is completed. The mission clarifies the actions needed. The vision challenges people to take action. The vision shows what it looks like when the mission is accomplished. A mission informs. A vision inspires. Bottom line, it is the vision that people follow and it is the vision that leaders use to motivate their followers.

Because the vision paints a picture and identifies with people’s emotions it is important that as you develop this vision you use words that people can picture, that people can become attached to. Where the mission uses conceptual-based words the vision uses image-based words. After you have developed the BOP Mission Statement and the BOP Vision Statement the focus will move to the topic of Systems Theory and Thinking.

Through the mission and vision development process the concepts of System Theory and Thinking will be injected into the conversations. These conversations are aimed at helping you develop a deeper understanding of how organizations function. Specifically you will develop a growing understanding of how Systems Theory and Thinking apply to your company and how to apply these concepts when implementing a new process like the BOP.

Every system operates within an environment and receives inputs from this environment. Every system then uses these inputs to produce outputs that are released back into this environment. Every system is separated from its environment by a permeable boundary. It is through this permeable boundary that inputs and outputs pass.

It is at this boundary that a system and its environment interrelate. Therefore, every system must form a relationship with its environment. There are no exceptions. A system may have a positive relationship with its environment. These relationships come when the system produces desired outputs that the environment needs and that helps the environment improve and when the system’s environment is supportive of the needs of the system. A system may also have a negative relationship with its environment. A negative relationship comes from a system that is producing non-desired outputs that the environment does not need or that actually hurt the environment in which the system exists. These types of relationship can also come when a system’s environment is not supportive of the needs of the system. The issues that affect these types of relationships almost always happen at the boundary between the system and its environment. It is a two way street.

Systems also include autonomous activities within the boundary of the system. Once a system receives its required inputs it is no longer dependent on the environment within which it exists. That is, until if releases its outputs. But, from the time it receives its inputs and until it produces what it is releases back into the environment all the activities and interrelations are confined within the boundaries of the system.

Every organization is a system and every company is an organization. Therefore, every company is an organizational system that adheres to certain laws, characteristics and principles. During this workshop you will develop an understanding of these System Theory and Thinking terms and how they apply to any organizational system. This understanding will help you see the systemic reasons behind why your company is not performing better than it is. Along with this understanding you will develop tools that you can apply to not only better your understanding as to why your company functions as it does but how to systematically make the right kind of decisions and changes required to effectively improve your company’s performance.

In summary, during this workshop you will develop drafts of a meaningful BOP Mission Statement and a useful BOP Vision Statement. You will begin to develop an understanding of the laws, characteristics and principles of System Theory and Thinking and how these affect your organization, or any organization for that matter, and how these affect the way you go about improving your company’s performance. Using the process introduced during this workshop is designed to help you develop these drafts and to help you better understand your company from a systems standpoint. Along with developing drafts of the mission and vision statements, you will also develop a draft of an introductory communication letter that can be used to help squelch any rumors or increase in anxiety among the employees that may begin to appear as they see changes in your focus and behavior brought about by the BOP.

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Implementation

The draft of the BOP Mission Statement created during this workshop defines the reason you are implementing the BOP. It is used to help to keep each of you focused on what you want to see as the outcome of the BOP. This mission statement will be used throughout the implementation process to keep everyone on course. The BOP mission is the destination that all of you agree is to be the desired outcome of the BOP. It will communicate to the entire organization the reason behind why your company is undertaking the BOP. The mission will be the catalyst that will create unity and purpose for everyone in the company. This is why developing the BOP Mission Statement is the first step in the BOP. It defines the path on which the whole organization is to work. This brings to mind the old adage, “if you aim at nothing you are likely to hit nothing”. Having a well-articulated BOP Mission Statement will go a long way in making the BOP effective and enjoyable while preventing your company from not having a target to aim at.

The draft of the BOP Vision Statement that you will also develop during the workshop is used to create the motivation and belief that the mission is not only doable but worthwhile. The vision paints the picture of success. It is used to rally people associated with the organization to accomplish the mission and is used in combination with the mission statement to communicate to the rest of the organization where the organization is headed. It is crucial for people to understand where the company is headed if they are expected to help the organization get to where the company’s leadership wants it to go. The mission explains the purpose behind why leadership is implementing the BOP. The vision shows what it looks like when the BOP is implemented.

The BOP mission will form the basis for strategies and goals and the development of key success drivers, key performance indicators and performance metrics. These strategies, goals, drivers, indicators, and metrics will be developed in subsequent workshops and used to focus your organization to the improvement desired. These strategies, goals, drivers, indicators and metrics will become critical in order to keep everyone in the organization focused on accomplishing the mission of the BOP.

As an example, let us say your mission is to reach a given destination at a certain time. In order to accomplish this mission you determine that you need to maintain a speed of 50 mph. In this example a key success driver is the need to maintain 50 mph. In order to maintain this speed you need to first know what your speed is before you can make the right decision on how far to depress the gas pedal. You need a speedometer. You will need other measurements or performance indicators as well such as an oil pressure gauge. However, it will be impossible to accurately maintain 50 mph if you are only measuring your oil pressure. Measuring oil pressure is important but this measurement will not provide the metric you need to maintain your speed. In this example you need to measure oil pressure to make sure the engine continues to operate because if it fails there is no way you are able to maintain your speed or reach your destination. You will eventually stop. But, in this case your key success driver is your speed and your key performance indicator is the measurement of this speed.

The BOP helps you use the mission, vision, strategies, goals, key success drivers, and key performance indicators and metrics as tools to systematically focus the resources of your entire organization. It applies these tools using the concepts of Systems Theory and Thinking.

This workshop introduces Systems Theory and Thinking and how it will be applied to the implementation of the BOP. Every company is an organization and every organization is a system. Therefore, in order to focus the resources of an organization the organization must be understood as a subsystem within the environment in which it exists. It must also be understood as a combination of subsystems that are interrelated and interdependent within the boundaries of the organization. The concepts of Systems Theory and Thinking that you will learn during this workshop will help you better understand the system nuances of your company. Learning these concepts will greatly aid you as you focus on accomplishing the mission and as you use the vision to lead your organization in implementing the BOP.

During this workshop you will learn about the three system laws, five system characteristics and eight system principles that apply to every organizational system. Some of these laws, characteristics and principles may be new to you or at least new in the way they are defined in organizational system theory. To begin applying System Theory and Thinking to your company we are starting with the definition of the three laws. These laws are entropy, inertia and synergy.

The term entropy is most associated with science. “Entropy is a tendency for a system’s outputs to decline when the inputs have remained the same. Most often associated with the Second Law of Thermodynamics, entropy measures the changes in the type and dispersion of energy within an observable system.” It is also defined as “the degree of disorder or uncertainty in a system, a process of degradation or running down.” It is a natural phenomenon where outputs from activities always move from a higher state to a lower state within a system unless energy is injected into the system. Entropy exists in all systems including organizational systems.

Organizational entropy is a measure of the disorder or randomness concerning how work is performed within an organization. An organization will, by its nature, seek to operate at the lowest possible level of energy. Organizational entropy is an important concept to understand because we often do not recognize why things within our companies are the way they are. We do not realize that over time our organizations have migrated to a lower energy state than what they used to be and that complacency and a lack of organizational alignment has set in. These changes are subtle and thus the root cause is hard to detect. Everyone seems focused on performing their job but not on how their job affects the company as a whole. This happens even in companies that have ongoing continuous improvement programs.

The way to overcome the effects of organizational entropy is to put the right kind of effort or attention into the organization, or using the science term, inject the right kind of energy. Without constant and proper energy being injected into their organizations, companies over time slowly move to lower and lower states of energy. Operational activities become disjointed. People accept this disjointedness as normal operating activities. Employees become increasingly complacent as they accept the status quo and performance slowly decreases. These subtle changes cause companies to lose their effectiveness and can eventually cause companies to slowly decline to the point where they cannot survive. The BOP is a process that not only controls the rate of organizational entropy but can actually reverse it by injecting positive energy, creative ideas and targeted process improvements into an organizational system. The result is a system that functions more effectively and where quality, productivity and output capability continue to improve.

The term inertia is most often associated with physics. “Inertia is the resistance of any physical object to any change in its state of motion; this includes changes to its speed, direction, or state of rest. It is the tendency of objects to keep moving in a straight line at constant velocity. The law of inertia is one of the fundamental laws of classical physics that are used to describe the motion of objects and how they are affected by applied forces.”

System inertia is the resistance by a system to any outside force that is trying to change the way that system operates. Organizational system inertia is the underlying cause why organizations resist change. It is also the underlying reason why it is important to understand and apply the right kind of “forces” whenever leadership is trying to implement organizational change. In other words, system inertia always causes systems to counter act any force that is trying to change how that system is operating. This is true for all systems, including all organizations. Organizational inertia is the force or resistance that tries to maintain the status quo. In order to overcome any inertia the right kind of force needs to be applied at the right rate in order to efficiently overcome a system’s inertia.

The third system law that affects the BOP is Synergy. The level of synergy has a direct impact on the performance of an organization. Synergy is “when the combined actions or operations of two or more organizations, substances, or other agents produce an effect greater than the sum of their separate effects.” Synergy has to do with synchronization. When the elements of a system interrelate and interconnect in a synchronized manner the system functions as a fine tuned watch. When one or more of the elements are out of sync the whole system suffers and its output is diminished.

In organizations synergy implies effective teamwork. Effective teams are those whose members share common values, have a common purpose and possess complimentary skills. The first application of the BOP Mission Statement and the BOP Vision Statement is to create synergy with the participants of this workshop. These statements are used to provide focus and team direction at the top of the organization. The Leadership Team, which is the first team that is formed during the implementation of the BOP, will be formed from the participants of this workshop. As with any team, the mission statement provides the ability for team members to identify their common values, to ensure that they understand and have a common purpose, and that the skill set of team members are complementary to achieving the purpose of the team.

Applying Systems Theory and Thinking is one of three concepts that the BOP uses to improve company performance. The other two concepts are the Theory of Constraints and Transformational Leadership. These concepts will be part of the next two workshops. However, before these concepts can be applied effectively, the BOP Mission Statement and the BOP Vision Statement need to be established for reasons stated above. These establish the targets and define the destination that you, the Owner and your senior staff want for the BOP.

The BOP is a process that begins with you and your senior staff and moves down through your organization involving an array of employees at all levels of the organization. Depending on the type of company this array could include department managers, supervisors, engineers, designers, technical personnel, line, clerical or support employees, and representatives from the human resource area. Because of how the BOP involves these types of employees, just about every part or subsystem of the organization will be involved to some degree with the BOP. Since the mission and vision define the destination, the application of System Theory and Thinking form the basis for applying the Theory of Constraints and Transformational Leadership principles, which are the basic tools used to implement the BOP. These tools will become clearer in the coming two workshops.

The BOP Mission Statement and BOP Vision need to be well thought through since you are setting the stage for the implementation of the BOP. They form the very cornerstone of what you and the rest of this organization will be focusing on through the BOP. This is the reason that it is important for everyone in this group to agree with the BOP Mission Statement and the BOP Vision Statement. This does not mean that everyone necessarily agrees with every part of them but it does mean that everyone must be able to whole heartedly support them. Since they are the cornerstone, everything going forward will refer to them to define the direction and purpose of the BOP. During the fourth workshop you will be explaining the total BOP concept and schedule to the rest of the company. This will include the BOP Mission Statement and the BOP Vision Statement. This explanation will also include the concepts of Systems Theory and Thinking as they apply to this company along with Theory of Constraints and Transformational Leadership that will be learned and applied during workshops two and three.

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Management

Managing the BOP will likely require some different management techniques than are currently being use in this company. The reason for needing different management techniques is the way the BOP is implemented. The major component that separates the BOP from other process change programs is that it is a corporate focused, team building process that teaches the types of skills needed to effectively improve an organization’s performance. It is through the team building process that organizational synergy is created.

Organizational synergy implies effective teamwork. In other words, in order to have a high performance organization the employees need to be organized and functioning as members of highly effective teams. To this end, the BOP uses a hierarchy of teams to effectively create the improvements required to accomplish the BOP mission. It is this hierarchy of teams that will cause you to change some of your management techniques. With the BOP, teams learn to manage other teams. This is different than managing just a hierarchy of individuals.

The team building process begins in this workshop even though it is not specially called team building. You, the Owner and your senior staff are the Executive Team. The processes used to develop the BOP Mission Statement and the BOP Vision Statement are designed to bring all of you together to make team decisions. The process will force you to become team focused because each of you has a say in the decision made as a team and will use a process that helps bring consensus to these decisions.

This concept does not mean that you forego your rights as Owner. What it means is that as Owner you should allow your senior staff to contribute equally to the ideas that are being presented and to the decisions that are being made. The Owner always has final say or veto power.

This is the first workshop and as such is the starting point for implementing the BOP in your company and changing your management habits. The fact that you are embarking on the BOP means that you believe, at least conceptually that this process will be beneficial to your organization. As an Owner you likely have a combination of leadership styles with some styles being more prominent than others. The basic types of leadership styles are Laissez-Faire, Autocratic, Participative, Transactional and Transformational. These styles will be further explored and leveraged into the leadership of this company and the BOP during the third workshop. For now we are talking about these styles only to say that if your style is more laissez-faire, autocratic or transactional you will have a more difficult time adjusting to and accepting the leadership skills that are taught during the BOP. If your style is more participative and transformational you will have an easier time adjusting to and accepting the leadership principles that are taught during the BOP.

During this first workshop you begin to understand how the process works and what types of adjustment you will need to make, if any, to be the team leader of the Executive Team within the BOP.

One of the adjustments that all you will likely need to make is that of time management. You currently have daily, weekly and monthly routines that are part of your job. You also likely do not see yourself as having extra time for things outside of these routines. However, apparently you also feel that the approach the BOP takes will be beneficial both in the short run and, more importantly, in the longer run. This means that you likely are feeling the need to invest the time into the BOP but also feeling the pressure to continue with your routine. This is your status quo and is likely contributing to entropy that is affecting you because in a way you are your own system. It is going to take an injection of the right kind of energy to tackle and reverse this entropy. It is also going to take the right amount of energy to effectively overcome the inertia that is keeping you doing what you are doing. This is why there are structured steps in implementing the BOP. As the Executive Committee you are involved in the first three workshops. If you are part of the Leadership Team, which is determine during the third workshop you will also be involved in workshops four through seven.

When it comes to having to juggle a plethora of activities I am reminded of Stephen R. Covey’s book “The 7 Habits of Highly Effective People”. In this book he shares his thoughts toward time management by saying that we really do not manage time but we manage ourselves. He goes on to define two types of activities that we spend our time doing. One type is urgent activities and the other type is important activities. He defines urgent activities as those that need to be handled now. They are “things that act on us”. He defines important activities as those that have to do with results. According to Mr. Covey, “If something is important it contributes to your mission, your values, your high priority goals.”

From these definitions be builds a quadrant that he calls “The Time Management Matrix”. The matrix places the type of an activity into one of the quadrants. Quadrant I activities are Important and Urgent, Quadrant II activities are Important and Not Urgent, Quadrant III activities are Not Important and Urgent and Quadrant IV activities are Not Important and Not Urgent.

He goes on to say that “Important matters that are not urgent require more initiative, more proactivity. We must act to seize opportunity, to make things happen.” He further says that “. . if we don’t have a clear idea of what is important, or the results we desire in our lives, we are easily diverted into responding to the urgent.”

The reason I bring up Mr. Covey’s thoughts is that the way all of you approach your assignments and prioritize your efforts in this and the next two workshops, will have a direct bearing on the quality and effectiveness of the BOP for your company. It will also have a direct bearing on your understanding of your company as a system, which will have a direct bearing at how effective you are at managing the BOP within your company.

The first sentence of the definition of the BOP is that it is mission driven. This means that the BOP Mission Statement developed during the workshop drives the implementation of the BOP. It is the mission that management looks to when making decisions.

As a team each of you has individual responsibilities and group responsibilities. These responsibilities start with your preparation for the workshop. In other words, each of you has a homework assignment that is due at the beginning of the workshop. Your only deadline is to have your homework with you when you come to class. As the Owner you have the largest amount of pre-workshop work to do for this particular workshop. Your assignment is to have a draft of a mission statement that you bring to the workshop. In order to have this draft you need to go through the questions and statements in sequential order as laid out in the Planning section.

Since the BOP is mission driven, the amount of thought given to defining the mission is extremely important. The mission is the bedrock upon which the BOP is built. As the Owner, you need to spend some concentrated time making sure that your initial mission says what you want it to say. The members of your senior staff will also need to give thought to the seven A – G questions in the Planning section and come to the workshop with their answers to these questions.

It is important that none of you wait until the last minute and then “cram for the exam”. If you do your ideas may be less than ideal. This will lead to a less than ideal mission statement. Giving the thought needed will require discipline on everyone’s part to ensure that your ideas are well thought through. It is recommended that you set aside some time and quickly do what you have been assigned to do. After you have answered all the questions set your answers aside for a couple of days and then revisit them. Quickly go through them again and see if you want to modify or change any of your original answers. If you think that your answers are as good as they can be then you can consider yourself done with the assignment. If not have another go at it. When completed file your assignment in a place you can quickly find. The rest of the work will be done during the workshop. After the workshop you will review what you did and have the opportunity to tweak the results before the next workshop.

The success of the BOP rests on the ability of this group to direct the efforts of your organization through the implementation process. The BOP is a change process. It will require some changes in your thinking and your management technics. The exciting part is that the BOP is a methodical process that walks you and others within your company through the necessary activities and trains everyone in incremental steps where each step builds on previous steps. This allows you to change your management habits over time.

At this point in time this may seem overwhelming. However, the BOP is designed to not be overwhelming or a burden on your time or a distraction from the critical day-to-day requirements of this company. It may redirect some of your efforts and activities but at the end of the day you should have more time available to focus on those activities that provide you with the greatest results, those that are the most important.

This company is an organizational system that is trying to maintain status quo. It will take energy to overcome the inertia of this status quo. During this workshop you will gain a better understanding of organizational status quo and what needs to happen within this company to overcome this status quo. You will also understand your role as the Executive Team and the role that each of you as members have on this team.

In order for any team to be effective its members must understand the purpose for the team and be committed to its purpose. Understanding and commitment are the two most critical components when it comes to having successful teams. Without a thorough understanding of the purpose for the BOP and a vision of what success looks and feels like it is difficult for any of you or anyone in your company, for that matter to develop a deep commitment to its purpose. Without a commitment to and belief in the cause it is almost impossible to have the determination needed to lead an organization through the change process.

Many companies fail to make significant and long lasting improvements. The reason is almost always rooted in a lack of understanding and commitment among those given the responsibilities to make the desired improvements. In order for any team or individual to be successful as measured against the effectiveness of achieving the mission, the mission needs to be understood by everyone on the team. There must also be a commitment by everyone on the team to being successful. Once there is this understanding and commitment, alignment of activities will happen. This is important if your company is to accomplish what it needs to accomplish in order to achieve the mission of the BOP.

It is important that you set up a time to complete your individual assignments before the class begins. These are Quadrant II activities because they are important but on a daily basis against the Quadrant I important and urgent they can appear as not being important. The best way to manage around this is to set aside time as you would if you were in an important meeting. Then during this time complete your first pass at the questions. Then schedule another meeting with yourself to review your first pass and update your answers as needed. If you need to schedule another “meeting” get it on your calendar. In order to prevent procrastination or the need to “cram for the exam” schedule these meetings so your last meeting is at least three days before the workshop. Remember, the BOP is mission driven. It is critical that the BOP Mission Statement you and your senior staff develop is well thought through.

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Review

During this workshop you, as Owner and your senior staff will have developed drafts of the BOP Mission Statement and the BOP Vision Statement. You will have gained a fundamental understanding of Systems Theory and Thinking and will have been introduced to the five phases of the implementation of the BOP.

Due to the aggressive agenda of this workshop there will be little time during the workshop to do much wordsmithing of the draft of the BOP Mission Statement. Wordsmithing will need to happen after this workshop and before the second workshop. After the workshop the mission statement will need to be reviewed and wordsmithed as appropriate so that as Owner, with support from your senior staff you are satisfied with the message and how it is written. The best way to accomplish this is for everyone to take a step back and review the draft of the BOP Mission Statement with a critical eye. As explained in the Planning section every mission statement should address four criteria. These criteria are that a mission statement should be a reflection of who your company is and a description of how your customers, employees and owners benefit from accomplishing the mission.

The BOP Mission Statement will need to accurately and succinctly satisfy these four criteria in a way that reflects what you expect as a result of implementing the BOP. It needs to effectively articulate the reason the BOP is being pursued. It needs to explain what you want it to accomplish for the company as a whole, its customers, its employees, and yourself as Owner. It also needs to be such that it can be presented to the entire organization in a way that adequately explains to the rest of management, along with the rank and file employees the reason for the BOP and how it will benefit everyone in the company.

The BOP Mission Statement provides direction to everyone that is to be involved in the BOP. It is a guide and forms the framework around which all decisions are to be made during the implementation of the BOP. It is used as a communication tool to the rest of the organization. Therefore, it is important that the BOP Mission Statement accurately states why you are pursuing the BOP and what you expect your company to achieve through the BOP.

After the workshop, each member of your senior staff should read the draft of the BOP Mission Statement one last time and make any last minute suggestions they may have. These suggestions should be turned into you for your consideration before these drafts become final. This will ensure that all possible thoughts have been taken into consideration before the final version of the draft is released to be written for publication. Having a well thought through mission statement early on will make for a smoother and non-confusing implementation of the BOP.

After everyone on your senior staff has given you their suggestions, as Owner you will review these suggestions and decide if or how they should be incorporated into the final statement. You will then assign a committee of three individuals to perform a final edit and give you a statement that you will be able to approve. This is explained more thoroughly in the Resource section of the Project Study.

By the end of this workshop you will have created a draft of the BOP Vision Statement also. This statement paints a picture of what it looks like when the BOP is fully implemented. Whereas the mission statement is used to guide the decisions made during the BOP, the vision statement is used as a leadership tool to provide motivation for your employees. The vision statement needs to be written so that it creates emotional energy in the people within your company. The level of this emotional energy along with the leadership principles applied to the organization are major factors in determining how effectively your organization will accomplish the mission of the BOP. Therefore, it is important that the vision connects your employees emotionally to the mission statement.

The vision needs to be written in such a way that it creates this emotional energy for you and those throughout the rest of the organization. In order to help ensure that this happens each of your senior staff will also be asked to review the draft of the BOP Vision Statement and make notes concerning their suggestions as to how they think it should be refined, if at all. Everyone’s suggestions will also need to be passed on to you. Part of reviewing the draft of the BOP Vision Statement is to make sure that it uses words that, in your opinion create an emotional connection to the mission and that show your employees what they will be gaining as a result of the BOP.

As with the mission statement you will assign a committee of three individuals to perform a final edit of the vision statement and give their edited statement to you for approval. This is explained more thoroughly in the Resource section of the Project Study.

During this workshop you will also learn the fundamental concepts of System Theory and Thinking. You will understand how these concepts apply to this company, your role in this company and the role of the other employees, and how they apply to working with organizations to create the kind of change that is necessary to accomplish the mission. You will have begun to define the environment in which this company exists and the role your company plays as a system within this environment. You will have gained a better understanding of the boundaries that exist between the environment and your company. The knowledge you will have gained will help you define the inputs into the company and the outputs from the company as defined by systems theory. Understanding System Theory and Thinking is important as this company begins its journey toward the destination you defined with the BOP Mission Statement.

During the workshop you will learn and will have begun to apply some of the system laws, characteristics and principles. It is important that each of you are comfortable with your understanding and with using these terms as you go forward with the BOP.

It is recommended that you review the information on System Theory and Thinking and study the meaning of the terms that are introduced during the workshop. These terms include the three laws of organizational systems; entropy, inertia and synergy. They also include the five characteristic of organizational systems; 1) Environment, 2) Input-Throughput-Output, 3) Dynamic Homeostasis and Feedback, 4) Equivocality and Requisite Variety, and 5) Statistical Fluctuation and Covariance. Finally, they include the eight principles of organizational systems; 1) The activities within a system define the system and are interrelated and interdependent on each other; 2) The effectiveness of how an overall system functions is determined by how its subsystems function; 3) Inputs move into the system and outputs move out of the system through permeable and defined boundaries; 4) The permeability of the boundary can be controlled by the system; 5) It takes positive energy injected into the system to overcome entropy; 6) Levels of synergy are inherent in how interactive and interdependent parts of a system are with each other; 7) There are multiple ways to reach a desired outcome, in other words, there is no “one best way”; and 8) Subsystems exit within a larger system and have the same characteristics and principles as the larger system.

The focus of this first workshop is taking the first steps in the BOP. This includes creating drafts of the BOP Mission Statement and the BOP Vision Statement and to help you gain an understanding of Systems Theory and Thinking. It is also the beginning if modeling how future workshops are to be structured. This structure is important because not only is the BOP mission driven; it is also a corporate focused team building and skill development process. During the workshop you will begin to see how the process works. As the Executive Team you will learn part of the team building approach that the BOP uses as it applies to how you develop the drafts of the mission and vision statements.

You will be introduced to how the hierarchy of teams is used to accomplish the mission of the BOP. You will also be introduced to the five phases used to implement the BOP, how these phases are used during the implementation of the BOP. Phase I includes the first three workshops and involves you, the Owner and your senior staff, or the Executive Team. Phase II includes workshops four, five and six and involves the formation and training of and the activities required from the Leadership Team. The Leadership Team is formed out of member from the Executive Team. Phase III includes workshops seven through ten and involves the formation and training of and the activities required from the Management Team. The Management Team reports to the Leadership Team. Phase IV includes workshops eleven through twenty-two and involves the formation and training of and the activities required from the Project Team(s). The Project Team(s) report to the Management Team and is the people that will identify the cause behind the constraint and fix the problem.

The BOP is mission driven. One of the things mission driven means is that every team will begin by developing its charter or mission. The formation of each team at the beginning of each Phase includes a mini process similar to the process that this group used to establish the BOP Mission Statement and the BOP Vision Statement. This process will not be as extensive as the process used during this workshop because the focus of future teams will have a narrower scope than this group.

Reviewing the drafts of the BOP Mission Statement and BOP Vision Statement has a targeted purpose of refining, wordsmithing as necessary and approving the mission and vision statements that were developed during the workshop. This includes separate committees editing as necessary and presenting the Owner with a draft that the Owner can approve. This extra step helps ensure that these statements say what you want them to say and in the way you want them to say it.

Reviewing Systems Theory and Thinking involves studying the systems concepts presented during this workshop and to refresh your memory about the three laws, five characteristics and eight principles that are present in any organizational system. It will also help everyone think of ways that you can apply these laws, characteristics and principles to your understanding of how this company operates.

Just because this workshop places a lot of attention on creating a meaningful mission statement and a useful vision statement does not mean that understanding Systems Theory and Thinking is less important than the mission and vision statements to the overall success of the BOP. On the contrary, even though the BOP is mission driven, what you learn about and apply from your understanding of System Theory and Thinking is foundational to how you will approach implementing the BOP or any other business improvement process.

Toward the end of the workshop as the Executive Team you will craft a draft of an announcement that will be used to inform everyone in your company about the BOP. It will be general in nature since this is the first workshop and more detail will become available during the next two workshops. As members of the Executive Team each of you should also review this draft and share any suggestions you may have with the Owner. As the Owner you will again assign three people to a committee. This committee edits the draft of the announcement and presents you with its recommendations similar to the editing process of the mission and vision statements. This is explained more thoroughly in the Resource section of the Project Study.

As stated before, if you have any questions your Appleton Green BOP facilitator is available to help or to answer any questions you may have. Please see the Distance Learning Guide, the Tutorial Support or the How to Study guides for further help and explanation.

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Executive Summary

Business Optimization – History

The BOP concept began in 2009. Mr. Erickson developed a business consulting process to help owners of small businesses improve the performance and ease of operations of their companies. The process grew into the BOP.

His consulting services initially focused on helping these owners learn how to better operate their businesses by applying sound business principles to their sales, operations, distribution, and financial management areas. Mr. Erickson’s knowledge and experience has come from years of working in various technical, managerial and executive positions in large and medium sized corporations. He decided that the best way to effectively apply these business principles was to integrate the application of Systems Theory and Thinking, the Theory of Constraints, and Transformational Leadership.

Systems Theory and Thinking apply to the way any organization operates. Organizations are systems and thus are influenced by certain laws, characteristics and principles. Change becomes easier when these laws, characteristics and principles are understood as they apply to a given organization. The Theory of Constraints applies to any organization and, in a nutshell, says that the output or performance of any organization is limited by a single constraining point. Finding and correcting this constraining point immediately improves a company’s throughput capacity and thus its performance. This means that by focusing the resources of a company on finding and fixing the constraining point, a company’s performance is quickly and efficiently improved. Transformational Leadership is a style of leadership that effectively creates focus throughout an organization by having a clear vision of what needs to be accomplished. This vision is the driver behind the leadership efforts and is effective at motivating the people throughout the organization to accomplish the improvements needed.

As his client base grew Mr. Erickson became aware that many business owners, regardless of the size or type of company were not preparing themselves or their businesses for their eventual exit from their companies. It was further determined that a business that had its key functions optimized in the way they operated and in the way they interacted with the other key functions went a long way in helping the owner prepare their company for their eventual exit. Whether an owner exits at the timing of their choosing or due to disability or death every owner will eventually exit their business. Thus, they and their business need to be prepared for this event regardless of the circumstances for their exit.

As a result of this growing awareness Mr. Erickson began to expand his approach to the way he provided consulting services. The approach evolved into four phases all interrelated and interconnected. These phases were specifically developed to help owners create the improvements needed in their business so they would have the freedom to do what they would want with their business. This four phase process guided business owners in effectively improving their business from how their business was currently operating to how it needed to operate in order to meet the owner’s goals.

The first phase was the Planning phase. This phase included a combination of Ownership Planning and Business Planning. The philosophy was that a business is basically one of several tools an owner chose to help them achieve their personal goals. Therefore, business planning was driven by the results of ownership planning. Ownership planning was the owner assessing what they want from life and how their business fits into their wants.

Planning led to the second phase, which was Optimization. During this phase the flow of work through the sales, operations, distribution, and financial areas of the company was first balanced and then systematically increased to improve the capacity, throughput and profitability of the company. This phase included improving operating processes and philosophies as well as applying cash management principles to the financial management practices so that targeted cash flow was realized from these profits.

The third phase was Building Value, which had to do with building sustainable and growing business value so the owner had various options when it came to the type of exit available to them. This phase included lessening the dependence of the business on the owner, developing managerial depth and processes, and implementing business communication tools that allowed those within the business to know what was expected of them and to give them feedback on the results of their efforts. Since any successful exit must provide the owner with the financial resources they will need after their exit, the fourth phase was Exiting. Exiting included a process of ensuring that the owner had the proper financial base and documentation in place to ensure a smooth transition and successful exit.

As Mr. Erickson applied the principles to a growing number of businesses the need for teaching change management principles became more apparent. Most people, especially those in an ownership or executive management position understand the difficulty that change brings to any organization. The concept of resistance to change is all too apparent anytime an organization goes through change. Mr. Erickson used his corporate experiences in having led change efforts in large and medium sized companies and the knowledge gained through a formal post graduate business education to expand on the processes he used.

The process started by helping a client to understand their goals and their reason for having a business. It progressed from there to helping the client understand what the business has to accomplish in order for it to meet the client’s expectations. It helped the client implement the changes needed to accomplish these expectations. It accomplished this by working through optimization and value building processes so that the business performed as needed to meet the objectives of the client.

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Business Optimization – Current Position

The BOP is a corporate focused training program that effectively creates change throughout a company. One of the problems many companies have with their current training programs are they tend to focus on one area of the company. Their training focus is on improving that one area with the idea that if that area is improved the whole company should improve. This may be true to some degree for the types of programs that focus on specific technical aspects of a company such as legal, product development, financial systems and marketing. Often, however, company leadership believes the key problem lies in one area when in fact it may lie in a completely different area. When this happens, the effect from the training efforts are diminished and results in little to no real improvement in the overall performance of the company. The Business Owner ends up being disappointed and may even lose faith in investing in future training efforts.

There are two prevalent reasons training efforts fail. These reasons are that the focus is on the wrong area and the training itself involves a limited number of employees. Owners who want to see improvement in the overall performance of their companies need to implement training processes that address the company as a whole and that are deigned to find and correct the right area. The BOP does just that.

As explained in the previous section the BOP is an improvement process that starts at the top of an organization and systematically focuses the entire organization on solving the one issue that is most limiting the performance of a company. In this way the whole organization is involved at different levels and each person involved learns the improvement process as it applies to their function within the company. Focusing on discovering and solving the number one constraint is effective and efficient and allows a company to significantly improve its performance by solving the problem that is causing the constraint. It is also a way to focus everyone’s efforts on solving the most critical problem. This approach puts everyone in the same boat and rowing in the same direction.

In the fast-pace world of competitive businesses it is becoming harder to find ways to effectively increase revenues and profits and to retain qualified employees. It is becoming increasingly important that companies find ways to increase their performance while achieving a quick return on every training dollar they spend. It is also becoming increasingly important that companies create a working environment that is conducive to a high level of employee retention. Solving these types of problems are some of the benefits a company can realize by implementing the BOP.

The effectiveness of the BOP is due to the quick improvements that companies see from the BOP thus achieving a rapid return on their investment. These improvements are the result of the way the BOP is designed. One of its design features is the way it guides a company through the process of implementing change. The BOP is a process that involves employees from just about every job level beginning with the Owner and working its way through management, supervision and the rank and file employees.

Another feature of the BOP is the way it combines the application of three different, yet related theories. The first is Systems Theory and Thinking, the second is the Theory of Constraints and the third is Transformational Leadership. The BOP intertwines these established theories into a process that focuses the resources of a company to achieving a single goal. This goal is finding and fixing the problem that is most limiting or constraining a company from improving its performance.

A third feature of the BOP is the way it focuses company resources so that they are able to find and fix the problem that is most causing the constraint. Implementing the BOP involves every layer within a company’s organizational structure. The first layer is the Owner and his or her senior staff. The next layer is comprised of the managers that report to individual senior staff members. The next layer is the supervisory or staff personnel that report to these managers. The final layer is the rank and file employees who report to or work alongside these people. Using this approach allows the focus to systematically funnel down to those who have the greatest impact on solving the problem that is most affecting the performance of a company.

The BOP provides another benefit that is often lacking in many training programs. This is being able to create significant changes to the way a company performs without creating a lot resistance to change that companies often experience. Dealing with resistance to change can end up being expensive in the form of lost production and increased human resource and management issues, not to mention delays in achieving the benefits realized when the change is fully implemented.

Owners who are looking for ways to create significant improvements are also looking for ways to create these improvements cost effectively while minimizing any disruption caused by people who are not enthusiastic or cooperative. They are also looking for ways that are not disruptive because working on the wrong problems or making the wrong decisions can end up actually hurting the performance of a company rather than improving it.

The BOP is the solution for Owners who want to see their companies improve in a way that not only increases profits but also impacts customer service, quality, employee retention, ease of operations, and operating efficiencies. The BOP can also be used to help the Owner prepare for their eventual exit from their companies if this is a foreseeable goal.

The BOP is also a process that engages the employees in a way that reduces employee issues while creating skilled teams of employees that effectively and continually improve the company. This makes it easier to hire and retain employees, which reduces turnover. Reduced turnover has a direct impact on future training costs and a company’s ability to compete in today’s world of growing economies and opportunities. The BOP is a process that once learned can be repeated over and over again. It is an ongoing process that allows companies to rapidly identify and solve the current problem that is most constraining or limiting its ability to continually improve. The BOP gives companies an unsurpassed way to accelerate their performance, which can give them a competitive edge in today’s marketplace.

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Business Optimization – Future Outlook

Business training in the future will face growing challenge. The team-approach the BOP uses addresses many of these challenges. The growth in the number of Millennials is predicted to increase from about thirty-three percent of the work force today to close to seventy-five percent by 2025. This increase obviously means that the percentage of Baby Boomers and the X-Generation will decrease. These changes are created by a growing diversity of values among employees. This diversity has already impacted the way companies approach their training efforts. Knowing how to implement effective training programs with a growing and diverse employee base while accomplishing company goals will continue to be a challenge.

As the worldwide economy improves, competition continues to increase. In order for companies to compete in this environment it will become more and more important for companies to focus their training efforts on skills that result in enhanced organizational effectiveness. As competition grows it will become important for training efforts be as time efficient as possible both for the trainees as well as for the company as a whole.

The speed at which technology and market trends are changing is putting increased pressure on how companies utilize their employees. In many cases, especially as technology and operating processes become more complicated, many business owners struggle with knowing where to put their training efforts. For the future, this means it is going to be more challenging for business owners and executives to know the best way to invest their training dollars. The BOP addresses this problem by giving business owners and executives a process that brings organizational resources together and points everyone toward accomplishing the same goal of effectively improving organizational performance.

Loyalty of employees toward their employers (and vice versa) seems to be waning. This is happening at the same time that competition for skilled employees is on the rise. Companies not only need skilled workers they also need organizational effectiveness to ensure that every worker is contributing to the goals and objectives of the company. Employees will continue to expect more from their employers when it comes to training and increasing their skill sets. Employee retention will become crucial to a company’s ability to function in the most cost effective manner. Companies who build employee loyalty by showing their employees that they care about them as demonstrated through enhancing job skills will have an advantage in this area over those companies that do have this attitude. The BOP team building approach creates synergy and builds job skills. This approach not only develops the skills needed but also builds loyalty and improves employee retention.

Companies are facing growing competition not only for highly skilled employees but for the company’s products and services as well. It is becoming and will continue to be more difficult for the consumer to differentiate between competing products and services. This means that a company’s organizational effectiveness, quality, service, and pricing structure will become even more important in determining its competitive advantage. The BOP is designed to enhance organizational effective, quality and service. When these factors are enhanced a company has more latitude in their pricing structure.

As we move into the future, corporate training will need to be increasingly focused on moving the whole organization toward achieving its goals. It will become more and more important to include and solicit participation from all employees from top executives to line or staff employees. One of the growing challenges will be implementing effective training in a way that creates minimal to no disruption of existing business requirements.

In order to effectively impact the performance of a company as a whole, it is becoming increasingly important that future corporate training involves people throughout the whole organization. The BOP does this. It will become more and more important to have articulated goals that are established at the top. These goals must be apparent to everyone throughout the organization and must drive the training focus. In order to have a positive effect on the whole organization, and thus improve overall performance, corporate training must be geared to the company as a whole as opposed to selected disciplines.

In order for training to become more effective new ways of integrating training processes will need to be developed. Regardless of the growth in technology, companies still need to apply time-tested principals to how they create change. These time-tested principals include the role of leadership in providing direction to an organization, the importance of teams in organizational effectiveness and the need for people to have the necessary skills while feeling they are an important part of the organization to which they belong.

The time-tested principles that the BOP uses are Systems Theory and Thinking, the Theory of Constraints and Transformational Leadership. Integrating these principles makes the BOP ideal for those companies who want to improve their overall organizational effectiveness. Because the process systematically works its way down through an organization it aligns everyone in the organization to contribute toward reaching corporate goals. It helps Owners develop, quantify and articulate goals. It helps develop varying leadership skills with individuals throughout the organization. It creates synergy among employees by developing effective team work at all levels. As a result it develops effective and efficient organizations, and it does this in a systematic way that creates little to no disruption, nor adds undue burden to any employee, from the top of the organization to the bottom.

As competitive pressure continues to increase, companies will need to continue to improve their marketing, human resource, operational, and technical areas. There are training programs that focus on these specific areas. However, they do not address organizations as the BOP does. The growing challenges that companies face will continue to be in knowing on which areas to focus their training efforts. One of the benefits from the BOP is that it can help determine which of these particular areas company leadership should focus on.

As the world changes, it will become increasingly important for companies to improve their overall organization effectiveness, beginning at the top and including people throughout the organization. The solution to improving this organizational effectiveness will be significantly helped by processes like the BOP.

As a result of going through this first workshop you will more fully understand the BOP and the potential impact it can have on your organization. The key will be to follow the process as laid out. The BOP will, along with creating improve business operations will foster more open communications and build trust throughout your organization. This means that managers will no longer just be fixated on their own area of responsibilities. It means that messages will be heard and messengers will not be shot. It means that your company will foster the attitude that everyone is in this together and rowing in the same direction. To be successful in an ever changing world will demand that companies develop more of the characteristics and culture as described above.

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Curriculum

Business Optimization – Workshop 1

1. BOP Mission Statement
2. BOP Vision Statement
3. BOP Initial Announcement
4. Introduction to System Theory and Thinking Basics
5. The three system laws
6. Entropy
7. Inertia
8. Synergy
9. The five system characteristics
10. Boundaries
11. Input-Throughput-Output
12. Dynamic Homeostasis and Feedback
13. Equivocality and Requisite Variety
14. Statistical Fluctuations and Covariance
15. The eight system principles
16. Interrelated and interdependent activities
17. Dependency on subsystems
18. Permeable boundaries
19. Controllability of permeability
20. Positive energy to overcome entropy
21. Inherent levels of synergy
22. Multiple paths to achieve outcome
23. Characteristics of subsystems
24. Application of System Theory and Thinking

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Distance Learning

Introduction

Thank you for enrolling in Appleton Greene’s BOP. We are sure that you will find this journey exciting and rewarding to both you as an individual and for your company as a whole.

The BOP training program is a twenty-four step process that is presented through Appleton Greene’s distant learning method. This method requires the participants who are involved in the various workshops to take more responsibility for their learning than in the more traditional training methods. With the distant learning method you will be doing a combination of group classroom learning, individual and group study and preparation outside of the class room.

This method may take some getting used to because a lot of the learning will happen outside of the classroom. This being the case, in order to be the most successful you will need to hold yourself accountable plus you will be part of teams that will hold each other accountable. This Distance Learning Guide explains how this method works and what is required on your part to be successful.

You have been assigned an Appleton Greens BOP facilitator. This person is responsible for supporting you and helping you achieve maximum benefits from the BOP. Please see the following Tutorial Support section for further explanation.

As Individuals

In order to effectively implement the BOP it is important that everyone involved in a workshop learn all they can prior to and during a workshop. This involves reviewing and understanding the materials presented during a workshop as well as preparing for the workshop by studying the material required prior to each workshop. All the materials available prior to, during and after each workshop are designed to reinforce what you learned during a workshop to help ensure that you are prepared for the next step in the process.

The Introduction material is designed to help each participant better prepare for the workshop so they learn more and are better able to contribute to the discussions during each workshop. Participation from everyone attending a given workshop is essential if you are to reap the most from the BOP. Some workshops will have exercises that the participants will be asked to complete prior to the workshop. If the material is not clear to you or if you need help to better understand the pre-workshop exercises you are asked to contact your Appleton Green BOP facilitator for clarification and guidance. Please refer to the Tutorial Support section for guidelines concerning the process to be used when contacting your Appleton Greene BOP facilitator.

As Team Members

In order to effectively implement the BOP it is also important that as a group everyone involved in a workshop learn all they can from the workshop and as a group be ready for your next workshop. This involves team learning and team accountability. Learning is individual but applying this learning is only beneficial if it helps the team.

Your individual learning is dependent on how you personally study and learn. Some of what you learn is applicable to you individually. Most of what you learn, however, is aimed at learning how to apply your individual knowledge to a team setting. The focus here is making sure that everyone in a workshop understands the subject matter. If you are unclear or confused you need to speak up and ask questions within the workshop setting. Your Appleton Greene BOP facilitator is available to help you or your team members clarify what is expected of you. This will need to be scheduled in advance and at a time that works for everyone involve, making it more productive for everyone and giving your facilitator proper time to prepare. Please see the Tutorial Support section for suggested timing requirements.

Self-discipline

One of the challenges of receiving training through the distance learning method is that you are more on your own than if you are strictly working with a facilitator in a classroom setting. It is up to you to evaluate your progress. It is up to you to be truthful with yourself concerning your level of understanding of what you have been taught. If you are uncertain you need to reach out to your Appleton Green BOP facilitator or talk with others who are in the same workshop as you. You will not be given any tests in order to move on to the next workshop. It is up to you to determine your level of understanding and to be sure to ask questions about what you do not understand. This can be a trying situation for some people who are used to being given clear direction concerning their job tasks. This can also be intimidating to those who do not have as much self-confidence as others. One of the main purposes of the BOP is to create synergy through effective teamwork throughout a company. Remember, everyone is in the same boat. You are all learning together. There is no reason for any of you to feel intimidated or that you lack what others may have. Everyone is different in varying respects and possesses different skill sets. These differences are in large part what make teams so effective.

It is important that you discipline yourself to stay on track with what you are learning. If you do not stay current you will not only hurt yourself because you are not gaining the type of understanding you need but you are also hurting the other members in your team.

Summary

The distance learning method allows you some freedom to study when you want and the ability to work around a more flexible schedule. However, it does require more self-discipline to ensure you stay on course. It also requires a more truthful self-assessment than if you are in a more structured learning environment. Not only does it require a more truthful self-assessment, it requires a more open atmosphere among the team you are part of. As team members you will need to rely on each other to ensure that not only as individuals you are gaining the understanding you need but as teams you are gaining the combined knowledge necessary to make the BOP as successful as it can be.

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Tutorial Support

The BOP is systematic where each monthly workshop builds on the previous workshop. It is important that participants understand the content of each workshop before moving to the next. To help ensure this happens you have been assigned an Appleton Greene BOP facilitator. This facilitator is responsible for supporting you and helping you achieve maximum benefits from the BOP. To make the best use of your time and your facilitator’s time we encourage anyone participating in a workshop to record any questions they would like for your facilitator to answer. You will need to designate a person to be the focal point to collect these questions and email to your facilitator. This person manages the communication to and from your facilitator and gives an authorized channel through which all communications travel.

Each workshop consists of six course work sections. Each section includes a course manual followed by exercises. The exercises are designed to help you apply what you learned during the course work. As questions arise during the workshop it is important that someone record these questions. Immediately after each workshop this person or another designated person needs to organize these questions using MS Word or similar type of program. The questions should be in sentences format and no more than 50 words per question. Questions should be written as distinct as possible so they fully communicate the information sought. This will enable your facilitator to effectively provide the information you are looking for. Within a day after the workshop the designated person should email these questions to your facilitator.

The designated person can simply copy and paste the questions into the body of an email. The subject line of the emails needs to read “Appleton Greene Tutorial Support Request: Business Optimization Process, Your Company’s Name, Date”.

In the body of the email and before the list of questions insert the following:

1. Appleton Greene Business Optimization Process Tutorial Support Request

2. Your Company’s Name

3. Sender’s Name

4. Date of Tutorial Support request

5. Preferred email address

6. Backup email address

7. Course manual workshop name

Upon receiving the email your facilitator will review the questions. Please understand that our facilitators are experts in multiple training programs and therefore work with multiple companies at a time. Please allow up to ten business days for your facilitator to reply to your email. Emails are always answered as soon as possible and in the order received. This ten business day window is needed to ensure that your facilitator is able to respond within a time frame that you expect. The amount of time required for a reply depends on the number of emails that are currently in your facilitator’s queue.

Since you know that the facilitator will respond within ten working days you can then schedule a time slot to review the reply from your facilitator prior to the next workshop. This routine gives you the ability to schedule further contact with your facilitator if needed. This contact can be via telephone or a go-to-meeting with your facilitator. The type of communications tools used will depend on what is needed to ensure everyone receives the understanding and knowledge expected out of the workshop.

It is recommended that you schedule your workshops on a four week cycle. This makes it easier for everyone involved to schedule their time. It is also recommended that by the end of the day following the workshop the person responsible sends the email to your Appleton Greene facilitator. This provides a consistent schedule for the facilitator which will help him or her better serve you.

The participants of the first workshop should prepare for this workshop at least three weeks prior when the first workshop is to be held. Preparation includes reading the MOST, Executive Summary, and Supporting Documents sections. Anyone who has any questions from the Introduction material should pass their questions on to the designated person. The designated person needs to be able to email these questions to your facilitator by the Friday that is three weeks before the workshop. You should pay especial attention to the Planning section of the Introduction since it explains the work that you need to do prior to the workshop.

The following is a recommended schedule outline to use during the BOP. You can tweak it based on your business requirements.

Week 1 1st Wednesday of the Month is Workshop

Next day Thursday Post-workshop email to facilitator with questions, note if asking for conference call

Week 2 Monday Schedule set for conference call with facilitator if requested (conference call can be anytime during coming two weeks)

Monday – Thursday Read Project Study section for the workshop

Prepare for next workshop by reading the MOST, Executive Summary, and Supporting Documents sections.

Friday Email questions from Project Study or pre-workshop questions to facilitator.

Week 3 Thursday Receive answers to post-workshop email from facilitator

Week 4 Thursday Receive answers to pre-workshop email from facilitator

Week 1 1st Wednesday of New Month

Monday & Tuesday before prepare for workshop material as needed

Wednesday is Workshop

Thursday Post-workshop email to facilitator with questions, note if asking for conference call

Repeat above cycle

This type of schedule gives those involved with the BOP a predictable schedule around which they can schedule their other duties. It also gives those involved time to format and submit their questions and it gives your Appleton Greene BOP facilitator a schedule that will allow him or her to respond within the required timeframe. Both are important if your company is going to stay on track with monthly workshops. Obviously, however, the needs of your business and its routines will impact the exact days, etc. that will work best for your company.

As stated earlier, the BOP is implemented via distance learning techniques. It is important that participants understand the requirements placed on them due to the nature of the distance learning process. Having said this, your facilitator is available for onsite visits and facilitation as well. This is recommended for at least the first workshop in each phase of the BOP. These phases are explained later in this workshop. An onsite facilitator may be needed at other times to ensure that the implementation of the BOP remains on track. An onsite facilitator would involve extra fees to cover travel expenses and the onsite time of the facilitator. If you desire to have your facilitator facilitate an onsite session please make special arrangements with Appleton Greene. Having your facilitator on site should not add to the amount of time required on your part.

The How to Study guide delves more deeply into your responsibilities as your organization works through the BOP. It breaks down in more detail how the participants in each workshop should prepare prior to a workshop. It helps each participant better understand and visualize what is required to achieve the full benefits from distance learning training techniques.

The following are some suggestions that will make this process enjoyable, rewarding, and beneficial to you and your organization and that will allow you to maximize the benefits you receive from the tutorial support portion of the BOP.

Prior to each workshop each participant should review the MOST in order to become familiar with the focus of the workshop. If there is any reading or other types of information recommended, participants should ensure that they are familiar with this information prior to the workshop. It is recommended that you read this material at least three weeks prior to the workshop in case you have questions that need the attention of your Appleton Greene BOP Facilitator.

If you are a participant in a particular workshop you need to agree to participate in that workshop openly and honestly with all other participants. If there are issues among members or between individuals these issues must be resolved or at least tabled during the workshop sessions. If this is difficult then an upper management person needs to sit in during the workshop to encourage and ensure that there is freedom for all the participants to be open and honest during each workshop phase.

By following the above guidelines the BOP will be productive and constructive and will bring to your company the results expected. Please use the Distance Learning and the Tutorial Support sections to their fullest.

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How To Study

Overview

The information contained in the Distance Learning and Tutorial Support sections is designed to help you better understand the nuances in using this structured distance learning process and how to best use your Appleton Greene BOP facilitator. This section on How to Study is designed to help you integrate your study time with distance learning and tutorial support to give you suggestions on how to learn the most from the materials presented and the workshop sessions. The results you achieve from this learning process come from implementing what you learn. The more you learn, and the deeper your understanding, the more successful the implementation will be.

The value from the BOP is the knowledge that you will gain and apply to problem identification and solving methodologies. Effective learning not only involves putting the time and effort necessary to learn the material but also going through and learning the thinking processes necessary to apply what you learn.

Individuality

Effective studying requires that you understand how best you learn. Some people enjoy background music, some require complete silence; some like early morning, some like late afternoon, and some like times in between. Regardless of your preferences you will need to determine and schedule a time during which you are your most creative and a time you are most able to relax. Along with scheduling your time, you should also find a place that is away from those things that are interruptions or distractions to you. It should be a place that is comfortable and in an environment that is conducive to you being able to absorb new ideas and where you are most able to think creatively. There is no set rule or guideline to follow other than it is important that you absorb and understand the materials presented in both written format as well as the information presented during the workshops.

Studying should not be stressful. In fact it should be fun and informative. Some research recommends that you use a tablet of paper and a pen or pencil and hand write your initial notes. These studies say that we retain more of our thoughts when we hand write notes than when we type them into a computer, laptop or tablet. If this fits with who you are, you can always transfer your notes to a digital format using programs similar to Microsoft Excel or Word. Excel type programs are better if you want to be able to sort, prioritize, categorize, etc. your notes. However, being the individuals we all are, it is most important that you use a process that helps you best retain what you read and hear.

Studying Process

You are reading and studying to learn content as opposed to reading an enjoyable novel where you can skim over certain parts. During your study time you will be reading to learn as much detail as you can as it applies to the subject matter.

The most effective way to accomplish this is, after you have found a place where you can concentrate and not be distracted is to speed read through the material. You should read just fast enough to where you do not stop and concentrate on a specific word or sentence. The purpose of this first pass is to give you a good overview and feel for the material. Speed reading appeals to the memory part of the brain. Do not be concerned about how much you retain. You will be surprised how much of what you see actually sticks.

After you speed read through the material it is time to read for content. You accomplish this by reading a section more slowly and taking notes on what you read. You should organize your notes in three columns under the headings “Interpretation”, “Questions” and “Tasks”. The reason for these headings is to help you think through what you have read in a way that helps you explain it. This exercise leads to better learning. As you read you will want to absorb the information presented and write any questions that may arise. Finally, you will want to think through any action steps that you may want to take based on your interpretation and questions. Taking these types of notes will help you better understand the material. It will also help you better interpret what you read which will help you frame any questions you may have. It also helps you organize your thinking around what you learn so you are more able to contribute during the workshops in which you participate.

Once you have completed the content reading exercise of a section you will want to copy your notes into an Excel type program or database program so you can search, sort, and reorder your notes as you may want to do. These notes should be organized in a folder that is specifically dedicated to the training you are going through and organized so you can readily find the file you are looking for. Each person has a slightly different approach to how they organize their files. If you are having difficulty in this process your Appleton Greene BOP facilitator will be able to give you some guidance in this area. Or, you may be able to solicit help from a friend or coworker.

Pre Workshop Session

It is important that each person be well versed on the subject matter and objectives of the workshop before the workshop. This will require each participant to have an understanding of the Mission, Objectives, Strategies, Tasks, and Introduction for each workshop. This will require that each participant spend time becoming familiar with this course material prior to the workshop. Some workshops may require some specific preparation that you will need to complete before attending the workshop.

In order for a workshop to be successful each participant needs to understand the objectives of the workshop and be able to apply what they learn. This will not happen if you are ill prepared prior to a workshop. You need to do everything in your power to learn as much as you can prior to a workshop.

During Workshop Sessions

During each workshop you will be presented with course manual material and accompanying exercises to help reinforce the content from the course manual. This material is designed to complement what you study prior to the workshop. The purpose of the workshop is to solidify the content so that participants come out of each workshop with an understanding of all the material and being able to apply this understanding into definable results. In order for the workshop sessions to be the most effective it is important that every participant be able to set aside dedicated time where they can commit to being able to provide their undivided attention without being disturbed or distracted with their routine job duties.

Post Workshop

After each workshop it will be important for every participant to review the course manual and the results from the exercises that were conducted during the workshop. This post workshop review is aided by the Project Study section presented after the Course Manual section. This review can involve both individuals and groups, depending on the content of the workshop. It is also a time where, if there is any level of uncertainty or confusion, you will need to contact your Appleton Greene BOP facilitator. Please refer to your Distance Leaning Guide and Tutorial Support information.

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Preliminary Analysis

During this workshop you will be laying the foundation for and taking the first steps in the implementation of the BOP. You will do this by first learning how to and then developing your BOP Mission Statement and the BOP Vision Statement. In conjunction with these activities you will begin to develop an understanding and appreciation of System Theory and Thinking and how it applies to your company and the BOP.

Prior to the workshop session the Owner develops an initial draft of the BOP Mission Statement. This will be massaged during the workshop with contributions from the other participants with the expectation of producing a finalized draft of the BOP Mission Statement by the end of the workshop. Along with the BOP Mission Statement the participants will create a draft of the BOP Vision Statement. Please see the Planning section of the Introduction.

The words “Mission”, “Vision”, “Strategy” and “Goals” mean different things to different people. They are often intermingled with each other or used intermittently to mean the same things. To ensure that everyone is on the same page and understands these terms in the same way we will use the following definitions during the BOP.

A Mission defines and clarifies a purpose. A Vision paints a picture so people can visualize what it looks like when the mission is accomplished. Missions clarify, visions inspire. Strategies are the approach or game plan that you will use to accomplish the mission and thus achieve the vision. Goals are short-term targets used to keep everyone in a company on track and to measure the effectiveness of the strategies.

During the Introduction and the workshop session you will learn how Systems Theory and Thinking applies to business organizations. You will learn about the laws, characteristics and principles that apply to organizational systems. Any organization in order to produce an output requires interconnected and interrelated activities working in conjunction with each other where each activity contributes in some way to the output of the organization as a whole. In order to predict and control the output from the system, the activities within the system and how they are interconnected and interrelated with each other must be understood and controlled. The effectiveness of a system can only be improved by improving how the activities within the system are interconnected, interrelated, or both.

The laws that apply to any system are entropy, inertia and synergy. These laws have their roots in science. System Theory and Thinking applies these laws to how systems function and the processes by which systems are effectively improved. The BOP applies these to organizational systems.

Entropy is the tendency for a system’s outputs to decline when the inputs have remained the same. Activities in a system always move from a higher state to a lower state within a system unless energy is injected into the system. System inertia is the reason that systems try to maintain status quo. It’s seen as resistance within a system against change.

Synergy is when the output of the whole is greater than the sum of its parts. In an organization it is where two or more people or groups combine their efforts in a way that accomplishes more than they can separately. Synergy implies effective team work where people can get more done working together than they can when working apart. A synergistic organization is where the interaction of people, processes, procedures and policies all work together to provide an output greater than what individuals alone could produce. Entropy, inertia, and degrees of synergy exist in all systems including organizational systems.

Along with three laws every system has five main characteristics. The first is that every system is a subsystem within the environment in which it exits and is separated from its environment with a permeable boundary.

The second is “Input-Throughput-Output”. Inputs are the resources from the environment that go into the system. “Throughput” is the activities within the boundaries of the system that convert Input to Output. “Output” is the product or service the organization produces and delivers back into the environment.

The third characteristic is “Dynamic Homeostasis and Feedback”. This is where, though the system tries to change in order to better serve the environment, the activities within the system try to maintain the status quo. Feedback is the information process that either encourages the system to change (positive feedback) or reinforces why the system should not change (negative feedback).

The fourth characteristic is known as “Equivocality and Requisite Variety”. Equivocality means that information and communications are always open to various interpretations which are often in conflict and often designed to confuse or hide the truth. Requisite variety means that variety is required to overcome variety. In other words, in order to solve complex or high variety problems, the right variety of people or the requisite variety of individuals, is needed to effectively solve the problem.

The fifth characteristic is Statistical Fluctuation and Covariance. Statistical fluctuation is where the activity or throughput in any part of a system fluctuates within certain natural parameters. Covariance is the affect that fluctuations that occur in activities upstream have on the fluctuations that occurs downstream stream.

Understanding these laws and characteristics as they apply to organizations is important because if real and sustainable improvements are to be made leadership needs to address the organization as a system as opposed to a group of individuals. In order to create effective change it is important that the right type of energy be injected into the system at the right place and in the right amount.

In addition to these laws and characteristic every system adheres to eight principles. The first principle is that activities within a system define the system and are interrelated and interdependent on each other. The second principle is the effectiveness of how an overall system functions is determined by how its subsystems function. The third is inputs move into the system and outputs move out of the system through permeable and defined boundaries. The fourth is the permeability of the boundary can be controlled by the system. The fifth is it takes positive energy injected into the system to overcome entropy. The sixth is levels of synergy are inherent in how interactive and interdependent parts of a system are with each other. The seventh is there are multiple ways to reach a desired outcome, in other words, there is no “one best way”; and the eighth is subsystems exit within a larger system and adhere to the same rules, characteristics and principles as the larger system.

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Course Manuals

Course Manual – Process Mapping

The purposes of this workshop are to end up with a meaningful draft of the mission statement and the vision statement for the BOP and to begin understanding System Theory and Thinking and how its concepts apply to this company.

The writing of the mission statement begins with an initial draft that you, the Owner write prior to the workshop. This draft is to clarify to your senior staff the reasons you are pursuing the BOP. The writing of this initial statement starts with you identifying your personal reasons for choosing the BOP. Identifying your personal reasons, or your personal mission, begins the process of writing the draft of the BOP Mission Statement.

During this workshop some of the ideas from your senior staff are integrated into your initial draft. The combination of these ideas leads to a draft of the BOP Mission Statement. Once the mission is articulated the BOP Vision Statement is written. The vision reinforces the mission and is the basic tool that leadership uses to inspire, motivate and lead the people within the organization toward accomplishing the mission.

Pictorially the process for this workshop looks like the following flowchart.

See Illustration 1

The BOP is a twenty four month process that systematically focuses the resources of your organization to effectively identify and solve the problem that is most constraining or limiting the throughput capabilities of this organization. It is a mission driven, corporate focused team building and skill development process that effectively improves an organization’s performance.

This workshop is the starting point for this process and begins with your initial draft of the mission statement. Prior to the workshop you will have written your initial draft of what you want the BOP Mission Statement to say. The first thing that happens during the workshop is that everyone reads your draft. This draft is then discussed among the participants who share their thoughts concerning your draft of the BOP Mission Statement. In order to make the best use of everyone’s time each participant needs to have at least answered the seven questions A – G as explained in the Planning section of the Introduction.

You as the Owner are the one that establishes the BOP mission and ensures that your thoughts are understood and supported by your senior staff. Ideally, your thoughts reflect a commonality of what your senior staff would like to see accomplished by the BOP. Following the process defined in the Planning section of the Introduction gives everyone a better understanding of how you would like the BOP Mission Statement to read.

Going through at least the last seven questions A – G will give each senior staff member a better feel for what they would like to see from the BOP. This will help them be better able to comment on your initial draft. Your initial draft defines the foundational purpose behind the BOP and tells everyone in this workshop what you are expecting. It also gives everyone the ability to compare their ideas to yours.

The most meaningful and effective mission statements are those that reflect the thoughts of everyone involved in leading your company. The results from using a process that helps everyone better understand what is to be accomplished is more likely to lead to a mission statement that is easily supported and that will better align the various disciplines within your company around organizational goals. Missions developed in this way make it easier for people to understand, connect with and support the mission. It also makes the ideas behind the mission easier and more able to be effectively communicated to those within your organization.

As important and meaningful mission statements are, mission statements by themselves tend to fall short when it comes to creating the emotion needed for people to enthusiastically strive toward accomplishing a defined mission. Meaningful mission statements are not complete until they are accompanied by a meaningful vision statement. Whereas mission statements clarify and explain the purpose, vision statements help create the emotional attachment and the visualization needed to inspire people to accomplish the mission. Mission statements speak to the head and provide the understanding as to why you are doing what you are doing. Vision statements speak to the heart and provide the emotional connection for doing what you are doing. People need both. They need to know the why and they need to see the what.

It is impossible to have an effective vision without having a well understood mission. Therefore, your BOP Mission Statement needs to effectively explain the reason you are pursuing the BOP and how this reason compliments the purpose behind your company at large. If the mission is not fully understood then you cannot paint a clear picture of what it looks like when the mission is accomplished. Without a vision that people can emotionally attach to it is very difficult for leadership to provide the inspiration required to effectively rally the people to accomplish the mission.

Another reason for having a clearly stated mission is that it is difficult to determine the types of resources that will be required to accomplish the mission if the mission is not clearly understood. During the next workshop you will be identifying two of the main resources that are required to improve business performance. These resources are business throughput capacity coupled with operating activities. It is important to understand business throughput requirements because without adequate throughput it is impossible to accomplish any mission. Knowing business throughput requirements is important because without this knowledge it is almost impossible to determine the types of operating activities that will be required to achieve the required business throughput.

The more personal a mission statement is the more support it creates. Therefore, having a meaningful and useful BOP Mission Statement begins with you understanding your personal reasons for why you want to pursue the BOP. This is why the BOP starts at the personal level of the Owner and builds with input from others to the point that you have a meaningful BOP Mission Statement. From this you then develop a meaningful BOP Vision Statement.

This exercise addresses the “Mission Development & Buy-in” step shown in the process map for this workshop. Based on the instructions given in the Planning section of the Introduction you, the Owner and your senior staff have come to the workshop prepared to develop a draft of the BOP Mission Statement. You have come prepared with your initial draft of your thoughts about the mission statement. Your senior staff should have also come prepared with at least their answers to the seven questions A – G.

Just prior to the beginning of the workshop the person assigned to write on the flipcharts writes your initial draft of the mission statement on a flipchart and tapes it to a wall for all to see. This statement should read similar to the following:

“We are embarking upon the Business Optimization Process to help (Your Company Name) provide (Answers to Question A) by (Answers to Question B) resulting in (Answers to Question C).

By implementing the BOP we will increase our customer base by (Answers to Question D) and improve our work environment by (Answers to Question E). We will increase our profitability by (Answers to Question F).

In addition, it will help us contribute to an outside cause by (Answer to Question G).”

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Exercises – Process Mapping

On the top of a fresh flipchart “Question A – Top 3 Benefits” is written. Starting with a volunteer each participant gives one of his or her answers to Question A. This answer is written on the flipchart. Each participant in turn shares their answer to Question A. Each participant can only present one of their answers at a time and only if someone else has not shared a similar answer. The goal is to list at least six separate benefits.

As a flipchart sheet fills up it is removed and tape to a wall. A clean flipchart sheet is titled as a continuation of the sheet removed with a page number so that the sheets can remain organized as they are taped to a wall.

When all the unique answers to Question A are recorded on a flipchart, the last sheet is removed and taped to a wall. Starting with a fresh flipchart “Question B – How Benefits are Provided” is written across the top of the flipchart. The process used to record the answers to Question A is repeated until all the unique answers to Question B are recorded on a flipchart. This process continues until all seven questions A – G have a list of unique answers under the heading of the question.

After all seven questions have their list of unique answers everyone focuses on the answers to Question A. Everyone who has a similar answer, whether their answer is on the flipchart or not, raises their hand. The number of hands raised is counted and this number is written and circled next to each answer. The highest priority answer is the answer that has the highest number written next to, the next priority has the next highest and the third highest priority has the third highest.

Then you, the Owner comments on the top three answers to see if any answer are in conflict with what you see as your reasons for wanting to implement the BOP. Answers that complement your answer are discussed. The group may suggest modifications to the answer based on this discussion. The purpose of this discussion is to come to a consensus of what the group feels are the top three benefits this company provides.

On the white board the person writes “We are embarking upon the Business Optimization Process to help (Your Company Name) improve the way we provide (the three benefits that are determined by the above process)”. If this group is better suited to use a projector and computer this method can be used in place of the white board.

Next, everyone focuses on the answers to Question B and repeats the process. Once there is a consensus of the top three most admired ways that this company provides these benefits the whiteboard is modified by adding “by (the three methods that are most admired by this group)”.

Everyone then focuses on the answers to Question C and repeats the process. Once there is a consensus about the top three successes the whiteboard is modified by adding “resulting in (the three results that are determined by the group)”.

Everyone then focuses on the answers to Question D and repeats the process. Once there is a consensus about the top three things that this company could do to expand its customer base the whiteboard is modified by starting a new paragraph that reads “By implementing the BOP we will increase our customer base by (the three things that you feel this company could do)”.

Everyone then focuses on the answers to Question E and repeats the process. Once there is a consensus about the top three things this company could do to improve the work environment the whiteboard is modified by adding “It will improve its work environment by (the three things this company could do).”

Everyone then focuses on the answers to Question F and repeats the process. Once there is a consensus about the top one or two things that this company could do to improve its profitability the whiteboard is modified by adding “We will increase our profitability by (the three things you feel this company could do)”.

Everyone then focuses on the answers to Question G and repeats the process. Once there is a consensus about the top thing that this company could do to contribute to an outside cause, the whiteboard is modified by starting a new paragraph that reads “In addition, it will help us contribute to an outside cause by (Answer to Question G).

At the conclusion of this exercise the BOP Mission Statement should read similar to the following:

“We are embarking upon the Business Optimization Process to help (Your Company Name) provide (the three benefits from Question A) by (the three methods from Question B) resulting in (the three results from Question C).

By implementing the BOP we will increase our customer base by (the three things from Question D) and improve our work environment by (the three things from Question E). We will increase our profitability by (the three things from Question F).

In addition, it will help us contribute to an outside cause by (Answer to Question G).”

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Course Manual – Process Analysis

Effective mission statements define success in a personal, clear, focused, and realistic manner. Meaningful mission statement are purpose and value driven, memorable, organization specific, doable, and based on the current situation. They communicate the root values of the Owner so that their people understand what it is that he or she wants for their company.

There is always a personal reason behind why someone wants to accomplish something. It is important to understand this reason before creating a mission statement. When the personal reasons are understood the mission statement more accurately communicates the real purpose behind an endeavor. The BOB takes this approach. It helps business Owners build a mission statement for the BOB.

People define company missions and visions in various ways. Some believe that the vision is an overarching statement that defines the overall direction for their company. People with this definition tend to blend their mission and vision into one idea. They define their vision as a dream or high level goal of what the business should achieve or become at some undefined distant point in time. People with this belief tend to either believe that the vision defines a company’s purpose and the mission more clearly defines the components of the vision or the mission is a statement of goals under the umbrella of the vision. In many situations the vision is seen as standing on its own and is unrelated to the mission statement. In other situations people combine the mission and vision statement into a single mission/vision or vision/mission statement where it is difficult to separate the “mission” portion from the “vision” portion.

The entrepreneurial dream is a powerful thing and has driven the growth of many successful companies. There are also examples however of entrepreneurs who have had dreams that have not developed into successful companies. In order for a company to be successful the entrepreneurial dream must be able to be defined so that people inside and outside of the organization understand the purpose of the company. This definition of purpose is what we define as a company’s mission. Regardless of where a company is along the growth spectrum, stakeholders of a company need to understand and believe in the mission or purpose of the company in which they are stakeholders. Meaningful mission statements do this.

Some business owners simply feel they need to have a mission statement and/or vision statement because it is the thing to do. They do not fully believe in their importance. They probably read somewhere that every company should have one or someone of higher influence told them they had to have one. These types of mission and/or vision statements do not effectively serve the purpose they are designed to serve. They are often generic and confusing. They do little to communicate the purpose of the organization and they do little to inspire or motivate the workforce to excel in their performance.

People with this attitude are interested in creating a statement so they have a statement they can show. They do not place importance on understanding the real purpose behind the statement. In these situations management usually comes up with a flowery, generic sounding mission and/or vision statement that may sound pretty but does a poor job of communicating who the company is, why it exists and what it wants to accomplish. Managers with is attitude may spend an inordinate amount of time beating their mission and/or vision statements to death. They spend too much time wordsmithing a statement and not enough time focusing on understanding or articulating their purpose for their business.

Other mission and/or vision statements fail or are fairly meaningless because they are developed in the “Ivory Tower”, made to look pretty to impress people and then displayed for all to see. As a result, the people in organizations where this occurs do not understand nor are they inspired by the mission and/or the vision statement. They see these statements as something handed down “from-on-high”. The people do not buy into them and they certainly do not relate with or take any ownership because to them. What they read is to them just a statement that is “from-on-high”.

When the mission and/or vision statement falls into one of the above categories they do not provide guidance for a company or drive the decision making process. In these cases it is better to not have a statement at all. Coming up with a disingenuous mission and/or vision statement not only wastes management time; it can actually have a negative effect on those that management is trying to impress.

Mission and/or vision statements in order to be effective need to become an integral part of an organization. They must be part of what drives the organization. They must be a unifying force that provides direction. They must help create the energy that drives a company forward.

We believe that a mission statement and the vision statement serve two distinct but complimentary purposes. A good mission statement clarifies and communicates the purpose behind something. A good vision statement inspires and motivates people to accomplish the mission. Both are equally important and when developed together for these purposes are meaningful and important to a company’s success.

Mission statements define the purpose and provide direction whereas vision statements show the outcome of the efforts and provide inspiration and motivation. Owners develop mission statements to communicate why they are doing what they are doing. These statements explain why people are being asked to do what they are being asked to do. Leaders share the vision with their followers so their followers become emotionally attached to and engaged in accomplishing the mission. The vision allows followers to see what the end result looks like so they believe that accomplishing the mission is doable and rewarding.

Managers can manage tasks without a vision but leaders cannot lead a group of people without a vision. People follow the vision of a leader and not necessarily the person. Without a vision there is nothing around which people can rally and there is little incentive to expend the energy required to accomplish the mission.

This is why the BOP uses the process it does by first developing the mission statement for the BOP and then developing its vision statement.

This exercise addresses the “Vision Development & Buy-in” step shown in the process map for this workshop. It follows the development of the BOP Mission Statement. The purpose of the BOP Vision Statement is to inspire and challenge you and the rest of the organization to accomplish the mission. As stated earlier, a vision needs to be written in a way that allows people to be able to emotionally and visually grasp hold of the mission statement. A good vision statement creates the feelings that are necessary to motivate people to action. Vision statements let people see what it looks like when the mission is accomplished. They provide the realism and create the belief in the people that accomplishing the mission is doable and rewarding.

Because the vision statement paints a picture and identifies with people’s emotions it is important that as you develop the vision statement you use words that people can picture, identify with and become attached to. Where the mission statement uses conceptual based words the vision statement uses emotion based and image based words. These types of words should help create an emotional attachment to and a mental image of what it feels like and looks like when the mission is accomplished. These emotion based and image based words need to clearly depict the end result in a way that creates the energy necessary for everyone to rally together to accomplish the mission.

The challenge is to identify meaningful words that will inspire everyone within your company to rally behind and enthusiastically support the implementation of the BOP. Therefore, the process you are going to use to develop the vision statement begins with attaching emotion based and image based words to the results expected when the BOP mission is accomplished. This exercise uses the BOP mission and develops a list of emotion based and image based words that are then used to develop the BOP Vision Statement.

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Exercises – Process Analysis

To begin each of you are to write across the top of a fresh tablet of paper or electronic devise, depending on what works best for you, the word “Emotion Words” and under this write “Personal”. The next step is for each of you to think about this company in the after math of accomplishing the BOP mission. As you think about the after math quickly write down no more than three words that immediately come to mind that express how you will feel. Do not over think. There is no right or wrong answer. Just write down the first words that come to mind as fast as you can.

Next write “Mgmt/Tec” on your tablet and quickly list no more than three words that express how you think managerial, supervisory and technical employees throughout the organization will feel when the mission is accomplished.

Then write “Staff/Support” and quickly list how you think staff, line and support personnel throughout the organization will feel when the mission is accomplished.

Now write on your tablet “Image Words” and under this write “Personal”. Picture three images that visually come to your mind as you look forward to accomplishing the mission. Quickly write down no more than three of these images. Again, do not over think. There is no right or wrong answer. Just write down the first images that come to mind as fast as you can.

Next write “Mgmt/Tec” and quickly list how you think the company will look to the managerial, supervisory and technical employees throughout the organization when the mission is accomplished.

Then write “Staff/Support” and quickly list how you think the company will look to staff, line and support personnel throughout the organization when the mission is accomplished.

After everyone is finished the person who is responsible for writing on the flipcharts writes at the top center of one chart “Emotion” and under “Emotion” makes three column headings: “Personal”, “Mgmt-Tech”, and “Staff-Line”.

Starting with a volunteer this person shares an emotion word he or she wrote on their tablet under “Personal”. This emotion word is recorded on the flipchart under “Personal”. Following this person, the next volunteer shares an emotion word he or she wrote down. If an emotion word has already been written on the flipchart it is not written down again.

Once everyone has contributed their emotion words under “Personal” a volunteer shares an emotion word they wrote for “Mgmt-Tech” employees. This word is written under “Mgmt-Tech” on the flipchart. The process continues for Mgmt-Tech and for “Staff-Line”.

As a flipchart sheet fills up it is removed and tape to a wall. A clean flipchart sheet is titled as a continuation of the sheet removed. A page number is written on the sheet so the sheets can remain organized as they are taped to a wall. After this process is completed the last sheet is removed and taped to a wall.

The person at the flipchart writes at the top center of a clean flipchart “Image” and under “Image” the three column headings “Personal”, “Mgmt-Tech” and “ Staff-Line” as before. Starting with a volunteer this person shares an image word he or she wrote on their tablet under “Personal”. The process used for capturing the emotion words is repeated for your image words. After the entire list of image words are written on the flip chart the last sheet is removed and taped to a wall.

The next step is for each of you to write “Customers” on your tablet and then quickly list how you think the company looks to your customers after the BOP is implemented. Again, do not over think. There is no right or wrong answer. Just write down as fast as you can the first three words that come to mine.

Next, quickly list up to three changes you think will be seen as positive changes by your employees and those that will be best received. Use image based words as much as possible.

The person at the flipchart uses a clean flipchart and writes “Images” on the top center. Under “Images” he or she writes the column headings: “Customers” and “Employees”.

Using the same process as earlier, each of you shares your image words under “Customers” and your thoughts on the changes you think will be seen as positive changes by your employees. These are listed under “Employees”.

After these steps are complete everyone discusses the words written on the flipcharts. If there is consensus by this group concerning words that should be removed these words are crossed off. Once there is consensus that the remaining words on the flipcharts are meaningful any sheet still on the flipchart is removed and taped to a wall. These flipchart sheets will be used in the next exercise.

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Course Manual – Process Re-Design

Along with developing drafts of the mission and vision statements this workshop introduces you to the meaning and the application of the first concept of the BOP, System Theory and Thinking.

Every business is an organization and every organization is a system. Understanding this gives each of you an overall framework within which to better understand why your company functions the way it does. It also helps explain why every company faces the challenges they face when they try to improve the way they operate. The ultimate goal of every organization is to produce a desired outcome. Since companies are organizations it is important that everyone understands your company from an organizational system perspective. There will be a lot of words and their definitions introduced in this workshop. These words are not intended to confuse. Rather they are intended to give you a basis from which you can gain a perspective on what an organizational system is and how to apply this perspective to give you a better understanding of your company. The meaning and application of these words will become more apparent as we progress through the BOP.

The old adage that we cannot manage people but only the systems in which they work is true. This is why applying System Theories and Thinking when making improvement is so important. The focus must be on changing the system rather than just focusing on changing the people without addressing their role as part of a system.

This obviously does not mean that people do not need to be supervised. Nor does it mean that people do not impact the way your company performs or that some do not need to change. What it means is that your employees are part of a system as are other parts such as work rules, scheduling, work order or design processes, company policies, management processes, etc. As part of the system the way your employees are able to perform are impacted by the laws, characteristics and principles that affect your organizational system.

Your employees are the most important part of your company. As such how they are utilized is critical to your success. How they are treated determines if and how they will either support your efforts or fight against them. The way they are utilized affects how they are able to perform their role in the system. Their understanding of their place within the organization and where the organization is headed is important because it better enables employees to contribute to the success of the BOP. They can either be a catalyst that helps the change process or then be a determent to the change process.

This is the reason the BOP includes the concepts of System Theory and Thinking in this first workshop. It is important that you understand your organization as a system, a system that adheres to certain laws, characteristics and principles. There are three laws, six characteristics and eight general principles associated with any organizational systems.

The three laws are organizational entropy, inertia and synergy. The way an organization functions is determined by how well the organization controls the rate of entropy and the effects from inertia. They either do this effectively or they allow the influence of entropy and inertia to erode the performance of the organization. Synergistic organizations control the effects of entropy and overcome inertia far more effectively than non-synergistic organizations.

The six system characteristics are Environment, Input-Throughput-Output, Dynamic Homeostasis and Feedback, Equivocality and Requisite Variety, and Statistical Fluctuation and Covariance.

1) Environment surrounds every system and thus every system operates as a subsystem within an environment. The system receives inputs from its environment releases outputs back into its environment. Every system is separated from its environment by a permeable boundary.

2) Input-Throughput-Output are the major components of any system. Inputs are the resources from the environment that go into the system. There are two types of Input. One is Maintenance. These sustain the system. The other is Production. These contribute to a productive output. In organizational systems inputs include Labor, Material, Services, and Information. Outputs include Products, Services, Information and Scrap or Waste. Throughput is the activities within the boundaries of the system that convert Input to Output.

3) Dynamic Homeostasis and Feedback is where the system both tries to change in order to better serve the environment within which it exists and where the activities within the system try to maintain the status quo. Feedback is the information process that either encourages the system to change (positive feedback) or reinforces why the system should not change (negative feedback). The more confusing the feedback is the more chaotic the system.

Equivocality and Requisite Variety applies to problem solving. Equivocality means that information and communications are always open to various interpretations which are often in conflict and often designed to confuse or hide the truth. Requisite variety means that variety is required to overcome variety. In other words, in order to solve complex or high variety problems, the right variety of people or the requisite variety of individuals, is needed to effectively solve the problem. This requisite variety comes from a group of individuals who have the right mix of intellect, experience, skills, knowledge, expertise, influence, and energy to work together if complex problems are to be effectively solved. As complexity increases so does the complexity of the information that is required to make proper decisions. As the complexity of the information increases so does the impact from equivocality.

Statistical Fluctuations and Covariance applies to system efficiencies. Statistical fluctuation is where the activity or throughput within a part of a system naturally fluctuates within certain parameters. The level of fluctuation can be controlled somewhat by changing the parameters of the activity.

Covariance is the affect natural fluctuations that occur in activities upstream have on the fluctuations that occurs in activities downstream. Fluctuations in activities that occur downstream are governed by the fluctuations that occur in activities upstream. Covariance is an amplifying affect. If an upstream activity is at its high point at the same time a directly connected downstream activity is at its high point; the downstream activity produces its highest throughput. Contrary, if the upstream activity is at its low point at the same time a directly connected downstream activity is at is low point; the downstream activity produces its lowest throughput. These throughputs then affect the throughput of those activities that further downstream and affect the throughput of the whole system.

The eight general system principles are: 1) The activities within a system define the system and are interrelated and interdependent on each other; 2) The effectiveness of how an overall system functions is determined by how its subsystems function; 3) Inputs move into the system and outputs move out of the system through permeable and defined boundaries; 4) The permeability of the boundary can be controlled by the system; 5) It takes positive energy injected into the system to overcome entropy; 6) Levels of synergy are inherent in how interactive and interdependent parts of a system are with each other; 7) There are multiple ways to reach a desired outcome, in other words, there is no “one best way”; and 8) Subsystems exit within a larger system and have the same characteristics and principles as the larger system.

To be effective at making improvements to a system the individuals who work within the system are the best resources to identify the parts of the system that need to be improved. They are also the ones to best determine and implement the changes necessary to improve the performance of the system. The BOP helps company leadership, management and rank-and-file employees learn how to accomplish positive change by applying system thinking to how problems are identified and solved.

Before you delve more deeply into understanding System Theory and Thinking and how this applies to your company and the BOP you need to complete the draft of the vision statement. Before you can apply the laws, principles and characteristics to your organizational system your employees need to understand where your company is headed. Once everyone knows they can begin to understand their role within the organization. Therefore, it is important to spend time formulating the draft of the BOP Vision Statement.

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Exercises – Process Re-Design

From the previous exercises you have a draft of the BOP Mission Statement and you have a list of words or thoughts under four vision categories. Your words and thoughts that pertain to the four categories of the vision statement are on the flipchart sheets that are taped to the walls. The first category is a list of Emotion-based words. These are how each of you personally think you will feel when the mission is accomplished; how you think managerial, supervisory and technical employees throughout the organization will feel when the mission is accomplished; and how you think staff, line and support personnel throughout the organization will feel when the mission is accomplished.

The second category is a list of Image-based words or thoughts. These are how each of think the company will look to you when the mission is accomplished; how you think it will look to the managerial, supervisory and technical employees throughout the organization; and how you think it will look to staff, line and support personnel throughout the organization.

The third category is how each of you thinks the company will look to your customers after the BOP mission is accomplished. The fourth category is what each of you thinks are the changes that will best be received by the employees as a result of implementing the BOP.

You now need to prioritize all of the Emotion-based words. This is done by using a prioritizing voting process. This process gives each of you three votes and a total of six voting points. Your first vote will use three of your six points. Your second vote will use two and your third vote will use one point. Before voting each of you needs to determine in your own mind what you think is the single most applicable Emotion-based word, the second most applicable Emotion-based word, and the third most applicable regardless if the word is under Personal, Mgmt/Tec or Staff/support.

The person at the flipchart begins by pointing to the first word under “Feelings”/”Personal”. Each of you holds up the number of fingers that represent your vote for that word. You hold up three if you think it is the most applicable of all the Feeling-based words, two if you think it is the second most applicable and one if you think it is the third, or none if it is not one of your top three choices. The person then points to the next word and so.

Each of you can only vote on three words. Once you have voted a number you no longer have that number available to you. In other words, each of you only has six points that you can apply to your vote. If you have used two for your second choice vote, you only have a three point vote and a one point vote remaining.

The person at the flipchart counts the number of fingers being held up and writes this number next to the word. The person then points to the next word on the flipchart and everyone votes on this word. This process continues for each word until all the available points are used. The total available points are six times the number of participants voting. The word with the most points is the top word, the word with the next highest number of points is the second word and the word with the third highest points is the third word.

The person who has been writing on the flipchart writes “Vision Statement” on the whiteboard or displayed on a projector below the draft of the BOP Mission Statement separated by a space. Below Vision State the person writes “In two years, now that the BOP is implemented we in this company feel (top three Feeling-based words from the voting) about what we accomplished”.

When you are finished with this step you will determine the top three Image-based words or thoughts. Each of you gets six new points. The person writing returns to the flipchart sheet on the wall and begins by pointing to the first word or thought under “Image”/”Personal”. Everyone again holds up the number of fingers that represent your vote for that word or thought. The voting process that was used to determine the top three Emotion-based words is repeated to determine the top three Image-based words or thoughts. Once all the points are used the voting again stops. The person writes on the white board or computer “We see (Your Company) being (top three Image-based words or thoughts from voting)”.

The voting process continues with each of you getting six new points. The voting this time is focused only on the Image-based words or thoughts under “Customer”. Once these top three words or thoughts are determined the person at the whiteboard or on the computer writes “We are excited that our customers see us as (top three Image-based words or thoughts).”

The voting continues with each of you getting six new points. The voting is now focused on the changes listed under “Employees”. Once the top three changes are determined the person on the whiteboard or computer writes “The changes we see in (top three changes) are significantly improving the way everyone in our company is working together.”

When completed this draft of the BOP Vision Statement reads like this. “In two years, now that the BOP is implemented we in this company feel (top three Feeling-based words) about what we accomplished. We think this because (Your Company) is (top three Image-based words or thoughts). We are excited that our customers see us as (top three Image-based words or thoughts under Customer). The changes we see in (top three changes) are significantly improving the way everyone in our company is working together.”

At this point in the workshop the first drafts of the BOP Mission Statement and the BOP Vision Statement are completed and visible on the whiteboard or from the projector. If it is written on the whiteboard these two statements need to be recorded electronically for later work.

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Course Manual – Process Resources

As a group you now have drafts of the BOP Mission Statement and the BOP Vision Statement. You will not spend time during this workshop wordsmithing these drafts. However, how these are written will likely need some refinement and wordsmithing before they are ready for final release. It is important that the BOP Mission Statement and the BOP Vision Statement be representative of your focus for the BOP since these statements will become the guiding documents for the implementation process.

Before the next workshop you, the Owner are responsible for taking these drafts and ensuring that they read as they should in a finalized version. You will need to assign people outside of your senior staff who have the skill and trust level to do a final round of wordsmithing. This is explained further in the Resource section under Project Study that follows this Course Manual.

Expanding on System Theory and Thinking is a pictorial summary of what a system looks Illustration 2 below.

See Illustration 2

One of the characteristics of any system is that it is separated from the environment in which is exists by a permeable boundary, which can be controlled by the system. The amount of resources that a system consumes, how these resources are consumed and the efficiency at which they are consumed are based on the permeability of the boundary. The things that hamper this permeability are often the root causes of the problems that are preventing an organization from operating at peak performance.

In order to further understand permeability you first need to understand the types of boundaries that impact organizational systems. There are four general types of boundaries associated with organizational systems. There are physical boundaries. These physically deter access into and out of the system. There are linguistic boundaries. These create language barriers and cause confusion and misunderstandings. There are systemic boundaries. These relate to the operating rules that govern how people interact. And, there are psychological boundaries. These hamper communication and cooperation due to the makeup and the personalities of the people involved.

An organizational system with its Input, Throughput and Output is pictured in Illustration 3 below.

See Illustration 3

Inputs that organizational systems consume are Labor, Material, Services and Information. Outputs that organizational systems produce are Physical Products, Services, Information and Waste/scrap/inefficiencies. Often companies spend a great deal of their resources trying to make the boundaries more permeable. A lack of permeability through a boundary is seen as barriers. Because these barriers are often difficult to identify it is often difficult for company leadership to know how much expense they occur trying to overcome these types of barriers. One of the things that System Theory and Thinking bring to the table is that it helps all of us better identify the scope of these barriers and the impact they have on our companies. The overall purpose for the BOP is to systematically focus the resources of an organization to effectively and efficiently identify the barrier that is most effecting organizational output, or in other words, constraining the throughput of company.

In order to create this focus the BOP is implemented in five phases. Each phase systematically helps the resources of an organization funnel down closer to the point where the most influential barrier and the real costs it creates is exposed. The tools of the BOP then guide the resources closest to the problem to effectively solve the problem and thus increase the throughput through the whole organization. These five phases are shown in Illustration 4 below.

See Illustration 4

Phase 1 includes this first workshop and workshops two and three. These workshops involve the same people that are in this first workshop. During the third workshop the focus changes to include only those of you who are selected to be on the Leadership Team. The Leadership Team is chaired by the Owner and is made up of some or all of you who are in this first workshop.

Phase 2 includes the Leadership Team, which is involved in workshops four through six. Phase 3 involves the Management Team which the Leadership Team selects during the sixth workshop. The Management Team is involved in workshops seven through ten. They select a Project Team during workshop ten. Phase 4 involves the individuals selected for the Project and includes workshops eleven through twenty-two. During this phase the root cause of the problem that is causing the constraint is identified and solved. The constraint is removed and the throughput of the company increases.

At the appropriate time around workshop eighteen the Project Team solicits input from individuals that are closely associated with the point in the company that is determined to be the constraining point. These individuals are those who, along with selected individuals of the Project Team determine the root cause and fix the problem that is causing the constraint.

Depending on the size and complexity of your company, the BOP could involve anywhere from a total of ten or so individuals from various organizational levels throughout the company to as many as fifteen to twenty. Not everyone is involved at the same time because different people are involved in different aspects of the BOP.

The processes used in Phase 1 form a basic template that is used for the beginning of each phase. Each phase uses a version of this process as designed specifically for the given phase. The similarities for each phase is that each phase begins with forming a team and developing its charter or mission and a the vision of what it looks like when the charter is accomplished. Each team goes through a series of workshops designed to train the members in the skills, BOP tools and processes that are applicable to their charter.

Phase 1 involves all of you in this first workshop. The purpose of Phase 1 is to define the mission and vision for the BOP, introduce you to the concepts and processes used during the BOP and give you a general understanding of the BOP at the corporate level. During Phase 2 the Leadership Team will learn more detail about these processes and be trained in using the BOP tools applicable to their charter. During Phase 3 the Management Team learns more detail and is trained in using the BOP tools applicable to their charter. During Phase 4 the Project Team(s) learn more detail and are trained in using the BOP tools required for them to identify and fix the problem that is constraining the throughput of the company.

The amount of time that required by everyone involved in the BOP depends on which phase the person is in. This executive group goes through three monthly workshops. Those selected to be on the Leadership Team are involved in another three workshops. Those selected to be on the Management Team are involved in four monthly workshops. Those selected to be on a Project Team are involved in ten monthly workshops. During the last Phase members from the Project Team, Management Team, Leadership Team and this executive group are in involved to varying degrees in the last three monthly workshops. Other than this time dedicated to attending workshops the application of what you learn is assimilated into your ongoing job duties.

In order to expedite and reduce the amount of time required for formal meetings and informal gatherings it is recommended that a conference type room with adequate and comfortable seating and temperature control that is quiet and conducive to private discussions be set aside. There will also need to be flipcharts, a white board and appropriate markers in a variety of colors available. An overhead projector connected to a laptop or computer may be helpful but is not required.

As explained earlier, all companies are organizations, all organizations are systems and all systems have permeable boundaries that separate the system from the environment in which it exists. With organizational systems there are four basic components to this boundary. These are the physical barriers that deter physical access into and out of the organization; linguistic barriers that create confusion and misunderstandings due to language differences; systemic barriers that are created by the operating rules that govern how people interact; and psychological barriers that hamper communication and cooperation due to the makeup and personalities of the people involved.

Trying to overcome these barriers absorbs a lot of a company’s efforts and uses a lot of resources that could be put to better use. In order to help you to apply what you are earning about System Theory and Thinking you are going to look at the four barriers that contribute to the boundary around the organizational system as they relate your company.

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Exercises – Process Resources

During this exercise you are going to quantify in rough terms the impact you think these components have on your company starting with physical barriers. Each of you is to write “Physical Barriers – Labor” on the top of a tablet of paper or electronic device. Next, list several physical barriers you think interfere with your company’s ability to recruit or retain the labor required to produce your products or services and operate your company. Next, write “– Materials” and list several physical barriers you think interfere with your company’s ability to purchase and receive materials required to produce your products or services and operate your company. Next, write “– Services” and list several physical barriers you think interfere with your company’s ability to obtain the services you need to produce your products or services and operate your company. Finally, write “– Information” and list several physical barriers you think may be impeding the information your company needs to produce your products or services and operate your company.

When everyone is finished the person writing on the flipcharts writes “Physical Barriers” across the top of a flip chart. Starting with a volunteer one of you shares one of the barriers to Labor you wrote down. Then another shares what they wrote down and so forth. Only those barriers that have not been previously identified are written on the flipchart. Once all the physical barriers to Labor are written on the flipchart the process is repeated for the physical barriers to Materials. After the list of barriers to Materials is complete the process is repeated for Services and then for Information.

When all the physical barriers are listed everyone votes for the top three most impactful physical barriers using the same voting process as before. Each person gets six votes, three points for their number one vote, two points for their number two vote and one point for their number three vote. The person at the flipchart points to the first barrier and each of you holds up the number of fingers that represent how you rank the barrier, three fingers for the barrier you think is the most impactful, two fingers for the barrier you think is the second most impactful, and one finger for the barrier you think is the third most impactful. As votes are counted the number of votes is written next each barrier. Voting continues until everyone has used up their six votes.

The process is repeated for Systemic barriers. Each of you writes across the top of your tablet “Systemic – Labor”. Next, list several systemic barriers you think interfere with your company’s ability to recruit or retain the labor required to produce your products or services and operate your company. Next, write “– Materials” and list several systemic barriers you think interfere with your company’s ability to purchase and receive materials required to produce your products or services and operate your company. Next, write “– Services” and list several systemic barriers you think interfere with your company’s ability to obtain the services you need to produce your products or services and operate your company. Finally, write “– Information” and list several systemic barriers you think may be impeding the information your company needs to produce your products or services and operate your company.

When everyone is finished the person writing on the flipcharts writes “Systemic Barriers” across the top of a flip chart. Starting with a volunteer one of you shares one of the barriers to Labor you wrote down. Then another shares what they wrote down and so forth. Only those barriers that have not been previously identified are written on the flipchart. Once all the systemic barriers to Labor are written on the flipchart the process is repeated for the systemic barriers to Materials. After the list of barriers to Materials is complete the process is repeated for Services and then for Information. When the list is complete everyone votes on this list using the three, two, one point voting process.

When the voting is completed everyone writes Linguistic Barriers – Labor on their tables and lists the Linguistic barriers they see for labor, then material, then services and then information. When everyone is finished with their list everyone votes on the Linguistic Barriers. After the voting is complete the process is repeated for Psychological Barriers.

Without any discussion the person at the flipchart points to the Physical barrier with the most points. Each of you shares the percentage of time you think you spend on non-productive efforts because of this barrier. The percentage that each of you shares is written next to this barrier. After everyone has shared their percentage, the person at the flipchart points to the Systemic barrier with the most points. Each of you shares the percentage of time you think spend on non-productive efforts because of this barrier. The percentage that each of you shares is written next to this barrier. This process is repeated for Linguistic barriers and Psychological barriers.

This exercise is designed to show you out how the permeability of boundaries impacts each of your productivity and the amount of productive time that could be gained if these barriers were removed or reduced. Not all of you are affected by each barrier and some of you are more affected by certain barriers than others. After this exercise is completed the flipcharts are taken off the wall, rolled up, and held in a roll with painters’ tape. The word “Barriers” is written on the outside of the roll. This roll will be used in later workshops

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Course Manual – Process Communications

During this first workshop you are setting the foundation for the implementation of the BOP. This foundation includes developing the BOP Mission Statement and the BOP Vision Statement. This foundation also includes a growing understanding of System Theory and Thinking and why this understanding is important as you implement the BOP or manage any other types of change throughout your company.

One of the challenges management faces when it begins to implement any new process is deciding what to communicate, when to communicate and to whom to communicate. It is important that employees know what is happening or what is going to be happening. However, it is obviously improper and often times dangerous to communicate all that management knows or what management is working on to those outside of management. Generally, even though employees are often curious about what their leadership is thinking employees know that they are not privy to everything that management is trying to do. This is just part of routine business and as long as employees feel that management “has their backs” they are usually comfortable with the level of knowledge management has given them.

There are several reasons why it is important for management to communicate appropriate information to their employees. The main reason, first and foremost is to maintain the trust of the employees. To let them know that in fact you do “have their backs”. A second reason is the more your employees know what is happening and what is expected of them the better able they are to perform those tasks that produce the results expected. A third reason is employees perform better if they feel they are part of a team. Proper communications go a long way in creating this feeling. And, fourth, having good communications allows employees to contribute suggestions that may improve the decision management makes. This list of reasons is not exhaustive. It is however what we believe to be the top four.

The first three workshops of the BOP include you, the Owner and your senior staff. The fourth workshop includes you and those members of this group who are on the Leadership Team. The fourth workshop in part includes developing a second communication that gives your employees more information about the BOP and how it will affect them, what will be expected from them and the benefits they will receive. The challenge at the beginning is to determine what should be communicated now since the BOP is not fully understood at this time.

As long as there is some ongoing communications and things appear to be normal people are usually content with how things are running. As soon as things seem to be shifting from the status quo people tend to become anxious. Anxiety grows among people when they sense that change is coming that they do not understand. A sense of the unknown that often accompanies change brings a level of uncertainty which can create increasing levels of anxiety.

Normality takes many forms. Normal office routines, meeting schedules and daily or weekly activities of upper management all have a routine that represents the status quo. Even a slight change in these activities can appear to employees to threaten the status quo when it is not noticed by upper management. Some examples of these types of changes include when there is an abnormal number of “closed door meetings”, when the owner is out of the office more than he or she normally is, or having more mangers than normal milling around the company. These types of activities may seem normal to Owners and managers who see these activities as part of their everyday job duties. They may not be aware that they have changed some of their regular routines in response to changing business requirements. These types of changes, however, can lead to a growing rumor mill. These rumor mills can feed on themselves which can lead to a growing level of anxiety among employees.

We all know that an escalating rumor mill feeds upon itself and before long creates a negative work environment. The challenge is to effectively manage the information that is given to the rest of the organization. This information needs to be the right kind and given at the right time.

At this stage in the BOP there are enough new types of activities with each of you to be noticed by others. This can quickly lead to a growing level of anxiety among the people within your organization. Employees see what they perceive as strange packets of information on your desks followed by a new schedule of meetings. They hear you talking about the Business Optimization Process. They here you talk about implementing new processes. They see you in new “behind the door” meetings with flipcharts and whiteboards.

Because of this it is important that your employees be told something about what your company is embarking upon so they feel that you do “have their backs” and that this is not going to lead to any type of “re-organization” or changes in employment levels. They need to know their jobs or positions are not in jeopardy because you are embarking on a new process. Therefore, the last part of this workshop is for you to develop a general announcement that will be received positively by your employees and that will put everyone’s mind at ease. They need to know that they will be kept informed as you progress through the BOP and that there will be a communication meeting in several months that will lay it all out for them.

The announcement to be made after this workshop will need to be crafted by you because you know your company and employees better than some outside facilitator. As stated early in the introduction, the BOP is tailored to the specific needs of this company. Therefore, it is important that there be no set communication process at this time. This information that needs to be developed during this workshop is based on what you think is important to say and what is important that you not say at this time.

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Exercises – Process Communications

At this time your employees need to know the general jest of what is happening and that further information will be forthcoming. The following is a recommended idea of the type of information you could communicate at this time. During this exercise a draft of the announcement needs to be crafted so it communicates the message in a way that fits into your company’s culture. This announcement will be wordsmithed and “prettied up” after the workshop. Please refer to the Communications section under Project Study.

Prior to the workshop copies of the draft of a generic announcement are to be printed and brought to the workshop. During this exercise copies of this template will be passed out for all to have. This is Attachment 1 that is part of the Planning section under Introduction.

Starting with a volunteer this person reads the Introduction section below and asks for comments, wordsmithing ideas, etc. A person records the suggestions or modifies the wording on a computer for all to see. Once there is consensus that this section conveys good information the person reads the Explanation of the Business Optimization Process section below and asks for comments, wordsmithing ideas, etc. A person records the suggestions or modifies the wording on a computer for all to see. Once there is consensus that this section conveys good information the person reads the next section, Explanation of the Purpose and Benefits. The same process is followed until all sections convey good information.

My senior staff and I just finished an introductory workshop on a process that we will be using over the next two years. This process is called the Business Optimization Process or the BOP. At this time I want to give everyone a general idea of the process, why I have chosen it and the benefits I expect all of us to receive.

During the next three months my staff and I will be going through additional introductory workshops. As a result of these workshops we will have defined the process by which we will implement the BOP. Soon after this we will have companywide communication meetings that will more fully explain the process and your role in the process.

The reason I chose the BOP is because it is a business optimization process as opposed to a program that focuses on just improving a part of our business. The word optimization has its roots in the word optimize and optimism. Optimism is the belief that everything is structured for the best. It is where our tendency is to first look at what is working as opposed to what is not working. Optimize means to make as effective, perfect, or useful as possible; to make the best of something. Optimization is the process of being optimized. BusinessDictionary.com defines optimization as the act of “finding an alternative with the most cost effective or highest achievable performance under the given constraints, by maximizing desired factors and minimizing undesired ones.

The BOP is mission driven. It is a corporate focused, team building process that teaches the types of skills needed to effectively improve an organization’s performance. It accomplishes this by training employees to systematically identify and solve the root cause of the problem that is most constraining the performance of the organization. It is a continuous improvement process that once implemented results in a higher level of satisfied customers and a more enjoyable work environment for the employees. These results lead to a financially stronger organization that brings long-term stability and better rewards and job security for everyone.

(Explanation of the purpose and benefits)

It is my expectation that everyone in this organization will benefit from the BOP and will see improvements in the way we work, the results we produce and the work environment in which we all spend a good chunk of our time. This is the main reasons we are implementing the BOP

(Defining the next steps)

During our first workshop we worked on some of the BOP fundamentals and how it will look to us when we have successfully accomplished the BOP. We also began learning system theory and thinking to help us take a step back and look at this company as a system, a system we are all a part of.

The next workshop is scheduled for (enter a date or range of dates) and will also include my senior staff and me. During this workshop we develop goals and learn more about applying system theory and thinking to our company. During the third workshop which will be conducted around (enter date or range of dates) we will create a Leadership Team from the members of my senior staff. The Leadership Team will be responsible for overseeing the implementation of the BOP. Employees from every level in the organization will be included as time goes on. Once the Leadership Team is in place we will be communicating more detail about the process we will use and how you will be involved.

After this workshop the draft of your announcement will be given to a committee to review and wordsmith so it will be as effective as possible in introducing the BOP to your organization. Once it is finalized and approved it is to be posted for all to see or distributed to managers or supervisors for them to share with their employees. The communication process depends on what you believe will work the best, given the culture and communication processes already in place. If a concern is perceived to arise during the announcement it should be addressed in general terms letting people know that this is a positive move that will benefit everyone and that everyone will know more as more information becomes available.

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Course Manual – Process Review

Following this workshop you will need to review the main concepts relating to System Theory and Thinking. This will reinforce your understanding of these concepts as they apply to organizations. The reason this is important is that as you move through the coming workshops your understanding of your company as a system will make the implementation of the BOP or any business improvement program much easier and effective. The concepts you need to understand are entropy, inertia, synergy, boundaries, input-throughput-output, feedback and dynamic homeostasis, equivocality and requisite variety, and statistical fluctuation and covariance.

Organizational entropy means that every organization, and thus every company regardless of the types of products or services it provides has the natural tendency to lose effectiveness over time unless the right kind of effort or energy is injected into the organization. This kind of energy can come in several forms. It can come as capital improvements. It can come as employee training or new or modified operating, management or financial management processes. It can come as redesigned or enhanced products or services. It can come as updated sales techniques, new customer management processes or improved procurement and distribution channels. It can come as revised work rules and human resources processes, enhanced compensation and benefit packages, and the list goes on and on.

Organizational entropy affects every company at different rates and in different places. One of the challenges for the leadership of any company is to find where entropy is the most prevalent. This could mean, as an example that the sales department could be making significant improvements only to find that the capacity of the operating area has slowly been waning and cannot keeping up with the new sales capacity. Another example could be where work rules have not changed to keep up with changes in demands placed upon a company due to market pressures.

Organizational inertia means organizations like to keep running as they are. It means organizations have a natural tendency to resist change. It also means that even though there is this natural resistance to change in every organization, this resistance can be effectively overcome by applying the right amount of effort or energy. Applying the right amount of energy has to do with the rate at which the energy is applied as opposed to the type of energy being applied.

A sudden or abrupt application of effort or energy to force a change will always waste energy and be costly and disruptive. Applying too small amounts of effort or energy to the contrary, however, may never accomplish the change that is sought. The secret is knowing how to apply the right amount of energy or pressure so that the system is properly stressed in a way that causes it to begin to change. As change begins to happen it becomes easier to increase the rate of change. It is like the rocket that is working to leave the launch pad. A lot of energy is expended just getting the rock to start moving. Once it starts moving it begins to gain momentum and takes far less energy to accelerate its speed as its speed increases. The same is true for organizations. It takes a lot of energy in the form of planning, forethought, investment, and deliberate action to begin the change process. Once the change starts it begins to gain momentum and takes decreasingly less effort or energy to manage and accelerate the rate of change.

Organizational synergy is when everyone in the organization is working in sync with everyone else in the organization. It is seen when people are helping people so that a goal is achieved in an effective and streamlined fashion. It is where people focus on the task at hand to achieve a goal as opposed to focusing on frivolous or non-productive tasks that do not contribute to achieving a goal.

Whereas, overcoming entropy has to do with the kind of effort or energy that is applied to an organization, overcoming inertia has to do with the amount of energy and the rate at which the energy is applied. The combination of the amount of energy and the rate at which it is applied has to do with the level of synergy that is at work.

People need to know what is expected of them, they need the tools to accomplish what is expected and they need to know the progress they are making toward accomplishing what is expected. Without basic processes in place it is difficult to get people to work in a synchronized or synergistic manner. To get back to the rocket illustration, the guidance controls, the fuel delivery processes and the engines all have to operate in sync if the rocket is going to start to move off the launch pad and then to properly accelerate as it gains altitude.

Organizational feedback and dynamic homeostasis are forces at play in any organization. Homeostasis is the tendency of an organization to want to stay in equilibrium and fight to maintain the status quo. Dynamic homeostasis is where the organization tries to change in response to changes in the environment within which it exists and at the same time trying to maintain the status quo as seen in the balance between all the parts of the system. Feedback is the information process that either encourages the organization to change (positive feedback) or reinforces why the organization should not change (negative feedback). The more confusing the feedback information the more chaotic a system can become since it is trying to both change and at the same time trying to stay the same without understanding what it is supposed to do or why it is even trying to change.

Equivocality and requisite variety are two characteristics that tend to oppose each other. Equivocality has to do with the difficulty that exists in capturing the right information from the communication feedback processes. Equivocality means that information and communications are always open to various interpretations which are often in conflict and often designed to confuse or hide the truth. Requisite variety means that variety is required to overcome variety. In other words, in order to solve complex or high variety problems, the right variety of people or the requisite variety of individuals, is needed to effectively solve a problem. It is having enough variety in the options and the resources available to be able to make the correct decisions.

Because of equivocality the credibility of the feedback information is often in question because there are inconsistencies in the information that come from a variety of sources. Often the information is at odds making it difficult to discern what is and what is not true. This is coupled with the need to have an increasing number of options and an increasing number of resources available as the complexity of problems increase. In other words, the more complex a problem the more complex the feedback information and the more difficult it is to discern which action is the best action to take because of conflicting information and the suggestions that are received.

To add further complexity to problem identification is the characteristics known as Statistical Fluctuation and Covariance. Statistical fluctuation states that every part of a system has natural levels of fluctuation regardless of any outside influence. In other words, any workstation will operate at times with higher output than at other times just due to the natural way the workstation operates. It is often difficult to determine the reasons behind these fluctuations because of their nature.

Covariance is a characteristic where the fluctuations of activities that occur downstream are governed by the fluctuations established by activities occurring upstream. In other words, the statistical fluctuation of throughput at a workstation is directly impacted by the statistical fluctuations of the workstations upstream. All the statistical fluctuations of the workstations in a process have a direct and amplifying effect on the level of fluctuations in the throughput of the organization as a whole. This characteristic will become more apparent during the next workshop.

The three things that are accomplished as a result of this workshop are a written BOP Mission Statement, a written BOP Vision Statement and a demonstrated understanding of the basics of Systems Theory and Thinking and how they are applicable to your company.

During this workshop you write a draft of the BOP Mission and BOP Vision Statements. These drafts are forced to read a certain way based on the templates used during the workshop. After the workshop, these statements will likely need to be edited and made to read in a way that is more meaningful to everyone in the organization based on the culture of your company.

In order to help you gain a better understanding and appreciation of the purpose behind Systems Theory and Thinking you will need to spend time going over the laws, characteristics and principles that apply to System Theory and Thinking. These terms need to become part of your general vocabulary that people use as your organization goes through the BOP.

You are introduced to system laws, characteristics and principles. One way to better understand the definitions of these laws, characteristics and principles is to think about how they apply to your company. Your company is a system. Systems are affected by the energy that is put into them. As a result you need to focus on the energy or effort you need to apply to your company. You need to know the right kind of energy to apply, the right amount of and the right rate at which to apply this energy, and the right method through which the energy is applied.

In order to apply the right kind of energy in the right amounts, you need to understand the environment in which your company exists and the needs that this environment has from your company. This understanding includes knowing what needs to change within the organization itself to meet the demands placed upon it by its environment. This interrelationship between your company and the environment of which it is apart puts pressure on the organization to change while at the same time organizational inertia pushes back against this pressure to change.

Knowing the dynamics between the demands from the environment and the internal workings of the organization is a challenge for any business Owner. The reason for this challenge is that it is difficult to gain a true understanding of what is happening due conflicting, or at best unclear feedback information. Understanding the root cause behind these dynamics is made increasingly difficult because of the statistical fluctuations that occur within the environment and within the inner workings of the organization itself. The solution to effectively understand and then be able to solve meaningful problems is significantly enhanced by taking a systems approach to how problems are identified and solved.

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Exercises – Process Review

To bring these concepts closer to home you need to understand the system laws you have earned during the workshop as they apply to your company. The first law is entropy. In order to stop, slow down or even reverse entropy you must inject the right kind of energy into your organization. This kind of energy can come in several forms. It can come as capital improvements. It can come as employee training or new or modified operating, management or financial management processes. It can come as redesigned or enhanced products or services. It can come as updated sales techniques, new customer management processes or improved procurement and distribution channels. It can come as revised work rules and human resources processes, enhanced compensation and benefit packages, and the list goes on and on.

In order to bring this closer to home, the person at the flipchart writes across the top the word “Entropy”. Then, as a group, brainstorm your thoughts concerning areas where you see the effects from entropy within your company. You should come up with half a dozen or so. Record these as snippets that represent these areas. A couple of examples of areas where entropy could be seen are: “growing lackadaisical attitude toward work rules” or “increasing downtime due to equipment problems”. After you have this list use the six point voting process to determine the top three areas you see eroding the performance of your company.

The second law is inertia. To create effective change you need to apply the right kind of energy at the optimal rate. On a separate flipchart the person writes “Inertia” across the top. Then, as a group, brainstorm your thoughts concerning the areas where you think there would be strong inertia against change. You should list half-dozen or so. Record these as snippets that represent these areas. A couple examples of areas where you could think there would be strong inertia are: “revamping work rules” or “purchasing new technology based equipment”. After you have this list use the six point voting process to determine the top three areas that as a group you think would be the hardest to change.

The third law is synergy. To be able to apply this energy in the right amount and at the right rate you need to apply it using the right method. On a separate flipchart the person writes “Synergy” across the top. Then, as a group, brainstorm your thoughts concerning where you think synergy is lacking and where it impacts the performance of your company. Record these as snippets that represent the areas where synergy is lacking. A couple examples of areas where you could think synergy is lacking are: “the process used to review and modify work rules” or “the cooperation between graphic design and office administration”. You should list about half-dozen. After you have this list use the six point voting process to determine the top three areas that as a group you think would be the hardest to change.

At this point you have identified what you think are the top three areas where you think that entropy is the most apparent. You have identified where you think inertia or resistance to change is the strongest and where you think synergy is the weakest.

The person or someone else needs to record the top three of each on a Word Doc type program and file them in a general folder specifically for the BOP with a subfolder for Workshop 1.

The lists you have developed will be used during the next workshop.

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Project Studies

Project Study (Part 1) – Process Mapping

The purpose of this first workshop is to introduce you, the Owner and your senior staff to the components of the BOP and to begin the first steps in the implementation process of the BOP. The first steps include developing the mission and vision statements for the BOP and gaining a basic understanding of System Theory and Thinking. The process used in this and the next two workshops serve as a model for future workshops.

The BOP is implemented in five Phases. Each of the first four Phases begins with the formation of a team. The first step after the team is formed is for the members of the team to establish its charter or mission. It then develops a vision statement of what it looks like when the team accomplishes its mission. From here the members of the team learn particular tools to help them accomplish their mission. The members of a team learn to apply this knowledge to action steps that lead to the accomplishment of the mission. Each Phase has five steps. These steps are 1) form the team; 2) establish the mission and vision for the team; 3) gain the knowledge and learn the tools necessary to accomplish the mission; 4) apply this knowledge and these tools to accomplishing the mission; and 5) measure and report the results. Pictorially the process flow for each Phase is shown in the following Illustration 5.

See Illustration 5

This first workshop is the beginning of Phase 1. It includes Steps 1 and 2 and part of Step 3. The next two workshops are also part of Phase 1 and include the last part of Step 3 and Steps 4 and 5.

Looking at the basic steps for Phase 1, the “Team Formed” step began with the participants of this group getting together for this workshop. The “Mission and Vision” step was the creation of the BOP Mission Statement and the BOP Vision Statement. The “Knowledge of Tools to be Applied” step is the introduction to System Theory and Thinking during the first workshop, the introduction to the Theory of Constraints during the next workshop, and the introduction to Transformational Leadership during the third workshop. The “Application of the Tools” occurs during the next two workshops. This step involves applying the concepts of System Theory and Thinking, the Theory of Constraints and the principles of Transformational Leadership to determine throughput and operating requirements necessary to achieve the BOP Mission. This step also includes applying goal setting and strategizing processes to determine how you are going to achieve these throughput and operating requirements. The “Measure and Report Results” is how well you accomplish the objectives that are set for each workshop.

One of the differences between the workshops in the first Phase and the workshops in Phases 2 through 4 is the effort put into developing the BOP mission and vision statements. There is more thought put into developing the mission for the whole BOP than for the charters or mission statements for each future Phase. There are two reasons for this. The first reason is that this workshop is the first workshop of the BOP. Developing the BOP Mission Statement and the BOP Vision Statement requires a well thought through and meaningful understanding of the purpose behind the BOP. The mission of the BOP is global where the charters that each team develops are more focused. The mission of the BOP explains the purpose for implementing the entire BOP. This purpose provides guidance throughout your company as the BOP is implemented. This requires more preparatory efforts and detail of thought than will the charters for Phases 2 through 4.

The second reason is that the first three workshops are an introduction to all of you of the whole BOP. As senior staff members, your understanding concerning System Theory and Thinking, the Theory of Constraints, and Transformational Leadership is broader and more strategic than is necessary for future teams. Each team’s charter is narrower in scope than the previous team’s charter. This narrowing scope requires a more detail explanation of the application of the tools learned during a Phase. The focus of each subsequent team is narrower because each team is getting closer to identifying and solving the root cause of the problem that is causing the constraint.

The first Phase, as stated above, involves you, the Owner and your senior staff. The second Phase involves you and those members of your senior staff who are selected to participate on the Leadership Team. The third Phase is made up of a selected number of managers who report to those at the senior staff level. These managers become members of the Management Team. The fourth Phase is made up of selected technical, line, clerical or support staff personnel depending on your company’s type of business and its organization. These employees become the members of a Project Team. The fifth Phase loops back to you and your senior staff.

During this Phase every team assess the results of their team’s performance. After each team has performed these assessments, the results are reviewed by you and your senior staff. Following this review the how the next round of the BOP is to be implemented is tweaked as necessary based on your review. After the BOP is tweaked it is started over by applying what everyone learned during this first round of the BOP. The BOP is a continuous improvement process that is use to continually find finding and solve the next problem area that is limiting your company’s performance.

The following Illustration 4 gives an overview of the five Phases of the BOP.

See Illustration 4

During each Phase the team for that Phase learns System Theory and Thinking, the Theory of Constraints, and Transformational Leadership to varying degrees depending on their charter. During this first workshop of Phase 1 you and your senior staff begin understanding the basics of System Theory and Thinking. During the next workshop all of you gain an understanding of the Theory of Constraints. The Theory of Constraints is the process the BOP uses to help everyone involved quickly and effectively funnel down to the problem that is most affecting the output or performance of your company. During this next workshop all of you apply your understanding of Systems Theory and Thinking and the Theory of Constraints to establish the throughput and operating activity goals to be accomplished during the BOP. You also determine strategies to achieve these throughput and operating activity goals. During the third workshop and last workshop of Phase 1 you learn the principles of Transformation Leadership and apply these principles to forming the Leadership Team. The fourth workshop is the first workshop of Phase 1 and the workshop during which the Leadership Team sets its charter and vision.

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Project Study (Part 2) – Process Analysis

Coming out of this workshop there is a draft of the BOP Mission Statement and a draft of the BOP Vision Statement. There was little to no wordsmithing of these statements during the workshop. These statements should be statements that by consensus you, the Owner and your senior staff support and can rally behind. These statements likely need further work because, even though they convey your purpose for pursuing the BOP and paint a picture of how your company looks when the mission is accomplished, they read as a template. This being the case, as Owner you need to analyze these statements starting with the draft of the mission statement and see how well it answers the following questions.

Is it personal? In other words, does it speak to your employees as individuals or does it refer to them as impersonal objects that are part of your company? If it is written from the third person position or uses impersonal pronouns it needs to be wordsmithed. It needs to refer to all of the people in the company in the first person using the pronouns us and we rather than it, them, or they.

Does it reflect what you really want to accomplish with the BOP? Is it a mission that you are committed to accomplishing regardless of the obstacles that you may run into along the way? If it is written to just sound good or to justify why you are embarking on the BOP it will not be as effective as a statement that honestly reflects your deepest wish for a desired outcome.

Does it effectively communicate the values and purpose for your company? The reason you are pursuing the BOP needs to be that you see it as a way to help your company improve its performance. The BOP Mission Statement must reflect the values that you espouse for your company. It must reinforce these values either implicitly and explicitly.

Is it written in a way that is clear and memorable? In other words, does it us ambiguous words that may be confusing or open to various interpretations? Is it consistent with the culture of the company and in line with the overall mission of the company? The main points need to reinforce what your company as a whole is all about.

Is it written with action words that are positive? In other words, does is state your thoughts in a positive manner as opposed to an anti-negative manner? Does is say what positive things it will accomplish or does it say what negative things it will prevent from happening. It needs to say what it will accomplish and in a way that will answer any objections that people may have as to why you are pursuing the BOP.

Is it written so that it addresses the current situation? Is it focused on the next two years and on what you want the BOP to accomplish or is it more pie in the sky and not as focused. It needs to be focused on the next two years and specifically around why you chose the BOP and what you want to accomplish.

After the draft of the mission statement is analyzed and tweaked as needed based on this analysis the same type of analysis needs to happen with the draft of the vision statement.

Is it personal? Does it show your employees what success looks like to them? Will your employees relate to it and be able to become emotionally attached because they see the benefits to them through the success of the BOP?

It is written with the type of emotion-based and image-based words that everyone throughout your company will be able to connect with? In other words, can your employees easily identify with the words used or are they words that relate more to how you as Owner and senior staff think, see and feel? The vision statement needs to use as inclusive words as possible.

Once you are satisfied that these statements satisfactorily say what you think they should say, the next step to make sure that they effectively communicate what you are trying to say. These statements need to read in such a way that they are received in a positive manner by everyone in your company. In order to accomplish this it is recommended that you chose three people to review these statements who have insight into your company, who you trust and who are not part of this group. These people should review these statements and give you honest feedback concerning how these statements read. These same people should also give you suggestions where they think the statements could be modified to read better while still communicating your thoughts.

Once you receive their suggestions you need to finalize and approve these statements and have them formally typed or set in graphics, based on your preference, for all to see.

A similar process that you used to develop and finalize the BOP Mission Statement and the BOP Vision Statement will be used at the beginning of each phase of the BOP when teams are set up. The process will be streamlined from the exact process you use during this workshop but will include each team at its onset developing its charter or mission and the vision of what it looks like when their charter is accomplished.

As you the BOP enters into a new Phase the team responsible for forming a subordinate team will lead the process of developing a team charter and vision for the new team. In other words, the Leadership Team will lead this process with the Management Team and the Management Team will lead this process with the Project Team(s). Therefore, it is important that as the BOP expands through your organization you are thinking about how the process can be improved as it applies to the formation of these future teams.

You know your company better than anyone outside of your company, including your Appleton Greene BOP facilitator. Because of this it is important that as you analyze the drafts of the mission and vision statements of your BOP you include your thoughts as how you see this type of process being implemented during the formation of the Leadership Team, Management Team and the Project Team(s).

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Project Study (Part 3) – Process Re-Design

The most effective and efficient way to create the changes required to accomplish the BOP mission is to use a systematic and focused approach to identify and solve problems. During the introduction, course manual and exercise portions of this workshop you were introduced to the concepts of System Theory and Thinking. You were shown how System Theory and Thinking can be applied to your company and how it can be used to accomplish your purpose for implementing the BOP. Applying these concepts will likely require a shift in some of your thinking.

At the end of the course manual session you have a draft of the BOP Mission Statement and BOP Vision Statement. This means you are out of the starting gate. The next step in the BOP is to better understand the forces that are at play in your company, forces that have been limiting the performance of your company for some time. Every company’s performance is limited in one way or another. Every company could be performing better today if certain things within the company were changed. The challenge is knowing what these things are and how to make the changes in a way that gives you the biggest bang for your buck.

Entropy exists in every system and thus in every organization. Examples of entropy are when metals rust, machines wear out, people grow old, and complacency sets in. In the first three examples it is possible to slow down the rate of entropy but impossible to stop or reverse it. For example, the right kind of coatings for metals will slow down the rate of oxidation, proper maintenance on machines will keep them running longer, and regular health care checkups will make it easier to find and correct health issues. These are example of things that can be done to slow down entropy. In these examples, however entropy can never be stopped or reversed. The last example of complacency is different. Though it is hard to detect it can often be stopped and reversed. Doing this requires an ongoing awareness and attention. This is true for many areas within organizations where entropy has set in.

To slow down or reverse entropy requires the application of the right kind of energy. To slow down oxidation requires different treatments for different types of metals. To extend the life of a piece of equipment requires different maintenance programs for different types of equipment. To stay healthy longer requires different medical treatments for different types of aliments. Likewise, different types of processes and procedures are required to combat complacency that is occurring in different parts of an organization.

The goal of the BOP is to accomplish the mission and achieve the vision. This requires slowing down, stopping and reversing organizational entropy. Determining how best to do this requires thought or “engineering”. The wrong kind of energy will not slow down, stop or reverse the entropy that is occurring in the different parts of your organization. You need to know what the “type of metal” is so you can apply the right “kind of coating” or you need to know the “type of equipment” so you can apply the right “maintenance program”.

Inertia is also part of every system and thus every organization. The effects from inertia can be seen in many different forms. Inertia controls the rate a rocket lifts of its launch pad, the speed an automobile can go around a curve, the quickness a sprinter can leave the starting gate, and the rate new work processes can be implemented. A rocket uses an extraordinary amount of fuel just to start moving. An automobile can only go so fast around a given curve. A sprinter can only push off of the starting blocks as quickly as the condition of his or her legs allow. New work process can only be implemented as fast as pervious work habits allow.

Inertia governs the amount of energy needed and the rate at which the energy needs to be applied. The amount and rate of applying energy to lift a rocket off its launch pad must be controlled within the limits the rocket can handle. Too much energy applied too fast and the rocket blows up before it lifts off. Not enough energy applied too slowly and the rocket never lifts off. The speed at which an automobile travels around a curve must also be controlled. Too much speed and the automobile runs off the road. Not enough speed and the travel time is needlessly extended. The quickness at which a sprinter leaves the starting blocks is controlled by the conditioning of the leg muscles. If the sprinter pushes too hard and too quickly for the condition of the muscles the sprinter pulls or strains a muscle. It the sprinter pushes too softly or slowly for the condition he or she loses the race.

Matching the energy and the rate at which it is applied holds true for organizations as well. The rate and effectiveness at which new work processes can be introduced are governed by the differences between the new processes and the old processes, and how deeply the old processes are engrained in the people. If new processes are introduced too fast in comparison to the differences between the new and old processes the employees will not respond in a positive way. They may be confused and simply unable to comprehend the new requirements. They may resist because they do not understand the reasons, see the benefits, or may just become obstinate and sabotage the implementation of the new processes. Regardless of whether the object is physical or organizational the right amount and rate of application of “energy” and “conditioning” is required for any change to happen in a constructive manner. Whether it is thrust, speed, physical conditioning or organizational processes the amount and rate of application of the energy must be correct.

The BOP with its hierarchy of teams and the processes that each team learns is the method the BOP uses to train you to determine where entropy is the greatest and what type of effort or energy needs to be put into this area to effectively slow down, stop or reverse this entropy. The BOP hierarchy helps not only determine the right kind of effort but the right amount and rate of application to effectively overcome organizational inertia. The purpose behind the BOP is to systematically, using the concepts of System Theory and Thinking, Theory of Constraints and Transformational Leaders concepts create the changes needed for you to accomplish the BOP Mission and achieve the BOP Vision. The Theory of Constraints and Transformational Leader are taught during the next two workshops.

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Project Study (Part 4) – Process Resources

As stated earlier, in order for the implementation of the BOP to be the most beneficial, the BOP Mission Statement must accurately and effectively communicate the purpose and the expected results from the BOP. It is therefore important that time be spent after the workshop reviewing the draft of the BOP Mission Statement. As Owner, it is important to make sure it accurately and effectively explains your purpose behind the BOP and the expected results. If this statement is written in a way that does not accurately or effectively communicate this purpose and the expected results the effectiveness of the BOP may be hindered as it works its way through your company. It is important that everyone understands why it is being implemented and what it is designed to accomplish.

The best way to do this is to have a small committee of three employees review the statement from an outside perspective using the criteria shown in the previous Analysis section. This committee should include someone from HR. The HR person will bring an understanding of how the mission statement should read to be best understood by the rank and file. The task of this committee is to review the draft of the BOP Mission Statement with the purpose of editing it to ensure that it does in fact effectively communicate your reasons and expectations to everyone in your company. This committee should be made up of two other employees or advisors that are not you or members of your staff. The people on this committee need to have the ability to decipher what has been drafted. They need to be trustworthy to keep it confidential and have the ability to wordsmith the draft into an official statement that can be effectively shared with everyone in the organization. The goal of this committee is to write a final draft of the official statement and present it to you the Owner for final approval. This needs to be accomplished within two weeks after the workshop so there is time to have it available for the second workshop.

The reason for having this committee is because it is difficult for those who write a statement to be truly objective when they edit the statement. There are several reasons for this. The first reason is when the same people who wrote the initial draft read it they will naturally understand what they read to be what they meant. They will read the statement with preconceived ideas. In these situations it is difficult to read something in the same way as someone would without these preconceived ideas. A second reason is this initial draft was written to fit into a particular template. This template was designed to efficiently guide and help you structure what you want to say. The draft of the mission statement will probably need to be modified so that it reads more like it should for your situation. A third reason is it was written by the Owner and senior management of the company. Because of this it may not be as easily understood by the rank and file as it should. This is not a criticism against those who wrote it. It is simply acknowledging that the language, viewpoint and understanding of senior management are at a different level than the rank and file employees.

After you have approved the official version of the BOP Mission Statement a similar process is used with the draft of the BOP Vision Statement. The committee assigned to reviewing the mission statement can be the same committee that reviews the vision statement. However, since the vision statement is emotion and image focused, where the mission statement is conceptual focused you may want to replace one or two individuals with one or two others. It is recommended that at least the HR representative remain on the committee. The reason is to maintain continuity and to have someone who is familiar with the review process. The reason you would want to replace one or two of the people is that others may be better at working with an emotion and image based statement than they are with a conceptual based statement.

Regardless, this committee performs the same tasks as the mission statement committee and uses the applicable criteria from the previous Analysis section. The committee reviews and modifies the wording they deem prudent. The committee writes a draft of the official statement and gives it to you. Once you approve it the statement becomes the official BOP Vision Statement.

The committees’ charters are to only wordsmith the statements to read better. They are not to change the meaning of the statements or what you are trying to convey. If they are unclear about what something means they should ask you.

At the end of the group session as a team you created a preliminary draft of an announcement that identifies what you want to say to your employees at this time. The reason for this announcement is to give everyone a heads up on what is happening, squelch any potential rumors, and let them know they will learn more detail in a couple of months or so. The draft of the announcement crafted during the workshop followed a recommended generic template. This template is also designed to help you efficiently develop a general announcement aimed at putting everyone at ease and to remove any preconceived and negative thoughts people may have.

The process used with the drafts of the mission and vision statements is used with the announcement as well. The same HR representative should be part of this committee in order to provide continuity between the mission statement, the vision statement and the announcement. The other two members of this committee can again be different based on their experience, knowledge and skill set. The members you choose for these committees will depend on how your company is organized. The purpose of this committee is to review the draft of the announcement and modify it as they see best. Included in this review should be a recommendation as to the best way to introduce the BOP to your organization. This announcement should be brief and introductory in nature and be finalized and ready for distribution within one week after the workshop so that there is minimal time between the end of the workshop and when people are briefly told what is happening. A detail communication to the organization will come after the fourth workshop.

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Project Study (Part 5) – Process Communications

As described earlier the communications for this workshop is centered on a general announcement concerning the BOP. The announcement was drafted during the workshop and refined and approved within one week after the workshop. This announcement is a brief explanation of the BOP. Its purpose is to bring people up to date so people within your organization so they do not feel anxious about what they see as being some different types of activities or hear jargon. Instead of having people feel anxious you need to begin the communication process of making them feel excited and connected with what you are doing.

For any communications to be effective the content has to be specific enough so those hearing have no doubt about the information you are trying to get across. In addition the information has to be delivered in a broad enough fashion so people with different frames of reference receive the information in a way they understand. This is difficult to accomplish because different people have different frames of reference.

A frame of reference is a set of beliefs, concepts, values, ideas, etc. that a person or group of people accepts as true and that influences their perceptions, how they evaluate ideas, how they communicate, and how they behave in given situations. A person’s frame of reference impacts the way that person views the world. Each of us has our own frame of reference. Our frame of reference has been shaped by the way we were brought up, by the social environment in which were raise and in which we live, the values we were taught or that we caught, previous experiences and relationships we have had, our educational path, etc. A person’s frame of reference contributes significantly to what motivates, scares, threatens, etc. him or her. It also impacts the way a person behaves, reacts and accepts change.

The BOP is not a psychology course. However, it is a change process that is designed to put new types of pressures on an organization in order to cause the type of change required to improve its performance. Speaking in the terms of System Theory and Thinking, the BOP is designed to inject the kind of energy needed to reverse or at least control the rate of entropy. It is designed to inject this energy at a rate that effectively overcomes inertia and in a way that creates positive organizational change through synergy. When this energy is applied with this goal in mind the results are improvements in the way a company operates. These improvements lead to increased benefits to you the Owner and to all of your employees regardless of their job level. One of the challenges during any change process is to keep everyone associated with the organization properly tuned into what is happening and in a way that causes everyone to see how these changes benefit them. A good communication process lets people know the answer to the question “What’s in it for me?” (WIIFM) before they ask it.

The communications that are given to the rest of the organization after this first workshop needs to set the stage for the BOP in a positive way. One way it does this is to overcome objections that people may have before they have the opportunity to express these objectives. The way this happens is for the committee that is wordsmithing the draft of the general announcement to think past the words or the order of the words and think about how what is written will be received from people with differing frames of reference. What is said needs to be specific enough in content and at the same time broad enough so everyone understands the information in a positive light.

One of the main purposes of the message is to alleviate any anxiety that may be beginning to creep into your organization. This information needs to be tailored to your organization. Too much information at this point can create more confusion than necessary and thus result in rising anxiety levels of your employees. Not enough information at this point can also create anxiety because people will tend to fill in the blanks they perceive as not being addressed.

Another way of saying this is the purpose of communicating at this time is to head off any growing rumors or anxiety. It is not designed to inform everyone about the detail of the BOP. This detail will come later. At this point in time you are just letting everyone know that the BOP is starting and that you do not have all the answers yet. People will understand this and accept it as a work in process. Another message that people need to receive anytime something new is introduced is that the new process is not a reorganization but a process that is designed to improve your company, which includes benefiting all the employees. These messages need to be understood from the communication without being directly said.

Because of people’s differing frames of reference it is important that you use specific words that everyone understands and that everyone will interpret in the same manner. This is the main responsibility of the committees that are chartered with wordsmithing the drafts. It is also why a committee is made up of three individuals with one being from the HR function. All three members of each committee need to represent the matrix of the types of individuals in your organization.

There are several other reasons that each committee is limited to three individuals. One reason is that a committee of three is small enough that everyone is more likely to participate. Another reason is that it is easier to assign responsibility and accountability to a smaller group than to a larger group. A third reason is that it is easier to come to a consensus when wordsmithing a document when there are fewer people. The difficulty of having a committee wordsmith a document grows exponentially as the number of people involved increases.

The reason for having an HR person on a committee is that this person likely has a broader understanding of how to communicate to the various types of people within the organization. They are also likely to be tuned into personnel issues that may need to be subtly addressed in the communications. Finally, they tend to be neutral when it comes to framing a message that is organizationally focused as opposed to departmentally or functionally focused.

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Project Study (Part 6) – Process Review

There are four objectives of this workshop. The first is to develop and finalize the BOP Mission Statement. The second is to develop and finalize the BOP Vision Statement. The third is to develop and finalize a general announcement to people in your company about the BOP. The fourth is to gain a basic understanding of System Theory and Thinking as it applies to organizations. The following exercises are designed to help reinforce the information you have learned and to help you begin thinking about how they affect your company.

The BOP Mission Statement and the BOP Vision Statement need to be printed after they are finalized and approved. Each of you needs to have a copy that you keep where you can see them on a regular basis. Reading them on a regular basis will help all of you to stay focused on the purpose of the BOP.

Along with printing the mission and vision statements the announcement should be printed after it is finalized. It may be beneficial to review as a group and decide how best to give out the information. As stated earlier this should be done as soon as possible after this workshop.

The BOP is a new process that will affect your whole company. The purpose for wanting to implement the BOP and the expectations are explained in the BOP Mission Statement. Because the process and the mission statement are new there are concerns that each of you have about the BOP. Before the next workshop each of you is to use Form 1 as a guide and list three concerns you have about the BOP and three suggestions you have that will alleviate or help overcome these concerns.

Along with reviewing the mission and vision statements and identifying your three concerns and three suggestions each of you needs to review the terms learned concerning System Theory and Thinking. To help in this review and to help you relate these terms to your company you are asked to study the following and complete the associated attachments.

Organizational entropy is a measure of the disorder or randomness concerning how work is performed within an organization. It states that an organization will, by its nature, seek to operate at the lowest possible level of energy. Use Form 2 to help you identify four areas you believe entropy is the most apparent within this company.

Organizational inertia is seen as resistance by an organization to any outside force or influence that is trying to change the way that organization operates. Organizational inertia is the underlying cause why organizations resist change. Organizational inertia is the force that tries to maintain the status quo. Use Form 3 to help you identify two areas where you think inertia is the strongest and two areas where you think it is the weakest.

Organizational synergy is when the output of the whole is greater than the sum of its parts. In an organization it is where two or more people or groups combine their efforts in ways that accomplishes more than they can separately. A synergistic organization is where the interaction of people, processes, procedures and policies all work together to provide an output greater than what individuals alone could produce. Use Form 4 to help you identify two areas where you believe synergy is the strongest and two areas where you think it is the weakest.

To further help reinforce the concepts of System Theory and Thinking each of you should study the five characteristics and the eight principles and think how they apply to your company.

The first characteristic is every system is a subsystem within the environment in which it exits and is separated from its environment with a permeable boundary.

A second characteristic is every system has Input-Throughput-Output. Input is the resources from the environment that go into the system to produce a productive outcome. Throughput is the activities within the boundaries of the system that convert Input to Output. Output is the product or service the organization produces and delivers back into the environment.

A third characteristic is dynamic homeostasis and feedback. Dynamic homeostasis is where, though the system tries to change in order to better serve the environment, the activities within the system try to maintain the status quo. Feedback is the information process that either encourages the system to change (positive feedback) or reinforces why the system should not change (negative feedback). The more confusing the feedback the more chaotic a system can become since it is trying to both change and stay the same.

A fourth characteristic is equivocality and requisite variety. Equivocality means that information and communications are always open to various interpretations which are often in conflict and often designed to confuse or hide the truth. Requisite variety means that variety is required to overcome variety. In other words, in order to solve complex or high variety problems, the right variety of people or the requisite variety of individuals, is needed to effectively solve the problem.

The fifth characteristic is statistical fluctuations and covariance. Statistical fluctuation is where the activity or throughput in any part of a system fluctuates within certain natural parameters. Covariance is where the fluctuations of activities that occur in activities downstream are governed by the fluctuations established by activities that occur in the activities upstream.

Along with these characteristics systems follow certain principles. These principles are: 1) The activities within a system define the system and are interrelated and interdependent on each other; 2) The effectiveness of how an overall system functions is determined by how its subsystems function; 3) Inputs move into the system and outputs move out of the system through permeable and defined boundaries; 4) The permeability of the boundary can be controlled by the system; 5) It takes positive energy injected into the system to overcome entropy; 6) Levels of synergy are inherent in how interactive and interdependent parts of a system are with each other; 7) There are multiple ways to reach a desired outcome, in other words, there is no “one best way”; and 8) Subsystems exit within a larger system and have the same characteristics and principles as the larger system.

The first characteristic is every system is a subsystem within the environment in which it exits and is separated from its environment with a permeable boundary. Use Form 5 to help you think about the permeability of the boundary that separates the system of your company from the environment in which it exists.

The fourth principle is the permeability of the boundary can be controlled by the system. Use Form 6 to help you identify two areas where you believe the employees have the greatest ability to affect the way your company operates and two areas where you believe they have the least ability.

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Program Benefits