Session 3 - Objective - Understanding The Leadership Systems Dessign An Principles (Catagory 1)

Operations & Process Management Loyola University
Session 3 - Leadership System

integration into Operations and
Process Management
MBA Operations and Process Management
Ron Schulingkamp, ScD, MQM, MBA
1
● The weekly reading assignment

should be completed prior to the
scheduled weekly vClass.
● Come prepared to discuss!
Senge, P. M., Roberts, C.,

Ross, R. B., Smith, B. J., &
http://www.academia. BKleiner, A. (1994). The
edu/31441282/Operati Fifth Discipline Fieldbook:
ons_Management_12t Strategies and Tools for
h_Edition_2015_Willia Building a Learning
m_J_Stevenson.pdf Organization. New York:
Currency Doubleday
Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 2

Week 2 Review

Alice asked the Cat, “Which road

should I take?” The Cat replied,
“Well, that depends on where you
Why want to go.” “I really don’t care”,
responded Alice. “Then, it really
Baldrige? doesn’t matter which road you take,
does it?” answered the Cat.
-- Alice In Wonderland

Louisiana Quality Foundation

Louisiana Performance Excellence Award Ceremony
Woman’s Hospital
Louisiana Governor's Mansion Baton Rouge, Louisiana
Louisiana Public Health Institute Tuesday, June 5, 2018
6:00 pm to 8:00 pm
The Alliance for Performance

Excellence is a non-profit organization
dedicated to enhancing the growth
Our Lady of Lourdes Regional
and sustainability of Baldrige focused Natchitoches Regional
Medical Center Lafayette, Louisianaprograms in states and U.S. territories. Medical Center
(except Mississippi and Virgin Islands)
Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program

Solutions to Organizational Challenges

Then-Secretary of Commerce Malcolm Baldrige The European Foundation for Quality
was an advocate of quality management as a key Management, EFQM, was founded in
to U.S. prosperity and sustainability. After he died October 1989 when the CEO/Presidents of
in a rodeo accident in July 1987, Congress named 67 European companies subscribed to our
the Award in recognition of his contributions. Policy Document and declared their
NIST - Baldrige Performance Excellence commitment to achieving EFQM mission and
Framework vision.
Ron Schulingkamp Sc.D. Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program
Solutions to
Organizational
Challenges –
Complex Integrated
Systems Framework
http://www.baldrige21.com/Baldrige%20Model.html
Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program
Baldrige Requires
Disciplined Leadership 2009
2001
Jim Collins, Stanford Graduate School of
Business Professor and author of Good to
Great: Why Some Companies Make the
Leap . . . and Others Don’t
“I see the Baldrige process as a powerful

2004 2011
set of mechanisms for disciplined people
engaged in disciplined thought and taking
disciplined action to create great
organizations that produce exceptional
results. Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program
Stakeholders
Investors
The assignment addresses

six key stakeholder groups. Society & Natural
Community Environment
Latham, J. R. (2016).
[Re]Create the organization
you really want! Leadership Operations
and organization design for Products
sustainable excellence. Services
Colorado Springs:
Organization Design
Studio, Ltd. p. 53 Suppliers &
Customers
Partners
Adapted from: Figure 2-1

Six Stakeholder Groups Workforce

1. W. Edwards Deming’s Production System

2. Michael Porter’s Value Chain
Evolution of 3. Baldrige Performance Excellence v1
Organization 4. Kaplan & Norton Balanced Scorecard + Strategy Maps
Systems 5. Baldrige Performance Excellence v2
Models 6. Alex Osterwalder Business Model Canvas
(selected) 7. EFQM
8. Baldrige Performance Excellence v3
9. Latham’s “[Re]Create” System Model
10. Baldrige Performance Excellence v4 coming soon

Latham’s Integration Project

BaldrigeFramework
Category 1- Leadership & Category 2 – Strategy
6. Strategic Leadership 7. Governance
6-1 Strategy Development 7-1 Legal, Ethical, and Regulatory
6-2 Strategy Deployment & Review 7-2 Sustainability
Value Creation Baldrige Category 6 Guidance Baldrige Category 3 Market

Raw Materials Segments
3. Suppliers/Partners 2. Operations 1. Customers
Suppliers & Customer Groups
3-1 Strategies & Selection 2-1 Production & Delivery 1-1 Customers & Markets
Partners 2-2 Customer
3-2 Management & 1-2 Products and Services
Improvement Relationship & Support Competition
Current &
Potential Current &
Baldrige Category 5- Workforce Enablers Baldrige Category 4 Potential
4. Workforce 5. Measurement & Analysis
4-1 Workforce Development & Support 5-1 Performance Measurement System
4-2 Workforce Engagement & Improvement 5-2 Financial Performance Analysis

Videos
MBA Operations and Process Management

Baldrige Core Values  Understand the Values of World Class Organisations

and Concepts  Core Values and Concepts
by
Michael Voss
of PYXIS
https://youtu.be/hHnERf2qqsQ

Baldrige Criteria short video

Baldrige Criteria
Framework
by
Michael Voss of
PYXIS
https://youtu.be/CVqccfNsLA8

 What is Systems Thinking?

 What did you take away from Peter Senge’s Video?
Peter Senge
Introduction to
Systems Thinking:
What is It?
(2:20 min)
Peter Senge, author of The Fifth

Discipline, Senior lecturer at MIT and
Founder of the Society for Organizational
Learning shares his perspectives on
leadership and systems thinking with IBM.
https://www.youtube.com/watch?v=eXdz
KBWDraM

 What did you take away from the Ackoff Video?

 How can you apply the lessons learned to your organization?
Russell AckoffVideo
This is one of my favorite Russ Ackoff
videos. It is from 1994 about the same
time I met and had a dinner with him in
Honolulu.
https://www.youtube.com/watch?v=OqEe
IG8aPPk&t=3s

 What is the value of systems thinking?

 What did you take away from the CDC Video?
The Value of Systems

Thinking:
Why Do We Care?
(10:09 min)
This video provides an overview of why

systems thinking is important and what it
means to apply it. It describes why our
traditional way of thinking may thwart
achieving our intended results or
unintentionally create worse issues than
the ones we’re trying to address.
https://www.youtube.com/watch?v=Fo3n
dxVOZEo

Performance Improvement
Systems – Deming PDSA
Baldrige Organizational Profile
P3c
Online Discussion

W. Edwards Deming PDSA Cycle (1950 – 1980)

Model For Improvement Clip 1 & 2
https://www.youtube.com/watch?v=SCYghxtioIY&list=PLwnVLz49L2KDbuZIYOmdQIQ2q-CgFBIB
Model For Improvement Clip 2
https://www.youtube.com/watch?v=6MIUqdulNwQ&list=PLwnVLz49L2KDbuZIYOmdQIQ2q-CgFBIB7&index=2

https://www.nist.gov/baldrige/2015-casey-
comprehensive-care-center-veterans-case-study

To foster innovation, ongoing learning, and wise stewardship of

resources, senior leaders evaluated several PI systems to adopt
and deploy to the C4V workforce. Each SLT member had
Experience using plan-do-study-act (PDSA) and systems redesign.
After comparing the advantages and disadvantages of these
Methodologies SLT members chose IDEALS (Figure P.2-3), which they learned about at a Baldrige Quest for Excellence®
Conference. This approach encompasses a wide variety of other tools, to include PDSA as the “big DEAL” loop in the
center. IDEALS is promoted to the workforce as “simply a way of life,” with the recognition that the first step toward any
improvement is identifying a need for change, and that improvements need to be sustained in order to be successful.
Benefits operations are also pursuing
ISO certification, in alignment with the VBA initiative to enhance claims efficiency and accuracy
IDEAL Solutions include tools from Lean, theory of constraints, Six Sigma, appreciative inquiry,
and other improvement methodologies, which are deployed through Performance Improvement Team (PIT) crews,
particularly during the “design” and “execute” phases. Statistical tools are used to “analyze” findings to drive further
“learning.” IDEALS has three key advantages: it’s easily understood and remembered, it permits “stepping out” of the
improvement cycle when resources would be better used elsewhere, and it systematically promotes efforts to “sustain”
and share processes that are proven to be effective by the results achieved. The 6-Ps of Leadership and the 6-E Leadership
Tool, described in 1.1a(1) and 1.1b(1), are also key elements of the PI system (page v)
Source: https://www.nist.gov/sites/default/files/documents/2017/10/04/2015_casey_case-study.pdf

The Dawn of Systems

Leadership
Online Discussion

•Openings – Mind, Heart, Will - Theory U

•Humility and Service to Others – Eco vs. Ego-centric
•Culture of Trust
•Collaborative
and collective leadership – Peacekeeping Circles +
Across Boundaries
The Dawn of Systems •See the BIG Picture - Larger System
Leadership
•Redirecting Attention
•Reacting to problems vs proactively co-creating the future

•Longer-term vs. Immediate
•Ladder of Inference
•Learning and the Utilization of Tools – Helping people to think
differently
•LISTENING even when we don’t agree…
Leadership System
Introduction to Operations and Process Management

1. Purpose &
2. Nature of the System 3. Theories & Concepts
Requirements
understand the nature(s) of understand what we already
understand and empathize
the system (e.g., physical, know about this type of
with the stakeholders and
knowledge, creative) system (empirical evidence)
their experiences
System
8. Diagnosis 4. Inspiring Examples
Design 9.
understand how the current understand how others
Framework system addresses the
insights from the first seven
Design
Develop, Deploy, Iterate
have done it in order to
inspire and creatively adapt
Source: Latham, J. R. (2012). steps (optional) ideas and concepts
Management System Design for
Sustainable Excellence: Framework,
Practices and Considerations.
Quality Management Journal, Vol 7. System Integration 6. Design Principles 5. Unique Context
19, Iss 2
understand how the system understand the applicable understand the
https://drjohnlatham.com/wp- fits into and interacts with design principles and how organization's current and
content/uploads/2013/12/2012_QMJ the other organizational they apply to this particular desired unique culture and
_Design.pdf systems system context

Leading
Transformation
Lab™
https://organizationdesignstudio.co
m/leadership/
February 13, 2019 Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 26
Operations & Process Management
Working Analogy Loyola University
A human being is a
complex organism of
interdependent
systems
complicated further
still by the ability to
choose …and learn

Jefferson Parish Animal Shelter Leadership System

Societal Responsibility
Focus on the Future
Q1 How do senior leaders set
Cu
2
Create a Balanced
Approach, Set
3
Ro
Co le M
st
Ex ome
ce r-D
your organization’s vision and
rn &
lle
nc rive
g
Direction & Establish mm od
values? How do senior leaders
ea l
in
L na
ar
itm el B
B
e
al tio
Objectives & Goals n
e
on za
th
Cr en eh
rs ni
e
t a
is Strategy Development, ea for vio
Pe rga
a
ti
deploy the vision and values
R
O r ng a Ex r &
O
Governance &
&
ce B
re
ga S u
(1 Per ers ry
Risk Management lle uil
pi
e
( 2 niz
h d na
& rm p
s
2) c
ns
t nc d
. 1 f o hi
5. an
a
ig ea io
(2.1 a & b)
.1 ati
,I
in e
through your leadership
H L is
ct
a) on ab
V
le
le
ef
9
R
1a
Managing for Innovation

Understand
Stakeholders Needs
Focus on Results &
Creating Value system; to the workforce; to
8 4
Learn, Reflect,
Innovate &
Improve
Mission
Vision
Purpose
Organize, Reflect,
Plan & Align Strategy,
Objectives & Goals
key suppliers and partners; and
Learning
(1.1a, 4.1c, 5.2c)
Shelter
1
Values
Animal Care
Community,
Strategy Considerations to patients, other customers,
Staff & Action Plan
Performance Improvement
(P.2c & 4.1a)
Innovation (3.2a, 6.1a, 6.2a)
&
Volunteers
Animal
Control
Partners &
Suppliers
Development
(2.1 a & b / 2.2 a)
and other stakeholders, as
appropriate
e& 5
M W Va Compassion,
y
& ork luin
we ag
oti
ilit
Integrity and
p o En g
va Pa fo g
Ag
te rtn rc Caring
t
an
en
Em te,
er e
&
dA
for nic ip
& 5 gem
(1. En ion
ica
Le s
ork mu sh
ck un
ce at
ad
W m er
no
1 b ga
.2)
ers
mm
Co Lead
wl Management by Fact
W Per Rein hip P ed
ge 7
Co
ork fo fo ro 6 Perform to Plan

De fo rm rce gr
r
ve ce nc H ma a &
lop an e igh s t Accountability for
me d L (1.1 o
nt ea b) Results
(5. de Action Plan Deployment & Performance
2c r
) Projections (2.2 a & b)
Workforce Capability &Capacity (5.1 a & b)
Workforce Performance (5.2 a)

Leadership Systems
https://www.nist.gov/sites/de
fault/files/documents/2017/10
/11/CAMC%20Health%20Syst
em%20Application%20Sum
mary.pdf

Adventist Health Castle (AHC),

formerly known as Castle
Medical Center, was founded in
1963 through community
activism by local Windward O‘ahu
residents, concerned physicians,
benefactors, and the Seventh-day
Adventist Church
https://www.nist.gov/sites/default/fi
les/documents/2018/05/07/2017_ad
ventist_health_castle_application_s
ummary.pdf
Integrated
Systems
https://www.nist.gov/sit
es/default/files/docume
nts/2017/10/11/CAMC%
20Health%20System%2
0Application%20Summ
ary.pdf

2014 PricewaterhouseCoopers application
PricewaterhouseCoopers’
(PwC) Public Sector (PS) is
committed to the success
of our clients, our people,
and our community.
les/documents/2017/10/11/2014_Pw
C_PSP_Award%20Application_Sum
mary.pdf
The US Army Armament Research,

Development and Engineering
Center (ARDEC) is the
internationally acknowledged hub
for the advancement of armaments
technology and engineering
innovation
https://www.nist.gov/sites/default/files/document
s/2017/10/11/2007_ARDEC-
Application_Summary.pdf
2016 Memorial
Hermann Sugar Land
Hospital (MHSL) is
a nimble, 149-bed, not-for-
profit community hospital in
Houston
les/documents/2018/05/10/2016-
memorial-hermann-sugar-land-
application-summary.pdf
Depicts Customer System Integration into other KEY SYSTEMS
https://www.nist.gov/sit
es/default/files/docume
nts/2017/10/11/CAMC%
20Health%20System%2
0Application%20Summ
ary.pdf

Systems from 2015 VA Case Study

2015 Casey
Comprehensive Care
Center for Veterans
Case Study
https://www.nist.gov/baldrige/
2015-casey-comprehensive-
care-center-veterans-case-
study

Example Systems

Example
Systems

Example
Systems

Example
Systems

Operations & Process Management
Example Systems Loyola University
Example
Systems

K & N Case Study

Goals + Targets + Policies + Resources + Information
Guidance + Resources
Requirements Requirements
Basic
System Suppliers &
Customers
Partners
Components
Inputs Processes Outputs Internal
Figure 6-2 Basic System Components Internal
and/or
and/or
Source: Latham, J. R. (2016) [Re]Create External
External
the Organization You Really Want!
Leadership and Organization Design for
Sustainable Excellence. Colorado Springs:
Organization Design Studio, Ltd.
pp. 148-149
Measures Measures Measures Measures Measures

• Typically many engineering and scientific knowledge constraints.

• Often requires a high degree of standardization and focus on conformance
Physical (control) to reduce variation and/or ensure safety.
• Often good candidate for automation.
• Examples: nuclear power, aviation, space, etc.
• Typically requires humans to make decisions.

• Portions of the system that do not require human decisions are candidates for
automation.
• Design to enable and engage human minds as a key component in the system.
Nature Knowledge &
• Provide necessary and accurate information to the decision makers with the least
Information
of the •
amount of effort and cost.
Example: loan process is an example of a process that includes components of
System information transfer that do not require a human decisions and components that do
require human decisions such as the decision to loan, interest rates, etc..
Understand the nature of the system
including the physical, knowledge, and • Requires creativity or innovation to be effective.
creative dimensions. • Most effective when the degree of process specificity and standardization are low.
• Structure can enhance the level of creativity but only up to a point and then
Source: Latham, J. R. (2012).
Creative additional structure beyond that point impedes or reduces creativity.
Management System Design for • Examples: strategy development, product development custom services, etc.
Sustainable Excellence: Framework,
Practices and Considerations. Quality
Management Journal, Vol 19, Iss 2 • Often requires some creativity or innovation to be effective.
• Standards and structure are enough to gain efficiency and effectiveness but not so
Custom/ specific as to unduly constrain variation needed to satisfy the customers.
Bespoke • Needs assessment is a key element of the system design.
• Examples: tailored clothing, experience-based services, custom products and
services, etc.

Leadership System Design

● Set vision and values
● Deploy vision and values - employees, key suppliers and partners
and customers
Leadership
● Systemactions reflect commitment
Personal
Purposes
● Promote environment - legal and ethical behavior
● Create a sustainable organization
● Create environment for performance improvement, accomplishing the
strategic objectives, innovation, and agility
● Create an environment for organizational and employee learning
● Personally participate in succession planning and development of
future leaders Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 45
Learn & Focused

Improve Strategy
Compelling
Directive
Leadership System
Components Reinforce Stakeholder
Enable
Empower
Source: Latham, J. R. (2016) [Re]Create Behavior Value
Engage
the Organization You Really Want!
Leadership and Organization Design for
Sustainable Excellence. Colorado Springs:
Organization Design Studio, Ltd.
p. 163 Figure 6-5 Leadership System
Components
Scorecard
Org Perf [Re]Design

Review Systems

Learn and Improve

Focused Strategy
Compelling Directive
What did we learn?
What are the specific goals
What went well? Why are we doing this?
and objectives.
What didn’t go well? What is the purpose,
How will we accomplish the
How can we improve in the mission, vision, values?
compelling directive?
future?
Leadership System Align Coach Appreciate Stakeholder Value

E3 People
Components What gets measured gets Who are the stakeholders

What people do we need?
How do we attract, acquire,
Source: Latham, J. R. (2013). A framework done, what gets rewarded and what do they want?
for leading the transformation to
enable, assign, and
get repeated. How do we know?
performance excellence part I: CEO engage the right talent?
perspectives on forces, facilitators, and
strategic leadership systems. Quality
Management Journal, 20(2), 22.
Org Performance Comp Scorecard
[Re]Design Systems
Review
What measures do we
What are the design or
How are we doing - need to track progress and
redesign project plans
progress to plan and to assess the value created
(scope, schedule, cost, and
performance or impact on for the multiple
requirements)?
stakeholders? stakeholders?

 Source: Latham, J. R. (2009, June 2-5). Leadership system design for sustainable excellence: CEO perspectives.
Paper presented at the Business as an Agent of World Benefit: Manage by Designing in an Era of Massive
● Drive positive change in the organization
Innovation, Case Western University, Cleveland.
● Establish new boundaries, roles, and

responsibilities
Leadership ● Provide a constant reminder of their focus
System Benefits
and purposeful leadership approaches
● Enable the development of leaders and
employees throughout the organization
● Provide a systems perspective for leadership
● Drive results.

Leadership System
K&N Management (2010). Malcolm
Baldrige National Quality Award
Application. NIST
https://www.nist.gov/sites/default/files/do
cuments/2017/10/11/2010_K%26N_Manag
ement_Award_Application_Summary.pdf
p. 1

Senior Leadership
Support of Values
Application. NIST
p. 2

Organizational
Meetings
Application. NIST
p. 3

Questions?
53

Session 3 - Objective - Understanding The Leadership Systems Dessign An Principles (Catagory 1)

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Operations & Process Management Loyola University

Session 3 - Leadership System

Ron Schulingkamp, ScD, MQM, MBA

● The weekly reading assignment

Senge, P. M., Roberts, C.,

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 2

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 3

Alice asked the Cat, “Which road

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 4

Louisiana Quality Foundation

The Alliance for Performance

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program

Solutions to Organizational Challenges

“I see the Baldrige process as a powerful

The assignment addresses

Adapted from: Figure 2-1

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 9

1. W. Edwards Deming’s Production System

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 10

Latham’s Integration Project

Value Creation Baldrige Category 6 Guidance Baldrige Category 3 Market

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 11

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 12

Baldrige Core Values  Understand the Values of World Class Organisations

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 13

Baldrige Criteria short video

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 14

 What is Systems Thinking?

Peter Senge, author of The Fifth

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 15

 What did you take away from the Ackoff Video?

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 16

 What is the value of systems thinking?

The Value of Systems

This video provides an overview of why

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 17

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 18

W. Edwards Deming PDSA Cycle (1950 – 1980)

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 19

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 20

To foster innovation, ongoing learning, and wise stewardship of

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 21

The Dawn of Systems

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 22

•Openings – Mind, Heart, Will - Theory U

•Reacting to problems vs proactively co-creating the future

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 24

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 25

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 27

Jefferson Parish Animal Shelter Leadership System

Objectives & Goals n

Managing for Innovation

ork fo fo ro 6 Perform to Plan

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 28

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 29

Adventist Health Castle (AHC),

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 31

2014 PricewaterhouseCoopers application

The US Army Armament Research,

Depicts Customer System Integration into other KEY SYSTEMS

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 35

Systems from 2015 VA Case Study

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 36

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 37

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 38

Ron Schulingkamp ScD, MQM, MNA Loyola MBA Program 39