Health Ventures Incorporated - Speech or Presentation Example

MANAGEMENT DECISION MAKING Executive Summary This presentation will take a look at problem of Health Ventures Incorporated present employees low level of contribution to the goals and objectives of the organization, with a view of providing reasoned and objectives solutions as to how am viable , cost beneficial, and relevant proposals that can be implemented in the short term. The company will use the Peter Checkland Model, which entails a 7 step approach, starting with a definition of the situation, then an expression of the problem, finding of the root definitions of relevant systems, followed by the development of an appropriate model, after which a comparison of the model with real world situations to gain insights, and closed the loop by identifying actions that will improve the system (Williams, B., 2005). We will deliberately used the lengthy literature review to educate as well as market the program to the board, before using rich pictures and written texts, to show how Soft System Methodology can be used to develop an appropriate model that will enable the company to achieve its objectives, in terms of improving the value contribution of its employees. Employees, and the owner’s participation, as well as the application of external expertise in implementing training and other vital recommendations, will help to guarantee the success of the project. In closing, we well make recommendations concerning the appropriateness of the model, and the owner with the support of his team, will make the time sensitive decision, that will advance the company’s growth and development on many fronts. TABLE OF CONTENTS PAGE INTRODUCTION 5 I. LITERATURE REVIEW 6 II. HEALTH VENTURES INCORPORATED CASE 10 a. Historical Perspectives 10 b. Problem Statement 12 c. Application of Soft System Methodology 12 d. Findings 12 III. ROOT DEFINITION 14 IV. MODEL FORMULATION 15 1. Customer 15 2. Actors 15 3. Transformation 16 4. Weltanschauung 16 5. Owner 17 6. Environmental Constraints 18 7. Diagram of Model 18 V. COMPARISON WITH REAL WORLD 18 VI. CHANGE 18 VII. IMPROVING THE PROCESS 19 VIII. RECOMMENDATIONS/ACTIONS 19 IX. CONCLUSIONS 20 X. BIBLIOGRAPHY 22 XI. APPENDIX 1 Additional Literature on Soft System Methodology 23 Introduction The goal of determining how to make employees can improve the value of their work contribution may seem difficult when the organization is looked at broadly, but by using the CATWOE mnemonic model, specific areas will be identified, solutions developed and implemented, and its effect measured by the impact on the overall performance of the company in terms of the value contribution levels of the employees. CATWOE according to Schmidt (2006), consist of; C=CUSTOMER A=ACTIONS T= TRANSFORMATION PROCESS W= WELTANSCHAUNG O=OWNER E= ENVIRONMENTAL CONSTRAINTS Rich pictures will be used to express and define the root definitions that will arise from the different aspects of the model. The individual impact of all variables on the problem situation will be the focus of the exercise at the different stage, as well as system thinking; which according to Schmidt (2006), is the process of naming some purposeful activities which are relevant to the problem situation, to augment the experience gained by the organization up to the present time (Schmidt, 2006). The success of the model will depend on the level of collaborative communications that will ensue, as efforts to describe the real world situations, and relate them to them problems of the organization. Conflicts are expected to be regular features because according to Javitch (2007), they are neither good nor bad, but when people own experiences are added to them, then negative or positive values emerges (Javitch, D.G. 2007). Skilful leadership during the process, will ensure the positives from the conflicts are extracted to develop the model, because it will ensure the Soft System Method be seen as Schmidt (2006); enunciate profoundly that it is participative process where knowledge and results can only be gained through debate, from which compromises everyone can accept will materialize (Schmidt, T.2006). Proctor‘s philosophy (1999), tells of six ways that the Creative Problem Solving Process can be broken down, namely objective finding, fact finding, problem finding, ideas, finding, and solution and acceptance finding, will be incorporate in the activities used to find the model that will enable the company to improve the value its employees contribute in the daily pursuit of mutually agreed goals and objectives. (Procter, Tony, 1999). I. Literature Review Soft Systems Methodology developed in the 1960’s by Peter Checkland, was originally seen as a modeling tool but overtime has come to be known as a learning and meaning development tool (Williams, Bob, 2005). A unique feature of Soft System Methodology is that it constrains the thought process of those engaged, and then expands it. The process according to Williams, (2005), involves seven stages, and these are; The problem situation considered Problem situation expressed, Root definitions of relevant purposeful activity system, Model development, Comparison of the model with the real world, system adjustment systemically and environmentally, Actions to improve the process. In stage one and two the situation is defined in terms of considering the problem and expressing what has been perceived to be the problem, Quantitative and qualitative methods are used to collect data according to Williams (2005), and are used to express the issue in terms of richness. Observations, measurements, and surveys are used to extract data from the structures, process, climate, people, the views of the people, and from conflicts that may arise (Williams, B. 2005). The situation can also be expressed in the form of pictures which according to Checkland is an easier way to transmit messages and ensure quicker understanding without using too much phrases (Williams, 2005). Stage Three deals with root definitions o f the different concepts involved, and the use of holons to accurately represent them base on the separate values they have, so that in the model development in stage four activities can be written down using the verbs mnemonic to effect the transformation desired ( William, B. 2005). The model is graphically developed, by first listing the independent activity and then place those that depends on them on a straight line, until they are all accounted for. Arrangements are then made to avoid overlapping of arrows, where possible, and then assessed to ascertain whether system properties are inherent (Williams, B, 2005). According to Williams, (2005), every system should have the following properties; It should be ongoing Be a facilitator to different means of assessments Enhance decision makings Made up of systemic component parts Allows interactions between components Has an operating environment Has open or closed boundaries Is resource orientated Facilitate continuity (Williams, B. 2005). Steps five to seven is a journey back to the real world, in that the models developed are compared to them, followed by the implementation of changes that are desirable, and actions to improve the system (Williams, B. 2005). The methodology can vary, but should include unstructured discussions, structured questioning of the model using a matrix approach, scenario or dynamic modeling, and use of the model of the real world as the basis of the structure of the conceptual model (Williams, B. 2005). In step six of the Soft Systems Methodology, desirable and feasible interventions are developed with the intention of achieving the highest leverage, and this include running different variations of the CATWOE and or BATWOVE models, different system analyses, owners analysis, social analysis, and political analysis, according to Williams (2005). Methodology comes full circle in section 7, where the focus is to improve the system. The impact of the changes are measured, and the validity ascertained by questioning a terms of the results achieved. The actual situations and the models are compared with the similarities and differences, and their importance recorded. Political, social, cultural and environmental factors that affect the model are evaluated, as well as the owner’s role in terms of the power they exert within the situation (Williams, B.2005). According to Schmidt (2006), there are 5 features of a Soft Systems Methodology namely; It is a learning system which seeks to find accommodations `in an environment s of potential conflicting views, and taking purposeful actions within that situation It is a process for managing which organized actions are achieved It recognizes system ideas and metaphors can be helpful in understanding the problem within situations It learns by comparing pure models of human activity systems with realized ones It is greatly reliant on the participative process, where knowledge and results are gained through debates (Schmidt, Thomas, 2006). The model to resolve an organization perceived problem can take the form a mnemonic called the CATWOE, where Symbol Relevant Questions A. CCUSTOMER Who will benefit or be the victims of these specific activities? B. AACTIONS who are the persons responsible for pursuing these activities? C. TTRANSFORMATION What are the inputs and outputs of the activities? D. WWELTANSHAUUUG What are the views of the real world that makes the definition meaningful? E. O= OWNERS Who has the power to stop these activities? F. E= ENVIRONMENT What constraints within the environment does the systems accepts as normal? II. Health Ventures Incorporated Case for Soft Systems Methodology a. Historical perspectives Health Ventures Incorporated is Seed and fruit distribution company, located on the West Coast of the United States, since the 1970‘s. the Keith Clarke led company employs over 400 employees on a full time basis, and experts products all over the country and abroad, especially in South America, where the demand has been rising since the last five years. The company employs five agronomists to manage the farms, which are located in different locations away from the main office, where the manager has 80 of his employees being managed by an accountant, human resource manager, sales manager, marketing, office manager, operations manager, systems analyst, export manager, internal auditor, and a public relations manager. These managers all report to the operations manager, who in turn is accountable to the Managing Director. New competitors entered the market during the last year, and Manager Keith Clarke, has seen a drop in sales, and production, changes in the behavior patterns of workers including absenteeism, and restlessness, as well as an increase in the attrition rate of the company within the last six months. He became concerned as to what to do to keep the company competitive, as well as profitable at the same time. He read in an article several years ago about Soft Systems Methodology developed by a British Professor at the University of Lancaster, and thought that this may be the ideal strategy for his organization, based on its current stage of development. Keith Clarke thought he was alone on this issue of raising the value of his employee’s contributions to the job, so that the company can experience a turnaround in its performance, when he attended at meeting in the city. He fellow managers ,all of whom were business owners ,were feeling the same pressure, despite operating if different sectors of the economy, and were seeking appropriate solutions that were not hard in nature. When he shared his proposed strategy, they all in unison suggested that he should make his a pilot project, and at the end, they will decide whether to embrace the methodology or not. Clarke agreed but pointed out that they will all be expected to make timely payments to him once the outcome has been successful. b. Problem Statement: How can the employees of Health Ventures improve the value of its employee’s contributions to the business? III. Application of Soft System Methodology Health Ventures Incorporated operations was inspected over a four week period, and during this time, the entire system was analyzed for its efficiency, effectiveness, and efficacy in applying the CATWOE model. A record was taken of the operations on the five farms, as well as the main office, questions were asked of all the relevant managers, as to why the operated in the modes we observed, and employees who are with the company for five years and more were interviewed regarding their jobs, how they feel about the company, and how things could be improved from their perspectives? We then went to our computers and for two weeks simulated the entire activity in an effort to find the most appropriate models we could find to match this unique organization. d. FINDINGS Health Ventures Incorporated is a major supplier of seeds and fruits to the North American Market as well as South America. The following problems were identified; Low productivity Low morale Dwindling sales Poor quality control methods High attrition rates High attrition rates Great salary imbalances Poor Supervision Poor job fit among managers No Appraisal System No ongoing training program Little or no internal promotions No Rewards System ROOT DEFINITIONS The Roots definitions identified were; a. Supervision b. Quality control c. Marketing d. Performance appraisal e. Technology f. Compensation based on performance g. Job rotations V. Model Formulation The Root Definitions provides a basis to use the CATWOE mnemonics to develop a conceptual model 1. CUSTOMER Evaluation questions: Who are the customers? North America and South America distributors and farmers, and consumers What activities could be undertaken to benefit the customers? Management audit Quality control audit Supervisory training Salary revision Management accounting to revise costing Sales promotions 2. ACTORS Who are the actors that will be affected? Office managers, farm managers, employees, Training company, Audit company, Quality Control Consultant, and Compensation Consultant 3. TRANSFORMATION What are the input activities required for the company to deliver quality products to its customers and achieved greater value contribution from its employees? Training, Motivation, Price reduction, Quality control programs, salary restructuring and morale are also strong indication s of the possible success of the model. 4. WELTSCHAUUNG What are the views of the employees, and the owner that will make the transformations useful? Is there any other way that the model could be defined? Positive feedback from the employees regarding the model will go along with respect to its acceptance Reductions in the number of them desiring to leave the company, as well as the morale are also strong indication s of the possible success of the model. 5. OWNER Who could stop the activity? The owner Keith Clarke could stop the activities, but this is unlikely as he was the one who saw early troubling signs, and initiated the program. He also will not want to be seen as a failure by his peers, and stands a good chance of being financially rewarded by them for pursuing this as a pilot project. 6. ENVIRONMENTAL CONSTRAINTS The price of the competitor’s goods, employers offering higher remunerations, unions, poor decisions by any of the consultants, change in government policy, technological advancements beyond the capability of the company, and natural disasters are all possible environmental constraints. It became imperative then that the company revisit its insurance policy to cater for any unfortunate eventuality. DIAGRAM OF THE MODEL VI. COMPARISON WITH REAL WORLD SYSTEM The model should answer the questions of efficiency, efficacy, and effectiveness, when compared with the real world system. The production of higher quality seeds and fruits at a faster rate by a more cohesive and purposeful team of workers, as well as more consistent supervision by well trained managers , and increase in sales , will be indicators that the model simulated hundreds of times will justify the owners decision to use this strategy to improve the value contribution of his employees. VII. CHANGE The production figures obtained during the simulations will become the basis for setting attainable targets for the different divisions of the company. Since they were formulated with workers participation, the managers will have no problem implementing them across the board The training in quality control utilized Tennor and De Toro (1992), six ingredients of process management, which are taking ownership, planning, control, measurement, improvement and optimization, would have prepared the management for the changes to implement (Tennor, A.R., DeToro, I.J., 1992). VIII. IMPROVING THE PROCESS Improving the process in the real world will be key strategy by the leadership of the business, but surveys were conducted, experienced workers were engaged in discussions as to how the process can be improved, and the systems showed that employees’ value contribution as well the product quality will undergo the changes desired. The Owner, through the application of the Soft System Methodology, has responded to Hurst philosophy (1995), which states that managing change requires a company to build capacity to respond to changing demands and opportunities, and as such the changes to improve the system will be well accepted, as all stakeholders stands to benefit (Hurst, D 1995). IX. RECOMMENDATIONS The owner of the company should embrace the changes brought to the company through Soft Systems Methodology, because it brings a level of thinking that hard systems does not possess, and is a learning process that will ensure change becomes a constant throughout the different life cycles of the organization. The fact that Soft Systems Methodology according to Schmidt, (2005), confines ones thinking to a systemic mode, then expands it afterwards, is a great advantage for Health Ventures Incorporated, because it can look externally, and embrace concepts that will advance its growth and development (Schmidt, J. 2006). It could look at Singapore Airlines, according to (Cohen, A.R., 2002), when implementing the compensation through performance motivational strategy to improve the value contribution of its employees. Singapore Airlines used it employees to monitor, record, evaluate, and implement changes that customers desired through surveys, and saved millions of dollars over time (Cohen, A.R. 2002). The model should be accepted because its success allow it going forward to refine further its marketing , production, management, engineering, sales, and operation , and human resource skill levels, which in turn opens up opportunities for it to penetrate other markets, and generate even greater revenues for the company X. CONCLUSIONS Marketing experts, according to Berkowitz et al (200),warns against paralysis by analysis, which is the tendency to excessively analyze a problem instead of taking actions, will certainly not apply in this case, we would hope, after such rigorous and extensive work (Berkowitz, E.N. 2002). The latest available technology has been used in conjunction with an ageless model to arrive at the recommendations offered to the company, and they should be implemented without delay, so that the maximum benefits will be derived. The simulations consistently support the model we have chosen, and we have strive for 100% objectivity in all areas of interactions, to conclude that this is the best model Health Ventures can embrace to improve the contribution value of its employees. The company by this pilot project, may have blazed a trail for emulation by other industries that have constantly erred in believing it can remain competitive by ignoring the value contributions of its employees . It will also show that, if they too generate a constancy of purposes towards the improvement of the products and services offered, so that the competitive position can be maintained as well, the future of their businesses will become viable (Gitlow&Gitlow 1987). XI. Bibliography 1. Thomas, Schmidt, (2006). Literature Review of Soft Systems Methodology www.thesis.msc.cse.com/pdf/articles/ssm.pdt , 05/03/11 2. Williams, Bob, (2005). Soft Systems Methodology www.users.actrix.co.nz/bob/will/ssm.pdf , 05/03/11 3. Javitch, David, G., (2007). Conflict in the Workplace www.entrepreneur.com/humanresources/employeemanagementcolumnistdavidjavitch/article186120.html , 05/05/11 4. Proctor, Tony, (1999). Creative Problem Solving For Managers Routledge, New York. NY p.63 5. Tennor, A.R., DeToro, I.J., (1992). Total Quality Management Addison-Wesley Publishing Company Reading , MA pp.99-100 6. Hurst, David, (1995). Crises and Renewal- meeting the challenges of organizational change Harvard Business School Press, Boston, MA p.7,14 7. Cohen, A.R., (2002). The Portable MBA in Management John Wiley and Sons Inc. New York, NY p.353-354 8. Gitlow, Howard S., Gitlow, Shelly J. (1987). The Deming Guide to Quality and Competitive Position. Prentice Hall, Englewood NJ p.8, 10,11 9. Berkowitz, E.N., Kerin, R.A., Hartley, S.W., Rudelius, W., (2000) Marketing 7th edition Irwin McGraw-Hill Boston MA p.603 APPENDIX 1. ADDITIONAL LIERATURE ON SOFT SYSTEM METHODOLOGY There are 5 features of a Soft Systems Methodology namely; It is a learning system which seeks to find accommodations `in an environment s of potential conflicting views, and taking purposeful actions within that situation It is a process for managing which organized actions are achieved It recognizes system ideas and metaphors can be helpful in understanding the problem within situations It learns by comparing pure models of human activity systems with realized ones It is greatly reliant on the participative process, where knowledge and results are gained through debates (Schmidt, Thomas, 2006). The model to resolve an organization perceived problem can take the form a mnemonic called the CATWOE, where Symbol Relevant Questions G. CCUSTOMER Who will benefit or be the victims of these specific activities? H. AACTIONS who are the persons responsible for pursuing these activities? I. TTRANSFORMATION What are the inputs and outputs of the activities? J. WWELTANSHAUUUG What are the views of the real world that makes the definition meaningful? K. O= OWNERS Who has the power to stop these activities? L. E= ENVIRONMENT What constraints within the environment does the systems accepts as normal? The SSM according to Schmidt (2006) is a combination of operational, monitoring, and control systems, and three criterions are used to analyze the last two systems. They are; Effectiveness Efficacy Efficiency (Schmidt, Thomas, 20065). There are three ways recommended by Strickland, to conduct model analyses, and these are; 1. Record all the differences between the models and the current perceptions of the system 2. Use a series of questions to look at and define the activities and the links between them 3. Simulate the activity system by constructing written scenarios of what is expected to happen (Schmidt, Thomas, 2006). Conclusions Soft System Methodology is really a learning and not an optimizing system, and it moves the focus from the real world to the core of the process itself as well as the inquiry approach. The literature available on the this system seems quite appropriate help bring a solution to Health Ventures Incorporated perceived problem regarding improving the self worth of the employees to the organization, since the organization has embraced the learning concept in its mission statement. Read More