H O W BE ST P R A C T IC E S H E L P C H A NG E PR O G R A M TO SU CC E E D .
BACHELOR OF ADMINISTRATIVE SCIENCE (HONS) ADS607: MANAGING CHANGE SEPT 2011 – JAN 2012 GROUP EAMA9A
Noorrisma Binti Ismail Balqis Binti Abbas Norkhilwana Bte Mohd Sidek Nurzharina Bte Ismail
2007102333 2008735031 2008396763 2007102365
016-2049051 014-2104076 012-2374240 017-6060432
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UNIVERSITI TEKNOLOGI MARA FAC ULT Y O F A D MI NI ST R AT I VE SCIENCE AND POLICY STUDIES
Change tools tend to be both analytical and prescriptive. Their analytical side is represented by general statements or theories about the actual causes, processes and consequences of organizational change. Best practice is one of the change tools that can be used to make the organizational change be succeed.
A best practice is a method or technique that has consistently shown results superior to those achieved with other means, and that is used as a benchmark. In addition, a "best" practice can evolve to become better as improvements are discovered. Best practice is considered by some as a business buzzword, used to describe the process of developing and following a standard way of doing things that multiple organizations can use. Best practices are used to maintain quality as an alternative to mandatory legislated standards and can be based on self-assessment or benchmarking. Best practice is a feature of accredited management standards such as ISO 9000 and ISO 14001. Best practice is an abbreviation of „world‟s best practice‟ – a term that conveys the challenge of global competition as much as corporate aspiration. According to Malaysia Productivity Corporation official website, superior performance within a function independent of industry, leadership, management, or operational methods or approaches that lead to exceptional performance; best practice is a relative term and usually indicates innovative or interesting business practices which have been identified as contributing to improve performance at leading companies.
WHAT IS BEST PRACTICES? Best practice means finding and using the best ways of working to achieve your business objectives. It involves keeping up to date with the ways that successful businesses operate in the sector and others and measuring the ways of working against those used by the market leaders.
BEST PRACTICE THROUGH BENCHMARKING. Best practice means learning from and through the experience of others. One way of doing this is through benchmarking, which allows you to compare the business with other successful businesses to highlight areas where the business is could improve.
BEST PRACTICE THROUGH STANDARDS Best Practice Model was adapted from TQM by US businesses and researcher in the 1980s. Standards are fixed specifications or benchmarks, which are established by independent bodies such as the British Standards Institution (BSI). BSI develops both technical and management standards:
technical standards are precise specifications against which a business can measure the quality of its product, service or processes
management standards are models for achieving best business and organizational practice.
PRINCIPLES OF BEST PRACTICE.
First, most firm seek to improve in cost, quality or delivery, believing gain in one have to be traded off against the others, best practice firms aim to improve all three simultaneously. Second, traditional manufacturers were production driven, relying on scarcity to sell whatever they made, global market saturation requires best practices firms to be customer driven, basing production decisions on where there is a market need. Third, closer link with suppliers facilitate just- in- time production, which reduces inventory costs and can lead to cooperation and improvement on design and quality. Fourth, rather than implement technological innovation in products and production methods just because it is feasible, best practice firms do so only when it meets customer needs. Fifth, organizational structures that devolve decisions to functionally integrated business units and have fewer layers of hierarchy are more flexible and responsive to customers. Sixth, people need to have appropriate skills and attitudes to take responsibility for customer value, which is the cornerstone of best practice.
BENEFITS OF BEST PRACTICE. Applying the appropriate standards enable us to apply best practice across the organization, and to work against objective criteria to achieve manufacturing or service quality. A best practice strategy can help organization to:
become more competitive increase sales and develop new markets reduce costs and become more efficient improve the skills of your workforce use technology more effectively reduce waste and improve quality respond more quickly to innovations in your sector
MANAGEMENT OF BEST PRACTICE. Management system standards can help organization to improve their efficiency by providing a best practice model for them to follow. It involves:
the communication of a clear mission and strategy leadership by example the setting of demanding but realistic targets an open and communicative management style clear and careful strategic planning
There are several business tools that you can use to achieve management best practice, including:
benchmarking forecasting financial planning strategic planning performance monitoring
Using key performance indicators (KPIs) is an effective way of monitoring organization. KPIs can be used to measure progress in achieving organization objectives across a range of activities and enable us to identify areas that need attention. They can also can be used to measure activities such as sales volumes, profitability, quality and staff turnover. The KPIs we choose will depend on our specific business. They should, however, be related to our overall objectives, be clearly measurable and provide an indication of where improvements need to be made. Tools such as benchmarking, business planning and performance monitoring will help us to compare the performance of our organization with that of our peers and competitors and against our own business objectives. Where necessary, we can introduce new ways of working to improve competitiveness and organization efficiency. Having accurate and up-to-date information about our organization performance will also help future planning and change management.
Communicating our objectives and strategies is an essential part of management best practice. A good communications policy will ensure that everyone in the organization knows the direction in which the business is heading, and understands their own part in its development. Successful businesses are those that attract, develop, motivate and retain the best people. We will get the most benefit from our people if we have key strategies for doing so. These can include:
involving employees in the development of the organization communicating with employees adopting flexible working and policies that encourage equality and diversity setting targets and rewarding achievement offering employee development and training
Employees are often in a position to see where improvements to working methods can be made or when market demands are changing. For example production staff will be aware of inefficient production processes, while customer service staff will know common sources of complaints. We can use this detailed knowledge by involving employees in developing improved ways of working. This is likely to make staff feel valued, as well as gaining employee trust, commitment and buy-in when implementing changes. Good people management should extend across all areas of the organization. Recruitment, training and people development, working practices and the working environment are all areas which we should continually review to see where improvements can be made.
IMPLEMENTED BEST PRACTICE IN ORGANIZATION. Analysis of the current position suggested that a change of culture was needed to reinvigorate the organization. Explore best practice as a vehicle for improving the way of operation of organization across the board. Develop a strong organization vision and strategy and make sure the vision and strategy are communicated clearly too all areas of the organization. Setting clear objectives and laid them out in a plan, this was communicated, to all employees. Communicating to best practice is essential within the organization, but it's also important in the wider world. Through marketing more widely and word of mouth, potential clients and employees get to hear about what the organization , which helps with new business and recruitment, as well as enhancing the reputation among existing customers and closer relationships with suppliers. The use of best practices, within all areas of an organization, including its stakeholder relationships, can lead to an organization attaining world class performance. Often, an organization may use one or more best practices and become renowned for their performance in these areas, but unless best practices are adopted consistently across all the functions of an organization. „World class‟ can be defined as recognition of organizational performance levels that have been „rubber stamped‟ by an impartial assessor or identified through benchmarking. A world‟s best practice for a particular process or area, most organizations are just searching for better practices that they can quickly identify and implement. This viewpoint is supported by Robert Camp who states, “the point of best practices is to discover and close performance gaps, so defining “best” might be as simple and subjective as what an executive instinctively feels is best, knowing the business and its competition. Adopting this process does not necessarily mean aiming for world-class”.
THE CHALLENGES AND PROBLEMS ENCOUNTERED IN BEST PRACTICE. The difficulty of incorporating best practices is succinctly put by Robert Camp the acknowledged father of benchmarking. Camp recognizes that many rationales and approaches other than benchmarking can be used to identify best practices, but that “there will still be the need to innovatively and creatively implement the best practices”. There are various difficulties involved in the process of improving by learning from best practice, key among these are:
Having sufficient knowledge of our own systems and processes to be able to compare against others
Knowing where to find best practices Knowing whether a particular practice is suitable for our situation Adapting the practice to your organization Finding the time and other resources for the above
The problems encountered in best practice when it has been observed that best practice innovations may not be sustained to the point where they become the normal modus operandi of a business. For example, the firms in the Australian Best Practice Demonstration Program often failed to implement vital parts of the holistic model of best practice, causing the system to under-perform, which created the risk that the investment would be discontinued.
CONCLUSION. Best practice models are helpful „not in defining precise list of items, but in pointing to the architecture (broad design) of human resource processes which are translated to behavior to suit the changing needs of the organization.
REFERENCES. 1. Fionna Graetz, Malcolm Rimmer, Ann Lawrence and Aaron Smith (2002), “Managing Organizational Change”, John Willey & Sons Australia, Ltd. 2. Bernard Burnes, Managing change a strategic approach to organizational dynamics , 4th Editon, Harlow;New York: Financial Times Prentice Hall, 2004. 3. Collin A. Carnal (1999), “Managing Change in Organization”, 3rd Edition, Prentice Hall. 4. http://library.unikl.edu.my 5. http://en.wikipedia.org/wiki/Best_practice