Total Performance Scorecard. Redefining Management to Achieve Performance with Integrity

336 Pages·2003·7.803 MB·English

by  Hubert K. Rampersad, Dorothy A. Leonard and William J. Abernathy (Auth.)

Advance Praise for Total Performance Scorecard:
“There is often a disconnect between organizational goal-setting and the
way individuals establish individual objectives and are reviewed. Total
Performance Scorecard fills the gap with a complete system that unites
individual and organizational performance scorecards, linking continuous
improvement efforts with individual learning and development programs. If
you are looking for a comprehensive toolkit for improving results in your
company, this is the book to buy.”
-Philip Anderson, Professor of Entrepreneurship, INSEAD Alumni Fund
Chair in Entrepreneurship, Director, 3i Venturelab
“Total Performance Scorecard is a desperately needed direction that manage-
ment of organizations should adopt. It stresses the importance and need
of developing an organizational structure and philosophy that combines the
goals and aspirations of the individual with those of the company. It is a meld-
ing process which results in a corporate culture that is both individually and
organizationally driven. The concepts embodied in this management concept
provide solutions to preserving and utilizing individual rights and capabilities
while adjusting the organizational structure and philosophy to this new
environment.”
-Edward H. Barker, Professor at University of Laverne, CA
“Hubert Rampersad takes the balanced scorecard and other management
ideas and puts them in a framework of personal integrity. By unifying
organizational change strategies with individual ethics he has written an out-
standing synthesis which is addressed to the corporate challenges of manag-
ing in the 21st century.”
-Paul Bracken, Professor of Management, Yale School of Management
“Dr. Rampersad’s book is just as timely an exhortation to American business
as was In Search of Excellence. In this case, the survival of corporations
depends on possessing an integrity that can both fuel their drive for perfor-
mance and keep it in check. Such integrity cannot be legislated by government
or management. Fortunately, Dr. Rampersad’s processes bring organizations
face-to-face with their own moral fiber (and many other important issues). He
couldn’t have come along at a better time.”
-George Cline, MBA, President, VitalConcern, Tampa, FL
“Dr. Rampersad’s latest book makes a most useful contribution to the never-
ending challenge of aligning individual motivations and behaviors with enter-
prise performance aspirations.”
-Jon R. Katzenbach, co-author of the international bestseller
The Wisdom of Teams and editor of The Work of Teams,
a Harvard Business Review compendium
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Library of Congress Cataloging-in-Publication Data
Rampersad, Hubert K.
Total performance scorecard : redefining management to achieve
performance with integrity / Hubert K. Rampersad.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-7506-7714-1 ISBN-10: 0-7506-7714-7 (alk. paper)
1. Total quality management. 2. Performance-Measurement.
3. Employee motivation. 4. Organizational learning. I. Title.
HD62.15.R3598 2003
65 8.4'01 3dc21
ISBN-13: 978-0-7506-7714-1 2002043879
ISBN-10: 0-7506-7714-7
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Printed in the United States of America
To my wife Rita and my sons Rodney and Warren
Doing the right things right is determined by enjoyment, passion,
self-knowledge, learning, and compliance with the highest ethical
and moral standards.
Hubert K. Rampersad
Foreword
Ask any manager what the primary assets of her organization are
and the answer is usually “people.” We are far removed from the days
when an employee checked his brains at the door at the same time he
removed his overcoat. We recognize that the tacit (unarticulated)
dimensions of knowledge in a person’s head may be as vital to achiev-
ing the organization’s goals as are the explicit, codified forms of
knowledge that have been built up over time.’
In fact, who is not a “knowledge-worker’’ in the developed world?
Farmers possess the most sophisticated knowledge of seeds and sea-
sons. Steel workers run highly computerized machinery. Custodial
staff can make fine distinctions in types of stains and cleaning
materials. The know-how possessed by anyone who has been doing
certain tasks for long enough to build up a repertoire of experiences
can be extremely valuable to the organization for whom he works.
On the other hand, ask any manager how she spends most of her
time, even in very technically oriented organizations, and the answer is
usually “handling people problems.” This term covers everything from
highly egotistical, self-centered behavior by “prima donnas” who
can’t work in teams, to alcoholism or other personal problems that
lower productivity, to ingenious modes of resistance to change and
unwillingness to share knowledge.
Managers have always faced the dual challenge of exploiting indi-
vidual knowledge and skills for the benefit of the organization while
demonstrating appreciation for those employee contributions so as to
motivate continued productivity. However, in recent decades, the need
both for employee generosity in sharing individual intelligence and for
managerial sophistication in rewarding employee effort has intensified.
Today’s organizations are generally running very, very lean and in
the throes of great environmental change. Therefore, they need inno-
vation and employees who cannot only bend with change but thrive
on it. In particular, perhaps more than ever before, organizations
today desire two abilities in their employees: (1)r apid learning, and
See Dorothy Leonard. Wellsprings of Knowledge: Building and Sustaining the
Sources of Innovation. Boston: Harvard Business School Press, 1995, 1998.
xiii
xiv Foreword
(2)c reativity. Organizational leaders cannot expect to inspire those
skills merely by demanding them. Rather, leaders need to develop con-
siderable insight into how and why people learn and into what stimu-
lates creativity. Let us consider each in turn.
First, learning. Business organizations no longer represent lifelong
commitments for most employees. Rather, today’s knowledge workers
are free agents, typically carving out two or more careers in life and
with the expectation that they will work in multiple organizations
during their work life. Employees, therefore, are preoccupied with
gaining skills from employment and increasing their own value in their
chosen field, not just in their organization. Fortunately for organiza-
tional leaders, humans do have a strong need for community; we are
social animals and in general like to learn with and from others.
Therefore, managers can link individual identity to corporate brand,
individual aspirations to business goals, and individual learning objec-
tives to needed organizational capabilities. But such linkages have to
be individually forged, and with the full understanding that when you
hire someone today, you hire the whole person-personal aspirations
included. This is the good news and the bad news. It is good because
a person whose personal learning goals are aligned with those of the
organization are likely to be fully engaged and highly productive.
It is bad because people are not always clear about their own objec-
tives and even if they are, managers are not always able to align
employees’ personal goals with organizational needs. Ambiguity leads
to frustration.
Moreover, managers often mistakenly equate learning with formal
training sessions. But we do not gain know-how through reading man-
uals, observing PowerPoint slide presentations, or attending training
lectures. From such sessions, we can certainly obtain useful mental
frameworks and armatures (know-what) to which we attach knowl-
edge. However, we learn deep skills from practice and experience-
and gaining experience takes time. Job rotation helps, as does
assignment to cross-functional project teams, but the best managers
also regard themselves as coaches and teachers. Coaches use a variety
of approaches, from one-way directives to joint problem solving, but
the more that the learner is guided through experience, the more last-
ing is the knowledge.” Organizations whose leaders regard the provi-
sion of guided experience as essential, and development of people as
ii See Dorothy Leonard and Walter Swap. “The Value of ‘Been There, Done That.”’
In F. Hesselbein, M. Goldsmith, I. Somerville (eds.), Leading for Innovation and
Organizing for Results. San Francisco: Jossey-Bass, 2001, pp. 165-176.
Foreword xv
one of the primary responsibilities of all managers-one for which
they are held accountable in job evaluations-have a competitive
advantage.
It is also in the power of leaders to inspire more creativity in the
groups they lead.”’ As noted earlier, an employee’s identity in today’s
world is unlikely to be tied long term to an organization; therefore,
managers have to create loyalty and commitment not through patron-
izing (the organization will take care of you) but through providing an
interesting and exciting place to work. Creativity cannot be managed
or controlled, but it can certainly be nurtured or killed. In the search
for meaning to their lives, people find great satisfaction in having
created something-a product, a service, an innovation that leads to
improved conditions for someone. Too often we do not make the link
between what an individual is doing on a daily basis and some larger
purpose. Most people do not spring out of bed in the morning, eager
to make 10% more for the stockholders of their company. That is too
abstract a goal, directed toward unknown individuals (and financial
gain for someone else is an unlikely aspiration)! Even personal finan-
cial gain may not be enough of a motive. Research shows that indi-
viduals are motivated best by a combination of intrinsic motives (I
enjoy doing this for some personal reason) and extrinsic ones (doing
this gains me more recognition or more financial security). Therefore,
leaders who can provide both intrinsic and extrinsic motives for
their employees are more likely to retain them and their valuable
knowledge.
Unfortunately, there are serious barriers to both learning through
experience and to creativity today. A primary one is time constraints.
Information can be delivered at huge speed (the old analogy to drink-
ing from the firehose) and people can be thrown into a situation to
“sink or swim,” but know-how takes time to develop. Time pressures,
recent research in multiple organizations shows, inhibit Creativity.‘”
Another constraint is managerial lack of understanding of basic
human behavior. We need leaders who have enough life experience
to understand, for example, what motivates people, the best forms
of interpersonal communication, and the human inclination to
interpret intellectual or positional disagreements as interpersonal
attacks. Managers who have a sophisticated understanding of human
‘I1 See Dorothy Leonard and Walter Swap. When Sparks Fly: Igniting Creativity in
Groups. Boston: Harvard Business School Press, 1999.
See Theresa Amabile, Constance N. Hadley, and Steven J. Kramer. “Creativity
Under the Gun.” Special Issue on The Innovative Enterprise: Turning Ideas into
Profits. Hurvurd Business Review 80, no. 8 (August 2002):52-61.
Foreword
psychology and who know how to use it in the workplace are more
likely to have an innovative employee base.
In this book, Hubert Rampersad has amassed and synthesized a
huge amount of material written on these and related topics. The book
serves as a practical guide, in that there are numerous exercises and
business illustrations. However, it is also an extensive reference guide
to many other works on management if the reader wishes to delve
more deeply into any of the singular bodies of knowledge that the
author has brought together into the Total Performance Scorecard.
Dorothy A. Leonard
The William J. Abernathy Professor of Business Administration,
Harvard Business School, Boston
Preface
There is a kind of re-education needed to connect business man-
agement with normal life. There has always been an enormous gap
between the way people treat colleagues at work and the way they
treat friends and family. With regard to the latter, we do not see
friendship, tolerance, etc. as sentimental and “soft” when we deal
with friends and family, but rather as a lubricant for the relation-
ship. Could we not extend this to the business community as well?
The gap between these two views is currently decreasing; perhaps
here rests the solution for tomorrow’s problems.
Roger Evans and Peter Russell
Real learning gets to the heart of what it means to be human.
Through learning we recreate ourselves. Through learning we
become able to do something we never were able to do. Through
learning we reperceive the world and our relationship to it.
Through learning we extend our capacity to create, to be part of
the generative process of life. There is within each of us a deep
hunger for this type of learning.
Peter M. Senge
For many years it was assumed that organizational improvement
and change depended on internal and external analyses, the descrip-
tion of business processes, the preparation of measurement programs,
the review of measured results, and the diagnosis of organizational
culture. If organizations successfully formulated and implemented
the right goals and strategies resulting from these procedures, then
improvement and change would be a done deal. Over time, however,
it became evident that this approach was no longer satisfactory. Due
to the influence of modern market developments and the development
of new management theories during the past few years, the process of
organizational change evolved from one of quality improvement into
one of improvement and change management. These days, people have
begun to realize that organizational improvement involves more than
the aforementioned; it is not an analytical process, but a creative learn-
ing process based on a strategic vision as well as new values and
norms. In this book I introduce a new holistic concept of improvement
and change management called Total Performance Scorecard (TPS). In
xviii Preface
the TPS concept, improvement, development, and learning are treated
as ethical and cyclical processes whereby the development of personal
and organizational competence and inner involvement reinforce each
other.
This concept refers to a way of life within organizations, whereby
the power of Balanced Scorecard, Total Quality Management,
Performance Management, and Competence Management have been
expanded and deepened with new management insights. TPS encom-
passes a philosophy and a set of rules that form the basis both for con-
tinuous process improvement and the personal improvement of
individual employees.
Although this concept deals with organizational change, it starts
first with individual and collective behavioral changes that are brought
about through learning. It is an “inside out’’ approach that uses the
essence of individual identity as a starting point.
This cyclic learning process encompasses an uninterrupted quest for
self-knowledge. It is a journey of discovery on the road to improve-
ment and change, as well as a mobilization of creativity and inven-
tiveness. Through TPS you will get to know yourself and the
environment in which you are functioning better, and you will be able
to improve yourself on an ongoing basis. In turn, the organization will
achieve more insight into its own structure, surroundings, and future
possibilities. TPS will also create a broad basis for the effective guid-
ance of improvements within the entire organization. This book shows
you the way to achieve these goals.
Total Performance Scorecard refers to the maximum personal devel-
opment of all corporate associates and the optimal use of their capa-
bilities for the realization of the highest organizational performance.
TPS is based on a personal vision of one’s own future and a shared
vision of the organization’s future. This approach differs substantially
from traditional management concepts. An important difference is that
TPS is an inspiring and integrated management concept that regards
personal ambition as the starting point. Traditional improvement and
change management concepts are insufficiently committed to learning
and rarely take the specific personal ambitions of employees into
account. In consequence there are many superficial improvements,
marked by temporary and cosmetic changes, which are coupled with
failing projects that lack sufficient buy-in by personnel and, in some
cases, even have an adverse effect.
The TPS concept starts with learning and formulating the personal
ambition of individuals, then balancing this with the personal behav-
ior and the shared ambition of the organization. This benefits the dura-
bility of improvement and change actions that are subsequently