169 - lib.ui.ac.idlib.ui.ac.id/file?file=digital/136150-t 24628 perencanaan strategi... · unj....

169

Universitas Indonesia

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Perencanaan Strategi Peningkatan Kualitas Layanan Perguruan Tinggi

Mengintegrasikan QFD dengan Hoshin Kanri (Studi Kasus: Jurusan Teknik Mesin

Fakultas Teknik Universitas Negeri Jakarta)

T. Yuri M. Zagloel, Bertianis, Lukman Arhami

Departemen Teknik Industri Fakultas Teknik Universitas Indonesia

Kampus baru UI, Depok-16424, Indonesia

Email: [email protected], [email protected], [email protected]

ABSTRAKS

Jurusan Teknik Mesin memberikan layanan jasa dengan mengemban misi tri dharma perguruan tinggi. Jasa yang diberikan

oleh perguruan tinggi adalah: jasa kulikuler, jasa ekstrakulikuler, jasa administrasi, jasa pengabdian masyarakat, jasa kebijakan

umum, jasa penelitian. Jasa-jasa tersebut merupakan atribut yang akan menjadi pengukuran terhadap kualitas layanan JTM FT

UNJ. Penelitian bertujuan untuk mengidentifikasi keinginan dan kebutuhan konsumen, kualitas pelayanan JTM FT UNJ

menurut persepsi pelanggan; mengidentifikasi isu-isu strategis dan membuat usulan strategi peningkatan kualitas layanan

dengan mengintegrasikan Metode QFD dengan Hoshin-Kanri. Metodologi yang digunakan dalam penelitian ini adalah

survey, yang meliputi: pemberian angket, wawancara dan focus group. Adapun hasil dari penelitian ini adalah: (1) Harapan terhadap terhadap layanan di JTM FT UNJ adalah kualitas SDM yang menunjang (dosen dan karyawan) sehingga mampu

memberikan layanan pendidikan dan administrasi yang baik: 14,28%; Pembelajaran berlangsung dengan interaktif didukung

dengan kurikulum yang sesuai dengan perkembangan IPTEKs dan tuntututan kerja: 26,19 %; Efektifitas pengelolaan dan

keramahan dalam melayani mahasiswa: 9,52%; Lulus dengan tepat waktu dengan kualitas penelitian yang baik: 9,52%;

Ketersediaan sarana dan prasarana perkuliahan:35,72%; Pencitraan publik dengan memanfaatkan/membuat media

informasi:4,77%; (2) Kinerja JTM FT UNJ dalam memberikan pelayanan pendidikan dinilai kurang memuaskan. Hal ini dapat

terlihat dari tingginya gap antara ekspektasi dan persepsi terhadap kualitas layanan. Gap terbesar adalah 4 sebanyak 2,08%,

gap 3 sebanyak 41,67% dan (3) Relevansi dan daya saing dapat memenuhi kebutuhan pelanggan sebesar 33,687%. Penguatan

tatakelola dan akuntabilitas 28,291%. Pencitraan publik memiliki konstribusi dalam memenuhi kebutuhan pelanggan adalah

16,435% dan pengembangan sumber daya manusia memiliki porsi sebesar 21,832%.. (4) Proses perencanaan strategi

mengintegrasikan QFD dengan Hoshin Kanri dibuat usulan strategi dan penyebarannya samapi level 2 dalam struktur organisasi Jurusan Teknik Mesin. Usulan tersebut terdiri dari 13 strategi pada level pertama dan 57 strategi pada level kedua.

Kata Kunci: Integrasi, QFD, Hoshin Kanri, Kualitas Layanan

ABSTRACT

Mechanical Engineering Departement extend service heve three duty higher education. Higher education extend six services, are: academic, supporting academic, administration, research, dedication of society, general policy. Services make up

attribute being the measuring services quality in mechanical engineering departement The focus of this study is to recognize

the needs and requirements of customers, to dicover the level of services quality in Mechanical Engineering Departement

based on customers views, to identify the strategies issues the services quality based on the needs and requirements of

customers, to develop the planning strategic for improvement the quality services by integrated QFD and Hoshin Kanri. The

methodology research is survey, include: questionnaire, interview and focus group . The results of this research are: (1)

Costumers’ expectation are: human resources (lecturer and employer) so it present good quality in education and

administration: 14,28%, the interactive learning process supported by appropiate curriculum and scientific development:

26,19%; the efectivity and friendly management to support students: 9,52%, finish study at the certain time and better quality

in research: 9,52%; the preparation of equipments for learning process: 35, 72%; public image through formulate information

media: 4,77%; (2) Quality services in Mechanical Engineering Departement in provide educational process is low satisfied. It

is because the high discrepancy between expectetion and perception to quality services. The most discrepancy are: 1 item (2,08%) in criterion number K6, discrepancy 3 include 20 items (41, 67%) and (3) The significance and competitiveness

accomplish the costumer needs: 33, 687%. The supported of management and accountability: 28, 29%. The contribution of

public image in services the costumers is 16,435% and empowering the human resources is 21,832%. (4) Planning process of

strategy by integrated QFD and Hoshin Kanri is construct the proposal of strategy and the dissemination until second level in

organization structure of Mechanical Engineering Departement. The proposal include 13 of strategies in fisrt level and 57 of

strategies in second level.

Key Word: Integration, QFD, Hoshin Kanri, Service Quality


mailto:[email protected]



I. Pendahuluan Jurusan Teknik Mesin Fakultas Teknik

Universitas Negeri Jakarta (JTM FT UNJ) memberikan layanan jasa dengan mengemban

misi tri dharma perguruan tinggi. Jasa yang

diberikan oleh perguruan tinggi adalah: jasa akademik, jasa ekstrakulikuler, jasa administrasi,

jasa pengabdian masyarakat, jasa kebijakan umum,

jasa penelitian. Jasa-jasa tersebut merupakan

atribut yang akan menjadi pengukuran terhadap kualitas layanan JTM FT UNJ. Untuk itu perlu

dilakukan identifikasi dan pendefinisian apa yang

menjadi atribut-atribut pelayanan perlu diperhatikan berdasarkan keinginan konsumen

(customer requirements). Dengan mengetahui

performa kualitas atribut-atribut tersebut, dapat

diketahui apa yang harus ditingkatkan kualitasnya, kemudian dapat disusun langkah-langkah

perbaikan untuk peningkatan kualitas atribut-

atribut tersebut. Agar pengembangan layanan yang berdasarkan suara konsumen dapat direalisasikan

dan terarah maka diperlukan sebuah policy

deployment. Hoshin Kanri merupakan merupakan salah satu metode policy deployment dengan

pendekatan sistem manajemen yang mampu

beradaptasi terhadap perubahan lingkungan yang

dinamis. Metode interasi QFD dengan Hoshin Kanri ini memfokuskan bagaimana strategi dibuat

(strategi peningkatan layanan) dengan

mengindentifikasi VOC yang digunakan sebagai input utama dalam penyusunan House of Quality

(HOQ) kemudian akan dilanjutkan dengan

menyebarkan dan mengkomunikasikan strategi yang telah dirancang tadi keseluruh bagian

organisasi dengan metode Hoshin Kanri. Integrasi

tersebut digunakan untuk melakukan Quality

Strategy Deployment (QSD) yang bermuatan atribut kualitas pelayanan. Pendekatan

memberikan kesempatan bagi setiap individu

secara langsung untuk memberikan konstribusi dalam pencapaian tujuan organisasi dan

memperbaiki secara berkesinambungan melalui

proses plan, do, ceck dan act (PDCA). Tujuan

penelitian ini adalah: (1) mengetahui tingkat pelayanan JTM FT UNJ menurut persepsi

pelanggan.; (2) mengidentifikasi isu-isu strategis

tentang kualitas pelayanan JTM FT UNJ berdasarkan keinginan dan kebutuhan konsumen;

(3) membuat usulan strategi peningkatan kualitas

layanan dengan mengintegrasikan Metode QFD dengan Hoshin-Kanri

II. Kajian Teori

2.1 Kualitas Jasa Jasa merupakan suatu produk yang

intangible dapat memberikan nilai lebih (added

value) untuk memenuhi kebutuhan/keinginan

konsumen. Jasa ada bersamaan dengan permintaan

konsumen, oleh karena itu pengadaan jasa tidak

dapat disimpan dan jika tidak digunakan konsumen berlalu begitu saja. Karena dalam penilaian

kualitas jasa sangat subyektif, hal ini yang

menyebabkan output jasa tidak seragam tergantung oleh siapa, kapan dan di mana jasa itu dihasilkan.

Kualitas jasa adalah fakta-fakta servis yang

diterima dan dirasakan oleh konsumen. Dapat

dikatakan kualitas jasa merupakan gap antara ekspektasi terhadap persepsi konsumen. Menurut

Menurut D.P Tampubolon, 1995 jasa peguruan

tinggi meliputi: (1) jasa krikulum; (2) jasa penelitian; (3) jasa pengabdian kepada masyarakat;

(4) jasa ekstra kulikuler; (5) jasa administrasi dan

(6) jasa kebijakan umum. Sementara itu agar

pelaksanaan jasa perguruan tinggi dapat terlaksana, maka haruslah ada beberapa hal yang menunjang,

antara lain: (1) sumber daya manusia; (2) material;

(3) peralatan; (4) lingkungan dan (5) prosedur

2.2 Jurusan Teknik Mesin FT UNJ

Jurusan Teknik Mesin mempunyai tugas

dan peranan sebagai unsur pelaksanaan pada Fakultas Teknik yang mengelola bidang

pendidikan, pengajaran, dan penelitian, serta

pengabdian pada masyarakat dalam bidang Teknik

Mesin. Jurusan Teknik Mesin memiliki 2 (dua) program studi yaitu: (a) Program Studi Pendidikan

Teknik Mesin dengan kekhususan Mesin Produksi

dan Mesin Otomotif yang dirancang untuk tingkat sarjana (S1); dan (b) Program Studi Teknik Mesin

(DIII). Visi Jurusan Teknik Mesin adalah

Mengantisipasi tantangan dan peluang di era globalisasi melalui peningkatan pelayanan dalam

penyelenggaraan pendidikan dan pengajaran,

penelitian, dan pengabdian pada masyarkat untuk

menghasilkan Sumber Daya Manusia (SDM) yang memiliki keunggulan akademis profesional dalam

bidang teknik mesin, tanggap terhadap perubahan

yang cepat di bidang ilmu pengetahuan teknologi dan seni (Ipteks), mampu mengakses informasi

baru dengan cepat, mampu berfikir kritis dan

analitis, dapat bekerja sama dengan teman

seprofesi, berjiwa wiraswasta, dan memiliki kemampuan bersaing.

2.3 BAN PT

BAN PT memiliki 15 standar akreditasi, yaitu: (1) Kepemimpinan, (2) Kemahasiswaan, (3)

Sumber daya manusia, (4) Kurikulum, (5)

Prasarana dan Sarana, (6) Pendanaan, (7) Tata pamong (governance), (8) Sistem pengelolaan, (9)

Sistem pembelajaran, (10) Suasana akademik, (11)

Sistem informasi, (12) Sistem jaminan mutu

internal, (13) Lulusan, (14) Penelitian dan


pengabdian kepada masyarakat dan (15) Program

studi.

2.4 Perencanaan Strategi Perencanaan yang baik tentunya merupakan

satu kesatuan yang terintegrasi antara definisi

strategi, visi dan tujuan yang memiliki 5 kriteria antara lain: (1) sistem perencanaan strategi

haruslah dapat memformulasikan pilihan strategi

yang akan diambil; (2) perencanaan yang dibuat

harus bisa dipahami oleh semua level, (3)

perencanaan yang dibuat harus konsisten dalam

bentuk, metode, deadlines sehingga kekacauan dalam melakukan evaluasi dan konsulidasi dapat

diminimalkan; (4) perencanaan yang dibuat harus

terintegrasi atau ada kesesuaian dengan sistem

manajemen yang berlaku; (5) pemimpin dalam sebuah organisasi haruslah menjadi teladan dalam

pelaksanaan sistem perencanaan yang dibuat dan

mempunyai komitmen yang kuat dalam pelaksanaannya.

2.5 Quality Fuction Deployment (QFD)

Gonzales berpendapat QFD adalah proses

tersistematis menggunakan cross fuctional teams mengindentifikasi dan resolve isu-isu termasuk

dalam providing produk, proses, servis dan strategi

meningkatkan kepuasan konsumen. QFD berarti mengembangkan atribut-atribut produk atau servis

berdasarkan pada keinginan konsumen keseluruhan

fuctional komponen yang tepat sebuah organisasi. QFD merupakan salah satu metode untuk

pengembangan produk atau jasa berdasarkan

tingkat kepuasan konsumen dari pengguna

barang/jasa. QFD adalah sebuah proses interdisciplinary team dalam merencanakan disain

atau improve dan proses: (1) fokus pada kebutuhan

konsumen; (2) faktor lingkungan kompetitif dan market/konsumen menjadi pertimbangan

keputusan; (3) inter-fuctional team work; (4)

permintaan konsumen di translated sehingga menjadi tujuan yang terukur untuk setiap

departemen dan (5) memasukkan seluruh tenaga

kerja menyimpan kata”menndengarkan suara

konsumen”. Tujuan QFD adalah translate permintaan

konsumen sehinga disebut dengan “voice of the

consumer (VOC) menjadi karakteristik final produk atau jasa. QFD menyediakan metode yang

tersistematis menentukan kebutuhan konsumen,

prioritasdan menterjemahkan kedalam parameter

disain produk/jasa menjamin kepuasan konsumen. Satu produk QFD adalah “House of Quality”

(HOQ) matrik, memungkinkan melihat

perbandingan secara visual antara “what customers wants” versus “how production/sevice can give it

to them”. HOQ mengkorelasikan keinginan

kualitas (keinginan konsumen secara sederhana disebut dengan what’s) beraneka makna (disebut

element servis atau how) dimana keinginan

konsumen dapat dipuaskan. Menyusun data matrix

HOQ penting karena kunci dalam penyusunan isu kualitas, interrelationships dan keberartian relative

antar satu dengan lainnya sehingga membuat

kriteria kepuasan konsumen. Manfaat QFD adalah: (1) biaya perancangan

produk dapat lebih murah; (2) mengurangi

keterlambatan dalam hal perubahan secara teknis

(cycle time reduction); (3) dapat mengindentifikasi resiko yang terlalu tinggi atas perancangan produk

dikarenakan perancangan dan pengembangan

produk dilakukan berdasarkan keinginan dan kebutuhan konsumen; (4) mempercepat

pengembangan produk/jasa dan (5) meningkatkan

pendapatan perusahaan melalui penjualan produk

atau jasa tersebut karena produk/jasa yang dihasilkan dapat memenuhi keinginan dan

kebutuhan konsumen

2.6 Hoshin Kanri

Hoshin Kanri adalah kotrol aktivitas secara

sistematis untuk pencapaian annual manajemen

kebijakan yang berdasarkan motto perusahaana,konsep pengelolaan, long/median

term plans, dll., dimana setiap level performa

pekerjaan dibentuk memlalui PDCA untuk

mencapai kesesuaia anta kebijakan. (K Nayatani). Hoshin Kanri merupakan metode penyebaran

formulasi dan implementasi keseluruhan

organisasi, dengan setiap level organisasi mencoba memiliki konstribusi (Fuerer et.all). Hoshin Kanri

adalah system enchasment kapabilitas dan banding

keseluruhan perusahaan untuk improvement of performance dengan mengembangkan unified

kebijakan dan rencana (implementation, check,

action) berdasarkan motto prusahaan (sebagai

dasar konsep manajemen) utuk membentuk manajemen strategi (long, medium, annual

management plan) dengan memanfaatkan sumber

yang ada (Y.Akao)

2.7 Integrasi QFD dengan Hoshin Kanri

Perumusan strategi yang tepat (viewable

strategy) atau sesuai dengan kondisi saat ini sangat

menunjang kemampuan bersaing universitas dalam merespon perubahan secara cepat, beberapa ahli

serta setuju bahwa perumusan strategi sekaligus

penyebarannya secara tepat membantu lembaga terutama untuk meninkatkan kualitas produk yang

dihasilkan serta menjaga dan meningkatkan

kinerjanya untuk mencapai tujuannya dan menghadapai competitor. Integrasi QFD dengan

Hoshin Kanri digunakan untuk melakukan Quality

Strategy Deployment (QSD) atau penyebaran

strategi yang berisikan atribut-atribut kualitas pelayanan


III. Metodologi Penelitian

BAGIAN 2

Quality

Strategy

Deployment

Hoshin Kanri

area Strategy

Formulation

Rev

isi

Menentukan Customer

Needs

Menentukan Technical

Response

Menentukan Relationship

Menentukan Technical

Correlation

Menentukan Planning Matrix

:

Importance to Customer

Customer Satisfaction

Performance

Competitive Satisfaction

Performance

Goal & Improvement

Ratio

Sales Point

Raw Weight

Normalized Raw Weight

Menentukan Priority Technical

Respon

Analisa Situasi saat

ini (Prioritas Isu)

berdasarkan HOQ

Membuat Tujuan, Strategi

Pelayanan dan Rencana

Implementasi

Mengkomunikasikan

dan mengimplementasi

rencana

Review rencana

implementasi secara periodik

Analisa Hasil

review Hoshin

Kanri

Penyusunan

Laporan

BAGIAN 1

Quality

Strategy

Development

QFD Area

VOC and

HOQ

Definition

Selesai

House of Quality

Mulai

Survey Pendahuluan

Pengumpulan Data Kualitatif

Identifikasi Variabel

Penentuan atribut kuesioner

Penyebaran dan Pengembalian

Kuisioner Awal

Perumusan Masalah Studi Kepustakaan

Tujuan Penelitian

Penyusunan Kuisioner Awal :

Data diri,

Tingkat kepentingan.

Tingkat kepuasan jasa yang di analisis,

Penentuan Jumlah Kuisioner Final Uji

Bernoulli :

2

2

2

.

e

qpZ

N

Penyusunan Kuisioner Final :

Data diri

Tingkat kepentingan

Tingkat kepuasan yang di analisis

Penyebaran dan

Pengembalian Kuisioner

Final

Uji Validitas

Valid ? Buang

item yg

tidak valid

Uji Reliabilitas

Reliabel

?

Data

Cukup

? Pengolahan Data

Kuantitatif

Penyebaran

Kuesioner

H

O

Q


IV. Pengumpulan Data Analisa

4.1 Analisa Kinerja Pelayanan Pendidikan di

Jurusan Teknik Mesin Saat Ini Kinerja Jurusan Teknik Mesin dalam

memberikan layanan saat ini dapat dilihat

berdasarkan gap yang terjadi antara ekspektasi dengan persepsi yang dirasakan oleh pelanggan

saat ini. Berdasarkan hasil penyebaran kuesioner

Tabel 4.1 Tingkat kepentingan Pelanggan

Terhadap Atribut Layanan Kelompok STP TP CP P SP Total

Kepemimpinan 1.70 2.96 17.58 37.67 40.09 100

Kemahasiswaan 1.35 2.02 10.43 39.80 46.41 100

SDM 0.70 1.67 12.30 33.50 51.83 100

Kurikulum 1.08 1.08 17.22 34.62 46.01 100

Sarana & Prasarana 1.15 1.02 8.26 27.03 62.52 100

Pendanaan 1.12 2.69 12.56 39.01 44.62 100

Sistem Pengelolaan 1.20 1.49 7.17 24.51 65.62 100

Sis.Pembelajaran 0.54 1.26 17.85 45.02 35.34 100

Sistem Informasi 0.75 1.20 9.27 29.90 58.89 100

Lulusan 1.12 1.68 15.81 32.17 49.22 100

Penelitian 0.45 1.35 11.21 34.98 52.02 100

Keterangan:

STP : Sangat Tidak Penting; TP: Tidak Penting CP : Cukup Penting; P : Penting

SP : Sangat Penting

Tabel 4.2 Tingkat Kepuasan Pelanggan Terhadap

Atribut Layanan Kelompok STP TP CP P SP Total

Kepemimpinan 1.70 2.96 17.58 37.67 40.09 100

Kemahasiswaan 1.35 2.02 10.4 39.80 46.41 100

SDM 0.70 1.67 12.30 33.50 51.83 100

Kurikulum 1.08 1.08 17.22 34.62 46.01 100

Sarana &Prasarana 1.15 1.02 8.26 27.03 62.52 100

Pendanaan 1.12 2.69 12.56 39.01 44.62 100

Sis. Pengelolaan 1.20 1.49 7.17 24.51 65.62 100

Sis.Pembelajaran 0.54 1.26 17.85 45.02 35.34 100

Sis.Informasi 0.75 1.20 9.27 29.90 58.89 100

Lulusan 1.12 1.68 15.81 32.17 49.22 100

Penelitian 0.45 1.35 11.21 34.98 52.02 100

Keterangan:

STP : Sangat Tidak Puas; TP: Tidak Puas

CP : Cukup Puas; P : Puas SP : Sangat Puas

Jurusan Teknik Mesin masih kurang

optimal dalam memberikan pelayanan yang terbaik

kepada mahsiswa, hal ini terlihat pada gambar gap analisis yang terjadi berdasarkan perbedaan nilai

ekspektasi dan persepsi pelanggan.

4.2 Evaluasi Sistem Pelayanan Jurusan Teknik

Mesin

Gap yang terjadi antara ekspektasi

dengan persepsi pelanggan kemudian digunakan sebagai dasar untuk mengindentifikasi masalah

pada sistem pelayanan JTM FT UNJ yang

menyebabkan terjadinya gap tersebut. Proses

indentifikasi permasalahan dapat dilihat pada diagram sebab akibat (fishbone diagram) pada

lampiran 2. Berdasarkan indentifikasi masalah

terlihat ada 4 permasalahan penyebab utama terjadinya gap antara ekspektasi dengan persepsi

pelanggan, antara lain: (1) Buruknya kualitas

layanan yang disebabkan rendahnya mutu lulusan

(kurikulum, kompetensi umum, budaya akademik dan infrastruktur), kualitas dan kuantitas

variabilitas penelitian dan rendahnya model

pengabdian masyarakat; (2) Rendahnya kualitas SDM, hal ini diakibatkan karena masih renfahnya

keahlian dosen dan tenega kependidikan,

rendahnya keterampilan tenaga administrasi,

rendahnya kualitas mahasiswa dan minimnya peran serta alumni; (3) Kurang baiknya pencitraan

publik Jurusan Teknik Mesin, hal ini diakibatkan

oleh minimnya kemitraan dan komitmen melaksanakan program kerjasama, minimnya akses

pendidikan yang bermutu, rendah dan sempotnya

kualitas publikasi karya ilmiah, masih kurangnya

layanan terhadap mahasiswa; (4) belum optimalnya tata kelola di lingkungan JTM FT UNJ,

oleh karena itu diperlukan reformasi birokrasi,

belum adanya LPjm (Lembaga penjamin mutu) di Jurusan dan minimnya penggunaan Sistem

informasi dalam menajeman administrasi.

4.3 Penyusunan Matriks HOQ I

Tabel 4.3 Analisa Planning matrik berdasarkan peringkat NR

Pering

kat No

Customer Needs and

Benefits Gap NRW

1 K07 Prestasi dalam kegiatan karya

ilmiah 2 2.688

2 K09 Dosen berpendidikan

minimal magister (S2) 2 2.688

3 K10

Dosen yang profesional dan

kompeten sesuai dengan

spesifikasi mata kuliah yang

diajarkan

2 2.688

4 K11

Dosen dan karyawan

responsif terhadap kebutuhan

mahasiswa

2 2.688

5 K12

Karyawan ramah dan

profesional dalam melayani

mahasiswa

2 2.688

6 K19

Kesenjangan kurikulum

dengan dunia kerja diatasi

dengan menerima input dari

dunia kerja dan alumni

(stakeholders)

2 2.688

7 K21

Lembaga menyediakan

laboratorium dan

perlengkapannya sesuai

dengan kebutuhan

2 2.688

8 K22

Ketersediaan tempat ibadah,

air dan fasilitas MCK yang

memadai

2 2.688

9 K23

Penggunaan ruang

kuliah/laboratorium sesui

dengan jadwal

2 2.688

10 K25

Kelengkapan sarana belajar

mengajar (white board,

LCD,dll)

2 2.688

11 K26

Ketersediaan buku/jurnal dan

lain-lain di perpustakaan

dalam menunjang

perkuliahan yang up-to date

2 2.688

12

K27

Standar Operasional

Prosedur (SOP) penggunaan

sarana dan prasaranan di

lingkungan JTM FT UNJ

2 2.688


Tabel 4.3 Analisa Planning matrik berdasarkan

peringkat NR (lanjutan) Pering

kat No

Customer Needs and

Benefits Gap NRW

13 K33

KRS/KHS tercetak tepat

waktu dan tidak ada

kekeliruan

2 2.688

14 K34

Dosen pembimbing responsif

dalam memberikan nasehat

perkuliahan

2 2.688

15 K35

Standarisasi mutu

pembelajaran diterapkan

sesuai dengan peraturan,

seperti 2 SKS minimal 14

tatap muka

2 2.688

16 K41 Dosen memberikan diktat,

Handout dalam perkuliahan 2 2.688

17 K42

Standarisasi mutu




tatap muka

2 2.688

18 K43 Pembelajaran berlangsung

interaktif 2 2.688

19 K06

Peranan BEMJ menyalurkan

aspirasi, minat dan bakat

mahasiswa

1 2.151


interaktif 1 2.151

21 K40 Pemberian nilai yang

obyektif oleh dosen 1 2.151

22 K03

Keterlibatan mahasiswa

dalam proses pemilihan

pimpinan di lingkungan JTM

FT UNJ

2 1.792

23 K04 Sistem monitoring dan

evaluasi 3 1.792

24 K05

Mekanisme pemilihan

mahasiswa berprestasi dan

penghargaan terhadap

mahasiswa berprestasi

2 1.792

25 K13 Rasio jumlah dosen terhadap

mahasiswa 2 1.792

26 K14 Sistem penenerimaan

mahasiswa baru yang selektif 2 1.792

27 K15 Kode etik dosen 2 1.792

28 K16

Perubahan kurikulum

dilakukan secara

berkesinambungan dengan

melakukan workshop

2 1.792

29 K18

Bahan pembelajaran

mengikuti perkembangan

IPTEKS

2 1.792

30 K20 Materi praktek yang

memadai 2 1.792

31 K24 Kenyamanan ruang

kuliah/laboratorium 2 1.792

32 K28

Penggunaan anggaran untuk

pengadaan peralatan/bahan

untuk praktekum memiliki

porsi yang lebih banyak

2 1.792

33 K29

Penggunaan anggaran untuk

pemeliharaan sarana &

prasarana

2 1.792

34 K31

Kemampuan Jurusan

memperoleh dana dari luar

institusi

2 1.792

35 K39

Kesesuaian materi kuliah dan

penilaian sesuai dengan

deskripsi mata kuliah dan

SAP yang disampaikan

2 1.792

36 K44 Lulus dengan tepat waktu

(maks.5 tahun) 2 1.792

37

K46

Mahasiswa memperoleh

bimbingan karir dan

informasi kerja

2 1.792

Tabel 4.3 Analisa Planning matrik berdasarkan

peringkat NR (lanjutan) Pering

kat No

Customer Needs and

Benefits Gap NRW

38 K47 Setelah lulus mahasiswa

dapat berwirausaha 2 1.792

39 K48

Hasil penelitian/Skripsi/TA

dapat bermanfaat bagi

masyarakat dan industri

2 1.792

40 K01

Mekanisme pemilihan

pimpinan di lingkungan JTM

FT UNJ (Ka.Jur, Ka.Prog,

Ka. Lab dan lain-lain)

berdasarkan kepatutan dan

kepantasan

1 1.434

41 K02 Sosialisasi rencana strategis

JTM FT UNJ 1 1.434

42 K08

Lembaga memberikan

kesempatan mahasiswa

berkembang dengan optimal

1 1.434

43 K17 Kesesuaian kurikulum

dengan tuntutan dunia kerja 1 1.434

44 K30

Sistem monitoring dan

evaluasi pendanaan yang

transparan

1 1.434

45 K32

Informasi dan prosedur

penyusunan/perbaikan KRS,

KHS, PKL, PPL dan

TA/Skripsi melalui buku

pedoman yang tersedia

1 1.434

46 K37

Standarisasi mutu




tatap muka

1 1.434


interaktif 1 1.434

48 K45 Lulusan JTM FT UNJ

memiliki TOEFL>=400 1 1.434

Sumber: diolah, Juni 2008

4.4 Pembentukan Strategic Vision

Perencanaan strategi yang disusun untuk meningkatkan kualitas pelayanan pendidikan di

JTM FT UNJ terlebih dahulu dibentuk visi untuk

membentuk strategi atau strategic vision (SV). Visi ini dibentuk berdasarkan hasil dari QFD dan

renstra UNJ, hal ini merupakan konsekuensi logis

agar sesuai dengan kebutuhan konsumen dan sinergisitas dengan unit yang lainnya. SV disusun

berdasarkan prioritas tertinggi dari RIW atas TR.

SV yang dibuat juga mempertimbangkan visi, misi

dan renstra UNJ dan FT UNJ agar sinergis.

Tabel4.4 Proses Pembentukkan Strategic Vision

Element No Strategic Vision

Element

Prior

itas

Techical Response

1 Peningkatan

Mutu Relevansi

dan Daya Saing

1 Peningkatan kualitas sarana dan

prasarana akademik

2 Peningkatan kualitas Proses

Belajar Mengajar

8 Peningkatan kualitas bahan ajar

9 Pemberdayaan lab sebagai

pusat riset dan penghasil

IPTEK

16 Pengembangan perpustakaan

22 Peningkatan kualitas media

pembelajaran


Tabel 4.4 Proses Pembentukkan Strategic Vision

Element (Lanjutan) No Strategic Vision

Element

Prior

itas

Techical Response

2 Penguatan Tata

Kelola dan

Akuntabilitas

3 Pembuatan basis data sarana

dan prasarana penunjang

kegiatan akademik

4 Pembentukan tim satuan tugas

pembuatan basis data

5 Pembuatan basis data kegiatan

akademik

10 Peningkatan kualitas kinerja

dosen

15 Evalusi diri berdasarkan basis

data program studi

19 Workshop penyusunan SAP

dan Bahan Ajar

23 Penerapan sistem rekrutmen

dosen baru (minimal S2)

3 Pencitraan

Publik

6 Menjalin mitra kerjasama,

SMK instansi lain, industri dan

Pemda DKI serta

mengoptimalkan kerjasama

yang suda ada

11 Penghargaan mahasiswa

berprestasi

21 Optimalisasi Peran

Buletin/media publikasi di JTM

FT UNJ

24 Peningkatan kemampuan

bahasa Inggris dosen

26 Peningkatan kualitas publikasi

ilmiah

18 Pengaktifkan IKA Jurusan,

membuat data base alumni dan

melakukan tacher study alumni

4 Sumber Daya

Manusia

7 Peningkatkan kemampuan

berfikir kritis dan anaritis

Mahasiswa

12 Pengiriman dosen untuk studi

lanjut S2 dan S3

13 Peningkatan kualitas

mahasiswa baru

14 Peningkatan kualitas penelitian

dosen

17 Peningkatan kemampuan staf

adminsitrasi terhadap tugas

pokok dan fungsinya

20 Pelatihan ketrampilan

bersertifikasi bagi dosen

25 Peningkatkan kemampuan

berfikir kritis dan analitis

Mahasiswa

27 Peningkatan kemampuan skill

teknisi/laboran


4.5 Penentuan Sasaran Strategik

Berdasarkan Critical process dan Critical

succsess Metriks ditentukan Hoshin Objectives atau strategi Hoshin Plan, berdasarkan kriteria di

atas selanjutnya dibentuk Hoshin Objectives, yang

terdiri: (1) Penguatan tatakelola dan akuntabilitas

JTM FT UNJ; (2) Meningkatkan kualitas SDM untuk meningkatkan pelayanan yang terbaik bagi

pelanggan; (3) Peningkatan Keunggulan mutu,

relevansi dan daya saing dan (4) Pencitaan publik.

4.6 Pembentukan Strategi Pembentukan strategi pelayanan

didasarkan atas objectives yang telah disusun, sebagai petunjuk akan langkah-langkah yang

hendak dilakukan untuk mencapai objectives.

Pembentukkan strategi pelayanan yang didasarkan

atas permasalahan yang berhubungan dengan objectives itu sendiri yang mempunyai indikator

kinerja yang terukur, hal ini dilakukan agar

langkah yang diambil terukur, terarah dan memudahkan dalam melakukan review atau

perbaikan dikemudian hari.

Gambar 4.1: Pembentukkan Strategi Pelayanan pada level pertama

Hoshin

Objectives

First Level Strategies

TUJUAN 1

Pengingkatan

keunggulan

dan daya saing

Meningkatkan mutu lulusan

(kurikulum, kompetensi umum, budaya

akademik, infrastruktur)

Peningkatan kuantitas, kualitas, dan

variabilitas penelitian

Pengembangan model pengabdian pada

masyarakat

TUJUAN 2

Peningkatan Tata

kelola dan

akuntabilitas

Reformasi birokrasi (SADA)

Optimalisasi LPjM

Pengembangan Sistem Informasi (SI)

berbasis pada manajemen pengetahuan

(Knowledge management)

TUJUAN 3

Peningkatan

Sumber Daya

Manusia yang

unggul untuk

memberikan

pelayanan yang

terbaik

Peningkatan keahlian dosen dan tenaga

kependidikan

Peningkatan keterampilan tenaga

administrasi

Peningkatan kualitas mahasiswa dan

peran serta alumni

TUJUAN 4

Meningkatkan

pencitraan publik

Perluasan jejaring kemitraan dan

komitmen pelaksanaannya

Perluasan akses bagi pendidikan yang

bermutu

Perluasan dan peningkatan kualitas

publikasi

Peningkatan pelayanan prima


4.7 Penyebaran Strategi

Penyebaran strategi dilakukan dengan

menetapkan level penyebaran pada struktur

organisasi. Strategi yang telah dibentuk kemudian

disebarkan disebarkan sampai ke level dua saja untuk menghindari pengulangan objectives karena

untuk level selanjutnya diaggap sebagai pelaksana

untuk mencapai kebijakan yang telah ditentukan oleh atasannya, selain itu pada level kedua

dianggap sudah mampu menentukan langkah

selanjutnya dalam mencapai kebijakan yang telah

digariskan oleh UNJ. Mekanisme penyebaran strategi dimulai dengan pembentukkan strategi

pada level pertama kemudian dilanjutkan dengan

penyebaran strategi kelevel yang berada dibawahnya. Streategi dilevel pertama akan

menjadi tujuan pada level selanjutnya. Artinya

second level strategies harus dilakukan untuk mencapai first-level strategies dan seterusnya.


Gambar 4. 2: Penyebaran Strategi Pelayanan

Hoshin Objectives First Level Strategies Second Level Strategies

TUJUAN 1

Pengingkatan

keunggulan

dan daya saing

Meningkatkan mutu

lulusan (kurikulum,

kompetensi umum,

budaya akademik,

infrastruktur)

Mengembangkan kurikulum dan silabus yang unggul sesuai dengan per

kembangan IPTEKS dan kebutuhan stakeholders

Mengembangkan metode, teknik, dan media pengajaran yang terbaru dan sesuai

dengan tuntutan stakeholder

Mengembangkan model PPL yang sesuai dengan kompetensi lulusan bidang

keilmuan

Mengembangkan standar mutu setiap program dan melakukan perbaikan

berkesinambungan

Menerima masukan mahasiswa dengan kriteria unggul

Menghasilkan lulusan yang unggul

Penyusunan RPKPS setiap matakuliah

Peningkatan kuantitas,

kualitas, dan variabilitas

penelitian

Pusat kajian pengembangan keilmuan

Kelompok peneliti sesuai dg minat dan bidang keilmuan

Kelompok peneliti ahli dalam menghasilkan PHK

Penelitian kemitraan di tingkat lokal, nasional, dan internasional

Publikasi hasil penelitian

Penggunaan hasil penelitian oleh pemerintah, DUDI, organisasi, dan masyarakat

Pengembangan model

pengabdian pada

masyarakat

Meningkatkan kegiatan pengabdian kepada masyarakat atas dasar tanggungjawab

sosial demi kepentingan rakyat.

Melaksanakan kegiatan pengabdian kepada masyarakat berdasarkan hasil-hasil

penelitian untuk menyelesaikan masalah-masalah aktual di masyarakat

Meningkatkan kompetensi sosial mahasiswa yang merupakan bagian integral dari

proses pendidikan.

Melaksanakan kegiatan pemberdayaan masyarakat yang berbasis partisipasi

masyarakat.

TUJUAN 2

Peningkatan Tata

kelola dan

akuntabilitas

Reformasi birokrasi

(SADA)

Pembentukan sistem adminiatrasi yang terintegrasi

Penyediaan sarana dan prasarana

Pelatihan tenaga administrasi untuk menunjang SADA

Monev secara berkala

Optimalisasi LPjM Evaluasi di tingkat jurusan secara berkala memanfaatkan basis data

Audit internal secara beksinambungan

Pengembangan Sistem

Informasi (SI) berbasis

pada manajemen

pengetahuan

(Knowledge

management)

Pembentukan tim satuan tugas pembuatan basis data dan pengelolanya

Penyusunan basis data akademik, sarana dan pasarana, SDM

Penyediakan perangkat TI dan jaringan

TUJUAN 3

Peningkatan Sumber

Daya Manusia yang

unggul untuk

memberikan

pelayanan yang

terbaik

Peningkatan keahlian

dosen dan tenaga

kependidikan

Program studi lanjut bagi dosen dengan pemberian beasiswa

Peta pendidikan dosen dengan pencapaian 75% S2 dan 25% berpendidikan S3

yang sesuai dengan bidang keahlian dan tanggung jawab akademiknya

Peningkatan TOEFL dosen

Peningkatan

keterampilan tenaga

administrasi

Program pelatihan TI untuk staff administrasi

Program pelatihan layanan pulik

Peningkatan kualitas

mahasiswa dan peran

serta alumni

Pembuatan website JTM FT UNJ

Peningkatan rekrutment mahasiswa baru yang berkualitas

Pengaktifan kembali IKA FT UNJ dengan menyelenggarakan temu alumni secara

rutin

TUJUAN 4

Meningkatkan

pencitraan publik

Perluasan jejaring

kemitraan dan komitmen

pelaksanaannya

Pengalokasian dana untuk program pertukaran dosen dan mahasiswa.

Perintisan kerjasama dengan perguruan tinggi luar negeri melalui berbagai

forum/seminar internasional dan melalui jaringan dosen yang pernah studi lanjut di

luar negeri.

Publikasi hasil karya ilmiah dosen dan kegiatan akademik lainnya dalam media

cetak dan elektronik

Program sandwich dengan universitas terkemuka di luar negeri

Perluasan akses bagi

pendidikan yang

bermutu

Pemberian Beasiswa bagi mahasiswa yang berlatar belakang ekonomi kurang

mampu dan memiliki prestasi yang baik

Peningkatan kualitas layanan program studi

Pengembangan hasil kajian yang implikatif terhadap pembangunan masyarakat

Manajemen rekrutmen mahasiswa yang mendapatkan mahasiswa baru yang

berkualitas

Perluasan dan

peningkatan kualitas

publikasi

Peningkatan Kemampuan Berbahasa Inggris Dosen, Mahasiswa, dan Tenaga

administrasi.

Intensitas Kegiatan Ilmiah nasional dan Internasional

Program Kembaran

Peningkatan pelayanan

prima

Standarisasi layanan administrasi, sesuai dengan SOP

Pemanfatan Teknologi Informasi dalam layanan administrasi



V. Kesimpulan 5.1 Berdasarkan identifikasi terhadap keinginan

dan kebutuhan mahasiswa JTM FT UNJ maka

diperoleh informasi sebagai berikut (a)

kualitas SDM yang menunjang (dosen dan karyawan) 14,28%; (b) pembelajaran

berlangsung dengan interaktif didukung

dengan kurikulum yang sesuai dengan

perkembangan IPTEKs dan tutntutan kerja, sehingga lulusan JTM FT UNJ memiliki mutu

dan berdaya saing: 26,19 %; (c) efektifitas

pengelolaan dan keramahan dalam melayani mahasiswa. Transparansi penilaian, SOP

sehingga lembaga responsif terhadap

kebutuhan mahasiswa: 9,52%;(d) lulus

dengan tepat waktu dengan kualitas penelitian yang baik: 9,52%; (e) ketersediaan sarana dan

prasarana perkuliahan ditunjang dengan

fasilitas teknologi Informasi dan mampu memperoleh sumber pendanaan diluar

institusi, seperti: dana grand atau kerjasama

dengan institusi lainnya: 35,72% dan (f) pencitraan publik:4,77%

5.2 Kinerja JTM FT UNJ dalam memberikan

pelayanan pendidikan dinilai kurang

memuaskan. Hal ini dapat terlihat dari tingginya gap antara ekspektasi dan persepsi

terhadap kualitas layanan. Gap terbesar adalah

4 sebanyak 2,08%, gap 3 sebanyak 41,67% . Nilai Gap terkecil adalah 2 sebanyak 56,25%.

5.3 Berdasarkan hasil identifikasi terhadap isu-isu

penting dalam upaya meningkatkan kualitas layanan pendidikan diperoleh informasi

berupa kriteria bentuk layanan yang perlu

ditingkatkan kinerjanya; (1) peningkatan mutu

relevansi dan daya saing dapat memenuhi kebutuhan pelanggan sebesar 33,687%; (2)

penguatan tatakelola dan akuntabilitas

memiliki bobot sebesar 28,291; (3) Pencitraan publik memiliki konstribusi dalam memenuhi

kebutuhan pelanggan adalah 16,435% dan (4)

pengembangan sumber daya manusia

memiliki porsi sebesar 21,832%. 5.4 Proses perencanaan strategi mengintegrasikan

QFD dengan Hoshin Kanri dibuat usulan

strategi dan penyebarannya samapi level 2 dalam struktur organisasi Jurusan Teknik

Mesin. Usulan tersebut terdiri dari 13 strategi

pada level pertama dan 57 strategi pada level kedua. Usulan Usulan strategi tersebut

disesuaikan dengan visi dan misi lembaga

yaitu mengantisipasi tantangan dan peluang di

era globalisasi melalui peningkatan pelayanan dan penyelenggaraan pengajaran, penelitian,

dan pengabdian masyarakat untuk

menghasilkan SDM yang memiliki

keunggulan akademis, professional di bidang

teknik mesin dengan memenuhi kriteria ke empat strategik vision untuk memenuhi

layanan: jasa intrakulikuler, jasa

ektrakulikuler, jasa penelitian, jasa pengabdian masyarakat, jasa kebijakan umum

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DANISH RESEARCH UNIT FOR I NDUSTRIAL DYNAMICS

DRUID Working Paper No 00-10

Value-based management in learning organizations through 'hard' and 'soft' managerial approaches:

The case of Hewlett-Packard

By

Søren NymarkSeptember, 2000


Value-based management in learning organizations through'hard' and 'soft' managerial approaches: The case of Hewlett-Packard1

Senior Consultant Søren R. Nymark, Ph.D.KPMG Consulting

Borups Allé 177, P.O. Box 250, DK-2000 Frederiksberg, DenmarkTel.: +45 3818 3818, Email: [email protected]

Abstract

‘Learning organizations’ enable companies to remove hierarchical levels and to

introduce a flatter organizational structure, which can lead to reduced costs and increased

productivity. A recent Danish study has proved coherence between a flat, integrative

organizational structure and an increased productivity. This enables a kind of

management in which the managerial form is not as direct as it is in more traditional

structured companies. Value-based management is advanced as a possible answer to the

question of which managerial form that is appropriate for these kind of companies.

In the article, value-based management is described as well as the underlying factors that

are affected by such a managerial form. Required managerial elements in relation to

value-based management are advanced. Examples from Hewlett-Packard are used to

illustrate both the use of value-based management in practice and the underlying factors.

Keywords:

Organizational learning, organizational storytelling, organizational memory,

organizational culture, value-based management, learning organization, Hewlett-Packard

JEL:

L22, L63, M14

ISBN(87-7873-094-5)

1 Comments from Associate Professor Jørgen Gulddahl Rasmussen, Ph.D., at Aalborg University to a

previous version of the paper are highly appreciated.


Introduction: A description of a learning organization

The field of organizational learning, that is relevant for this article, can be defined

through the following widely acknowledged statements:

”Organizational learning means the process of improving actions throughbetter knowledge and understanding.” (Fiol & Lyles, 1985: 803)”Organizations are seen as learning by encoding inferences from historyinto routines that guide behavior.” (Levitt & March, 1988: 319)”Organizational learning occurs through shared insights, knowledge, andmental models … [and] build on past knowledge and experience, that is, onmemory.” (Stata, 1989: 64)

Thus, there will be focused on the cognitive processes that enable organizational learn-

ing. On how information and the impressions from the surroundings become manifest in

the organization, and how meaning is deducted from otherwise paradoxical experiences

and information. The processes of learning that flows in the organization need continu-

ously to contribute to the organization’s development with learning of second order.

Second order learning is the learning that arises, when an incident makes one re-examine

and question one’s basic values and objectives.

Second order learning is thus a necessity for continuous development. If only first order

learning takes place without reflective loops back to examine basic understandings, then

companies will continue to develop in a certain direction until they meet a radical crisis,

which may cause the company to change direction dramatically or to die. The theory

about learning organizations is a theory of continuous development without radical cri-

sis. In order to ensure a company future survival, daily learning processes of first order

must take place, as well as the critical reflection, that is given by a learning process of

second order, must occur from time to time. For example, a centralized mechanistic or-

ganizational structure will be liable to build on previous behavior, while a more decen-

tralized flexible organizational structure will claim new knowledge to a larger degree

(Duncan, 1974).

A company, that has ambitions to become a ‘learning organization’, need what has been

labeled as ‘high caliber’ employees. Characteristic for such employees is that they 1) are

highly educated, 2) have the ability to acquire new knowledge fast and continuously

adapt to new conditions, 3) possess the ability to work without supervision and control,


2

being able to lay down own goals, observe the outcome of these goals, and correct errors

that may occur, 4) have good interpersonal skills, and 4) possess the ability to solve

problems by creative evaluation of different possibilities, and by contributing with own

ideas to reach solutions to the emerging problems (Barrow & Loughlin, 1992: 5).

This will enable companies to remove hierarchical levels and to introduce a flatter or-

ganizational structure, which can lead to reduced costs and increased productivity. A re-

cent Danish study proved coherence between a flat, integrative organizational structure

and increased productivity (Nymark, 1999). Therefore a challenge for the management

is to create room for an organizational form in which learning and innovation are en-

couraged.

Morsing (1995: 3) concludes that just as impossible it is to force people to be spontane-

ous, just as impossible is it to enforce people to be creative, to act more independent or

to take on more responsibility. Thus the management has not any direct possibility to

force employees to act spontaneously, take initiatives, and to learn from their experi-

ences. The management needs to create room in the organization that urges the employ-

ees to develop the characteristics that is considered necessary for ‘learning organiza-

tions’ or for making organizational learning possible. It is pointed out that the manage-

ment cannot force renewal, but management can try to create an environment for radical

renewal by influencing the processes in the organization that is a requisite for second or-

der learning (Morsing, 1995: 27). Continuous learning cannot as such be ‘implemented’.

Garvin (1993) argues that a learning organization is one that encourages learning among

its employees and continuously reorganizes itself. A learning organization is character-

ized by 1) a social climate in which employees are encouraged to learn and develop their

full potential, 2) a strong integration between human resources and companies strategic

policy, and 3) keeping the organization in a continuous state of transforming itself

(Pedler, Burgoyne & Boydell, 1989). Dogdson further defines a learning organization as

one that consequently adopts organizational forms and strategies that encourage learning

(1993: 387).

Value-based managementThe emphasis on learning organizations also requires another managerial form than the

traditional authoritatively form with focus on supervision and regulation. The manage-

ment needs to focus on communication of values and visions. This managerial focus is


3

called value-based management. It is highly relevant for companies in change-intensive,

knowledge based industries with a high degree of highly educated employees.

Value-based management can fundamentally be seen as an indirect managerial style. It is

concerned with making the employees carry out the correct work assignments on their

own initiative without ordering them directly to do so. In knowledge based companies

the circumstance also exists that the management does not know what the employees

specifically are supposed to do, and the management is not expected to know. The man-

agement’s role is to define, create, and communicate the conditions in which knowledge

workers can work. Conditions about what is acceptable behavior, and which actions are

appropriate in relation to the management’s vision and company values. By this infor-

mation from the management the employees deduct their understanding of conditions

and direction in the company. Value-based management is thus a managerial form that is

concerned with making a group of people work together towards a mutual goal without

explicit managerial pressure and use of power.

Hewlett-Packard has practiced these ideas for more than half a century. The previous

CEO of Hewlett-Packard, Lew Platt, explains:

“In the HP environment, you really can’t order people to do anything. AsCEO my job is to encourage people to work together, to experiment, to trythings, but I can’t order them to do it. We’ve picked people who are high-energy self-starters. You can’t tell them what to do. The best I can do is sortof bring people together and hope they mate.”“The philosophy of The HP Way is built on guiding rather than telling: in-stead of telling people what to do, real leaders focus on helping people findtheir own way through ‘adaptive challenges’ – problems without readilyapparent solutions.”“I spend a lot of my time talking about values rather than trying to figureout the business strategies. I don’t think I realized until I became CEO andstarted to talk to other CEOs how different that is. The most important as-pect of the management of this company is cultural control. Get that and therest follows.” (Nymark, 2000)

At Hewlett-Packard the organizational values are described in an inhouse publication

called ‘The HP Way’. These organizational values are described in Textbox 1. ‘The HP

Way’ contains the company philosophy as it was seen in the late 1950s, and it has been

revised only little since. The founders, Bill Hewlett and David Packard, saw ‘The HP

Way’ as the ‘glue’ that kept the company together, and as a critical factor for Hewlett-


4

Packard’s success. ‘The HP Way’ was written based on 20 years of experience with the

management of Hewlett-Packard since its start in 1939. To a large degree it can be noted

that the founders of Hewlett-Packard already in the late 1930s foresaw many of the ten-

dencies in organization and management that have become today’s management fashion

(Nymark, 2000: xi).

These values at Hewlett-Packard are commented in the publication as:

‘HP’s organizational values are a set of deeply held beliefs that govern andguide our behavior in meeting our objectives and in dealing with eachother, our customers, shareholders and others’ (Hewlett-Packard, 1997).

‘HP’s objectives and values have guided us very well for more than half acentury. We believe they are what will give us firm footing in this rapidlychanging environment’ (Lew Platt in Hewlett-Packard, 1997).

Textbox 1: Organizational values at Hewlett-Packard

We have trust and respect for individuals.

We approach each situation with the belief that people want to do a good job and will do so, given the proper tools and support. We attract highly capable, diverse, innovative people and recognize their efforts and contributions to the company. HP people contribute enthusiastically and share in the success that they make possible.

We focus on a high level of achievement and contribution.

Our customers expect HP products and services to be of the highest quality and to provide lasting value. To achieve this, all HP people, especially managers, must be leaders who generate enthusiasm and respond with extra effort to meet customer needs. Techniques and management practices which are effective today may be outdated in the future. For us to remain at the forefront in all our activities, people should always be looking for new and better ways to do their work.

We conduct our business with uncompromising integrity.

We expect HP people to be open and honest in their dealings to earn the trust and loyalty of others. People at every level are expected to adhere to the highest standards of business ethics and must understand that anything less is unac-ceptable. As a practical matter, ethical conduct cannot be assured by written HP policies and codes; it must be an inte-gral part of the organization, a deeply ingrained tradition that is passed from one generation of employees to another.

We achieve our common objectives through teamwork.

We recognize that it is only through effective cooperation within and among organizations that we can achieve our goals. Our commitment is to work as a worldwide team to fulfill the expectations of our customers, shareholders and others who depend upon us. The benefits and obligations of doing business are shared among all HP people.

We encourage flexibility and innovation.

We create an inclusive work environment which supports the diversity of our people and stimulates innovation. We strive for overall objectives which are clearly stated and agreed upon, and allow people flexibility in working toward goals in ways that they help determine are best for the organization. HP people should personally accept responsibility and be encouraged to upgrade their skills and capabilities through ongoing training and development. This is espe-cially important in a technical business where the rate of progress is rapid and where people are expected to adapt to change.

Hewlett-Packard (1997); Nymark (2000: 140).


5

The organizational values of Hewlett-Packard, described in Textbox 1, are somewhat

broad and flexible, even though they communicate an understanding or feeling for ap-

propriate behavior in Hewlett-Packard to the individual employee. The values need to be

flexible in order to be enduring over time, but one might question the effect as the values

are vaguely defined. A consequence is that the concept of ‘storytelling’ must supplement

the focus on organizational values. Through ‘storytelling’ the organizational values are

communicated and made concrete.

Storytelling in organizations

Stories are in every culture considered a media for providing meaning and understanding

of the world for the individual: “It has been proposed that man lives by stories (Mitroff

& Kilmann, 1976: 189); that people in organizations are ‘natural, born storytellers’

(Boje, 1994: 433); that man is ‘a storytelling animal by nature’ (Eco, 1983: 13); and the

human race is even considered as ‘homo narrans’ (Fisher, 1984).” (Nymark, 2000: 47).

Stories are told at all levels in an organization. The stories are evaluated by their recipi-

ents on criterions as verisimilitude, and to whether the stories make sense out of events

encountered by the individual.

Here focus is on the function that both formal and informal stories have in organizations.

Formal stories are seen as a means for communicating the management’s visions about

the company future as well as the set of values, which the company emphasizes. Formal

stories can for instance have the form of the management’s speeches at employee meet-

ings, vision and value statements in internal brochures, and books written by the man-

agement. Formal stories reflect the image of the company that the management prefers

to communicate to both internal and external stakeholders. Through formal stories man-

agement influences organizational cultures.

Informal stories are of an uncontrollable and fundamental character in an organization.

Informal stories are stories that make sense out of otherwise paradoxical and ambiguous

events in the organization for the individual employee. If for instance an employee is in

a situation where the employee has acted in accordance with the organization’s set of

values, but the action is resented in the organization, and the employee subsequently

consults a colleague, then the event often will be explained in the form of a story. Infor-

mal stories arise in the situation and are not as such something the employees are con-


6

scious of in everyday situations. A story will, based on the company history, explain

why an otherwise rational action according to the company’s values is not comme il faut

in that specific situation. Thus the story gives meaning to an ambiguous situation so the

employee is able to act with increased understanding of the organizational cultures in

future situations.

An organization’s cultures consist of elements with different degrees of visibility.

Norms and assumptions lie deeply rooted and implicit in the organization’s cultures.

Also the values, that the organization is built on, can be found here. These values are

shaped over time through different factors, which influence the organization’s culture.

One way, in which these values are shaped and thus influence the organizational cul-

tures, is through the organizational stories. When values in organizational cultures lie

implicit, they can be hard both to grasp for new employees and to communicate explic-

itly to other employees. This function is thus maintained through organizational stories.

It is through the stories that elements of the cultures are communicated throughout the

organization. Hereby employees learn what is acceptable in the organization and what is

not. In the stories this is communicated explicitly, but also an implicit understanding or

intuitive understanding is communicated in the morale of the stories, which thus con-

tributes to an increased ability for employees to act appropriately in the organization in

other situations.

Formal and informal stories can be seen as correcting each other. If the stories that the

management communicates do not correlate to the organizational reality as the employ-

ees see it, then informal stories arise between the employees to adjust for this incongru-

ity. It can cause the management and thus the company more harm than otherwise, so in

that sense it is important for the management to walk its talk. This is illustrated in Figure

1.


7

Figure 1: Relationship between formal and informal stories.

Formal stories indicate the company's values and direction as seen by the management.

Functions on the strategic level - the managerial level.

Informal stories contribute to sense making for the individual, and can affect the company's direction both positively and negatively.

Functions in everyday situations - on employee level. Unconscious level

Conscious level

Deg

ree

of c

onsc

ious

ness

of t

he fu

nctio

n of

sto

ries

Organizational stories serve several important functions. Informal stories have two main

purposes. The first one is that stories are creators of meaning for all employees in their

daily roles and thus also function to both maintain and revise the organizational culture,

the basic understanding of the organization. The second main purpose is to communi-

cate the organizational culture to new members of the organization. Through informal

stories new members are given meaning to otherwise ambiguous or paradoxical situa-

tions, they have experienced. Formal stories function directly to communicate and influ-

ence the organizational culture and values. Formal stories are explicit, and most often

the management communicates formal stories as seen in the example of Hewlett-

Packard below.

An example from Hewlett-Packard

An often-referred story goes about an event concerning the confidence that Hewlett-

Packard places in people as well as the company’s emphasis on innovation. It concerns

an incident that happened one weekend, when Bill Hewlett stopped by the plant to pick

up a microscope and found that the storage bins were locked up (Nymark, 2000: 133).


8

The legend has it that he smashed open the latch, took what he needed, and left a note

saying that the bins should always be kept open to encourage workers to take home

equipment for experiments. The incident and the peculiarities of the open store labora-

tory policy are later recalled as:

“The faith that HP has in its people is conspicuously in evidence in the cor-porate ‘open lab stock’ policy that a few of our students encountered in theSanta Rosa division. The lab stock area is where the electrical and me-chanical components are kept. The open lab stock policy means that notonly do the engineers have free access to this equipment, but they are actu-ally encouraged to take it home for their personal use. The idea is thatwhether or not what the engineers are doing with it directly related to theproject they are working on, by fooling around with the equipment at workor at home, they will learn – and so reinforce the company’s commitment toinnovation. Legend has it that Bill visited a plant on a Saturday and foundthe lab stock area locked. He immediately went down to maintenance,grabbed a bolt cutter, and proceeded to cut the padlock off the lab stockdoor. He left a note that was found on Monday morning: ‘Don’t ever lockthis door again. Thanks, Bill’.” (Peters & Waterman, 1982: 245 in Nymark,2000: 133)

This event has been seen as an early pivotal event in the history of Hewlett-Packard,

which emphasizes explicitly that Hewlett-Packard was not going to be a company that

distrusted its employees. Furthermore, the open stock and laboratories’ policy can easily

be seen as a symbol of trust, which is a central aspect of the way that Hewlett-Packard is

managed. The open stock policy can also be seen as a symbol of the strong devotion to

innovation that Hewlett-Packard has, as well as recognition of the fact that continuous

innovation is what marks the future of the company.

The strengths of the story were later illustrated, when an interview session took place at

Hewlett-Packard at the Birkerød site in Denmark. The interviewer made inquiries into

stories that particularly can be emphasized to illustrate or underline the organizational

culture at Hewlett-Packard. The questions asked to the employees were not directly on

organizational stories, but organizational stories were the topic of the inquiry. The em-

ployee, who was interviewed, explained about: ‘some incident years back, before I was

hired, about a door that had been locked, which was broken up by a manager to illustrate

the trust that was shown the employees at HP. And the employee, who had put a lock in

good faith on the door, had been told never to do that again’ (Nymark, 2000: 171).


9

The original story has been used as a formal story for the management to communicate

an aspect of the organizational values. This story has now become informal, as it can be

seen in the example above, and is thus used between employees to give meaning and

understanding of everyday topics and incidents. It has developed from being a formal

story to becoming institutional practice at Hewlett-Packard worldwide. It can clearly be

seen from the history of Hewlett-Packard, and especially some of the first many years

with Hewlett and Packard in the top management, that much has been done, and even

perhaps overdramatized, in order to explain and communicate organizational values to

employees by strong examples and deliberate communication of these examples.

Organizational stories, learning and memory

Through members of the organization stories are handed over to new members and to

older members in new situations in which the re-told story is handed over. New events

affect and revise continuously the collective organizational memory. In Figure 2 the

connection of elements affecting the organizational memory is illustrated. The organiza-

tional memory can be seen as an intersubjective consensual social knowledge, which is

created, maintained and revised through the employees’ stories. Organizational stories

then can be seen as a medium for understanding and communication of organizational

knowledge.

Figure 2: Connection of elements in organizational memory

Members of theorganization

The organizationalmemory

Forgotten events;organizational unlearning

Stories

Stories

Newsignificant

events


10

New stories emerge, some are adjusted and some are forgotten. If a story about an event

in the organization is not re-told, it might be because the organization has developed in a

direction in which these stories about certain significant events no longer contribute to a

sense making process for the individual. These stories are eventually forgotten, and the

members of the organization, who still remember the stories, will gradually leave the

company, and thus unlearning of the organizational knowledge has commenced.

In situations, which an employee may find ambiguous or paradoxical, understanding of

the situation is communicated by colleagues in the shape of stories, with origin in the

organizational memory. Hereby meaning is attached for the individual employee to the

occurrence as previously explained.

Table 1 synthesizes the notion of organizational memory in relation to formal and in-

formal stories in perspective of learning and development.

Table 1: The role and function of organizational stories: A synthesis.

Typology: Informal stories Formal stories

Process of learning: 2. order learning 1. order learning

Function: Development Maintenance

Action: Adjustment of organiza-tional memory

Communication of organizationalvalues

In an organization the communication of the company’s values maintain the organiza-

tional memory through formal stories as illustrated by the case Hewlett-Packard. Infor-

mal stories contribute continuously to an adjustment of the organizational memory.

Through informal stories the existing values and norms, which are maintained through

the formal stories, are questioned. Thus formal and informal organizational stories’ role

in relation to 1. and 2. order learning processes can be illustrated. 1. order learning proc-

esses function to maintain the established system, while 2. order learning processes

function to develop the existing system by questioning the existing values and norms.

And thorough the learning processes information is collected, analyzed, stored, and

transferred (Popper & Lipshitz, 1998: 170).

For the individual employee formal stories function to maintain and reinforce the exist-

ing understanding of the organizational culture, while informal stories function to give


11

meaning to otherwise paradoxical occurrences in the organization. In this re-telling from

employee to employee the organizational memory is adjusted. Hedberg links individual

learning with organizational memory as:

”Although organizational learning occurs through individuals, it would bea mistake to conclude that organizational learning is nothing but the cu-mulative result of members’ learning. Organizations do not have brains, butthey have cognitive systems and memories. As individuals develop their per-sonalities, personal habits, and beliefs over time, organizations developworld views and ideologies. Members come and go, and leadershipchanges, but organizations’ memories preserve certain behaviors, mentalmaps, norms, and values over time.” (Hedberg, 1981: 6)

Walsh & Ungson (1991: 72) points out that in organizations ability must exist to collect

and store communicable, consensual, and integrated knowledge. Through this knowl-

edge organizational activities are integrated and coordinated. This can for example be

the transference of new knowledge throughout the system. This ability is the organiza-

tional memory. In the organizational memory lies knowledge about previous events

from the organization’s past, which can make sense in ambiguous situations for the in-

dividual employee. Thus the organizational memory functions to connect the past with

the present.

The organizational memory is a part of the culture. Schein (1990: 111, 115) underlines,

that culture is something that has to be learned. Culture is what members of the organi-

zation learn over a period of time by acting according to the problems they meet both in

the organization’s internal and external surroundings. This process of learning is thus at

the same time a behavioral, a cognitive, and an emotional process. Schein defines cul-

ture as:

”… as (a) a pattern of basic assumptions, (b) invented, discovered, or de-veloped by a given group, (c) as it learns to cope with its problems of exter-nal adaption and internal integration, (d) that has worked well enough to beconsidered valid and, therefore (e) is to be taught to new members as the (f)correct way to perceive, think, and feel in relation to those problems.”(Schein, 1990: 111)

Organizational culture is a network of local meaning and significance between members

of the organization (Schultz, 1990: 73). Organizational culture is a socially constructed

and meaningful reality for the members that sums up the specific way of existing in the


12

particular organization. However, the organizational culture must not be understood as a

static and unambiguous entity. Culture is an active, dynamic, and subjective entity that

always is undergoing changes in a forum of negotiation between members of the organi-

zation. Bruner illustrates this very well:

”… culture is constantly in process of being recreated as it is interpretedand renegotiated by its members. In this view, a culture is as much a forumfor negotiating and renegotiating meaning and for explicating action as it isa set of rules or specifications for action. Indeed, every culture maintainsspecialized institutions or occasions for intensifying this ‘forum-like’ fea-ture. Storytelling, theater, science, even jurisprudence are all techniques forintensifying this function – ways of exploring possible worlds out of thecontext of immediate need. … It is the forum aspect of a culture that gives itsparticipants a role in constantly making and remaking the culture – an ac-tive role as participants rather than as performing spectators who play outtheir canonical roles according to rule when the appropriate cues occur.”(Bruner, 1986: 123)

In an organization’s culture different levels of visibility exist (Schein, 1992: 238). The

most explicit way of getting an impression of the organization’s culture is for example

by reading the information material that is handed out to new employees, as those val-

ues, on which the organization builds its culture, lie on a deeper and more implicit level.

Through these values it is possible to come under management rhetoric about the com-

pany’s culture and how things are done in the particular company. In the deeper lying

values the organization’s culture is reflected.

Value-based management by storytelling

Value-based management is concerned with indirectly setting the conditions, under

which employees can work and develop in the organization as previously explained. Or-

ganizational stories are used to communicate organizational values and culture as well

as making sense for employees in the organization. Formal stories are communicated by

the management in order to explain organizational by ‘correct’ guidelines for behavior

in the organization to new employees as well as to keep older employees focussed on a

common picture of the organization, its values, and its vision for the future. Enduring

organizational values is important for, for instance, fast growing companies and compa-

nies in change-intensive surroundings as the high-tech industry. Enduring values creates

an important sense of stability in the organizations, while the need for direct managerial


13

attention is less necessary. The management can use formal stories to communicate

these values, but must be aware of ‘walking the talk’. Otherwise they will be exposed to

informal organizational stories among employees correcting the wrong image. This is a

process that continuously goes on in organizations as illustrated in figure 2.

This form of value-based management has been seen at Hewlett-Packard for decades.

Especially the founders, Bill Hewlett and Dave Packard, were most aware of the signals

they sent by their behavior and information material. Hewlett, breaking up the lock to

the inventory with a bolt cutter, is a good example, how theatrical and demonstrative be-

havior is used to create stories of small but significant events that function to communi-

cate values and culture to employees. Several of these significant events that have turned

into widely communicated stories at Hewlett-Packard have been collected (Nymark,

2000: 115-148). These stories serve to employees as examples of what the founders

have done in specific situations and from these stories the employees can deduct by

analogy what is acceptable behavior for them in other situations, as also the stories are

giving an impression of the corporate culture. The story of the inventory serves thus both

to communicate the company’s attitude to locking up material, and as well indirectly the

degree of trust, the company has to its employees, and to communicate indirectly that

innovation takes place through playing and in other informal contexts.

The strength of organizational stories as a means in value-based management is given by

the example of the interview situation at Hewlett-Packard in Birkerød. The employee

retold the morale of the inventory story as something that had happened at the site at

Birkerød. Even though the story is passed on through several employees’ re-telling and

re-interpretation, the morale, in which the organizational values lie, remains the same. It

is indifferent to the values, which are communicated in the morale, whether the event

took place at Birkerød or Palo Alto. Furthermore, the story of the locked inventory is a

formal story, that successfully has been accepted and adapted in the organizational

memory, and thus is increasingly used as an informal story. A story that gives meaning

and understanding in the every-day life for the individual employee, and become an in-

tegrated part of the organizational memory.

For companies, that find themselves in change-intensive organizational surroundings

and with highly educated employees, it might be appropriate to put more emphasis on

value-based management compared to vision management. The two managerial forms


14

build on the same premises, but when the management by vision management focuses

on creating and communicating a common vision for employees to identify with, the

management by value-based management focuses on creating and communicating a

common set of values, which employees need to adhere to when working in the com-

pany. It gives the employee a wide degree of freedom knowing that if the employee ad-

heres to the limits of these values, everything is basically allowed as a basic rule. The

difficulty of vision management in change-intensive surroundings is to maintain and

communicate the vision continuously to the employees as frequent as surroundings

change. This is easier done in industries and companies working on less change-

intensive markets as for instance traditional furniture manufacturing market. Vision

management is mainly externally focused whereas value-based management is internally

focused. Therefore value-based management is relevant for companies that strive on the

forefront of their industry and thus being part of creating their own future. Company vi-

sion can thus be frequently changeable, while a solid and enduring set of values is im-

portant for the employees to adhere to in their daily work.

Goal setting on both an individual and an organizational level as an

important part of value-based management

An important part of the managerial role in value-based management, as seen above, is

to communicate the corporate values by different means, which both includes the story-

telling aspect and the symbolic aspect of talking the walk and walking the talk them-

selves. However, another important side of value-based management has not been em-

phasized yet. It is the importance of a continuous goal setting and review of goals and

progress.

Again Hewlett-Packard can be used as an example. If Hewlett and Packard had only fo-

cused on communicating values, things may very well have looked very different for

Hewlett-Packard today. Hewlett-Packard has developed a highly sophisticated system

based on continuous goal setting and evaluation on both an individual and an organiza-

tional level.


15

Goal setting on the level of the individual employee through evaluation and devel-

opment

As an example it can be advanced that Hewlett-Packard uses an evaluation system

named Personal Evaluation/Development Plan (PE/DP), which also includes a Position

Plan (DP) as a part of the Development Plan. The Position Plan ensures that the individ-

ual employee at all time is aware of the tasks of which the employee is responsible. The

PE/DP is an yearly evaluation and subsequently a development plan. Every year new

goals are set for the employee, some goals are revised, others are admitted, and the pre-

vious year is evaluated. The PE/DP system is used for evaluation and goal setting for

employees at all levels of the hierarchy, and besides fixed parts there is room left for lo-

cal adjustments if necessary. As a minimum the following items should be included: a

signature area for employee consent to the PE/DP, a list of future targets and expected

results, a list of criterions, which the employee will be evaluated on the coming year, a

summary of previous accomplishments, employee comments to last year's PE/DP, and a

development plan for next year.

In surveys Hewlett-Packard centrally follows up on the PE/DP. There are e.g. surveys

concerning the degree of success in reaching the goals set, the quality of the process to-

wards reaching the goals set, and the management's support. A number of issues con-

cerning the individual employee are also evaluated. For instance personal sale, orders,

turnover, and to which degree the management has performed the yearly PE/DP with all

subordinates. Additional examples are given in Textbox 2.


16

Textbox 2: Issues for survey used in the PE/DP system.

In employee surveys the employees are asked whether they have a de-velopment plan and have sufficient opportunities for training. The sur-veys are also a reminder to the employees that they are responsible for their own development, and thus are prepared for the changing needs in Hewlett-Packard. In the survey it is also checked whether the man-agement is willing to discuss career development and whether it is sup-portive of the employee’s continuous development in their current job. For instance, performance factors, that the employees are measured on, are work characteristics as quality, productivity, process improvement, and customer satisfaction; job skills, which include factors as technical competence, job knowledge, planning and organization, and job satisfaction; and a job approach, which includes factors such as dependability, teamwork, initiative, flexibility, work environment, safety and security.

Based on Nymark (2000: 158-164) and Hewlett-Packard (1996).

A key element in the process is the dialogue between the employee and his/her immedi-

ate superior, which ensures that mistakes are not made in the PE/DP as well as the focus

on the employee's responsibility for meeting own goals. Prior to the meeting, the em-

ployee's superior has talked to the employee's colleagues to get an impression of the em-

ployees' personal and professional development. The employee is given a grade on a

scale from 1 to 5 at the meeting. The grade is based upon the issues mentioned above,

and prior to the meeting there has been a meeting between several managers in order to

ensure, that a grade is never given based on a single managers perspective. Also carrier

and salary are affected by the result from the personal evaluation (Nymark, 2000).

Goal setting on the level of the organization

As an example, on the organizational level Hewlett-Packard is inspired by a Total Qual-

ity Management like strategic planning system called Hoshin Planning. Basically Hoshin

Planning is a system of forms and rules for strategic formulation and implementation on

different levels in the organization. Hoshin Planning is a part of the Hoshin Kanri sys-

tem, which was originally developed to communicate corporate strategy and philosophy

to all employees in an organization.

The process focuses on the company's key activities and the system is widely used in Ja-

pan. In the Western world, however, Hewlett-Packard is one of the few leading compa-


17

nies, which uses Hoshin Planning, and one of Hewlett-Packard's divisions has even won

the Deming Prize by using the Hoshin Planning technique. In 1965 Bridgestone Tire re-

leased a report in which the technique, which Deming Prize winners had used, was ana-

lyzed. The technique described was called Hoshin Kanri, which origin is described in

Textbox 3.

Textbox 3: Origin of ‘Hoshin Kanri’.

Taken altogether, Hoshin Kanri means management and control of the company's direction needle or focus. The term ‘Hoshin’ is short for Hoshin Kanri.

Both the word hoshin and the word kanri can be broken into two parts. The literal translation of ho is ‘direction’, and the literal translation of shin is ‘needle’. Thus the word hoshin could be translated into ‘direction needle’. However, the most popular translation of hoshin is policy deployment. Hoshin in Japanese translates to a course, a policy, a plan, or an aim.

The first part of kanri, kan, can be translated to control or channeling. The second part, ri, can be translated to reason or logic. Kanri in Japanese translates to administration, management, control, charge of, or care for.

Nymark (2000: 155).

A Hoshin is described as a one-year plan aiming to reach goals developed by the man-

agement. The Hoshin Kanri system focuses on stepwise planning, implementing and

follow-up processes, and is used to integrate long-term goals and daily activities. It is

especially valuable in the sense that it provides an organizational flexibility, which en-

sures that managers at all levels are aware of where they stand in relation to top man-

agement strategy.

At Hewlett-Packard the Hoshin Planning system is especially valued because of its in-

herent ability to adapt a large amount of employees from all levels of the organization to

a common goal. Hoshin Planning is used to achieve Hoshin's (breakthrough objectives)

and Business Fundamentals (short-term goals). Both Hoshin's and Business Fundamen-

tals are used for goal setting on corporate, division, and group level. There can be sev-

eral Business Fundamentals every year. In 1998, for instance, there were 13 Business

Fundamentals, but it is important only to focus on a few Hoshin's at a time in order to

keep focused. Both Hoshin's and Business Fundamentals are evaluated every year. Ho-

shin's are attained through a process called Hoshin Management as shown in Textbox 4.


18

Textbox 4: The process of Hoshin Management.

1. Determine Hoshin Hoshin is determined by the top management. Hoshin should be executed with targets and means for achieving targets. While top management is determining the hoshin, middle and line manage-ment should also determine the hoshin based on their experiences and historical data (if neces-sary) by themselves.

2. Deploy Hoshin After determining the Hoshin for each level of management, it is necessary to identify if there are hoshin relationships between the top and middle levels and the middle and line levels in the or-ganization. Deploying hoshin is called catchball. It is important for any organization to understand which targets should be achieved and how to do so. During the catchball process, it is necessary to reach the consensus for targets and means between varying levels of the organization. Since tar-gets and means will be determined individually, it is necessary and important to identify the rela-tionships between targets and means of each level and targets between the different levels of the organization.

3. Implement Hoshin After adjusting the Hoshin, the means for Hoshin should be implemented. During the implementation, each target should be measured using performance measures from the target statement. 4. Review Hoshin The performance measure in the target statement should be measured. Measurement should be performed by each level of management. Thus, from top to bottom, all members related to Hoshin should observe the performance measure for each level.

5. Adjust Hoshin

If the Hoshin target is achieved, the target value should be accordingly adjusted. Existing target values might be low or activities for the means might be highly effective. In both cases, it is sig-nificant to realize why and how the targets were achieved. The case may be that the target values do not require adjustment. It should be decided, depending on the organizational situation, if the target value needs adjustment.

Nymark (2000: 156).

Some targets are set on a five years basis and are spread in the organization through the

'catchball'-process described in Textbox 4. Every year's Hoshin's are a part of the five-

year plan and a Hoshin in one year can become a Business Fundamental the next year.

For example the two Hoshin's in 1997, 'Customer Satisfaction' and 'Our People', became

Business Fundamentals in 1998. This process is encouraged at all levels so different di-

visions can have their own individual Hoshin's besides the focus on the corporate Ho-

shin's if necessary.


19

The Hoshin Planning system thus provides a tool for integrating long term and short-

term goals in the organization, and it is a means for integrating these corporate goals

with goal setting for the individual employee as well (Nymark, 2000).

Concluding remarks

It has thus been seen how the conditions for organizational learning are supported by an

emphasis on value-based management. It has been seen how the founders of Hewlett-

Packard have practiced value-based management for decades, and that Hewlett-Packard

even can be called a ‘learning organization’ according to the definitions laid out in the

first part of the article. Furthermore it has been seen that organizational storytelling is an

important means for the organizational culture, and that organizational storytelling is an

important underlying factor for value-based management as well as the processes that

contributes to the organizational memory through learning and unlearning.

However, a final note in relation to value-based management is of significant impor-

tance. Value-based management cannot be based on the ‘soft’ storytelling side alone. It

needs a ‘hard’ side as well to make up for the highly ‘soft’ side that has been advanced

in this article. The ‘hard’ side is continuous goal setting and evaluation.

Thus there are two important approaches that need to be advanced in order to make

value-based management work most efficiently: The ‘soft’ value and storytelling ap-

proach, and the ‘hard’ goal setting and evaluation approach. In value-based management

these two approaches complement each other and increase the possibility of higher or-

ganizational efficiency. If clear and well-communicated company values supplemented

with stories, which explain these values by providing practical examples, are given then

the employees know to a larger degree where they stand, what is allowed in the company

and what is not. Consequently the employees are able to increase decision-making on

their own when they have also been made aware of their personal goals. Thus manage-

rial involvement in everyday decision-making can be reduced significantly. This can in-

crease the ability to make decisions in the organization in less time. Less time can be

spent on managerial issues, and thus the span of control for managers can be increased,

which can lead to a reduced hierarchy. A goal-directed organization focused on a learn-

ing environment with continuous improvement and feedback might be the result.


20

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21

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Danish Research Unit for I ndustrial Dynamics

The Research Programme

The DRUID-research programme is organised in 3 different research themes:

- The firm as a learning organisation

- Competence building and inter-firm dynamics

- The learning economy and the competitiveness of systems of innovation

In each of the three areas there is one strategic theoretical and one central empiricaland policy oriented orientation.

Theme A: The firm as a learning organisation

The theoretical perspective confronts and combines the resource-based view (Penrose,1959) with recent approaches where the focus is on learning and the dynamiccapabilities of the firm (Dosi, Teece and Winter, 1992). The aim of this theoreticalwork is to develop an analytical understanding of the firm as a learning organisation.

The empirical and policy issues relate to the nexus technology, productivity,organisational change and human resources. More insight in the dynamic interplaybetween these factors at the level of the firm is crucial to understand internationaldifferences in performance at the macro level in terms of economic growth andemployment.

Theme B: Competence building and inter-firm dynamics

The theoretical perspective relates to the dynamics of the inter-firm division of labourand the formation of network relationships between firms. An attempt will be made todevelop evolutionary models with Schumpeterian innovations as the motor driving aMarshallian evolution of the division of labour.

The empirical and policy issues relate the formation of knowledge-intensive regionaland sectoral networks of firms to competitiveness and structural change. Data on thestructure of production will be combined with indicators of knowledge and learning.IO-matrixes which include flows of knowledge and new technologies will bedeveloped and supplemented by data from case-studies and questionnaires.


Theme C: The learning economy and the competitiveness of systems of innovation.

The third theme aims at a stronger conceptual and theoretical base for new conceptssuch as 'systems of innovation' and 'the learning economy' and to link these conceptsto the ecological dimension. The focus is on the interaction between institutional andtechnical change in a specified geographical space. An attempt will be made tosynthesise theories of economic development emphasising the role of science based-sectors with those emphasising learning-by-producing and the growing knowledge-intensity of all economic activities.

The main empirical and policy issues are related to changes in the local dimensions ofinnovation and learning. What remains of the relative autonomy of national systemsof innovation? Is there a tendency towards convergence or divergence in thespecialisation in trade, production, innovation and in the knowledge base itself whenwe compare regions and nations?

The Ph.D.-programme

There are at present more than 10 Ph.D.-students working in close connection to theDRUID research programme. DRUID organises regularly specific Ph.D-activitiessuch as workshops, seminars and courses, often in a co-operation with other Danishor international institutes. Also important is the role of DRUID as an environmentwhich stimulates the Ph.D.-students to become creative and effective. This involvesseveral elements:

- access to the international network in the form of visiting fellows and visits at thesister institutions

- participation in research projects- access to supervision of theses- access to databasesEach year DRUID welcomes a limited number of foreign Ph.D.-students who wantsto work on subjects and project close to the core of the DRUID-research programme.

External projects

DRUID-members are involved in projects with external support. One major projectwhich covers several of the elements of the research programme is DISKO; acomparative analysis of the Danish Innovation System; and there are several projectsinvolving international co-operation within EU's 4th Framework Programme. DRUIDis open to host other projects as far as they fall within its research profile. Specialattention is given to the communication of research results from such projects to awide set of social actors and policy makers.


DRUID Working Papers

96-1 Lundvall, Bengt-Åke: The Social Dimension of the Learning Economy.(ISBN 87-7873-000-7)

96-2 Foss, Nicolai J.: Firms, Incomplete Contracts and Organizational Learning.(ISBN 87-7873-001-5)

96-3 Dalum, Bent and Villumsen, Gert: Are OECD Export SpecialisationPatterns Sticky?’ Relations to the Convergence-Divergence Debate. (ISBN87-7873-002-3)

96-4 Foss, Nicolai J: Austrian and Post-Marshallian Economics: The BridgingWork of George Richardson. (ISBN 87-7873-003-1)

96-5 Andersen, Esben S., Jensen, Anne K., Madsen, Lars and Jørgensen,Martin: The Nelson and Winter Models Revisited: Prototypes for Computer-Based Reconstruction of Schumpeterian Competition. (ISBN 87-7873-005-8)

96-6 Maskell, Peter: Learning in the village economy of Denmark. The role ofinstitutions and policy in sustaining competitiveness. (ISBN 87-7873-006-6)

96-7 Foss, Nicolai J. & Christensen, Jens Frøslev: A Process Approach toCorporate Coherence. (ISBN 87-7873-007-4)

96-8 Foss, Nicolai J.: Capabilities and the Theory of the Firm. (ISBN 87-7873-008-2)

96-9 Foss, Kirsten: A transaction cost perspective on the influence of standards onproduct development: Examples from the fruit and vegetable market. (ISBN87-7873-009-0)

96-10 Richardson, George B.: Competition, Innovation and Increasing Returns.(ISBN 87-7873-010-4)

96-11 Maskell, Peter: Localised low-tech learning in the furniture industry.(ISBN 87-7873-011-2)

96-12 Laursen, Keld: The Impact of Technological Opportunity on the Dynamicsof Trade Performance. (ISBN 87-7873-012-0)


96-13 Andersen, Esben S.: The Evolution of an Industrial Sector with a VaryingDegree of Roundaboutness of Production. (ISBN 87-7873-013-9)

96-14 Dalum, Bent, Laursen, Keld & Villumsen, Gert: The Long TermDevelopment of OECD Export Specialisation Patterns: De-specialisation and“Stickiness”. (ISBN 87-7873-014-7)

96-15 Foss, Nicolai J.: Thorstein B. Veblen: Precursor of the Competence-BasedApproach to the Firm. (ISBN 87-7873-015-5)

96-16 Gjerding, Allan Næs: Organisational innovation in the Danish privatebusiness sector. (ISBN 87-7873-016-3)

96-17 Lund, Reinhard & Gjerding, Allan Næs: The flexible company Innovation,work organisation and human ressource management. (ISBN 87-7873-017-1)

97-1 Foss, Nicolai J.: The Resource-Based Perspective: An Assessment andDiagnosis of Problems. (ISBN 87-7873-019-8)

97-2 Langlois, Richard N. & Foss, Nicolai J.: Capabilities and Governance: theRebirth of Production in the Theory of Economic Organization. (ISBN 87-7873-020-1)

97-3 Ernst, Dieter: Partners for the China Circle? The Asian Production Networksof Japanese Electronics Firms. (ISBN 87-7873-022-8)

97-4 Richardson, George B.: Economic Analysis, Public Policy and the SoftwareIndustry. (ISBN 87-7873-023-6)

97-5 Borrus, Michael & Zysman, John: You Don’t Have to Be A Giant: HowThe Changing Terms of Competition in Global Markets are Creating NewPossibilities For Danish Companies. (ISBN 87-7873-024-4)

97-6 Teubal, Morris.: Restructuring and Embeddeness of Business Enterprises-Towards an Innovation System Perspective on Diffusion Policy. (ISBN 87-7873-025-2)

97-7 Ernst, Dieter & Guerrieri, Paolo: International Production Networks andChanging Trade Patterns in East Asia: The case of the Electronics Industry.(ISBN 87-7873-026-0)

97-8 Lazaric, Nathalie & Marengo, Luigi: Towards a Characterisation of Assetsand Knowledge Created in Technological Agreements: Some evidence fromthe automobile-robotics sector. (ISBN 87-7873-027-9)


97-9 Ernst, Dieter.: High-Tech Competition Puzzles. How Globalization AffectsFirm Behavior and Market Structure in the Electronics Industry. (ISBN 87-7873-028-7)

97-10 Foss, Nicolai J.: Equilibrium vs Evolution in the Resource-BasedPerspective: The Conflicting Legacies of Demsetz and Penrose. (ISBN 87-7873-029-5)

97-11 Foss, Nicolai J.: Incomplete Contracts and Economic Organisation: BrianLoasby and the Theory of the firm. (ISBN 87-7873-030-9)

97-12 Ernst, Dieter & Lundvall, Bengt-Åke: Information Technology in TheLearning Economy – Challenges for Developing Countries. (ISBN 87-7873-031-7)

97-13 Kristensen, Frank Skov (p): A study of four organisations in differentcompetitive environments. (ISBN 87-7873-032-5)

97-14 Drejer, Ina, (p) Kristensen, Frank Skov (p) & Laursen, Keld (p): Studiesof Clusters as a Basis for Industrial and Technology Policy in the DanishEconomy. (ISBN 87-7873-033-3)

97-15 Laursen, Keld (p) & Drejer, Ina (p): Do Inter-sectoral Linkages Matter forInternational Export Specialisation? (ISBN 87-7873-034-1)

97-16 Lundvall, Bengt-Åke & Kristensen, Frank Skov (p): Organisationalchange, innovation and human resource Development as a response toincreased competition. (ISBN 87-7873-036-8)

98-1 Præst, Mette (p): An Empirical Model of Firm Behaviour: A dynamicApproach to Competence Accumulation and Strategic Behaviour. (ISBN 87-7873-037-6)

98-2 Ducatel, Ken: Learning and skills in the Knowledge Economy. (ISBN 87-7873-038-4)

98-3 Ernst, Dieter: What Permits Small Firms to Compete in High-TechIndustries? Inter-Organizational Knowledge Creation in the TaiwaneseComputer Industry. (ISBN 87-7873-039-2)

98-4 Christensen, Jens Frøslev: The Dynamics of the Diversified Corporationand the Role of Central Management of Technology. (ISBN 87-7873-040-6)

98-5 Valente, Marco (p): Laboratory for Simulation Development. (ISBN 87-7873-041-4)


98-6 Valente, Marco (p): Technological Competition: a Qualitative Product LifeCycle. (ISBN 87-7873-042-2)

98-7 Lam, Alice: The Social Embeddedness of Knowledege: Problems ofKnowledge Sharing and Organisational Learning in International High-Technology Ventures. (ISBN 87-7873-043-0)

98-8 Jørgensen, Kenneth M. (p): Information Technology and Change in DanishOrganizations. (ISBN 87-7873-044-9)

98-9 Andersen, Esben Sloth: Escaping Satiation in an Evolutionary Model ofStructural economic Dynamics. (ISBN 87-7873-045-7)

98-10 Foss, Kirsten: Technological Interdependencies, Specialization andCoordination: A Property Rights Perspective on The Nature of the Firm.(ISBN 87-7873-046-5)

98-11 Andersen, Poul H: Organizing International Technological Collaboration inSubcontractor Relationships. An Investigation of the Knowledge-StickynessProblem. (ISBN 87-7873-047-3)

98-12 Nymark, Søren (p): Billeder af strategi i forandringsrige organisatoriskeomgivelser: 3 cases fra DISKO studierne. (ISBN 87-7873-048-1)

98-13 Andersen, Esben Sloth: The Evolution of the Organisation of Industry.(ISBN 87-7873-050-3)

98-14 Foss, Kirsten & Foss, Nicolai J.: The Market Process and The Firm:Toward a Dynamic Property Rights Perspective. (ISBN 87-7873-051-1)

98-15 Lorenz, Edward: Societal Effects and the Transfer of Business Practices toBritain and France. (ISBN 87-7873-053-8)

98-16 Ernst, Dieter: Catching-Up, Crisis and Industrial Upgrading. EvolutionaryAspects of Technological Learning in Korea's Electronics Industry. (ISBN87-7873-054-6)

98-17 Kaisla, Jukka (p): The Market Process and the Emergence of the Firm:Some Indications of Entrepreneurship Under Genuine Uncertainty. (ISBN87-7873-055-4)

98-18 Laursen, Keld (p): Do Export and Technological Specialisation PatternsCo-evolve in Terms of Convergence or Divergence?: Evidence from 19OECD Countries, 1971-1991. (ISBN 87-7873-056-2)

98-19 Foss, Nicolai J.: Firms and the Coordination of Knowledge: Some AustrianInsights. (ISBN 87-7873-057-0)

98-20 Mahnke, Volker (p) & Aadne, John Harald: Process of Strategic Renewal,Competencies, and the Management of Speed. (ISBN 87-7873-058-9)


98-21 Lorenzen, Mark (p): Information, cost learning, and trust. Lessons form co-operation and higher-order capabilities amongst geographically proximatefirms. (ISBN 87-7873-059-7)

98-22 Lam, Alice: Tacit Knowledge, Organisational Learning and Innovation: ASocietal Perspective. (ISBN 87-7873-060-0)

98-23 Lund, Reinhard: Organizational and innovative flexibility mechanisms andtheir impact upon organizational effectiveness. (ISBN 87-7873-061-9)

98-24 Christensen, Jesper Lindgaard & Drejer, Ina (p): Finance and InnovationSystem or Chaos. (ISBN 87-7873-062-7)

98-25 Laursen, Keld (p): How Structural Change Differs, and Why it Matters (forEconomic Growth) (ISBN 87-7873-063-5)

98-26 Holmén, Magnus & Jacobsson, Staffan: A method for identifying actors ina knowledge based cluser. (ISBN 87-7873-064-3)

98-27 Richardson, G. B.: Production, Planning and Prices. (ISBN 87-7873-065-1)

98-28 Foss, Nicolai J.: Austrian Economics and Game Theory: a PreliminaryMethodological Stocktaking. (ISBN 87-7873-067-8)

98-29 Foss, Nicolai J. & Mahnke, Volker (p): Strategy Research and the MarketProcess Perspective. (ISBN 87-7873-068-6)

98-30 Laursen, Keld (p): Revealed Comparative Advantage and the Alternativesas Measures of International Specialisation. (ISBN 87-7873-069-4)

99-1 Lorenz, E.: Organisationaal Innovation, Governance Structure andInnovative Capacity In British and French Industry. (ISBN 87-7873-070-8)

99-2 Ernst, Dieter: Responses to the Crisis: Constraints to a Rapid TradeAdjustment in East Asia's Electronics Industry. (ISBN 87-7873-071-6)

99-3 Foss, N. J. : Understanding Leadership: A Coordination Theory. (ISBN 87-7873-072-4)

99-4 Foss, K & Foss, N. J: Understanding Ownership: Residual Rights of Controland Appropriable Control Rights. ( ISBN 87-7873-073-2)

99-5 Foss, K & Foss, N. J: Organizing Economic Experiments: The role ofFirms. (ISBN 87-7873-075-9)

99-6 Jørgensen Kenneth. M. (p) : The Meaning og Local Knowledges. (ISBN87-7873-076-7)


99-7 Foss, N. J.: Capabilities, Confusion, and the Costs of Coordination: OnSome Problems in Recent Research On Inter-Firm Relations. (ISBN87-7873-077-5)

99-8 Lund, Reinhard: Tillidsrepræsentantsystemet og defleksiblevirksomhedsformer. Juli 1999. (ISBN887-7873-078-3)

99-9 Nymark, Søren: Organisatorisk læring gennem den værdibaseredeorganisations fortællinger. (ISBN 87-7873-079-1)

99-10 Laursen, K. & Meliciani, V.: The importance of technology based inter-sectoral linkages for market share dynamics. (ISBN 87-7873-080-5)

99-11 Laursen, K., Mahnke, V., Vejrup-Hansen, P.: Firm growth from aknowlegde structure perspective. ( ISBN 87-7873-081-3)

99-12 Lundvall, Bengt-Åke, Christensen, Jesper. L.: Extending and Deepeningthe Analysis of Innovation Systems - with Emperical Illustrations from theDISCO-project. (ISBN 87-7873-082-1)

00-1 Llerena, Patrick & Oltra, Vanessa: Diversity of innovative strategy as asource technological performance. (ISBN 87-7873-085-6)

00-2 Llerena, Patrick & Mireille Matt: Technology policy and cooperation:A paradigmatic approach. (ISBN 87-7873-086-4)

00-3 Cusmano, Lucia: Technology Policy and Co-operative R&D: the role ofrelational research capacity. (ISBN 87-7873-087-2)

00-4 Mikkola, Juliana Hsuan: Modularization assessment of productarchitecture. (ISBN87-7873-088-0)

00-5 Yvrande, Anne: The new British railways structure: A transaction costeconomics analysis. (ISBN87-7873-089-9)

00-6 Dijk, Machiel van &Nomaler Önder: Technological diffusion patterns andtheir effects on industrial dynamics. (ISBN 87-7873-090-2)

00-7 Storper, Michael & Chen, Yun-chung with De Paolis, Fernando: TheEffects of Globalization on Location of Industries in the OECD andEuropean Union (ISBN87-7873-091-0)

00-8 Sanders, Mark & Weel, Bas ter : Skill-Biased Technical Change:Theoretical Concepts, Empirical Problems and a Survey of the Evidence(ISBN87-7873-092-9)

00-9 Tomlinson, Mark: Innovation surveys: A researcher’s perspective(ISBN87-7873-093-7)


00-10 Nymark, Søren: Value-based management in learning organizations through'hard' and 'soft' managerial approaches: The case of Hewlett-Packard(ISBN87-7873-094-5)

Information for subscribers.

Subscription price for 1997 is 600 DKr (about 20 papers). The rate for single issues is40 DKr. It is possible to make a commitment to an exchange of papers from relateddepartments or research teams. All correspondence concerning the DRUID WorkingPapers should be send to.

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DK-9220 Aalborg OETel. 45 96 35 82 65Fax. 45 98 15 60 13

E-mail: [email protected]


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