Theories and Applications of Organizational Performance

Dating to the 1950’s and the modern era of management, business managers have both developed and evolved their methods for evaluating organizational performance. Current managers now have at their disposal a wide range of theories, tools, and techniques – some of which are old, some which are new, and some that have just been re-branded. In application, many organizations use both a singular approach or may use a combination of varied approaches.The attendee will gain an overview and understanding of the theories, tools, and techniques associated with the major approaches to organizational performance. These range from the first generation approaches that focused on univariate approaches such as financial or statistical process control, to second generation approaches that focused more on cross-organization values, styles, quality, and culture, to the current multi-dimensional performance models (MDPMs) that stress cross-organizational aspects of the second generation combined with more rigid accountability of the first generation. One of the most interesting aspects of the current approach is that there are many MDPM models, all claiming to be uniquely the best, but borrowing and morphing over time from one another. The attendee will be provided with the roots behind some of the more common approaches such as the Balanced Scorecard, ISO, Six Sigma, Lean, McKinsey 7-S, and the US, Canada, and European Excellence Award approaches.The reader will also see a demonstration of the application of some of these approaches in a modern utility setting through a case example from Cape Fear Public Utility Authority (CFPUA) located in Wilmington, North Carolina. CFPUA was formed in 2008 as the merged utility of New Hanover County and the City of Wilmington with a potential Federal Consent Order looming and a global economy that collapsed within 6 months of CFPUA opening its doors. Under intense public and regulatory pressure CFPUA had to integrate its culture, processes, and the way its measured performance. The development of a formal asset management program and the implementation of ISO certification for divisions were performed concurrently and successfully. Performance measures were consolidated from over 600 to fewer than 100, new and improved management systems were added, and a new Report Card of organizational performance for senior management and the Board of Directors was added.