Root Cause Analysis 1

Running Head: ROOT CAUSE ANALYSIS

Literature Review: Root Cause Analysis
































Root Cause Analysis 2

Literature Review: Root Cause Analysis
The chapter sixth of Making Strategy Work: Leading Effective Execution and Change
discusses the fourth issue of the execution model that is supportive of strategy execution. The
author details the role of incentives and controls (most importantly, motivate people!) and
controls (feedback, learning and adaptation). Incentives and Controls: Supporting and
Reinforcing Execution:
Incentives motivate behavior toward ends consistent with desired strategy execution
There are some basic aspects of good incentives and basic rules for using incentives wisely in
the strategy execution process
Controls provide feedback about performance, reinforce execution methods, provide a
corrective mechanism for an organization, and facilitate learning and change
The role of leadership in the control process is central and pervasive. Problems occur when
leaders arent up to the leadership tasks vital to controls and execution
finally; this chapter has stressed the necessity of conducting a strategy reviewThis is followed
by a review of the execution model, presented in Chapter two.
In the Chapter 8 Managing Culture and Culture Change: the author deals with effective
execution and management of change. A solid alignment of culture and execution methods
fosters execution success, while a misalignment creates horrendous problems. The author starts
to define culture since it is a complex phenomenon. Change culture is difficult, but it can be
accomplished. The rules or steps for managing culture change:
The reasons for change must be clear, compelling, and agreed upon by key players.
Focus on changing behavior not directly on changing culture.
Effective communication is vital to culture change.
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Adequate effort must be expanded to reduce resistance to change.
Beware of excessive speed.
There is a useful figure which visualizes this model which shows both the effects of culture on
strategy execution and the effects of execution on culture.
The author in this section is trying to create some interest in motivating employees so that
the project process works and the controls are viable. Motivation and success have to be judged
based on the strategic plan. Anything less is just works.
The first rule he covers, is to motivate people. When managers are not motivated, they are less
productive and so are their teams. Incentives help this and create motivation. Incentives support
the good managers need to achieve. However, the incentives have to support the correct
things. If they do not, then the manager works for the wrong thing. Additionally, the incentives
have to be viable because poor incentives create a bad motivation and stop the achievement of
people.
Good incentives are usually utilitarian or psychological. The first is easy to recognize,
salary increases, bonuses and promotions. The personal value in the second one is more
difficult, but as important. Autonomy, enjoyment of work, and identifying with the job or its
outcomes, motivates people to succeed and meet the achievement goals. The balance is to
reward employees for the work the company needs and not just the work the managers was to be
rewarded for. To gain the right perspectives the company needs to provide feedback and
learning opportunities.
Make sure when the plan is drawn that the evaluation reveals the right needs to be
met. Then set up the desired relationship between the goal and the reward. For example, if the
costs are a necessary restraint, clarify this and then tie the reward to the restraint of costs (pg.
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192) Setting the objectives and needs and then evaluating the actual performance is only part of
the process. The evaluation must determine the cause and effect analysis and this is where you
find the opportunities for learning and feedback. The rewards are based on the ability to adapt to
the learning and use the feedback for improvements. This is the successful way to create and
distribute incentives.
One further caveat, make sure the objective is quantifiable. Making customers happy is
not an objective that can be judged for purposes of incentives and motivation. Having a thirty
percent drop in customer complaints is a better objective and the incentives for motivation can be
tied to such an objective.
The next area reviewed is changing culture. Culture is important to a company, as it
defines how people see the company and behave within the structure of the
organization. Strategy is executed according to the corporate culture. However, at times the
corporate culture must change. Managers have to understand the corporate culture and to know
how to change it.
Corporate culture is the norms and values of the company and its decision makers along
with the workers. The vision of the company is the guiding feature of the culture of an
organization. It is marked by the way the company and its people do things, in addition to how it
competes in the markets. It is also about the ethical behaviors of the company and the amount of
risk the company is willing to take.
Not all of an organizations culture is homogenous. There are always subcultures
involved. Each department will have different goals and there will be different decision makers
and time frames for working. The basic values are the same throughout, but the different groups
have different agendas and goals they must achieve. The culture of the organization does control
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and reinforce behaviors within the organization and these affect the organizations
performance. Therefore, changes are going to affect different groups and different levels of
workers differently.
Organizational performance affects the culture and it is when the performance is not
supporting the organization, changes are needed. The culture will change as part of the new
strategic plan and the new needs. These needs become the new norms and values and the new
way of doing things. If the entire organization is involved and there is adequate communication,
the change will be more successful and much easier. Here leadership must make the changes
work by creating enthusiasm and communication of the new norms. The leadership must also
create the controls and the incentives to make sure people are involved and enthusiastic about the
changes. Providing feedback and opportunities for learning and sharing are two ways the
controls will bring about change and lessen the fear of change. Incentives will create excitement
and make the job of leadership easier.
However, as previously discussed, the incentives must promote the goals of the
change. Providing the information and then feedback will help guide workers through the
change. With the feedback, goals that work to help the change are established and the goals are
reached to provide opportunities for incentives. Incentives that further the change and not just
apply to the work are imperative as a way to get people to accept and move forward with the
changes.








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References
Hrebiniak, L. G. (2005). Making Strategy Work. New Jersey: Wharton School Publishing.