🌸Management Future Notebook - Monday (Issue 65) - Complete Preservation Edition: "Why Reconstructing Organizational Structure Must Start with 'Understanding Human Beings' - The Perspective of OM, Which Measures 'Change' Rather Than Behavior"
🌸Management Future Notebook - Monday (Issue 65) - Complete Preservation Edition
Why Reconstructing Organizational Structure Must Start with 'Understanding Human Beings'
- The Perspective of OM, Which Measures 'Change' Rather Than Behavior
(Written by Akifumi Yasumura / Business Capability Development Co., Ltd.)
■ Introduction
Many companies talk about 'organizational reform.'
Changing systems, changing evaluations, increasing training.
However, in reality,
even if the systems change, the organization does not change much.
Why is that?
The reason is simple.
Organizations are not moved by systems, but by people.
Therefore, if you truly want to change the organizational structure,
what is needed first
is understanding human beings.
When the deep structure of human beings is understood and consciousness and behavior change,
only then does the organizational structure also change.
■ The Basic Structure of Organizational Change
Organizational change follows this sequence:
Self-understanding
↓
Understanding others
↓
Quality of relationships
↓
Future vision
↓
Behavior
↓
Results (OM)
What changes first
is not the system or the mechanism.
It is the understanding of people.
As self-understanding deepens, understanding of others progresses.
As understanding of others progresses, the quality of relationships changes.
In a public junior high school I was involved with,
instead of saying 'So-and-so in Class X is...'
teachers performed psychological understanding of others by saying, 'Since this student's personality type is X,'
and 'let's change our guidance this way.' When the response became a common language, the teachers' room changed,
and the students' problematic behavior decreased drastically.
This is because when a common language is created, there is no 'fluctuation' in guidance, and students feel secure.
When the quality of relationships changes,
you become able to share a future vision.
And that vision
creates concrete actions.
In another school, as a result of introducing a workshop where teachers and students consciously thought about the student's future vision
(themselves in 3 months) every day,
behavioral change occurred in 70% of the subjects.
As a result, outcomes appear.
What becomes important here is
the concept called OM (Outcome Measures).
■ The Concept of OM
OM stands for
Outcome Measures.
This is a concept that originally developed in the medical field.
For example, in a hospital,
they evaluate
whether the patient recovered,
not
whether they performed surgery
or performed tests.
In other words,
they measure whether there was a change, not what was done.
■ Input, Output, and Outcome
Outcome measurement is usually organized into the following three categories:
Category | Meaning | Example
Input | Resources invested | Budget, personnel
Output | Amount of activity | Number of training sessions
Outcome | Actual change | Improvement in turnover rate
For example, in employee training,
Input:
1 million yen in training costs
Output:
5 training sessions conducted
Up to this point,
many companies manage it.
But what is truly important is
Outcome,
in other words,
how did the organization change?
For example,
turnover rate
10% → 3%
Only when it changes to this extent
can it be said that the training has meaning.
■ Difference from KPI
In companies, 'KPI (Key Performance Indicators)'
is often used.
However, KPI is,
if anything,
process management.
For example, in a sales organization,
KPI | OM
Number of visits | Sales
Number of proposals | Contract rate
Number of business meetings | Customer retention rate
In other words,
there is a difference where KPI = management of what to do,
and OM = management of results.
■ OM in Organizational Development
In organizational development, the following OMs are used:
・Turnover rate
・Employee engagement
・Departmental results
・Behavioral change
For example,
turnover rate is the easiest indicator to understand.
Also, in recent years,
through anonymous digital surveys,
organizational engagement
has also become easier to measure.
Furthermore,
number of views of video learning,
number of certifications acquired,
etc.
can also be used as indicators of behavioral change.
■ Editor's Note
Many companies
are satisfied with the fact that they 'conducted training'
or 'changed the system.'
However, what is truly important is
how reality has changed.
Organizational reform
starts not with ideology or systems,
but with human change.
■ Today's Question
Does your company
only manage KPIs?
Or
do you measure OM (Outcome Measurement)?
■ Cat's Mutterings
Many companies are satisfied just by conducting training. What matters is whether there has been a change.
■ Conclusion
Organizational structure
does not change through systems,
but through understanding humans.
And that change
can only be confirmed
through OM (Outcome Measurement).
The essence of organizational reform
is not activity, but change.
■ Please share your thoughts with us.
■ Next Issue (March 11) Preview
"Why do organizations sometimes fail to change, and sometimes succeed?"
■ Appendix
