My first blog introduced five organizational maturity levels. So, how does one advance up the ladder toward organizational excellence?
Put simply, by improving core processes using appropriate process improvement methods.
Figure 1 shows the progression of the five maturity levels. I shared this model in my first blog. I described how to advance from levels 0 or 1, where little or no organizational structure exists to level 2 where a structure emerges through management measures and simple tools like problem-solving, decision-making, or the Plan-Do-Check/Study-Act cycle.
Figure 1: Example of maturity levels of a process or organization
The characteristics of process improvement models from simple PDCA and problem-solving through increasingly more complex models, such as Cost of Quality, lean, Six Sigma, Balanced Scorecard, and Best Practice Benchmarking, align effectively with the levels of organizational maturity.
Figure 2 reflects the need for more quantitative process-improvement models matched to the level of organizational maturity described by the maturity model.
Figure 2: Higher maturity levels require quantitative process improvement
In Figure 2, Level 1 is described as dysfunctional with minimal or no processes in place. The organization experiences poorly controlled, unstable processes, and is, therefore, reactive.
So, what is a process? A process contains linked activities to produce a program or service for a customer within or outside an organization. Processes rarely operate in siloes and must be considered with other processes that impact them. Processes require adherence to a specific sequence of steps, including documented procedures and requirements, and well-defined measurement and control steps.
Notice that quantitative methods and measures increase as the organization matures. More mature organizations can better meet quality, cost, and schedule requirements. Advanced improvement methods require stable processes, proactive monitoring, quantitative data gathering, and analysis.
I described Level 1 in my previous blog as Ad Hoc, or Dysfunctional. Using the Plan-Do-Check/Study-Act cycle to address problems allows the company to advance to Level 2 by organizing its activities into projects. Problem-solving becomes more effective as owners focus on consistently meeting customer requirements.