John Bruce Jones - PPMA National Public Service Debate at CIPD Conf - 10 Nov 2011

www.stantonmarris.com

Building a healthy organisation with DMA levelsJohn Bruce-Jones

Pam Parkes, Croydon Council

November2011

© Stanton Marris & DMA Consultancy

One simple idea

Healthy organisations are efficient, effective, make and execute decisions without delay . They have motivated and productive employees with meaningful jobs and the freedom to exercise their responsibilities.

Unhealthy organisations have unhealthy management hierarchies: often too many layers, sometimes key layers missing. They do not work effectively and they carry unnecessary management cost.

Healthy organisations have effective vertical organisation design based on well-defined and clear Decision Making Accountability.

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© Stanton Marris & DMA Consultancy

The DMA approach

The DMA Solution Set is a robust proven framework, developed at Unilever and Tesco, which identifies accountable decision rights

Decision rights and accountabilities are plotted from customer to CEO

Every organization has a genetic code of decision levels – up to 8

Only 1 layer of leadership is needed for each accountability level

Conceptually integrated approach to organization design, leadership development and reward

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© Stanton Marris & DMA Consultancy

Decision Making Accountability levels are established by analysing seven DMA elements

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Research and interviews are used to set Levels and maximum layers

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Level 5

Level 4

Level 3

Level 2

Level 1

Example Job (and Layerin a Healthy Hierarchy)

Council CEO (Layer 1)

Director (Layer 2)

‘Senior Manager’ (Layer 3)

‘ Middle Manager’(Layer 4)

Team Leader (Layer 5)

Supervised first line employee (Layer 6)

Managers(based on

accountability, not job title)

= Supervisors

Nature ofLeadership

ExampleAccountability

Level

© Stanton Marris & DMA Consultancy

Example analysis of your current layers

6

Maximum allowed layers = example 6

50% of jobs in layers too far below the CEO

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Example: identifying areas for in depth analysis

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Analysis by directorate and within directorates

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Example: spans of control analysis

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IN THEIR OWN WORDS

https://rcpt.yousendit.com/1273419004/5ff83dc744ca8bfb10ef65e6b5b820b8

A closer look at our objectivesA closer look at our objectives

Empowered managers

greater power to make decisions

Staff are able to do their jobs

quicker decisions from management

Spans of control

Improved career progression

Cost saving efficiencies

Reducing management costs

Reducing management layers / spans of control, resulting in...

optimum number of direct reports for each role.

understanding the scope of each role, helps us to identify career paths.

© Stanton Marris 11

John Bruce-Jonesjbj@stantonmarris.com07768 930 940

Pam Parkes

Pamela.Parkes@croydon.gov.uk