The Implementation of Management Concepts at Akzo Nobel & the Sawing Teeth Framework

II “The Corporate Mark is one of the most distinguishing features of

Akzo Nobel’s visual identity. The Corporate Mark was inspired by a sculpture, dating from 450 BC, which was found on the Greek island of Samos. It stands for the human factor. The sculpture show a life-size representation of a human figure with stretched out arms. It is called a meteorological relief because it shows three different systems of measurement; a fathom from Ionia, a cubit from Egypt and an Athenian foot. The original was located above the entrance of a school and used to capture the human form - hence the sculpture has both a scientific and an artistic function. The original is currently in the Ashmolean Museum in Oxford, Britain.” (Taken from Akzo Nobel’s Corporate Identity Web-site)

The Implementation

of Management Concepts at

Akzo Nobel &

the Sawing Teeth Framework

Author H.C. Kooi

Supervisors Prof. Dr. L. Karsten (RuG) Drs. B.J.W. Pennink (RuG) R. Brummelkamp (Akzo Nobel)

Groningen, December 2002

III

Acknowledgements

In March 2002, I started my study on the implementation of management concepts at Akzo Nobel. With the office in Delfzijl as my home base, I have travelled to different parts of Akzo Nobel in the Netherlands and even in Germany. Seeing different sites and speaking to such a variety of people has been a true inspiration for me. But even the site in Delfzijl is a world of its own with so many different plants, organisations and people. I am glad that I had the opportunity to experience that the chemicals industry can be a very exciting working environment.

I would like to thank Luchien Karsten en Bartjan Pennink for providing the support, guidance and critical comments that helped me to write this thesis. My thanks especially goes out to Ron Brummelkamp for being such a great help in guiding me through the Akzo Nobel organisation, all the way to Bitterfeld (Germany), which was one of the highlights of my research period. Furthermore, I would like to thank my family and friends for providing mental support, the people I interviewed for their time and willingness to help me, and finally the people at the personnel department in Delfzijl for making me feel at home for half a year.

Karen Kooi

IV

Executive

Summary

Akzo Nobel is a multinational company that manufactures and develops pharmaceutical products, coatings and chemicals. Since the beginning of the nineties, a series of management concepts have been developed within Akzo Nobel. These concepts are called Managing Total Quality, Safety, Health and Environment (MTQ, MTS, MTH and MTE). SHERA is the Service Unit of Akzo Nobel Chemicals, that has developed these concepts and transferred them to various parts of Akzo Nobel and it is for this Service Unit that this research was performed. After SHERA has transferred the concepts, it is the responsibility of local management to integrate them into the organisation. SHERA has recognised that there is a variety of ways in which this is done. To get an overview of this diversity and to get insight into the ways knowledge is transferred and integrated, four sites have been be studied.

The goal of this research is to make the knowledge behind the best practice of the Managing Total processes explicit in order to give recommendations that can help SHERA improve their performance. The research question that is answered is: What kind of best practice did Akzo Nobel develop to manage the transfer and integration of knowledge, what issues are complicating the proper transfer and integration of knowledge and how can SHERA use the outcomes of this research in practice?

In this study, the Sawing Teeth Framework is developed, which encompasses four scenarios for the transfer and integration of management concepts. The fourth scenario is the ideal scenario and the location that comes closest to this scenario represents the best practice case within this study. Scenario four is visualised in the following figure:

The large arrows represent the impulses that a consultancy firm can give in order to transfer a concept to an organisation. The small arrows represent the impulses that a consultancy firm can give in order to integrate a concept into an organisation. If that is done correctly, the level of awareness will increase with each new concept that a consultancy firm brings in and management is able to retain that level of awareness. A high level of awareness means that people within an organisation work according to the concept. It also means that the concept has transformed the practice in an organisation as was intended with the implementation of the concept.

Within this study the impulses that the consultancy firm gives, are the Managing Total processes that SHERA transfers to the local level. MTQ was bought externally and translated to Akzo Nobel. MTS, MTH and MTE build further on MTQ, but were developed inside Akzo Nobel. To roll out the Managing Total processes to the different sites, SHERA trains a restricted number of people at the local level who are chosen to be facilitators, in how to give their colleagues Managing Total workshops. After that, it is the responsibility of the local level to ensure that the rest of the

Time Level of

V employees are trained and that the processes become integrated in the organisation. The plants were studied in order to find a best practice case are: Amsterdam, Delfzijl and Deventer. These locations provide a diverse overview of how the Managing Total processes were put to practice within Akzo Nobel. The plant in Bitterfeld was included in this study, because it serves as an example for how SHERA works in practice, but it is not included in the search for a best practice, as Bitterfeld does not have a history with MTQ or MTS.

The corporate level of Akzo Nobel can take measures that can have effect on the transfer and integration of the Managing Total processes. The main issue that hinders the knowledge transfer is due to the high degree of decentralisation and the Business Unit structure. At the corporate level of Akzo Nobel, stimulating measures are undertaken to encourage Business Units and sites to implement a QHSE management system and also recently, knowledge transfer is stimulated through the Intranet because it has the ability to break down the barriers between locations.

Over the last ten years, local managers, employees and the people of SHERA have developed a lot of experiences with the transfer of several Managing Total processes to the site level. This came forward in a number of interviews the researcher held at various level of Akzo Nobel. The researcher has also been present at MTH workshops in the Netherlands and Germany to experience how SHERA transfers the concepts to the local level. Based on these interviews and the researchers own experiences the following comments can be made on the issues influencing the transfer of the Managing Total processes. The practical applicability of the Managing Total processes can influence the successful transfer of the processes. Even though the processes offered by SHERA a framework that needs to be filled in at the site level, these frameworks are not universally applicable. Some translation issues, which SHERA should take into account, are cultural differences, language barriers, organisational needs and the attitude at a site. In order to be able to translate a concept to the local needs, one has to be aware of those local needs, which can be achieved by an intensive communication with local management, prior to the knowledge transfer. And an intensive communication between SHERA and the local level can also be a major source of learning for SHERA on how to apply the Managing Total processes in practice.

The experiences that Akzo Nobel employees and local managers have with Tthe integration of the Managing Total processes are divided in issues that can and issues that can not be influenced by local managers. The factors that can be influenced are: translation to the local level, management commitment and improvement infrastructure, which is what actually is done to integrate the improvement concept. Other factors can not be influenced by the local managers, but they are important to be taken into account when implementing new management concepts. These are social developments, the economical situation, culture, stimulation by the Business Unit and the organisational structure. The practical experiences of the local managers are an addition to the theoretical Sawing Teeth Framework, as they add insight into how the impulses of scenario four of the Sawing Teeth Framework need to be filled in.

Another way then the Sawing Teeth Framework to identify a best practice case for the transfer and integration of the Managing Total processes is to compare the studied sites on a number of performance indicators on quality, safety and health. However, no conclusions can be drawn on which site performs best with the Managing Total processes because the statistics do not show real improvement after implementation or are not valid. It does not mean that there is no relationship between the implementation of the Managing Total processes and the performance indicators. A more in-depth study might prove a relationship and the outcome of such a study might underline the outcome of the best practice based on the Sawing Teeth Framework.

Based on the Sawing Teeth Framework, the Delamine plant in Delfzijl is identified as the best practice case within the scope of this research, because it comes closest to a scenario four on all Managing Total processes. A site can be positioned in different scenarios for the different Managing Total processes. However, Delamine fits a scenario four in all aspects and that is when a real

VI scenario four arises because it means that local management succeeds in integrating each new subject. With each new concept, the organisation is lifted to a new level of knowledge.

The implementation of management concepts still appears to be very difficult, as only Delamine fits the ideal scenario for transfer and integration of management concepts. The four scenarios of the Sawing Teeth Framework show that regular impulses are essential for that transfer and integration. From interviews with employees and managers on their experiences with the Managing Total processes, a number of issues have surfaced, that influence the transfer and integration of the concepts. Based on the conclusions, some recommendations are given that can be used by SHERA to improve their performance. SHERA should develop a different view on their role within Akzo Nobel. They should see their position within Akzo Nobel, not only as a developer and transferor of management concepts, but also as an organisation that can help local managers to integrate these concepts. SHERA should also make local managers aware of the issues that influence the integration of management concepts. SHERA should also take some issues into account that can influence the transfer of the management concepts, which are related to the practical applicability of the Managing Total processes. But they should also translate the transfer of the processes to fit the local needs, otherwise people do not see the added value that a concept could have for the organisation. When SHERA realises how they can learn the most from all the experiences they have with the transfer and integration of management concepts, but also if they study the best practice case, and let that be an inspiration for helping other sites to integrate the concepts, SHERA could improve their performance.

VII

Table

of

Contents

1.1 INTRODUCTION TO AKZO NOBEL 1

1.1.1 AKZO NOBEL 1

1.1.2 AKZO NOBEL CHEMICALS 1

1.1.3 AKZO NOBEL’S QHSE POLICY 2

1.1.4 SHERA 2

1.2 INTRODUCTION TO THE RESEARCH 3

1.3 SUMMARY 3

CHAPTER 2: PROBLEM STATEMENT AND RESEARCH METHODS 5

2.1 INTRODUCTION 5

2.2 BACKGROUND & MOTIVATION FOR THE RESEARCH 5

2.3 PROBLEM STATEMENT 5

2.4 CONCEPTUAL MODEL FOR THE WAY OF REASONING 6

2.5 RESEARCH BOUNDARIES 6

2.6 DATA SOURCES 7

2.7 RESEARCH STAGES 8

2.8 FOURTH GENERATION EVALUATION AS AN INTERVIEWING TECHNIQUE 9

2.9 SUMMARY 10

CHAPTER 3: THE SAWING TEETH FRAMEWORK 11

3.1 INTRODUCTION 11

3.2 UNDERLYING ASSUMPTIONS FOR THE SAWING TEETH FRAMEWORK 11

3.2.1 PROCEDURAL MEMORY AS A BASIS FOR THE IMPLEMENTATION OF NEW CONCEPTS 11

3.2.2 STRIVING FOR EMULATION 11

3.2.3 COPYING, CHOOSING AND CHANGING OF MANAGEMENT CONCEPTS 13

3.3 THE SAWING TEETH APPROACH 13

3.3.1 EXPLANATION OF THE ELEMENTS OF THE FRAMEWORK 13

3.3.2 THE FOUR SCENARIOS OF KNOWLEDGE TRANSFER AND INTEGRATION 14

3.4 THEORETICAL VIEWS ON ACHIEVING A SCENARIO FOUR STAGE 18

3.4.1 ENABLING KNOWLEDGE CREATION 19

3.4.2 THE IMPORTANCE OF BEING A CLOCK BUILDING COMPANY 20 3.4.3 THE INFLUENCE OF COMPANY CULTURE ON THE TRANSFER AND INTEGRATION OF KNOWLEDGE 20

3.5 INTEGRATION OF THE BUILDING BLOCKS 21

VIII

CHAPTER 4: THE MANAGING TOTAL PROCESSES AND THEIR ORIGIN 23

4.1 INTRODUCTION 23

4.2 MANAGING TOTAL QUALITY: HISTORY AND CONTENT OF THE PROCESS 23

4.3 MANAGING TOTAL SAFETY: HISTORY AND CONTENT OF THE PROCESS 25

4.4 MANAGING TOTAL HEALTH: HISTORY AND CONTENT OF THE PROCESS 26

4.5 MANAGING TOTAL ENVIRONMENT: HISTORY AND CONTENT OF THE PROCESS 26

4.6 THE MUTUAL RELATIONS BETWEEN THE MANAGING TOTAL PROCESSES 27

4.7 SHERA 27

4.8 THE ROLL-OUT OF THE MANAGING TOTAL PROCESSES WITHIN AKZO NOBEL 28

4.8.1 THE ROLL-OUT OF MTH IN PRACTICE 28

4.8.2 DIFFERENCES BETWEEN MTH WORKSHOPS 29

4.9 SUMMARY 29

CHAPTER 5: THE SITES AND THE PRACTICE OF THE MANAGING TOTAL

PROCESSES 31

5.1 INTRODUCTION 31

5.2 SELECTING WHICH SITES TO STUDY 31

5.3 THE CHEMISTRY PARK DELFZIJL 32

5.3.1 DELFZIJL’S ADDED VALUE TO THE RESEARCH 32 5.3.2 SELECTED PLANTS AT THE CHEMISTRY PARK DELFZIJL 33

5.3.3 THE MANAGING TOTAL PROCESSES AT THE CHEMISTRY PARK DELFZIJL 33

5.3.4 DELESTO 33

5.3.5 TEIJIN TWARON 34

5.3.6 SALT DELFZIJL 34

5.3.7 THE CHP 34

5.3.8 DELAMINE 35

5.4 THE CATALYSTS SITE AMSTERDAM 35

5.4.1 AMSTERDAM’S ADDED VALUE TO THE RESEARCH 35

5.4.2 THE FCC PLANT 35

5.4.3 THE MANAGING TOTAL PROCESSES AT THE CATALYSTS SITE AMSTERDAM AND THE FCC PLANT 36

5.5 THE POLYMER CHEMICALS SITE DEVENTER 36

5.5.1 DEVENTER’S ADDED VALUE TO THE RESEARCH 36

5.5.2 THE SDF CLUSTER 37

5.5.3 THE MANAGING TOTAL PROCESSES AT THE SITE DEVENTER AND THE SDF CLUSTER 37

5.6 THE FUNCTIONAL CHEMICALS SITE BITTERFELD 38

5.6.1 BITTERFELD’S ADDED VALUE TO THE RESEARCH 38 5.6.2 THE MANAGING TOTAL PROCESSES AT BITTERFELD 38

5.7 SUMMARY 39

CHAPTER 6: THE INFLUENCE OF AKZO NOBEL ON THE TRANSFER AND

INTEGRATION OF MANAGEMENT CONCEPTS 41

6.1 INTRODUCTION 41

6.2 OBSTACLES FOR THE TRANSFER AND INTEGRATION OF KNOWLEDGE 41

6.2.1 THE BUSINESS UNIT STRUCTURE 41

6.2.2 THE INFORMAL COMPANY STRUCTURE 42

6.3 STIMULATING THE TRANSFER AND INTEGRATION OF KNOWLEDGE 43

6.3.1 SETTING QSHE TARGETS 43

6.3.2 RESULT DEPENDANT REWARD SYSTEM 44

6.3.3 THE BOARD OF MANAGEMENT 44

6.3.4 RECENT DEVELOPMENTS IN KNOWLEDGE MANAGEMENT 45

IX CHAPTER 7: EXPERIENCES WITHIN AKZO NOBEL WITH THE TRANSFER OF

MANAGEMENT CONCEPTS 47

7.1 INTRODUCTION 47

7.2 CHARACTERISTICS OF THE MANAGING TOTAL PROCESSES THAT CAN INFLUENCE THEIR

TRANSFER

47

7.2.1 SUBJECT OF THE PROCESS 48

7.2.2 SUITABLE TOOLS 48

7.2.3 MEASURABILITY OF THE RESULTS 48

7.2.4 PRACTICAL APPLICABILITY OF THE PROCESS 49

7.3 TRANSLATING THE TRANSFER TO THE LOCAL NEEDS 49

7.3.1 CULTURAL DIFFERENCES 50

7.3.2 LANGUAGE BARRIERS 50

7.3.3 DIFFERENT ORGANISATIONAL NEEDS 50

7.3.4 ADAPTING TO THE ATTITUDE AT THE PLANT 51

7.3.5 INCREASING RECOGNISABILITY 51

7.4 THE ADDED VALUE OF SHERA AS AN INTERNAL CONSULTANCY FIRM 51

7.4.1 DISADVANTAGES 51

7.4.2 ADVANTAGES 52

7.5 SHERA & LEARNING 52

7.5.1 PAST LEARNING EXPERIENCES 53

7.5.2 POSSIBLE FUTURE LEARNING EXPERIENCES 53

7.6 SUMMARY 53

CHAPTER 8: EXPERIENCES WITHIN AKZO NOBEL WITH THE INTEGRATION OF

MANAGEMENT CONCEPTS 55

8.1 INTRODUCTION 55

8.2 FACTORS THAT AFFECT THE INTEGRATION OF THE MANAGING TOTAL PROCESSES,

WHICH CAN BE INFLUENCED LOCALLY 55

8.2.1 TRANSLATING THE MANAGING TOTAL PROCESSES TO THE SITE LEVEL 56

8.2.2 MANAGEMENT COMMITMENT 57

8.2.3 IMPROVEMENT INFRASTRUCTURE 58

8.3 FACTORS THAT AFFECT THE INTEGRATION OF THE MANAGING TOTAL PROCESSES,

WHICH CAN NOT BE INFLUENCED LOCALLY 59

8.3.1 SOCIAL DEVELOPMENTS 59

8.3.2 ECONOMICAL SITUATION 60

8.3.3 COUNTRY CULTURE 60

8.3.4 ORGANISATIONAL STRUCTURE 60

8.4 SUMMARY 61

CHAPTER 9: PERFORMANCE INDICATORS FOR MEASURING THE RESULTS OF

THE MANAGING TOTAL PROCESSES 63

9.1 INTRODUCTION 63

9.2 MEASURING QUALITY PERFORMANCE 63

9.3 MEASURING SAFETY PERFORMANCE 64

9.4 MEASURING HEALTH PERFORMANCE 65

9.4 MEASURING QHSE PERFORMANCE IN BITTERFELD 67

9.5 SUMMARY 67

X

10.1 INTRODUCTION 69

10.2 DIFFICULTIES WITH IDENTIFYING A BEST PRACTICE CASE 69

10.3 METHOD FOR DETERMINING BEST PRACTICE CASE 69

10.4 THE SITES AND THE MANAGING TOTAL PROCESSES 70

10.4.1 DELAMINE 70 10.4.2 TEIJIN TWARON 71 10.4.3 SALT 71 10.4.4 THE CHP 72 10.4.5 DELESTO 72 10.4.6 AMSTERDAM 73 10.4.7 DEVENTER 74

10.5 BEST PRACTICE CASE 74

10.6 SUMMARY 76

CHAPTER 11: CONCLUSIONS & RECOMMENDATIONS 77

11.1 INTRODUCTION 77

11.2 CONCLUSIONS 77

11.3 RECOMMENDATIONS FOR SHERA 78

11.3.1 SHERA’S POSITION WITHIN AKZO NOBEL 78

11.3.2 ENABLING KNOWLEDGE CREATION 79

11.3.3 THE DEVELOPMENT OF NEW PROCESSES 80

11.3.4 TRANSLATION TO LOCAL NEEDS 81

11.3.5 LEARNING FROM EXPERIENCE 81

11.3.6 STUDY THE BEST PRACTICE CASE 82

11.4 CONCLUDING REMARKS 82

CHAPTER 12: REFECTION AND FURTHER RESEARCH 82

12.1 INTRODUCTION 82

12.2 REFLECTION 82

12.3 FURTHER RESEARCH 83

BIBLIOGRAPHY 85

1

Chapter1

Introduction

1.1

Introduction to Akzo Nobel

In this first chapter, Akzo Nobel, its history and the Service Unit SHERA, for whom this research was performed, are introduced. It also provides the reader with a short introduction to the management concepts on quality, safety, health and environment, which this study focuses on. The introductory description of these subjects sketches the environment in which this study has taken place. This facilitates the understanding of the problem statement, which is the subject of chapter two.

1.1.1 Akzo Nobel

Akzo Nobel is a multinational company based in the Netherlands. It has operations in eighty countries and manufactures and develops pharmaceutical products, coatings and chemicals. Akzo Nobel’s global activities follow a decentralised Business Unit structure and are divided into three distinct groups: Pharma, Coatings, and Chemicals. These groups and the Business Units they operate, have considerable freedom within the broad strategic framework of the company.

Akzo Nobel’s long history can be traced back as far as 1777. Its development has been the result of a series of ongoing acquisitions and divestments. An important development occurred in 1994, when Akzo acquired all the shares in the Swedish company, Nobel Industries AB to form Akzo Nobel1_{. Akzo has been formed in 1968 as the result of a merger between “Koninklijke Zout} Organon” (KZO) and “Algemene Kunstzijde Unie” (AKU).

1.1.2 Akzo Nobel Chemicals

As said, Akzo Nobel consists of three groups. For reasons that are explained in chapter two, this research solely focuses on the Chemicals Group. Akzo Nobel is one of the world’s leading chemicals producers. The Chemicals Group consists of the following Business Units:

• Base Chemicals

• Catalysts

• Energy

• Functional Chemicals

• Plastics and Processing Additives

• Polymer Chemicals

• Pulp and Paper Chemicals

• Resins

• Salt

• Surface Chemistry

Most Business Units operate several plants at various locations throughout the world. Next to the Business Units, Akzo Nobel also operates a number of Services Units that provide services for the Business Units. In the nineties, Akzo Nobel Chemicals implemented their own vision on Total Quality Management by translating it into Managing Total Quality. It was implemented on all levels

1 _{The names Akzo and Akzo Nobel are both used in this thesis. The merger of Akzo and Nobel took place in 1994. When}

the name Akzo is used, developments from before 1994 are referred to. Akzo Nobel is used when issues that took place after 1994 are discussed.

2 of the organisation. This change process has been the first of a series of change processes on quality, safety, health and environment (QHSE).

1.1.3 Akzo Nobel’s QHSE policy

The Business Units have a large amount of freedom in creating their own policy, also on quality, safety, health and environment. But Akzo Nobel does attempt to give some steering to the QHSE policies of the Business Units. The Board of Management issues documents on various important issues, to give general steering and direction to the company in order to safeguard consistency and coherence for the total organisation. Figure 1.1 shows the policy statement on Health, Safety and Environment. Of the extensive amount of corporate directives that Akzo Nobel issues, the corporate directives on Safety, Health and Environment can be found in appendix I.

The Akzo Nobel Business Units are responsible for their own results. This does not mean that they are free to do whatever they want. Akzo Nobel Chemicals sets targets for the Business Units, recently also health, safety and environmental targets. These targets are described in chapter six. How a Business Unit wants to make sure that they meet these targets is their own responsibility. Akzo Nobel never set uniform quality targets for the whole organisation.

1.1.4 SHERA

SHERA (Safety, Health, Environment and Regulatory Affairs) is a Service Unit of Akzo Nobel Chemicals. A Service Unit provides services for the Business Units of Akzo Nobel and is a centre of know-how in its specified field. It does not have a profit aim, but should be able to provide for itself financially. SHERA can be seen as an internal Akzo Nobel consultancy firm. The safety,

Health, Safety and Environment

Concern for health, safety and environment is an integral part of Akzo Nobel's business policy.

Akzo Nobel actively supports the guiding principles of the Business Charter for Sustainable Development of the International Chamber of Commerce, the Responsible Care® program of the chemical industry, and the Coatings Care® program of the paint and printing ink industry.

In addition to compliance with regulatory requirements, we pursue the following objectives in close co-operation with our distributors, customers and suppliers.

Health

Akzo Nobel seeks to conduct its activities in such a way as to prevent harm to the health of its employees and other stakeholders.

Safety

Akzo Nobel strives to prevent any injuries at work.

Environment

Akzo Nobel protects the environment by preventing or minimising the environmental impact of its activities and products through appropriate design, manufacturing, distribution, use, and disposal practices.

The Board of Management September, 1999

3 health and environmental part is located in Hengelo and regulatory affairs can be found in Amersfoort. They are officially a part of the Chemicals Group, but they also offer their services to Coatings and Pharma, even though these groups have their own Service Units that are comparable to SHERA. SHERA develops and sells tools that can help the Business Units improve their performance on quality, safety, health and environment. These tools or processes are called: the Managing Total processes. They are “Managing Total Quality”, “Managing Total Safety”, “Managing Total Health” and “Managing Total Environment”. The main idea behind all Managing Total processes is: “Continuos improvement through employee involvement.”

1.2

Introduction to the research

The central question that is going to be answered in this thesis is:

“What kind of best practice did Akzo Nobel develop to manage the transfer and integration of knowledge, what issues are complicating the proper transfer and integration of knowledge and how

can SHERA use the outcomes of this research in practice?"

In order to answer this question, in the first chapter an introduction is given of Akzo Nobel, its history and the Managing Total Processes. The Managing Total processes are the management concepts that are the focus of this study. Chapter two gives an overview of the problem statement and research methods. In the third chapter, a framework for the transfer and integration of management concepts within organisations is developed. This framework is named the Sawing Teeth Framework and it encompasses four scenarios for the transfer and integration of knowledge in organisations. Chapter four then discusses the Managing Total processes and their origins in detail, while chapter five goes into a number of Akzo Nobel sites where these processes have been transferred to. The influences that the actions of the Akzo Nobel corporate level can have on the environment in which the transfer and integration of management concepts takes place, is described in chapter six. Chapter seven and eight, then go into the experiences that managers and employees have with the transfer and integration of the Managing Total processes. An attempt is made in chapter nine to identify a best practice case for the transfer and integration of the Managing Total processes, based on a number of performance indicators. The reason why that failed is also clarified there. The Sawing Teeth Framework is then used in chapter ten to determine a best practice case for the transfer and integration of the Managing Total processes. In chapter eleven, conclusions and recommendations are given. Chapter twelve concludes this thesis with a reflection on the research process and gives suggestions for further research.

Akzo Nobel has developed and integrated change programs. According to Mintzberg (1998), change processes can be divided in planned change, which is programmatic, driven change, which is guided, and evolved change, which is organic2. The change processes that are discussed in this thesis are the planned change processes. A consultancy firm that transfers a new concept to a site falls under these planned change processes. But when the framework that is constructed in this thesis is in place, the change processes have evolved to driven change.

1.3 Summary

In this chapter, Akzo Nobel and its QHSE policy were briefly described. SHERA is the Akzo Nobel Service Unit that has developed processes on quality, safety, health and environment which are called the Managing Total processes. SHERA was also introduced in this chapter, as this is the Service Unit that this research was performed for. The description has the aim of shortly sketching the environment in which this study has taken place. It facilitates the understanding of the next chapter on the problem statement and research methods. Furthermore a short overview of this thesis was given.

2

5

Chapter 2

Problem Statement and Research Methods

2.1 Introduction

In the first chapter Akzo Nobel, SHERA and the Managing Total processes were introduced. Using this as a reference, this chapter describes the background and motivation for this research, as well as the problem statement, the research boundaries and the data collection methods.

2.2

Background & Motivation for the research

Since the beginning of the nineties, Akzo Nobel has introduced a series of management concepts on different subjects, following a certain sequence. It started of with quality and was followed by concepts on safety, health and environment. These concepts were developed by SHERA, which can be seen as an internal Akzo Nobel consultancy firm. This is an interesting feature as most large companies look for external consultants. SHERA considers the Managing Total processes as quite successful and whenever new change processes are going to be developed, SHERA claims to have the intention to follow the same procedures. A lot of differences exist between how the Managing Total processes are used in practice at different Akzo Nobel plants. SHERA ordered to perform this research in order to get an overview of how different ways of handling the Managing Total processes affects the success, results and acceptance of the processes. SHERA wanted to have a better insight into what is expected of them and what the needs of the several units within Akzo Nobel are.

2.3 Problem

Statement

The following research goal and research question have been defined: Research Goal

“Make the knowledge behind the best practice of the Managing Total processes explicit in order to give recommendations that can help SHERA improve their performance.”

Central Question

“What kind of best practice did Akzo Nobel develop to manage the transfer and integration of knowledge, what issues are complicating the propertransfer and integration of knowledge and how

can SHERA use the outcomes of this research in practice?"

Sub Questions

1) What is known in literature and within Akzo Nobel Chemicals on the transfer and integration of management concepts and how can this theoretical and practical knowledge be integrated into a framework to view the research problem?

2) Which Managing Total processes have been developed within Akzo Nobel Chemicals, what is their origin and how are they transferred to several parts of Akzo Nobel?

3) Which Managing Total processes have been implemented at the specified Akzo Nobel Chemicals plants and how are these processes applied in practice?

6 4) What is the influence of the corporate level of Akzo Nobel on the transfer and integration of

knowledge?

5) How is the transfer of the Managing Total processes handled in practice and which factors influence that knowledge transfer?

6) How is the integration of the Managing Total processes handled in practice and which factors influence that knowledge integration?

7) Which site has the best performance on quality, safety and health statistics and are there indications that this is related to the implementation of the Managing Total processes?

8) Which site is the best practice case in relationship to the implementation of the Managing Total processes?

2.4

Conceptual Model for the way of reasoning

It has been the researcher’s purpose to analyse factors influencing the transfer and integration of management concepts in organisations. Combined with the study of factors found in practice as influencing the Managing Total processes and an analysis of quality, safety and health performance indicators, a best practice case should be identified. From this best practice case knowledge might be derived on how to transfer and integrate management concepts in such a way that they change the way of working as was intended with the implementation of these concepts.

2.5 Research

Boundaries

Research boundaries make the research more precise by indicating the scope of the research. The boundaries in this study exist due to constraints of time and other means.

Best practice with the Managing Total processes at site level

Give recommendations to SHERA

Figure 2.1 Conceptual Model

Analysis of factors influencing the transfer and integration of management concepts that are

described in literature

How to use management concepts that they really transform the way

of working

Analysis of factors influencing the Managing Total processes, found in practice at the level of Akzo Nobel, SHERA and at

the individual sites Analysis of performance indicators

7 Focus on the Akzo Nobel Chemicals Group

This study focuses mainly on the Akzo Nobel Chemicals Group. The Chemicals Group is the main user of the Managing Total processes and SHERA also mainly focuses on the Chemicals Group. However, when Business Units in the other groups show an interest in the Managing Total processes, SHERA also serves them. The differences between the three groups are quite large and therefore a comparison including all three groups would have been too extensive for this research due to time restrictions.

Focus on a restricted number of sites within the Chemicals Group

It was not possible to include all locations of the Chemicals Group. Therefore a selection of locations was made, that gives a diverse overview of what happened in practice with the Managing Total processes. Delfzijl, Deventer, Amsterdam and Bitterfeld were selected. At these locations, one or a few plants have been selected to be included in this research, also because of the time constraint. In Delfzijl for example, there are more than ten different plants and it would have taken too much time to study them all.

Restrictions due to the location of the researcher

The researcher was located in Delfzijl and therefore the access to information at this location was better. For Amsterdam and Deventer, a restricted number of visits had to be sufficient to obtain the needed information. For Bitterfeld, only a single visit was possible, in which all desired information had to be gathered.

Restrictions due to the summer holidays

This research was conducted during summer, which means that a lot of people were on holiday when the researcher wanted to interview them. A good planning was necessary to obtain all the needed information, however delays in interviewing people were inevitable.

Time restriction

The time limit for performing the research has been six months.

2.6 Data

Sources

Several sources were used as input for this research; the Intranet, the Internet, internal Akzo Nobel documents, interviews, performance statistics and literature. The following table gives an overview of which data sources were used to answer which sub question.

8

Sub Question Data Source Chapte

r 1) What is known in literature and within Akzo Nobel

Chemicals on the transfer and integration of management concepts and how can this theoretical and practical knowledge be integrated into a framework to view the research problem?

• Literature

• Interviews with managers

3

2) Which Managing Total processes have been developed within Akzo Nobel Chemicals, what is their origin and how are they transferred to several parts of Akzo Nobel?

• Interviews with SHERA

4

3) Which Managing Total processes have been

implemented at the specified Akzo Nobel Chemicals plants and how are these processes applied in practice?

• Interviews with local management and with employees

• Internal Akzo Nobel documents

• Intranet

5

4) What is the influence of the corporate level of Akzo Nobel on the transfer and integration of knowledge?

• Intranet

• Interviews with SHERA and with local managers

6

5) How is the transfer of the Managing Total processes handled in practice and which factors influence that knowledge transfer? • Interviews with management and employees and SHERA • Internal documents

• Internet and Intranet 7

6) How is the integration of the Managing Total processes handled in practice and which factors influence that knowledge integration? • Interviews with management and employees and SHERA • Internal documents

• Internet and Intranet 8

7) Which site has the best performance on quality, safety and health statistics and are there indications that this is related to the implementation of the Managing Total processes?

• Internal documents on performance indicators

9

8) Which site is the best practice case in relationship to the implementation of the Managing Total processes?

• All sources 10

2.7 Research

Stages

This research process can be divided into several phases. One has to keep in mind that the order of these stages is not as strict as it is described here. Researching is a dynamical process and therefore this sequence has not been strictly applied in practice.

Investigation of the research subject

In the first phase of the research the focus has been on getting insight into Akzo Nobel and the Managing Total processes. This included desk research for which the main sources were: the Intranet, the Internet and internal Akzo Nobel documents. In this first phase, some interviews were held with a number of managers and with SHERA.

9 Literature research

This phase included literature research on management concepts and on knowledge transfer and integration.

Comparing performance indicators

Based on a number of company performance indicators on quality, safety and health, a comparison was to be made between the chosen plants. This information had to give insight into the question if the Managing Total processes influenced quality, safety and health performance. It could have also given insight into which of the studied sites holds the best practice with the Managing Total processes.

Visiting all locations and conducting general interviews

In order to get a general overview of the various sites and also of how the Managing Total processes are used in practice at these sites, interviews were held with plant managers or quality managers at the plants. Based on the information that was accumulated in these interviews, a broad overview was created on which further research was based.

Second series of interviews

The second series of interviews were semi-structured interviews with employees in order to uncover whether the Managing Total processes have actually been integrated in their daily working routine. The importance of conducting interviews with employees, next to the interviews at the managerial level, was because it provided a broad view on the transfer and integration of management concepts within Akzo Nobel.

Analysing information and giving recommendations

Based on the analysis of all gathered information, recommendations are given to SHERA, which could help them improve their performance. That is done by writing a thesis on this research.

2.8

Fourth Generation Evaluation as an interviewing technique

The input for this research is mainly based on interviews with people. In interviews people give information based on facts, but also for a large part, based on opinions. Opinions are subjective information, and it is risky to base conclusions purely on opinions. Guba and Lincoln (1989) developed a method that can partly rule out this subjectivity. In their book “Fourth Generation Evaluation3”, they describe a method that, if followed, will lead to an “average” of all different stories that are told. The truth is always somewhere in the middle. In this book it is described that during research you should start with someone to interview and let that person point out someone who will probably have a conflicting opinion and then that person should be the next one to be interviewed. If a complete circle of interviews is made of people with conflicting opinions, the researcher should look for overlaps and conflicting issues. Then all people that were interviewed should get together to discuss the issues they disagree on.

It was however quite difficult within this specific research to exactly follow this method due to time restrictions. The exact method, as described above, has not been applied by the researcher. However, the researcher found the philosophy of Guba and Lincoln to be very inspiring. The way the interviews for this research were conducted, have been inspired by their views. In the spirit of Guba and Lincoln, the researcher confronted people with conflicting opinions of other people and they were asked for a reaction. Confronting people with other people’s conflicting opinions is the only aspect of the method of Guba and Lincoln that the researcher applied in some situations, where she believed it could provide valuable insights. Doing this helped the researcher to view certain

3

10 complex and sometimes unclear issues from multiple viewpoints. The main subjects that the researcher tried to clarify with help of the philosophy of Guba and Lincoln, were the opinions of management versus the opinions of employees. It also helped the researcher to create an overview of the large amount of different opinions on the position of SHERA within Akzo Nobel.

2.9 Summary

This second chapter has provided the reader with an overview of the background and motivations that have led to this study. The problem statement consists of the research goal and question and the sub questions. Each of the following chapters answers one of the sub questions and the combination of the answers to the sub questions leads to answering the central question of this study. Paragraph 2.8 gave a short description of Fourth Generation Evaluation. This method was not fully used but should be considered as an inspiration for the researcher. Where and how exactly Fourth Generation Evaluation was applied in practice is described in later parts of this thesis.

11

Chapter 3

The Sawing Teeth Framework

3.1 Introduction

In this chapter, a framework for the transfer and integration of management concepts in organisations is constructed, which consists of several building blocks. First the underlying assumptions for the framework are described. Then the Sawing Teeth Framework for the transfer and integration of management concepts, which has been developed by the researcher, is discussed. This framework encompasses four scenarios of transfer and integration of management concepts. It is followed by a discussion on theoretical views from other authors, which the researcher believes are important to keep in mind when trying to achieve the ideal stage of knowledge transfer and integration. The sub question that is answered in this chapter is:

“What is known in literature and within Akzo Nobel Chemicals on the transfer and integration of management concepts and how can this theoretical and practical knowledge be integrated into a

framework to view the research problem?”

3.2

Underlying assumptions for the Sawing Teeth Framework

This paragraph discusses three underlying assumptions for the Sawing Teeth Framework. After discussing these underlying assumptions, the Sawing Teeth Framework is explained in detail in paragraph 3.3.

3.2.1 Procedural Memory as a basis for the implementation of new concepts

The first building block of the conceptual framework is the assumption that new concepts that are implemented in an organisation can build further on previous concepts. When an initial concept is implemented and integrated successfully, then concepts that are based on the same ideas can be implemented and integrated with more ease.

Moorman and Miner (1998) have drawn a distinction between procedural and declarative procedural memory. They describe organisational improvisation as the degree to which the composition and execution of an action can converge in time. They argue that procedural memory (skill knowledge) and declarative memory (fact knowledge) moderate improvisation’s impact on organisational outcomes in different ways. These memory types enhance different organisational outcomes and can compensate for each other’s drawbacks. Procedural memory should enhance improvisational effectiveness and speed, while reducing its novelty. Declarative memory should enhance improvisational effectiveness and novelty, while reducing its speed4.

The notion of procedural memory is essential for the framework. Procedural memory underlines that concepts can build further on each other. The point the researcher wants to stress here, is that if the MTQ process has become an integral part of the procedural memory of Akzo Nobel, then further Managing Total processes will benefit from this procedural memory and they can be implemented with more ease. MTQ is then the basis on which MTS and MTH build further.

3.2.2 Striving for emulation

The Managing Total processes are transferred to the individual sites by SHERA. When a concept is transferred to a site, total absorption (emulation) of that concept should be the aim. Lervik and

4

12 Lunnar (2001) have developed a framework to localise different patterns of diffusion and absorption of management concepts5. By differentiating between two dimensions: integration and imitation, Lervik and Lunnar have drawn the following matrix: (which has been adapted).

The degree of integration refers to the capacity of an organisation to absorb a new management concept into its existing routines and work processes. The level of integration is a continuum moving from management concepts, which are being adopted to re-label existing activities, to translating concepts into action that leads to new routines and practices. The degree of imitation refers to the degree a translation is faithful to the original. The level of imitation is a continuum moving from a low degree of translation to a perfect imitation.

I) Management concepts are simply embraced to gain external legitimacy and show insiders and outsiders that management is familiar with the latest topics in management literature. It is primarily parroting; managers will copy a concept and stay faithful to the original.

II) Management concepts are taken and translated for the purpose of balancing external legitimacy and managing identity. The new management concept has to fit the local organisational culture and local norms, whereby the existing identity is safeguarded. Translated adoption allows participation and co-construction of management concepts. (Lervik and Lunnar, 2001) The translated management concept becomes a symbol for external and internal constituencies, but there is a gap between what is said and done. The purpose is to re-label existing activities without introducing new activities.

III) Management concepts are being recast into techniques and easy-to-understand models and taxonomies as tools to gain organisational efficiency. The tools are recipes, which are based on explicit knowledge that can easily be documented and taught. In this situation, legitimacy and identity are not being considered. The focus is on efficiency improvements where management concepts are being applied for commercial ends.

IV) Management concepts are embraced to transform existing routines, work processes and facilitate local idiosyncratic problem solving. The implementation develops organically and the results reflect a translation, which is highly dependable on local circumstances. Instead of “talking the talk”, as in (I), in this setting all participants involved in the transformation are “walking the talk”. The purpose is to promote the advancement of knowledge and how to use it.

Quadrant IV is the ideal situation and a plant that can be placed within this quadrant has made the Managing Total processes an integral part of the daily working routine. In this case people at a plant really “walk the talk”, instead of just “talking the talk”.

The Sawing Teeth Framework, which consists of four scenarios of transferring and integrating a concept into an organisation, is explained in the next paragraph. It is also explained there, what the

5

J.E. Lervik & R. Lunnar (2001), “Implementation in a multi-unit Organisation”

Emulation IV Standardised Implementation III Translated Adoption II Formal Adoption I Degree of imitation Degree of integration

13 ideal scenario for transferring and integrating a concept is. Lervik and Lunnar have underlined in their model that emulation is what should be pursued when implementing a management concept. In the Sawing Teeth Framework, it is explained how a stage of emulation can be reached.

3.2.3 Copying, Choosing and Changing of management concepts

Kvålshaugen and Amdam (2001) state in their article: “Absorption of management ideas” that there may be three dynamics are present when organisations absorb new managerial ideas. These are copying, choosing and changing. They state that previous studies have shown that general management ideas are seldom found in their original form in organisations. Based on that idea, they suggest that some elements of general management ideas will be copied, some distinctive elements will be chosen, and finally some elements will be changed6.

The ideas of Kvålshaugen and Amdam are important underlying assumptions for the framework the researcher is building up here. It shows that a consultancy firm can transfer a management concept to an organisation, but by copying, choosing and changing, local management either implements the concept exactly the same as the consultancy firm has transferred it (which rarely happens). Or local management transforms the management concept into a concept they will finally try to integrate into their organisation. This is local management’s own interpretation of the management concept that was transferred by the consultancy firm. When looking at the Sawing Teeth Framework in the following paragraph, it is important to realise that the impulses that local management gives, do not have to be the same as the impulses that the consultancy firm gives.

3.3

The Sawing Teeth Approach

A frequently returning theme in the interviews with managers and employees within Akzo Nobel was the importance of keeping people aware and focussed on the subject of a certain concept that has been introduced. Many argue that frequent attention for the subject is necessary to keep people aware of the importance of a certain subject. The plant manager at the Bitterfeld (Germany) site called this the “Sawing Teeth Approach.” He explained that giving frequent small impulses is better for the integration of a concept then giving just a few large impulses. The researcher has been inspired by this idea and has extended it into a framework. By pulling together the issues of procedural memory at the site level, transfer of knowledge by SHERA and the Sawing Teeth Approach managers use to integrate newly acquired knowledge, the researcher believes to have developed an adequate framework to understand the implementation process of management concepts within Akzo Nobel.

3.3.1 Explanation of the elements of the framework

The Sawing Teeth Framework encompasses four possible scenarios of transfer and integration of management concepts, which are discussed in this paragraph. The framework itself consists of the following elements:

Level of awareness

The Managing Total processes are awareness programs and have the goal of enlarging the awareness of the employees for specific topics. The level of awareness is defined by the amount of people within an organisation who are aware of a management concept that has been implemented. In the case of this research, the level of awareness of MTQ, MTS and MTH is referred to. It does not necessarily mean that people have to be aware of the exact name or content of a concept, but it means that their behaviour has developed in such a way as was intended with the implementation of the management concept. This could also occur unconsciously. When the level of awareness is high

6

Ragnhild Kvålshaugen & Rolv Petter Amdam (2001), “ Absorption of Management Ideas: Copying, Choosing and Changing”

14 or “ideal”, the people are actually “walking the talk”. This is the level of awareness that management should strive for.

When employees reach a critically low level of awareness, then an implementation effect can not be concluded. The danger with lagging below the critical level of awareness is that the attitude of the employees will be like, “here they come again with just another program”. In this situation management can make itself implausible because they have let the awareness level drop too far. The employees then recognise that management apparently does not attach much value to the latest concept. New efforts to increase the level of awareness will become more difficult because the employees become increasingly sceptical whenever a new management concept is being introduced. It is important to realise that the ideal level of awareness increases with every impulse that the consultancy firms gives, because it expects to build further on a certain level of procedural memory that is present in the organisation.

Large impulses

Impulses are needed to heighten the level of awareness for a concept. There are two different kinds of impulses. The large, non-frequent impulses have the aim of transferring new knowledge into an organisation. A consultancy firm usually provides such kind of a push. They develop new concepts and by means of workshops, they transfer the concept to an organisation. The large impulses SHERA gives are MTQ, MTS and MTH. With each new impulse, SHERA brings new knowledge into the organisation, which local management should integrate.

Small impulses

The small but regular impulses are provided by actions of local management. After a consultancy firm has transferred a concept to a site, local management becomes responsible for keeping it alive. They can do this by giving small but regular impulses. The advantage of small and regular impulses is that only a small effort is needed to keep the awareness at a high level. If the impulses are not regular, there is the danger that the level of awareness drops below the critically low level of awareness, with the accompanying effect that the credibility of local management diminishes, especially when it wants to introduce new concepts. Impulses can vary from refreshment courses, to announcements at publication boards and from setting the integration of a concept as a fixed item on the agenda, to rewarding performance.

3.3.2 The four scenarios of knowledge transfer and integration

By pulling the elements that were described together, a framework is obtained within which the effects of the introduction and implementation of a management concept can be studied. Four scenarios can be considered for the transfer of a concept to a local site and the integration of that concept into the organisation:

1) A consultancy firm brings in a concept, but local management does not undertake action to integrate the concept in the organisation.

2) A consultancy firm brings in a concept and local management does try to integrate the concept, but as they do not have the knowledge and skills to do that, their efforts do not reach the aimed effect.

15 3) A consultancy firm tries to introduce a concept but the transfer fails and local management and

employees do not see the added value or do not know how to put the concept to practice.

4) A consultancy firm brings in a concept and local management succeeds in integrating the concept in the organisation and thereby influences the level of awareness of the employees in the aimed way.

16 Scenario 1: External impulses

The consultancy firm transfers a concept to the organisation and tries to create a certain level of awareness for the concept. Local management now has the responsibility to take over and to integrate the concept into the organisation. If they do not undertake any activities for that, the level of awareness will decline, probably even below the critically low level of awareness. Below this level, there is no difference anymore between before and after the implementation of a concept. However, there might have even developed a negative attitude towards the subject, because the employees recognise that management has not undertaken any action to keep a certain concept alive. This causes that local management is not credible anymore, because they first tried to show commitment by investing time and money in the initial implementation, and still they have allowed it to dissipate. Each time local management, with the support of a consultancy firm, introduces a new concept, the action has less effect because the credibility has dropped. The aim of each new process is however higher, as the consultancy firm expands on previous concepts. The credibility of the commitment of local management and willingness of the people to integrate the concept in their daily work diminishes. The effect that the consultancy firm accomplishes declines and will disappear faster. The aim of the consultancy firm, who still assumes to build further on a certain level of awareness or procedural memory, and the actual accomplishments drift apart. Scenario one is at stake when management is not committed to integrating new processes.

Time Level of

awareness

Figure 3.2 scenario 1 Ideal level of awareness

Critically low level of awareness Actual level of awareness

Impulses given by consultancy firm Impulses given by local management

17 Scenario 2: Imbalance between external impulses and internal impulses

When local management tries to implement a concept, but does not succeed, there is a risk that over time the level of awareness also drops, like in the pervious scenario. In this case local management does undertake action, but in such a way that it does not have the effect that was aimed for. Local management fails in integrating the concept due to a lack of knowledge or skills on how to do this. The efforts only have minimal effects on the level of awareness. Examples for scenario two are when local management does try to give impulses, but does not give a good example to the employees or pursues a contradictory policy, like allowing smoking but emphasising in workshops how bad it is. Then management can keep on giving impulses, but the effect will decline. Another example is when management tries to stimulate employees to propose quality improvement ideas in teams, but does not give feedback on the propositions.

Scenario 3: Insufficient co-operation between consultancy firm and management

Because of a failing communication between the consultancy firm and the receiving organisation, the consultancy firm can not respond correctly to the needs of the local site. The impulses they provide will not get above the critically low level of awareness. Employees at the local level will not be able to appreciate the relevance and added value of a certain concept. Management might try to keep a concept alive, but they will realise that their attempts do not have any effect and the attention for the concept fades away. A failing communication has two sides. First there is the side of local management who fails to provide the consultancy firm with relevant information. Then there is the side of the consultancy firm who does not undertake enough effort to gather information on a specific site. The lack of relevant information causes that the consultancy firm is not able to translate the transfer of a concept to the local needs.

Time Level of awareness Figure 3.3 scenario 2 Level of awareness

18 Scenario 4: Sufficient internal and external impulses and successful co-operation between

consultancy firm and management

If local management succeeds in integrating the concept that was transferred by the consultancy firm, then the awareness level will increase with every impulse. The role of the consultancy firm is to introduce new concepts in line with the former ones to enlarge the level of awareness. The task of local management is to keep the level of awareness at the ideal level. Each new concept adds a new dimension to the present and retained level of awareness, thereby heightening the ideal level of awareness with every new impulse.

Scenario four is the ideal situation for the transfer and integration of knowledge. In chapter ten, the practice at the sites is related to the four scenarios of the Sawing Teeth Framework. The site that has the highest resemblance to scenario four is identified as the best practice case within this research.

3.4

Theoretical views on achieving a scenario four stage

The Sawing Teeth Framework has indicated that the combination of impulses by a consultancy firm, combined with regular impulses from local managers and a good co-operation between the two, can lead to a scenario four of knowledge transfer and integration. To complete the framework, this paragraph discusses viewpoints of different authors, of which the researcher believes that they

Time Level of

awareness

19 are important to consider when an organisation wants to reach a scenario four. First, the five knowledge enablers are introduced that should be taken into account when the organisation wants to make sure that the proper impulses are given and that these impulses are effective. This is important when an organisation wants to reach a scenario four stage. After that, Collins and Porras’ view on clock building companies is discussed, which also adds insights on how a scenario four can be achieved. Then De Long and Fahey’s view on how culture influences knowledge related behaviour in organisation is discussed.

3.4.1 Enabling Knowledge Creation

In this paragraph, the knowledge enablers are described which give insight into how scenario four can be reached and how the impulses of both local management and the consultancy firm need to be filled in. In their book “Enabling knowledge creation” (2000), Von Krogh, Ichijo and Nonaka, describe how organisations can build a best practice by enabling knowledge creation. Knowledge enabling is the overall set of organisational activities that positively affect knowledge creation7. The five knowledge enablers are:

1. Instill a knowledge vision 2. Manage conversations 3. Mobilise knowledge activists 4. Create the right context 5. Globalise local knowledge Instill a Knowledge Vision

A knowledge vision gives a business plan heart and soul. The vision encompasses the types and contents of knowledge to be created, and thereby provides direction to the organisational members (Von Krogh et al). It will inspire the company to search and build up knowledge. Most importantly it will emphasise knowledge creation as an activity, to be put on top of management’s agenda, having a high commitment.

A knowledge vision consists of three parts. It should provide a mental map of the setting organisational members work in. The purpose is to motivate organisational members to see their activities as a part of a larger setting. Secondly, it should also include a framework organisational members ought to work in. It defines how the future is seen and it provides members trust in the future of the company. The last part of the knowledge vision reflects how the company gets from the present to the future situation. It is very important that it is clear for all organisational members how they can contribute to moving from the present to the future and how they can help in creating the future landscape of knowledge. In practice, a company’s knowledge vision may take the form of a mission statement, a set of corporate values, a document about management philosophy etc. Von Krogh’s view comes close to what Collins and Porras have described in “Built to Last” about clock building companies

Manage Conversations

Managing conversations is the second knowledge enabler. Von Krogh et al, emphasise the important part that conversations play in enabling knowledge. According to them, good conversations are the cradle of social knowledge in any organisation. Through extended discussions, individual knowledge will be turned into themes available for others. The mutual exchange of ideas, viewpoints and beliefs that conversations entail, allows for the first and most essential step of knowledge creation: sharing tacit knowledge within a community. Conversations have to be managed so that knowledge can be created.

7

Georg von Krogh, Ikujiro Nonaka and Kazuo Ichijo (2000), “Enabling Knowledge Creation: How to unlock the mystery of tacit knowledge and release the power of innovation”

20 Mobilise Knowledge Activists

Enabling knowledge depends on the energy and sustained commitment an organisation puts into knowledge creation. Therefore knowledge activists are very important in the knowledge enabling process. The knowledge activists help to establish the right enabling context. The function of knowledge activists can reside at varying levels of an organisation.

Create the Right Context

As knowledge and innovation become more central to competitive success, it is of key importance to structure an organisation so that knowledge creation proceeds more effectively and efficiently, dismantling as many individual and organisational barriers as possible.

Globalise Local Knowledge

Large firms are no longer contained within national borders and neither is Akzo Nobel, which has operations in about eighty countries. A large geographical spread can lead to the development of local knowledge in different places. Local knowledge could be valuable for other sites and therefore, it should be shared efficiently on a company-wide scale. Barriers between various parts of the organisation should be dismantled as much as possible.

3.4.2 The importance of being a clock building company

The previous paragraph has highlighted the knowledge enablers, which are important in explaining how an organisation can fill in the impulses if they want to reach a scenario four. Next to keeping the knowledge enablers in mind, it is important that the underlying organisation is a well functioning clock. Collins and Porras (2000), describe the importance of being a clock building company. They state that the difference between a true visionary company and a non-visionary company is that of clock building versus time telling. Time telling is having a great idea or being a charismatic leader while clock building is really building a company in which these great ideas will be implemented properly, even though new generations of managers appear8. According to the researcher, making processes like MTQ, MTS and MTH work is comparable to building a visionary company. It is important not only to bring a “great idea” (the Managing Total processes) to a site, but also realise that an underlying clock is necessary to keep that idea alive. The company is the vehicle that is necessary in order to keep the quality, safety or health spirit alive. Therefore it is important when transferring and integrating new concepts, that the company is a well functioning clock.

3.4.3 The influence of company culture on the transfer and integration of knowledge

The previous paragraph on the importance of being a clock building company has underlined that an organisation needs to be a well-oiled clock. But the culture of an organisation also has to be favourable for accepting newly transferred knowledge and integrating it in the organisation. De Long and Fahey (2000) have described four ways in which culture influences the behaviours that are central to knowledge creation, sharing and use.9 The first way in which culture influences the behaviours towards knowledge creation is that culture shapes the assumptions about what knowledge is important and which knowledge is important. Secondly, De Long and Fahey mention the fact that culture mediates the relationships between levels of knowledge. Culture determines who is expected to control specific knowledge. Culture also creates a context for social interaction that determines how knowledge will be used in particular situations. Finally, and most importantly within the context of this research, culture also shapes the creation and adoption and distribution of new knowledge.

8

James C. Collins & Jerry I. Porras (2000), “Built to Last: Successful habits of visionary companies” 9