Operational Excellence in Public Organizations
‘What every public manager should know before making an
Operational Excellence attempt’
University: University of Groningen
Faculty: Faculty of Economics and Business
MSc: Business Administration - Organizational & Management Control Supervisor: dr. S. (Sandra) Tillema
Supervisor 2: K.(Kristina) Linke
Student name: Cornelis Jan (Jork) Kist Address: W A Scholtenstraat 13c Phone: 0642198299
public+sector.++
Because+theorists+did+not+previously+cover+this+research+area,+the+literature+ review+will+be+complemented+and+expanded+with+a+case+study.+This+was+carried+ out+during+a+six+month+internship+within+a+public+organization+that+had+set+an+ OpEx+ambition+for+the+required+data+in+2008.++
The explored consequences within this particular case study combined with the conditions from the literature, will provide a valid answer on the research question and will give new insights in the consequences of public organizations who want to
successfully implement Operational Excellence.+ +
2.'Theoretical'Framework'
'
2.1.'Operational'Excellence
'Operational+Excellence+is+a+commonly+used+concept+among+businesses+around+the+ world.+ Operational+ Excellence,+ also+ abbreviated+ as+ OpEx,+ is+ nowadays+ mostly+ grounded+and+widely+used+in+private+production+organizations.+Even+though+OpEx+ is+ such+ a+ commonly+ used+ expression+ (and+ mostly+ an+ aim),+ a+ clear+ definition+ is+ missing.+ + This+ section+ will+ clarify+ the+ concept+and+ provides+ a+ clear+ vision+ on+ the+ essence+ of+ OpEx.+ This+ section+ forms+ therewith+ the+ first+
building+ block+ of+ this+ study+ about+ the+ consequences+ for+ public+ organizations+ by+ implementing+ OpEx.++
'
2.1.1.'OpEx;'a'path'to'market'leadership'
In+ the+ past,+ customers+ judged+ the+ value+ of+ a+ product+ or+ service+on+the+basis+of+some+combination+of+quality+and+price.+ Today’s+customers+have+changed+and+expanded+their+concept+
of+value+which+includes+convenience+of+purchase,+afterNsale+service,+dependability,+ and+so+on+(Wiersema+and+Treacy,+1993).+Wiersema+and+Treacy+(1993)+argue+that+ to+compete+in+today’s+market,+companies+do+not+necessarily+have+to+meet+all+these+ different+ customers’+ expectations+ but+ should+ choose+ a+ more+ specialized,+ delineated,+ road+ to+ potential+ success.+ By+ doing+ so,+ organizations+ will+ focus+ on+ a+ limited+set+of+customer+requirements+on+which+they+attempt+to+excel.+These+roads+ to+ take+ are+ expressed+ by+ three+ value+ disciplines;+ + Operational+ Excellence,+ Customer+Intimacy,+or+Product+Leadership,+see+Figure+1,+(Wiersema+and+Treacy,+ 1993)+and+have+proven+their+success+by+established+market+champions+like+Dell+ and+ Apple.+ Operational+ Excellence,+ the+ central+ value+ discipline+ in+ this+ study,+ is+ defined+as+a+specific+strategic+approach+to+the+production+and+delivery+of+products+ and+ services+ and+ aims+ at+ the+ provision+ of+ reliable+ products+ or+ services+ to+ customers+at+the+most+competitive+price+and+delivered+with+minimal+difficulty+or+ inconvenience.+ Operational+ Excellence+ organizations,+ as+ e.g.+ Dell,+ are+ leading+ its+ industry+ in+ price+ and+ convenience+ by+ indefatigably+ seeking+ ways+ to+ minimize+
Figure'1+Road+to+market+leader+
other+ ‘friction’+ costs+ and+ optimize+ business+ processes+ across+ functional+ and+ organizational+boundaries.+(Wiersema+and+Treacy,+1993)++
+
2.1.2.'Defining'Operational'Excellence'
The+ value+ discipline+ Operational+ Excellence+ was+ developed+ by+ Wiersema+ and+ Treacy+in+1993+to+acquaint+the+world+with+a+name+for+one+of+the+three+roads+to+ potential+market+leadership.+Even+though+OpEx+is+a+powerful+concept,+it+does+not+ contain+ any+ contentNwise+ theories.+ Respected+ researchers+ in+ the+ OpEx+ field,+ (Martin,+ 2008;+ Assen,+ et+ al.,+ 2007;+ Woll,+ 2003;+ Duggan,+ 2007;+ Macatee,+ 2007),+ recognize+OpEx+as+an+overarching+name+or+concept+that+equip+practitioners+with+a+ clear+focus.++They+state+that+OpEx’+backbone+is+formed+by+the+methods+Lean+and+ Six+Sigma+to+function+as+the+main+content.+Because+OpEx’+presence+mostly+lies+in+ the+consultancy+literature,+similar+other,+catchy+named,+methods+exist+to+sell+the+ potentials+of+OpEx+to+businesses.+Nevertheless,+the+consulted+theory+always+refers+ to+Lean+and+Six+Sigma+as+the+foundationNmethods+of+OpEx.++ + 2.1.3.'Lean'''
Lean,+ as+ the+ first+ method+ provider+ for+ OpEx,+ + is+ signified+ as+ the+ most+ important+ concept+in+the+achievement+of+Operational+Excellence.+Lean+thinking+is+originally+ linked+to+manufacturing+and+production+activities+and+was+first+mentioned+in+the+ book+ ‘+ The+ machine+ that+ changed+ the+ World’+ by+ Womack,+ et+ al+ (1990).+ Lean+ is+ inherently+linked+to+Toyota’s+Production+System+(TPS)+and+focuses+on+producing+ high+ quality+ products+ in+ the+ most+ economical+ and+ efficient+ manner+ while+ incorporating+less+human+effort,+less+inventory,+less+time+to+develop+products+and+ less+ space+ to+ finally+ become+ highly+ responsive+ to+ customer+
demands+ (Wong+ &+ Cheah,+ 2011).+ These+ objectives+ match+ perfectly+with+the+earlier+mentioned+OpEx+aims.+
as+tangible+and+relates+to+the+movement+of+products+from+process+A+to+process+B+ at+a+specific+time,+to+a+specific+location+and+in+a+specific+quantity.+When+something+ breaks,+operators+will+know+what+to+do+to+fix+it,+without+seeing+their+supervisor,+ reporting+to+management+or+having+a+meeting+(Duggan,+2007).+Table+1+describes+ the+ 10+ key+ components+ of+ a+ Lean+ system+ implementation.+ Martin+ (2008)+ states+ that+some+organizations+only+implement+a+few+components,+and+therefore+do+not+ obtain+all+advantages+of+a+fully+implemented+Lean+system.++
+
2.1.4.'Six'Sigma'
2.2.'Characteristics'of'Public'Organizations+
+
2.2.1.'Introduction'
In+order+to+get+a+good+understanding+of+the+consequences+in+public+organizations+ who+ want+ to+ achieve+ Operational+ Excellence.+ This+ chapter+ will+ deal+ with+ the+ second+ main+ aspect+ of+ this+ study+ by+ addressing+ the+ distinctive+ characteristics+ of+ public+organizations,+wherein+these+characteristics+may+both+hinder+or+stimulate+ an+OpEx+ambition.++
It+ were+ Rainey,+ Backoff,+ and+ Levine+ who+ in+ 1976+ initiated+ explorative+ studies+ in+ the+ field+ of+ public+ organizations+ and+ their+ potential+ distinctive+ characteristics+ in+ comparison+to+their+private+counterparts.+Much+of+the+management+literature+did+ treat+distinctions+between+public+and+private+organizations+as+irrelevant+(Rainey,+ 1989).+ Today,+ and+ with+ the+ focus+ of+ this+ research,+ this+ distinction+ has+ become+ undoubtedly+ relevant+ for+ both+ researchers+ as+ practitioners.+ + The+ amount+ of+ research+performed+and+various+approaches+developed,+signify+this+complex+field+ of+ research.+ After+ having+ defined+ ‘a+ public+ organization’+ by+ the+ two+ leading+ approaches,+characteristics+of+this+type+of+organization+is+addressed+by+three+main+ themes.++
+
2.2.2.'Public'organizations'
+
2.2.3.'The'Core'Approach'
Bozeman+and+Bretschneider+(1994)+developed+the+core+approach,+which+classifies+ organization+based+on+their+legal+type+(public+or+private).+An+organizations+legal+ type,+ who+ simply+ focuses+ on+ ownership,+ provides+ a+ simple+ but+ nonetheless+ powerful+distinction.+Rainey+(1996)+favors+this+approach,+firstly+because+the+legal+ status+ of+ an+ organization+ is+ a+ simple+ criterion+ and+ promptly+ measurable;+ and,+ secondly,+ because+ there+ is+ cumulative+ empirical+ research+ identifying+ the+ distinctive+ characteristics+ of+ public+ organizations.+ However,+ the+ core+ approach+ comes+ also+ with+ weaknesses+ by+ being+ not+ able+ to+ address+ hybrid+ organizations+ correctly+ and+ by+ being+ mostly+ descriptive+ and+ not+ theoretical+ (Antonsen+ and+ Jorgensen+ 1997).+ Bozeman+ and+ Bretschneider+ (1994,+ p.201)+ thereby+ state+ how+ core+approach+research+into+mainstream+public+organization+tends+to+be+long+on+ empiricism+and+short+on+theoretical+explanation.+
+
2.2.4.'The'Dimensional'Approach'
The+ dimensional+ approach+ does+ not+ have+ the+ same+ conceptual+ and+ theoretical+ tidiness+ and+ assumes+ that+ publicness+ is+ not+ a+ single+ and+ discrete+ attribute,+ but+ recognizes+ that+ organizations+ (whether+ government,+ business,+ nonprofit+ or+ hybrid)+are+more+or+less+public,+depending+on+the+extent+to+which+an+externally+ imposed+authority+affects+them+(Bozeman+and+Bretschneider+1994).+The+approach+ makes+ a+ simply+ appointment+ that+ government+ organizations+ are+ simply+ more+ public+ than+ other+ organizations.+ Public+ and+ private+ organizations+ are+ no+ longer+ defined+ by+ their+ legally+ defined+ owners,+ but+ classified+ by+ their+ degree+ of+ publicness.+This+approach+is+therewith+able+to+handle+all+organizations+with+some+ public+ characteristics,+ and+ not+ solely+ pure+ types.+ The+ disadvantage+ is+ covered+ in+ the+complexity+of+how+and+to+what+degrees+to+classify.+This+complexity+requires+an+ elaborative+ empirical+ investigation+ to+ overcome+ construct+ validity,+ criterion+ stability+and+measurement+problems.++
+
2.2.5.'Exploring'Public'distinctions'and'implications+
Public+ organizations+ can+ now+ be+ distinguished+ from+ their+ private+ counterparts.+ Based+on+their+presence+in+the+world+it+can+be+assumed+that+public+organizations+ fulfill+ a+ vital+ role+ in+ the+ economy+ and+ in+ society.+ Rainey+ (1976)+ was+ one+ of+ the+ initiators+ of+ investigating+ public+ organizations’+ distinctions+ by+ addressing+ three+ sections+ of+ distinct+ public+ organizations’+ characteristics.+ These+ sections+ have+ formed+a+backbone+for+many+studies+in+this+field,+till+Rainey,+in+2009,+extended+the+ sections+ into+ a+ framework+ for+ organizational+ analysis.+ It+ is+ the+ most+ comprehensive+framework++of+today+and+will+be+used+in+this+thesis+as+the+basis+to+ explain+ the+ implications+ of+ being+ a+ public+ organization.+ Rainey’s+ (2009)+ framework+ is+ transferred+ into+ three+ main+ themes+ to+ summarize+ the+ empirical+ studies+ performed;+ who+ will+ address+ theoretical+ proven+ characteristics+ of+ public+ organizations.+
+
selfNregulating+ as+ market+ forces,+ it+ can+ be+ questioned+ whether+ these+ powers+ are+ always+strong+enough+in+the+public+sector.+
Dixit+ (2001)+ notes+ that+ public+ organizations+ are+ answerable+ to+ several+ different+ constituencies+ with+ different+ objectives.+ In+ technical+ terms+ they+ are+ “common+ agencies”+with+several+“principals”.+An+agency+may+be+formally+only+answerable+to+ the+ executive,+ but+ in+ practice+ Congress,+ courts,+ media,+ and+ organized+ lobbies,+ all+ have+ a+ say.+ Rainey+ (2009)+ asserts+ that+ because+ of+ the+ absence+ of+ economic+ markets+for+outputs,+there+is+less+incentive+for+cost+reduction,+operating+efficiency+ and+ effective+ performance.+ The+ combination+ of+ less+ steering+ from+ market+ forces+ on+the+one+side,+with+complex+and+more+effort+taking+hierarchical+regulations+on+ the+ other+ side,+ can+ serve+ as+ an+ explanation+ of+ why+ distinctions+ exist+ between+ public+and+private+organizations.++
+
2.2.5.1.' Theme' 1:' Organizational' Culture,' Incentives' and' Work' Motivation+
public+managers+invest+more+time+in+contacts+and+formal+meetings+with+external+ interest+ groups+ and+ governing+ boards+ than+ ‘quasi’Npublic+ managers.+ Which+ is+ logical+ explained+ if+ you+ consider+ its+ social+ status+ and+ the+ potential+ urgency+ dilemma+ as+ explained+ by+ the+ markets+ vs.+ hierarchies+ theory,+ + but+ these+ findings+ surely+have+an+effect+on+interNorganizationalNbehavior.++
Work+motivation+is+a+set+of+energetic+forces+that+originate+both+within+as+well+as+ beyond+an+individual’s+being,+to+initiate+workNrelated+behavior,+and+to+determine+ its+form,+direction,+intensity,+and+duration+(Pinder,+1998)+and+has+an+direct+impact+ on+ an+ employees’+ drive+ to+ (continuously)+ improve.+ A+ study+ of+ Buchanan+ (1974)+ found+ proof+ of+ lower+ work+ satisfaction+ and+ job+ morale+ in+ public+ agencies+ especially+ at+ managerial+ levels.+ + Studies+ of+ Kilpatrick,+ Cummings,+ and+ Jennings+ (1964);+ Gore+ (1993)+ used+ measures+ of+ work+ satisfaction+ that+ refer+ to+ specific+ facets+ of+ work,+ such+ as+ promotion+ prospects,+ autonomy+ in+ the+ job,+ pay+ levels,+ coworkers+ and+ supervisors.+ Conclusions+ of+ lower+ work+ satisfaction+ where+ accordingly+found.++
incentives+and+less+promotion+potentials+combined+with+lower+salaries+for+CEO’s+ than+private+organizations.++Explanations+for+these+characteristics+can+be+found+in++ the+ combination+ of+ less+ clear+ performance+ indicators+ and+ higher+ organizational+ complexity+ what+ causes+ less+ transparency+ to+ attribute+ incentives+ correctly+ and+ fair.+ Thereby,+ people+ could+ perceive+ it+ as+ unfair+ of+ providing+ bonuses+ out+ of+ governmental,+ tax,+ funds.+ Jansen+ (2008)+ investigated+ performance+ perspectives+ under+ New+ Public+ Management+ movements+ and+ similar+ characteristics+ were+ accordingly+found.+++
+
2.2.5.2.'Theme'2:'Organizational'Structure,'Procedure'and'Processes'
characterizes+ communication+ in+ public+ organizations+ as+ mostly+ sub+ formal+ and+ greater+complexity+is+faced+within+inNgroup+relations,+communication+and+conflict+ resolutions+than+in+private+organizations.++
Innovation+ and+ organizational+ change+ is+ less+ present+ in+ public+ organizations+ because+they+are+lack+an+ending+life+cycle+and+are+therefore+less+vulnerable+for+the+ different+ life+ cycle+ stages+ with+ a+ potential+ death+ at+ the+ end+ (Rainey+ 2009).+ + This+ causes+ fewer+ reasons+ to+ innovate+ than+ private+ organizations+ and+ resistance+ to+ change+is+therefore+triggered.+It+is+however+not+the+point+to+defend+the+prerogative+ of+ the+ public+ bureaucracy+ to+ resist+ change,+ but+ rather+ to+ emphasize+ a+ dilemma+ about+organizational+change+in+government+(Rainey,+2009).+
+
2.2.5.3.'Theme'3:'Leadership'&'Organizational'Goals'
initiatives+ require+ leadershipNskills+ and+ teamwork.+ Something+ that+ Boyatzis+ (1982)+found+in+his+taken+sample+of+public+managers+which+showed+lower+levels+ of+skills+at+managing+group+processes+than+private+sector+managers+did.+Another+ characteristic+ of+ public+ managers+ was+ addressed+ by+ Rainey+ (2009)+ who+ discovered+ a+ tendency+ of+ these+ managers+ to+ ask+ for+ more+ staff,+ resources+ and+ larger+ budgets,+ which+ will+ government+ bureaucracies+ grow+ inefficiently+ and+ negatively+influences+business+practices.++
Organizational+goals+are+conditions+that+an+organization+seeks+to+attain+and+that+ guides+ organizational+ values+ who+ can+ stimulate+ and+ orient+ employees+ in+ its+ organizational+ mission+ (Rainey+ 2009).+ Generally+ speaking;+ public+ agencies+ experience+ greater+ goal+ complexity+ and+ ambiguity+ than+ business+ firms+ (Rainey+ 1989)+However,+Rainey’s+performed+study+(1989)+shows+a+contradicting+opinion+ of+ the+ interviewed+ public+ managers+ about+ this+ fact,+ which+ can+ be+ related+ to+ a+ defensively+and+social+desirable+response+that+their+organizations’+goals+are+clear,+ because+by+saying+otherwise+could+signify+poor+management+of+their+organization.+ Rainey,+ Backoff+ and+ Levine+ (1976)+ assert+ how+ public+ organizations+ have+ particularly+ vague,+ hardNtoNmeasure,+ multiple+ and+ conflicting+ goals.+ They+ state+ that+the+public+sector+in+general+has+a+greater+tendency+of+conflicting+goals+with+ efficiency+ vs.+ openness+ to+ public+ scrutiny,+ conflicting+ demands+ and+ more+ valueN laden+goals+like+public+safety+and+environments.++
+
2.2.6.'Limitations'of'Public'Organizational'Theory'
2.3.' Preconditions' for' successful' OpEx' and' the'
applicability'in'Public'Organizations'
'
2.3.1.'Introduction'
The+ presently+ available+ theory+ about+ Operational+ Excellence+ is+ still+ very+ limited+ and+no+requisite+conditions+for+this+concept+have+been+set.+Furthermore,+OpEx+has+ never+ been+ studied+ in+ relation+ to+ the+ public+ sector.+ Because+ OpEx+ is+ directly+ related+to+both+Lean+and+Six+Sigma,+studies+concerning+these+methods+certainly+do+ provide+ valuable+ insights.+ This+ section+ will+ address+ the+ empirical+ findings+ that+ indicate+ (pre)conditions+ for+ both+ Lean+ and+ Six+ Sigma;+ and+ therewith+ thus+ Operational+Excellence.+
Therefore,+ it+ is+ worth+ exploring+ previous+ empirical+ studies+ about+ + a+ ‘similar’+ optimization+program+which+has+already+been+applied+in+the+public+sector:+Total+ Quality+Management+(TQM).+Because+TQM+is,+like+OpEx,+a+quality+program+which+ attempts+ to+ drive+ effective+ and+ efficient+ practices,+ findings+ deduced+ from+ these+ studies+might+shed+light+on+the+public+Operational+Excellence+field.+Consequently,+ a+concise+summary+of+these+empirical+studies+is+also+included.+
The+ (specific)+ conditions+ found+ for+ OpEx+ will+ be+ displayed+ using+ the+ same+ three+ themes+ wherein+ public+ organizations+ have+ been+ characterized.+ That+ being+ the+ case,+ will+ it+ be+ possible+ to+ directly+ relate+ these+ conditions+ to+ the+ previously+ explored+characteristics+of+public+organizations.++
+
2.3.2.'Theme'1:'Organizational'Culture,'Incentives'and'Work'Motivation+
is+characterized+by+its+highly+motivated+employees,++its+committed+to+a+common+ set+ of+ core+ values,+ beliefs+ and+ assumptions+ and+ its+ strong+ teamwork+ practices.+ These+selfNevident,+and+very+supportive,+cultural+values+for+Lean+are+definitely+not+ always+present+in+other+cultures.+Consequently,+every+organizational+culture,+for+ either+ public+ or+ private+ organizations,+ needs+ to+ seen+ in+ the+ correct+ (national)+ context.++
Theorists+argue+that+the+lack+of+a+supporting+organizational+culture+is+one+of+the+ biggest+ barriers+ for+ quality+ programs+ (Achanga+ et+ al.,+ 2006;+ Recht+ &+ Widerom,+ 1998).+Nordin’+et+al.,+(2008).+Findings+about+Lean+programs+indicate+that+when+the+ organizational+ culture+ is+ unsupportive+ and+ incompatible,+ even+ the+ best+ and+ Leanest+production+system+will+not+be+able+to+operate+at+its+full+potential.+
Research+shows+how+organizational+conditions+for+Lean,+Six+Sigma+and+TQM+are+in+ contrast+with+some+specific+organizational+characteristics+of+public+organizations.++ Recht+and+Widerom+(1998)+stated+that+a+successful+Lean+implementation+can+only+ be+achieved+when+employees+have+a+clear+orientation.+The+clear+perspective+and+ shared+ organizational+ beliefs+ of+ employees+ were+ addressed+ in+ both+ studies+ for+ Lean+by+Balle+(2005)+as+well+as+in+Six+Sigma+research+performed+by+Eckes+(2000).+ These+ conditions+ can+ contrast+ with+ the+ previously+ mentioned+ characteristics+ of+ public+organizations.+Rainey’s+(1989)+findings+about+the+elevated+goal+complexity+ and+ ambiguity+ in+ public+ organizations+ can+ negatively+ influence+ the+ workforce+ focus+ and+ orientation.+ Findings+ of+ Radnor+ &+ Walley+ (2008)+ provide+ substantial+ evidence+for+this+contrast+by+investigating+a+Lean+program+which+was+confronted+ with+a+soNcalled+“silo+culture”+in+a+public+organization.+Employees+were+working+in+ separate+ silos+ which+ in+ turn+ resulted+ in+ a+ mixture+ of+ orientations+ and+ interests.+ Even+ though+ public+ employees+ are+ generally+ more+ focused+ on+ organizational+ interest+ than+ chasing+ selfNinterests,+ it+ seems+ that+ particularly+ the+ more+ complex+ and+ambiguous+employeeNorientations+obstruct+a+quality+program.++
dedicated+ staff+ as+ well+ to+ match+ the+ Six+ Sigma+ direction+ (Ho+ &+ Chuang,+ 2006).+ Hanson+ (1995)+ searched+ for+ conditions+ for+ TQM+ programs+ applied+ in+ public+ organizations+ and+ found+ a+ somewhat+ similar+ aspect;+ a+ necessity+ to+ ensure+ a+ constancy+ of+ purpose+ as+ to+ keep+ employees+ committed.+ In+ 1974,+ Buchanan+ demonstrated+with+a+comparative+study+how+public+organizations+generally+have+ a+ lower+ job+ morale.+ In+ addition,+ Rainey’s+ study+ (1989)+ indicated+ that+ the+ formulated+conditions+for+these+programs+are+in+a+specific+contrast+with+the+public+ sector.+Rainey+labeled+public+organizations+as+having+a+more+conservative+culture+ with+less+zealot+employees+.+This+could+in+turn+endanger+the+required+proNactive+ and+pragmatic+employee+orientation+set+by+the+conditions+of+Recht+and+Widerom+ (1998).+Especially+the+motivation+to+remain+alert+for+(continuous)+improvements+ is+critical+for+all+quality+programs.++ This+aspect+of+continuous+improvement+is+present+in+all+aboveN+mentioned+quality+ programs+and+is+related+to+the+education+and+intensive+training+of+personnel.+This+ will+ trigger+ improvements+ and+ is+ therefore+ mentioned+ by+ Balle+ (2005)+ as+ a+ condition+ for+ Lean+ transformations.+ Established+ literature+ does+ not+ indicate+ that+ this+condition+forms+any+specific+barrier+for+these+programs,+or+OpEx,+in+a+public+ environment.++
However,+ a+ certain+ requirement+ for+ organizational+ learning+ does+ arise+ in+ public+ literature.+Hanson+(1995)+noticed+a+specific+precondition+as+to+implement+TQM+in+ public+organizations:+fear,+in+all+forms,+has+to+be+eliminated+in+order+for+everyone+ to+work+together+and+make+improvements.+This+condition+was+also+mentioned+in+ the+ available+ literature+ on+ Six+ Sigma.+ Erwin+ (2000)+ described+ how+ some+ organizational+cultures+are+fear+based+and+therefore+hinder+Six+Sigma+significantly+ by+lacking+a+open+work+environment+in+which+mistakes+are+allowed+and+defects+ are+ viewed+ as+ improvement+ opportunities.+ A+ basis+ of+ trust+ needs+ to+ be+ incorporated+ in+ an+ organization+ to+ support+ lineNworkers+ in+ making+ direct+ decisions+if+problems+arise.+Lean+and+Six+Sigma+require+organizational+learning+as+ a+paramount+objective+to+remain+alert+for+continuous+improvements.+
remuneration+systems+in+which+Lean+manufacturing+is+implemented.+The+authors+ state+ incentive+ systems+ could+ become+ an+ serious+ obstacle,+ principally+ because+ original+ incentives+ aim+ at+ producing+ as+ many+ units+ as+ possible,+ whereas+ Lean+ focuses+on+the+production+of+exactly+the+number+of+units+needed,+no+more+and+no+ less.+ Karlsson+ &+ Ahlstrom+ (1995)+ argue+ that+ traditional+ remuneration+ systems+ should,+when+Lean+is+introduced,+be+altered+immediately+to+avoid+a+misfit+between+ incentives+ and+ the+ new+ multifunctional+ teams+ and+ altered+ goals+ for+ production.+ These+ conditions+ are+ not+ specifically+ related+ to+ the+ specific+ characteristics+ of+ public+organizations.+Nevertheless+they+do+show+the+importance+to+correctly+use+ incentive+ systems+ for+ quality+ programs.+ Because+ the+ study+ by+ Rainey+ (1983)+ reports+ constraints+ on+ the+ use+ of+ extrinsic+ rewards+ and+ disciplinary+ actions+ in+ public+organizations,+it+may+create+a+barrier+for+OpEx+in+the+public+sector.+
Furthermore,+ the+ more+ lenient+ firing+ policy+ and+ fewer+ promotion+ potentials+ (Rainey+ &+ Bozeman+ (2000)+ in+ public+ organizations+ may+ counteract+ with+ the+ required+ motivated+ workforce.+ Furterer+ &+ Elshennawy+ (2005)+ concentrated+ on+ Six+ Sigma+ initiatives+ in+ public+ organizations+ and+ noted+ in+ a+ case+ study+ how+ a+ bureaucratic+culture+and+the+lack+of+performanceNbased+incentives+were+related+to+ process+ inefficiencies.+ Obviously,+ employees+ have+ to+ be+ aware+ of+ the+ right+ program+ focuses+ and+ fully+ motivated+ to+ drive+ an+ initiated+ quality+ program.+ Henderson+ &+ Evans+ (2000)+ stated+ that+ Six+ Sigma+ is+ very+ capable+ to+ provide+ key+ measures+for+management+performance+and+compensation,+which+is+a+useful+way+ to+encourage+successful+selection+and+completion+of+Six+Sigma+projects.+If+public+ organizations+have+difficulties+in+rewarding+such+performance,+it+would+evidently+ be+a+serious+obstacle+for+every+program+discussed.++
compromise+between+quality+and+cost,+which+works+in+industry,+does+not+work+in+ government+agencies.+The+buyer+of+a+product+in+the+public+sector+is+most+often+not+ the+ recipient,+ and+ therefore+ the+ usually+ perceived+ relation+ between+ costs+ and+ quality+ is+ lost.+ The+ buying+ government+ will+ try+ to+ minimize+ costs,+ but+ the+ direct+ customer+ could+ expect+ a+ level+ of+ quality+ that+ is+ found+ only+ at+ a+ very+ high+ price+ (William,+1994).+Public+organizations+are+usually+perceived+by+society+on+the+basis+ of+ the+ quality+ of+ their+ products+ or+ services.+ This+ results+ in+ an+ inferior+ focus+ on+ costs+ and+ creates+ a+ very+ difficult+ environment+ for+ quality+ programs.+ This+ is+ because+these+programs+endeavor+a,+as+perfect+as+possible,+balance+between+costs+ and+quality.+A+similar+reason+was+found+in+a+case+study+of+Cheng+&+Chang+(2012),+ which+showed+that+by+implementing+a+DMAIC+framework+(Six+Sigma)+in+a+public+ organization,+ a+ barrier+ was+ discovered+ in+ the+ fact+ that+ such+ a+ particular+ organization+ does+ not+ (always)+ prioritize+ earnings+ and+ solely+ aims+ on+ providing+ complete+ services+ to+ people,+ which+ renders+ the+ Define+ stage+ of+ Six+ Sigma+ quite+ problematic.++
+
2.3.3.'Theme'2:'Organizational'Structure,'Procedure'and'Processes'
+Literature+ from+ both+ the+ public+ field+ and+ from+ the+ different+ quality+ programs+ mentioned+ has+ dealt+ with+ the+ topic+ of+ organizational+ structure.+ Aspects+ of+ organizational+ structure,+ such+ as+ the+ locus+ of+ decisionNmaking+ and+ the+ level+ of+ communication+ may+ directly+ affect+ the+ development+ of+ the+ practices+ of+ quality+ programs,+while+the+nature+of+formalization,+the+number+of+layers+in+the+hierarchy,+ and+ the+ level+ of+ horizontal+ integration+ may+ act+ as+ antecedents+ for+ the+ locus+ of+ decisionNmaking+ and+ the+ level+ of+ communication+ (Klauss+ and+ Bass,+ 1982;+ Mintzberg,+1979;+Rudolph+and+Welker,+1998).++
employees+who+will+experience+less+authority+for+their+position+while+a+program+ like+OpEx+will+expect+high+responsibilities.+This+OpEx+condition+is+acknowledged+ by+ Karlsson+ &+ Ahlstrom+ (1995)+ who+ also+ state+ that+ decentralization+ is+ an+ important+ element+ in+ the+ manufacturing+ strategy+ under+ Lean,+ and+ thus+ OpEx.+ Nahm+ et+ al.,+ (2003)+ claim+ that+ Lean+ organizational+ structure+ is+ characterized+ by+ quick+decisionNmaking+that+can+be+passed+down+the+organizational+ladder+to+the+ people+best+equipped+to+make+decisions+quickly+and+effectively.+Similar+conditions+ hold+for+Six+Sigma,+which+must+be+initiated+and+carried+from+the+higher+positions+ in+an+organization+and+involves+substantial+changes+in+an+organizations’+structure+ and+ infrastructure+ (Coronado+ &+ Antony,+ 2002).+ The+ tendency+ of+ public+ organizations+ to+ centralize+ authority+ and+ create+ more+ complex+ organizational+ structures+ than+ private+ organizations+ (Rainey,+ 2009)+ are+ problematic+ for+ both+ Lean+and+Six+Sigma.+A+study+of+Radin+&+Coffee+(1993)+addressed+a+similar+contrast+ in+their+findings+of+public+managers+who+fear+a+loss+of+autonomy+and+power+in+the+ case+that+the+TQM+program+is+implemented.+These+contrasts+cause+the+elimination+ of+some+vital+conditions+for+quality+programs+and+therefore+have+a+serious+effect+ on+the+deployment+and+success+potential+of+such+programs.+It+would+seem+more+ than+ logical+ to+ assess+ an+ public+ organizations’+ structure+ on+ the+ feasibility+ of+ a+ particular+quality+initiative.++
Another+important+determinant+for+OpEx,+besides+organizational+structure,+is+the+ way+how+people+work+together+and+organize+procedures+and+processes.+Especially+ conditions+concerning+teamwork+were+explicitly+addressed.++
and+subordinates+than+private+employees.+The+contrast+is+even+further+magnified+ by+ Downs,+ (1967)+ who+ found+ greater+ complexity+ in+ inNgroup+ relations,+ communication+ and+ conflict+ resolutions+ in+ public+ organizations+ than+ Radin+ and+ Coffee,+(1993)+who+argued+that+the+focus+on+the+teams+is+not+a+‘natural’+mode+of+ operation+in+many+hierarchical+organizations.++
+Communication+ and+ the+ way+ how+ information+ is+ used+ within+ organizations+ was+ also+addressed+ by+ multiple+ researchers.+ Adequate+ communication+ and+ the+ free+ provision+ of+ information+ is+ vital+ for+ Lean+ practices+ and+ their+ drive+ improve+ continuously.+Lean+requires+a+high+level+of+horizontal+integration+to+achieve+a+level+ of+communication+that+is+fast,+easy,+and+abundant+(Putnam+et+al.,+1996).+Coronado+ &+ Antony+ (2002)+ found+ that+ organizations+ which+ successfully+ employ+ Six+ Sigma,+ tackled+implementation+barriers+with+sustained+communication,+motivation,+and+ education.+Concerning+this+topic,+researchers+Recht+and+Widerom+(1998)+stated+a+ Lean+ program+ needs+ a+ free+ flow+ of+ information+ (vertical+ and+ horizontal),+ empowered+ employees+ who+ have+ the+ information+ and+ skills+ needed+ to+ make+ decisions+ on+ issues+ regarding+ their+ own+ working+ environment,+ a+ pragmatic+ orientation+and+employees+who+are+both+processN+and+resultNoriented.+
innovation+and+finding+new+ways+of+practicing;+stressing+personal+responsibility;+ and+recognizing+and+rewarding+the+team.++
Public+ sector+ studies+ of+ Rainey+ (1989+ and+ 2000)+ show+ a+ clear+ collision+ between+ these+ OpEx+ conditions+ and+ the+ research+ findings+ for+ characteristics+ of+ public+ managers:+issuing+excessive+rules+and+clearance+requirements;+higher+difficulty+to+ delegate+ authorities;+ intention+ to+ ask+ for+ more+ staff+ and+ resources+ than+ is+ necessary;+ more+ frequent+ turnover+ of+ positions,+ which+ form+ an+ innovation+ and+ change+ barrier+ (Warwick,+ 1975);+ fewer+ skills+ to+ manage+ group+ processes+ (Boyatzis,+ 1982)+ and+ the+ dealing+ with+ more+ vague,+ hardNtoNmeasure+ and+ more+ conflicting+ organizational+ goals+ (Rainey,+ et+ al.,+ 1976)+ than+ private+ managers+ are+ facing.+ Besides+ this,+ public+ managers+ have+ to+ cope+ with+ interests+ and+ attention+ from+ the+ media,+ courts+ and+ organized+ lobbies+ (Dixit,+ 2001).+ + The+ market+ vs.+ hierarchies+ theory+ (Thorelli,+ 1986)+ may+ also+ explain+ a+ lacking+ urgency+ in+ public+ organizations+ that+ negatively+ affects+ a+ decisive+ culture,+ with+ a+ focused+ staff+ that+ embraces+OpEx.+Leaders+in+public+organizations+are+therefore+not+only+concerned+ with+the+goals+and+methods+of+a+quality+program,+but+should+also+mediate+with+all+ other+ interests+ and+ take+ into+ account+ the+ mostly+ ambiguous,+ and+ therewith+ complex,+ goals+ (Rainey,+ 1989).+ But+ because+ Lean+ and+ Six+ Sigma+ both+ require+ a+ clear+ strategic+ vision+ with+ both+ short+ and+ longNterm+ objectives+ to+ provide+ the+ organization+with+the+right+attention,+(Macatee,+2007)+a+public+organization+could+ experience+more+obstacles+than+a+private+business.+The+study+about+TQM+in+public+ organizations+ of+ William+ (1994)+ suggests+ that+ the+ missing+ focus+ on+ profit+ in+ governmental+organizations+could+result+in+a+missing+degree+of+clarity+of+what+the+ ultimate+ goal+ of,+ e.g.+ TQM+ is.+ This+ specific+ implication+ of+ TQM+ with+ respect+ to+ public+organizations+is+also+found+in+other+literature+on++quality+initiatives+(Radnor+ &+Walley,+2008;+Furterer+&+Elshennawy,+2005;+McNary,+2008).+
therefore+ important+ to+ communicate+ both+ the+ ‘”why”+ and+ the+ “how”+ of+ e.g.+ Six+ Sigma+ as+ early+ as+ possible,+ and+ provide+ the+ opportunity+ for+ people+ to+ improve+ their+comfort+level+through+training+classes+(Hendricks+&+Kelbaugh,+1998).+
Researchers+also+commonly+mention+the+barrier+of+public+officials+and+managers+ who+ need+ quick,+ shortNterm+ results+ to+ stay+ in+ the+ office,+ which+ is+ an+ antithetical+ focus+ to+ the+ longNterm+ focus+ of+ quality+ programs+ (Teicher+ et+ al.,+ 2002).+ + The+ frequent+ turnover+ of+ management+ positions+ in+ public+ organizations+ (Warwick,+ 1975)+ will+ diminish+ the+ awareness+ of+ (long)+ strategic+ direction+ in+ this+ sector+ (Radnor+ &+ Walley,+ 2008).+ This+ threatens+ an+ uniform+ and+ constant+ focus+ on+ e.g.+ OpEx.+ Deming+ (1986)+ also+ wrote+ about+ the+ relation+ of+ TQM+ in+ governmental+ organizations+and+the+relatively+high+turnover+of+public+top+managers+and+claimed+ that+it+results+in+a+‘weaker’+organizational+culture+than+that+of+most+businesses.++ Six+Sigma+and+Lean+are+in+fact+not+inexpensive+and+therefore+organizations+must+ be+ able+ to+ see+ the+ benefits+ and+ should+ have+ the+ patience+ to+ come+ to+ successes,+ which+requires+a+longNterm+focus+(Sale,+2000).++
It+ may+ now+ be+ obvious+ that+ quality+ programs+ are+ initiated+ by+ the+ top+ of+ an+ organization+(Imay,+1986)+and+will+only+have+a+chance+of+success+when+this+same+ top+ fully+ supports+ and+ remains+ involved+ in+ the+ program+ (Hanson,+ 1995).+ Ho+ &+ Chuang+ (2006)+ argued+ that+ the+ aggressiveness+ and+ ambition+ of+ the+ senior+ management+to+implement+Six+Sigma+is+a+critical+condition+for+a+potential+success.++ These+ conditions+ holds+ however+ equally+ for+ both+ public+ as+ well+ as+ private+ organizations,+ and+ are+ therefore+ not+ specifically+ important+ for+ Operational+ Excellence+in+the+public+sector.++
+
Even+ though+ studies+ show+ that+ it+ may+ be+ difficult+ to+ deploy+ quality+ programs+ in+ public+ organizations,+ (only+ 10%+ of+ OpEx+ attempts+ are+ successful+ in+ private+ organizations+ (Mora,+ 1999).)+ research+ also+ shows+ that+ it+ is+ possible+ (Hellein+ &+ Bowman,+ 2002).+ + The+ unique+ case+ study+ in+ this+ research+ will+ certainly+ find+ out+ more+about+the+consequences+faced+by+a+particular+public+organization+in+aiming+ at+Operational+Excellence.++
+
3.'Methodology'
'
This+ chapter+ will+ describe+ the+ research+ design+ used+ for+ this+ study.+ Methodology+ shapes+ research+ and+ assures+ an+ effective,+ clearly+ defined+ and+ efficient+ plan+ to+ guarantee+a+certain+level+of+quality+(De+Leeuw,+2005).+
'
3.1.'Research'Type'
Yin+(1981)+defines+research+as+either+qualitative,+quantitative+or+a+hybrid+of+the+ two.+ This+ study+ will+ solely+ be+ of+ a+ qualitative+ nature+ and+ is+ therefore+ a+ type+ of+ research+ that+ produces+ findings+ not+ achieved+ through+ statistical+ procedures+ or+ other+ means+ of+ quantification+ (Strauss+ and+ Corbin,+ 1990,+ p.+ 17).+ Necessary+ data+ will+be+collected+with+a+caseNstudy+type+of+research+because+this+research+strategy+ will+focus+on+an+inNdepth,+full+contextual+analysis+of+the+problem+with+an+emphasis+ on+details+(Cooper+&+Schindler,+2003).+The+application+of+a+case+study+aligns+with+ the+ specific+ research+ question+ of+ this+ study+ and+ fits+ well+ as+ a+ small+ sample+ in+ a+ unique+research+field.+It+could+be+the+best+method+to+explain+the+complexities+of+ realNlife+ situations+ which+ may+ not+ be+ captured+ through+ experimental+ or+ survey+ research+(Zainal,+2007).+This+case+study+also+has+the+potential+to+uncover+new+and+ additional+insights+to+answer+the+research+questions.+So+far,+the+current+literature+ provides+ insufficient+ evidence+ about+ the+ research+ topic,+ what+ makes+ a+ shift+ to+ practice+imperative.+
A+case+study+focuses+on+a+limited+number+of+issues+pertaining+to+individuals+and+ their+circumstances,+and+is+organized+around+the+critical+examination+of+evidence+ and+ arguments+ related+ to+ these+ issues+ (Bromley,+ 1977).+ Therefore,+ a+ case+ study+ fits+well+with+the+explorative+nature+of+this+study.++
Blumberg+et+al.+(2005)+argue+that+the+quality+of+a+research+is+not+dependent+on+the+ type+of+research+applied,+but+rather+on+the+quality+of+its+design+and+whether+it+is+ appropriately+ conducted.+ Therefore,+ in+ order+ to+ provide+ a+ sound+ analysis+ of+ practice+that+will+shed+light+on+the+theoretical+issues+being+studied,+a+case+study,+ with+ its+ given+ definition,+ is+ the+ most+ appropriate+ research+ type+ to+ uncover+ potential+relationships.++
+
3.2.'Determination'of'case'study'object+
The+ organization+ selected+ for+ this+ case+ study+ is,+ according+ to+ the+ previous+ discussed+ core+ approach+ of+ Bozeman+ and+ Bretschneider+ (1994),+ a+ public+ firm,+ located+ in+ Groningen+ city,+ which+ initially+ expressed+ the+ aim+ to+ implement+ Operational+ Excellence+ practices+ in+ their+ annual+ report+ of+ 2008.+ That+ year,+ the+ departments+ responsible+ for+ operations+ collectively+ decided+ to+ enhance+ their+ production+ activities+ to+ set+ new+ personal+ goals+ for+ management+ and+ to+ give+ an+ overall+improvement+impulse.+Despite+the+Operational+Excellence+drive+remaining+ vivid+in+the+subsequent+years’+agendas,+no+serious+improvements+or+effects+have+ been+ measured+ till+ date+ of+ this+ study.+ Nevertheless,+ management+ remained+ convinced+ of+ the+ importance+ to+ continue+ to+ thrive+ for+ excellence+ within+ their+ operations.+ The+ combination+ of+ these+ aspects:+ the+ ambition+ for+ OpEx,+ being+ a+ public+firm+and+the+inserted+efforts+for+this+ambition+during+the+last+4+years,+make+ this+organization+the+perfect+foundation+to+find+empirical+answers+to+the+research+ question+of+this+study.+This+case+study+aligns+with+the+research+questions:+‘what+ consequences+ a+ public+ organization+ will+ face+ when+ it+ attempts+ to+ implement+ Operational+Excellence?’+
+
3.3.'Data'Collection+
thoroughly.+De+Leeuw+(2005),+then,+specifies+various+sources+that+can+be+utilized+ in+ research.+ First,+ one+ could+ conduct+ interviews+ with+ relevant+ persons+ in+ the+ research+area.+Researchers+could+use+structured+interviews,+where+the+results+are+ unambiguous+and+can+be+quantified,+or+unstructured+interviews,+where+no+specific+ questions+are+formulated+in+advance+(Hove+&+Anda,+2005).+Interviews+in+this+case+ study+are+semiNstructured+to+make+sure+that+each+respondent+is+approached+with+ a+uniform+set+of+questions.+This+will+not+only+improve+the+analysis+of+the+gathered+ data,+ but+ also+ ensure+ that+ every+ interviewee+ was+ approached+ on+ a+ similar+ basis,+ which+enhances+the+quality+of+the+results.+De+Leeuw+(2005)+argues+that+this+type+ of+ interview+ will+ give+ the+ researcher+ new+ information+ because+ interviewees+ are+ given+room+to+mention+new+insights.+Furthermore,+semiNstructured+interviews+are+ always+ faceNtoNface,+ which+ makes+ them+ very+ suitable+ for+ the+ exploration+ of+ thoughts,+values,+beliefs+and+motives+(Smith,+1975).+In+addition,+they+offer+a+means+ for+ evaluating+ the+ validity+ of+ the+ respondent's+ answers+ by+ observing+ nonNverbal+ indicators,+ (Gordon,+ 1975)+ it+ facilitates+ comparability+ by+ guaranteeing+ that+ all+ questions+ are+ answered+ by+ each+ interviewee+ (Bailey,+ 1987).+ It+ also+ ensures+ that+ the+ interviewee+ is+ unable+ to+ seek+ assistance+ from+ others+ while+ answering+ the+ questions+(Bailey,+1987).+
+
The+ quality+ of+ research+ and+ its+ outcomes+ are+ directly+ related+ to+ objectivity.+ Objectivity+can+be+related+to+validity+(Kirk+and+Miller,+1986),+and+should+be+taken+ into+ consideration+ when+ interviews+ are+ used+ as+ a+ means+ of+ data+ collection+ (Verschuren,+2003).+Kirk+and+Miller+(1986,+p.19)+define+validity+as+‘the+extent+to+ which+a+measurement+tool+gives+the+right+answer’.+The+questionnaire+for+the+semiN structured+interviews+was+carefully+designed+to+get+answers+that+especially+fitted+ the+ research+ question.+ Respondents+ were+ asked+ about+ their+ experiences+ with+ OpEx.+The+questions+focused+on+their+beliefs+and+opinions+concerning+factors+that+ could+stimulate+or+hinder+OpEx+efforts+in+their+organization+and+for+their+specific+ position.+ Interviewees+ were+ neutrally+ approached+ by+ the+ interviewer+ and+ stimulated+ to+ bring+ to+ the+ table+ everything+ that+ could+ be+ of+ a+ relevance+ for+ this+ study.+In+addition,+the+opinion+of+every+individual+interviewee+about+the+various+ theoretical+preconditions+for+OpEx+in+this+organization+was+asked.+Potential+biases+ in+analyzing+interview+data+were+understood+and+addressed.++
All+interviews+were+held+in+the+second+half+of+the+internship,+in+the+months+of+July+ and+ August.+ Table+ 1+ lists+ the+ interviewees+ in+ accordance+ with+ their+ positions.+ Interviewees+were+especially+selected+to+give+a+full+understanding+of+all+the+parties+ involved+ with+ the+ operations.+ Only+ parties+ directly+ related+ to+ operations+ were+ interviewed+ because+ the+ OpEx+ ambition+ was+ solely+ focused+ on+ these+ operations.+ Since+ OpEx+ requires+ a+ complete+ organizational+ support+ from+ all+ hierarchical+ layers,+ it+ was+ decided+ to+ interview+ persons+ in+ all+ layers+ concerned+ with+ operations.+
+
Figure'2.+Organizational"chart"of"the"Interviewees"of"Public"Organization"X."With" additional"overview"of"the"hierarchical"configuration"of"the"department"heads." ' + + + +
All+ interview+ reports+ together+ compose+ the+ data+ pool+ out+ of+ which+ the+ analysis+ was+made.+However,+several+various+problems+occurred+in+interpreting+interview+ information.+Analyzing+the+reports,+it+is+important+for+the+researcher+to+be+aware+ of+social+desirability+bias,+the+social+interaction+process+between+the+interviewer+ and+ the+ interviewee,+ and+ selfNfulfilling+ prophecy+ (Psychology+ Press,+ 2004).+ Data+ analysis+ usually+ involves+ reducing+ all+ the+ accumulated+ data+ to+ a+ manageable+ amount,+in+order+to+be+able+to+extract+relevant+information+(Blumberg+et+al.+2005).+ With+that+taken+into+consideration,+all+reports+were+analyzed+for+uniform+answers,+ similarities+and+patterns.+Quotes+from+the+interview+reports+were+highlighted+and+ labeled+with+a+topic+that+matched+the+content+of+the+quote.+The+labels,+per+topic,+ were+ subsequently+ grouped+ per+ interviewee+ and+ placed+ together+ for+ all+ interviews.+With+all+expressions+were+categorized,+the+next+step+was+a+search+for+ similar+ opinions+ and+ relations+ between+ the+ interviewees.+ The+ results+ of+ this+ analysis+were+structured+in+a+few+main+themes+which+will+come+back+in+the+results+ section+of+this+study.+'
'
4.'Results'
'
4.1'Introduction'
This+ research+ will+ make+ use+ of+ a+ single+ case+ study+ in+ a+ public+ organization.+ The+ chosen+organization+for+this+study+takes+charge+of+the+production+of+a+commodity+ for+ public+ needs+ and+ has+ been+ in+ business+ for+ over+ a+ hundred+ years.+ It+ is+ of+ importance+ to+ know+ why+ in+ 2008+ an+ OpEx+ ambition+ was+ included+ in+ the+ annual+ reports+of+the+organization.+The+roots+of+this+ambition+can+be+found+in+the+higher+ management+ segments,+ with+ the+ sector+ head+ operations+ in+ a+ leading+ role.+ He+ explains:+‘I+was+closely+involved+with+the+new+OpEx+ambition+as+it+was+introduced+ to+our+organization+in+2008+due+to+an+initiated+joint+venture+(50/50+ownership)+ with+a+similar+public+organization+to+provide+a+certain+commodity+in+our+region.+ This+ other+ public+ organization+ was+ using+ the+ OpEx+ terminology+ already+ and+ therefore+ we+ included+ the+ terminology+ in+ the+ agreements+ of+ the+ joint+ venture.+ Because+ dissatisfaction+ then+ arose+ about+ the+ provision+ of+ our+ personnel+ in+ our+ joint+ venture,+ we+ initiated+ the+ OpEx+ ambition+ for+ our+ entire+ organisation+ since+ employees+for+either+the+joint+venture+as+well+as+our+own+operations+were+on+our+ payroll.+From+that+moment,+OpEx+had+become+a+new+ambition+for+operations+and+ was+annually+mentioned+in+our+reports.’++
control+ for+ the+ previous+ team+ leader.+ Also+ the+ head+ of+ operations,+ as+ a+ position,+ emerged+from+this+reorganization(see+figure+2,+organizational+chart).+In+addition,+ the+work+design+of+operators+changed+by+a+newly+introduced+rotating+system+in+ which+ operators+ alternated+ production+ locations+ to+ exchange+ knowledge+ about+ the+ different+ locations.+ Finally,+ a+ new+ information+ system+ entered+ the+ organization,+primarily+to+improve+the+visibility+on+maintenance.++
+
4.1.1.'Reflection'of'the'OpEx'ambition'(2008'–'now)'
Notwithstanding+ the+ efforts+ put+ into+ the+ OpEx+ ambition,+ the+ interviewees+ were+ unanimous+ about+ the+ fact+ that+ they+ considered+ the+ Operational+ Excellence+ program+ to+ be+ essentially+ unsuccessful.+ Quotes+ from+ interviewees+ were:+ ‘+ the+ reported+ambition+in+the+annual+reports+did+not+make+any+sense’+(team+leader+&+ director).++
‘I+ did+ not+ notice+ an+ OpEx+ ambition+ from+ my+ position+ and+ did+ not+ perceive+ any+ improvements’+ (operator).+ ‘OpEx+ was+ mostly+ a+ buzzword/fashion+ statement’+ (team+leader),+as+well+as+‘I+only+saw+it+on+a+Powerpoint+level’+(business+specialist).++++ However,+despite+these+fierce+statements,+both+a+middle+and+higher+manager+did+ perceive+ some+ successes+ which+ could+ be+ related+ to+ the+ OpEx+ ambition;+ they+ mentioned+ the+ increased+ level+ of+ knowledge+ among+ operators+ as+ a+ success+ assignable+to+OpEx.+‘Operators+are+not+performing+a+trick+anymore,+they+are+now+ better+ aware+ of+ their+ proceedings’.+ Also+ the+ production+ costs+ were+ lowered+ and+ knowledge+about+reports,+budgets+and+expenditures+increased+significantly.+
+
4.2'Results'&'analysis'in'themes'
Why+ was+ Operational+ Excellence+ not+ perceived+ as+ a+ success+ within+ this+ organization?+The+analyzed+interview+data+will+answer+this+question+by+displaying+ the+ results,+ categorized+ in+ four+ themes.+ The+ themes+ provide+ common+ ground+ in+ the+ answers+ from+ all+ interviewees.+ Almost+ all+ the+ expressions+ made+ by+ the+ interviewees+ was+ related+ to+ one+ of+ these+ themes.+ The+ themes+ catch+ the+ central+ causes+and+barriers+of+the+largely+failing+OpEx+program.++
4.2.1.'Sense'of'urgency'
One+ of+ the+ recurring+ elements+ interwoven+ through+ the+ opinions+ from+ the+ interviewees+was+the+sense+of+urgency+which+is,+or+in+this+case+not,+present+in+the+ organization.+Whether+interviewees+addressed+this+topic+by+mentioning+a+‘certain’+ culture,+or+that+they+experienced+motivation+issues+because+of+a+lack+of+incentives+ provided+by+the+organization+for+their+personnel,+it+was+all+related+to+the+dilemma+ of+urgency.+While+this+was+evident+after+analysis,+interviewees+were+probably+not+ always+aware+that+their+answers+indirectly+indicated+this+particular+cause.++ In+the+first+place,+interviewees+particularly+mentioned+the+current+organizational+ culture+ as+ the+ malefactor+ for+ the+ OpEx+ program.+ All+ interviewees+ deemed+ the+ current+ culture,+ and+ that+ of+ previous+ years,+ unsupportive+ of+ OpEx.+ The+ fact+ that+ this+ aspect+ was+ often+ mentioned+ as+ a+ first+ barrier+ to+ OpEx,+ demonstrates+ that+ employees+perceive+this+as+a+serious+obstacle+and+that+it+potentially+covers+a+range+ of+ arguments+ for+ this+ ‘unsupportive+ culture’.+ That+ such+ an+ unsupportive+ culture+ causes+ a+ serious+ obstacle+ for+ a+ quality+ program+ has+ already+ been+ addressed+ by+ theorists+ like+ Achanga+ et+ al.+ (2006),+ Recht+ &+ Widerom+ + (1998)+ and+ Nordin.+ The+ reason+ why+ this+ culture+ is+ unsupportive+ could+ be+ related+ to+ the+ first+ theme+ that+ characterizes+ the+ results:+ a+ lacking+ urgency.+ Interviewees,+ such+ as+ the+ head+ of+ operations,+indicated+this+by+saying:+‘We+lack+a+certain+usefulness+and+necessity.+ Employees+ often+ ask+ themselves:+ Why+ do+ we+ have+ to+ become+ ‘better’?+ We+ have+ always+ worked+ to+ current+ standards+ and+ the+ customer+ always+ received+ the+ product+that+they+wished+and+paid+for.’+The+head+of+operations+characterizes+the+ current+ culture+ as+ low+ on+ decisiveness+ and+ quickNwittedness;+ ‘there+ is+ no+ real+ driver+to+excel+or+drastically+improve.+’Employees++would+maintain+an+attitude+of:+ ‘What+can’t+be+finished+today,+can+easily+be+done+tomorrow’.+In+addition,+the+head+ of+ operations+ mentioned+ that+ from+ his+ position+ he+ observed+ the+ lack+ of+ a+ proN active+attitude+among+the+employees.+OpEx+required,+according+to+him,+a+certain+ entrepreneurship+that+is+currently+missing.++
provide+any+preventive+or+regulative+pressure+regarding+their+internal+processes.+ They+only+interfere+on+a+reNactive+basis+when+problems+arose.+With+this+in+mind,+ interviewees+ also+ appointed+ multiple+ other+ aspects+ which+ relate+ to+ the+ sense+ of+ urgency.+ The+ director+ said+ e.g.:+ ‘I+ believe+ that+ within+ our+ current+ culture,+ employees+are+far+to+nice+to+each+other+and+thus+do+not+confront+the+other+person+ when+necessary.’+A+similar+statement+was+made+by+a+team+leader+who+missed+‘a+ culture+ where+ agreements+ are+ fulfilled+ as+ agreed+ on.’+ Both+ experiences+ are+ a+ logical+ consequence+ when+ employees+ are+ relatively+ free+ to+ act.+ If+ such+ a+ lack+ of+ urgency+ to+ perform+ satisfactory+ exists,+ a+ program+ who+ aims+ exactly+ at+ the+ improvement+ of+ an+ organizations’+ operations+ is+ doomed+ to+ fail.+ Eckes+ (2000)+ acknowledged+this+by+prescribing+an+uncommitted+and+demotivated+workforce+as+ a+serious+obstruction+for+OpEx.++
Another+point+that+both+the+interviewees+and+the+theorists+mentioned+as+a+barrier+ for+OpEx+was+a+persistent+culture+consisting+of+multiple+silo’s+or+clusters.+Five+out+ of+ the+ eight+ individuals+ interviewed,+ (mostly+ from+ lower+ positions+ in+ the+ organization)+experienced+this+silo+culture+which,+in+their+opinion,+in+turn+created+ varying+ interests+ within+ the+ organization.+ Even+ though+ this+ mostly+ relates+ to+ an+ organizational+ structure,+ it+ could+ also+ indicates+ that+ employees+ in+ both+ this+ organization,+as+well+as+the+investigated+public+organization+of+Radnor+&+Walley+ (2008)+ are+ able+ to+ favor+ both+ personal+ and+ ‘cluster’+ interests+ above+ the+ overall+ organizations’+ interest.+ Furthermore,+ interviewees+ addressed+ the+ organizational+ goals+as+suitable+for+OpEx+programs+on+one+hand,+but+contrastingly+on+the+other+ also+as+unchangeable,+flat+and+abstract.+Two+interviewees,+the+business+specialist,+ and+the+head+of+P&M+agreed+that+OpEx+was+not+necessary+to+accomplish+last+year’s+ organizational+goals+and+were+both+convinced+that+future+customers+would+also+be+ content+ without+ the+ presence+ of+ OpEx.+ Because+ the+ OpEx+ program+ may+ not+ necessarily+be+in+place+to+achieve+the+organizational+goals,+it+is+not+very+surprising+ that+ interviewees+ mentioned+ how+ OpEx+ was+ too+ low+ a+ priority+ on+ last+ year’s+ agendas.+They+said+that+there+was+not+enough+perseverance+and+too+much+focus+ on+quantity+and+quality+instead+of++a+focus+on+costs.++
organizations+ in+ which+ he+ demonstrates+ the+ difficulty+ to+ compromise+ between+ quality+ and+ costs.+ Similarly,+ Cheng+ &+ Chang’s+ (2012)+ case+ study+ shows+ how+ the+ implementation+of+a+DMAIC+framework+(Six+Sigma)+in+a+public+organization+causes+ a+ problem+ with+ the+ previously+ set+ priorities+ (not+ always+ correct)+ between+ costs+ and+the+provision+of+complete+and+high+quality+services.+This+would+turn+out+to+be+ problematic+for+the+Define+stage+of+Six+Sigma.+At+the+same+time,+it+would+also+seem+ that+ the+ sense+ of+ urgency+ affects+ the+ organization’s+ employees+ with+ a+ certain+ amount+ of+ disinterest+ towards+ OpEx+ program.+ This+ could+ be+ the+ result+ of+ a+ workforce+ that+ is+ not+ stimulated+ to+ understand+ both+ the+ ‘why’+ and+ the+ ‘how’+ of+ OpEx.+ A+ deeper+ analysis+ of+ “knowledgeNaboutNOpEx”+ is+ discussed+ in+ a+ following+ theme.+ Nevertheless,+ employees+ could+ also+ be+ committed+ and+ motivated+ to+ both+ an+ OpEx+ program+ as+ well+ as+ the+ other+ organizational+ goals+ by+ giving+ them+ an+ certain+ urgency+ in+ the+ form+ of+ appropriate+ incentives.+ This+ was+ this+ achieved+ in+ terms+ of+ organization+ by+ a+ benchmark+ introduced+ in+ the+ last+ decade.+ This+ benchmark,+initiated+by+the+national+government,+aimed+at+more+urgency+for+the+ sector+to+improve+their+activities,+and+to+collectively+decrease+the+price+of+the+endN product.+ All+ the+ interviewees+ related+ the+ OpEx+ ambition+ to+ this+ benchmark+ and+ saw+ it+ as+ the+ right+ tool+ to+ achieve+ a+ higher+ score+ on+ this+ important+ standard.+ Additionally,+ the+ director+ believed+ that+ OpEx,+ if+ you+ consider+ the+ past+ of+ the+ organization,+should+currently+be+the+right+focus.+‘Because+most+production+plants+ descend+from+just+after+the+second+world+war,+colossal+renewal+investments+were+ just+ made+ before+ the+ crisis+ kicked+ in.+ The+ current+ crisis+ does+ not+ require+ bigger+ production+plants+but+rather+a+more+efficient+usage+of+the+just+renewed+production+ locations.+OpEx+seems+the+best+concept+to+achieve+this’.+
considered+ by+ the+ interviewees+ as+ too+ small+ and+ not+ linked+ enough+ to+ boost+ performance+targets.+Although+this+is+the+situation,+the+same+interviewees+agreed++ that+such+incentives+would+be+suitable+motivation+to+enhance+practices+and+drive+ optimization+programs.+However,+not+only+extrinsic+incentives,+but+also+intrinsic+ incentives,+like+compliments,+were+perceived+unanimously+as+too+sparingly+given.+ Notwithstanding+ these+ observations,+ the+ higher+ and+ the+ middle+ managers+ did+ understand+ the+ importance+ of+ these+ compliments+ for+ an+ OpEx+ ambition.+ A+ teamleader+said:+‘continuous+improvements+should+also+include+the+celebration+of+ successes’+and+‘improvements+need+to+be+visible’.+Likewise+the+business+specialist+ mentioned:+ ‘currently+ we+ do+ not+ see+ that+ we+ are+ improving,+ even+ though+ the+ quality+ of+ our+ product+ has+ increased,+ in+ accordance+ to+ national+ standards,+ with+ more+ than+ 50%+ since+ 1996’.+ A+ reference+ to+ research+ literature+ shows+ that+ researchers+ are+ unambiguous+ about+ the+ fact+ that+ extrinsic+ incentives+ need+ to+ be+ altered+for+OpEx+aims+in+order+to+avoid+potential+misfits+(Karlsson+&+Ahlstrom).+ Even+ though+ significant+ bonuses+ are+ lacking+ in+ this+ organization,+ and+ personnel+ argue+ that+ it+ would+ motivate+ them,+ the+ absence+ of+ bonuses+ does+ not+ indicate+ a+ direct+hindrance+for+OpEx.+Nevertheless,+the+fact+that+intrinsic+incentives+are+also+ perceived+ as+ too+ sparingly+ used,+ the+ absence+ of+ both+ an+ appropriate+ incentive+ system+as+well+as+an+overall+lacking+urgency+will+definitely+prove+to+be+disastrous+ for+ Operational+ Excellence.+ Especially+ if+ the+ preconditions+ for+ quality+ programs+ like+ OpEx,+ set+ in+ section+ 2.3,+ of+ Recht+ &+ Widerom+ (1998),+ Eckes+ (2000)+ and+ Herkness+(2005)+are+to+be+taken+into+account.+
+
4.2.2.'Resistance'to'change'
Apart+from+the+discussed+sense+of+urgency+in+the+organization+of+this+case+study,+a+ certain+ encapsulated+ resistance+ to+ change+ can+ be+ found.+ Such+ resistance+ can+ be+ analogously+ linked+ to+ a+ lack+ of+ urgency+ towards+ change+ in+ general.+ Additionally,+ the+urgency+theme+can+be+related+to+persistent+conservatism+in+this+organization,+ and+ thus+ it+ is+ worthwhile+ exploring+ the+ different+ aspects+ mentioned+ in+ the+ interviewees.++
corresponds+ with+ Rainey’s+ (1989)+ conservative+ culture+ found+ in+ public+ organizations.+Interviewees+also+said:+‘we+are+risk+averse+because+organizational+ stability+is+a+top+priority+for+a+public+organization+like+ours’.+This+reason+was+not+ addressed+ by+ researchers+ in+ section+ 2.3,+ but+ seems+ very+ valid+ because+ interviewees+ explained+ the+ organization’s+ long,+ and+ stable,+ history+ in+ which+ the+ customer+ was+ always+ supplied+ with+ their+ product+ and+ therefore+ the+ urgency+ to+ change+ was+ relatively+ low.+ The+ sector+ head+ contributed+ to+ this+ by+ noting:+ ‘organizational+change+is+not+present+in+the+nature+of+“our”+organization;+changes+ will+ cause+ commotion+ and+ hence+ create+ a+ misalignment+ with+ our+ aim+ to+ remain+ stable’.+The+fact+that+this+public+organization+experiences+resistance+to+change+as+a+ barrier+to+OpEx+is+a+completely+new+aspect+with+regards+to+the+existing+literature.+ A+ conservative+ attitude+ could+ be+ very+ fatal+ for+ an+ OpEx+ program+ because+ it+ requires+ quite+ a+ radical+ change+ in+ various+ areas+ of+ an+ organization.+ Such+ an+ organization+should+start+altering+the+organization+in+such+a+way+that+at+least+the+ preconditions,+set+in+section+2.3+of+this+study,+are+at+a+level+for+qualification+of+an+ OpEx+ program.+ This+ indicates+ that+ serious+ changes+ are+ necessary+ and+ thus+ the+ organizations+ averse+ to+ change+ would+ immediately+ become+ disadvantaged+ if+ it+ does+come+down+to+OpEx+implementation.++
years+and+are+completely+used+to+their+unchanged+work+patterns’+(addressed+by+ multiple+ interviewees).+ The+ business+ specialist+ said:+ ‘I+ believe+ most+ employees+ have+ worked+ in+ an+ (our)+ organization+ wherein+ they+ had+ a+ very+ good+ and+ “luxurious”+professional+life;+this+makes+it+even+harder+to+adapt+to+a+challenging+ new+program+like+OpEx’.+Hence+the+luxurious+working+environment+could+perhaps+ be+held+responsible+for+aversion+towards+organizational+change.+Employees+were+ simply+ in+ the+ luxurious+ position+ where+ change+ was+ unnecessary.+ This+ is,+ in+ all+ probability,+ due+ to+ the+ lack+ of+ urgency+ within+ the+ organization+ to+ change,+ like+ mentioned+in+the+first+theme.++
The+attitude+that+matches+such+a+situation+was+also+addressed+by+the+middle+rank+ management.+ They+ noticed+ how+ employees+ passed+ through+ a+ relative+ quick+ transition+ from+ being+ a+ (new)+ zealot+ employee+ to+ becoming+ either+ more+ conservative+ or+ becoming+ frustrated+ because+ their+ zealot+ ambitions+ were+ negatively+ influenced+ by+ the+ prevailing+ conservative+ culture.+ These+ middle+ managers+thereby+also+mentioned+how+important+these+zealot+employees+are+for+ an+OpEx+ambition,+and+understood+that+such+transitions+as+described+above+would+ have+ a+ negative+ influence+ on+ the+ success+ of+ OpEx.+ Above+ all,+ the+ attitude+ which+ corresponds+ with+ a+ zealot+ employee+ is+ the+ proNactive+ attitude+ needed+ to+ drive+ continuous+improvements+under+OpEx.+But+that+such+an+obstacle+for+OpEx+could+ exist+in+a+public+organization+was+already+suggested+by+Rainey+(1989),+and+proven+ to+ be+ of+ an+ obstacle+ for+ OpEx+ by+ both+ Recht+ &+ Widerom+ (1998)+ and+ Herkness+ (2005).+
Finally,+ the+ sector+ head+ mentioned+ the+ on+ the+ one+ hand+ potential+ commotion+ caused+ by+ an+ OpEx+ program+ which+ does+ not+ fit+ in+ an+ public+ organization+ that+ needs+ to+ remain+ stable,+ but+ on+ the+ other+ hand+ understands+ that+ OpEx+ could+ not+ bring+any+high+revenues+when+an+organization+continues+to+avoid+commotion+of+ any+ kind+ after+ the+ introduction+ of+ OpEx.+ He+ said:+ ‘one+ should+ not+ expect+ radical+ benefits,+without+radical+changes’.+In+other+words,+the+person+who+initiated+OpEx+ in+ 2008,+ understands+ that+ OpEx+ will+ not+ result+ in+ any+ spectacular+ successes+ to+ “his”+ organization+ because+ it+ is+ apparently+ impossible+ to+ somewhat+ radically+ implement+the+new+program.++
4.2.3.'Organizational'structure'
When+the+interviewees+were+asked+about+their+opinions+about+the+organization’s+ structure+ in+ relation+ to+ OpEx,+ most+ persons+ reacted+ somewhat+ hesitant+ because+ they+experienced+it+as+a+difficult+relation.+Nevertheless,+the+interviewees+initially+ seemed+a+bit+unsure+about+their+contribution+to+this+aspect,+in+the+end+they+made+ multiple+obvious+references+to+this+topic+by+appointing+subjects,+intentionally+or+ unintentionally,+ to+ the+ organizational+ structure+ of+ the+ organization.+ These+ particular+results+could+be+of+an+extra+importance+because+the+current+literature+is+ rather+ too+ concise+ about+ this+ organizational+ aspect+ in+ both+ the+ public+ as+ the+ quality+program+literature.+
The+ reason+ why+ most+ interviewees+ had+ no+ direct+ answer+ on+ the+ “structureN question”+was+because+they+said+to+be+unfamiliar+with+the+theoretical+meaning+of+ OpEx+and+therefore+had+never+thought+about+the+importance+of+this+relation.+The+ absence+of+knowledge+about+the+theoretical+meaning+of+OpEx+is+of+course+a+valid+ obstruction+ for+ an+ OpEx+ implementation.+ This+ issue+ will+ therefore+ be+ discussed+ more+thoroughly+in+the+next+theme+about+management+and+leadership.++
So+while+precise+arguments+were+difficult+to+provide,+most+interviewees+had+the+ feeling+that+the+organization+consisted+of+(too)+many+organizational+layers.++
Middle+and+lower+management+experienced+a+shift+towards+more+decentralization+ of+ the+ operators+ from+ 2008+ till+ now.+ Conversely+ to+ these+ opinions,+ the+ operator+ remained+unsatisfied+about+his+decisionNpower+towards+the+development+of+new+ production+installations+and,+as+he+would+call+it,+‘the+ongoing+fight+against+the+head+ office+ to+ get+ things+ done+ in+ general’.+ He+ experienced+ too+ many+ layers,+ and+ too+ many+ persons+ who+ were+ responsible+ for+ operation+ activities.+ Both+ the+ operator+ and+the+specialist+of+operations+and+businesses+addressed+the+big+gap+between+the+ production+floor+regulated+by+operators+and+the+development+department+who+is+ in+charge+of+the+renewal+and+development+of+new+production+sites.++
yet+on+the+other+hand+confirms+the+characteristic+of+Buchanan+(1975)+who+found+ significantly+more+hierarchical+layers+in+public+organizations+than+in+their+private+ counterparts.+Additionally,+the+operator’s+opinion+about+the+insufficient+authority+ of+his+position+fits+in+the+theoretical+border+of+public+organization.+Therefore,+of+ Radin+ &+ Coffee’s+ findings+ (1993)+ of+ public+ managers+ who+ would+ fear+ a+ loss+ of+ autonomy+ and+ power+ when+ such+ a+ quality+ program+ was+ implemented,+ could+ explain+this+observation.++
A+barrier+for+OpEx+could+exist+due+to+this+contrast.++
One+ interviewee+ especially+ was+ convinced+ that+ that+ too+ many+ layers+ would+ not+ only+hinder+the+OpEx+program,+but+that+the+entire+organizational+structure+of+the+ production+sector+is+currently+fundamentally+wrong+for+OpEx.+This+person,+head+of+ operations,+ stated+ that+ the+ current+ structure+ is+ not+ supporting+ multiNfunctional+ teams,+ and+ that+ his+ position+ lacks+ the+ authorization+ to+ make+ decisions.+ He+ said:+ ‘everybody+ should+ understand+ that+ the+ operations+ department+ is+ in+ lead,+ and+ hence+ is+ the+ most+ important+ department+ in+ the+ production+ sector’.+ ‘Especially+ maintenance+ and+ production+ should+ be+ more+ involved+ and+ steered+ from+ the+ operations+ department.’+ The+ head+ of+ operation+ referred+ to+ the+ hierarchical+ composition,+displayed+in+figure+2,+and+how+the+present+authorities+are+incorrectly+ assigned.+His+opinion+seems+in+accordance+with+a+wish+to+hierarchically+move+his+ position+above+the+heads+of+P&M+and+D&M,+which+would+result+in+an+additional+ layer.+ The+sector+head+had+a+more+moderate+vision+on+the+existing+structure.+He+on+the+ one+hand+favors+the+stratification+of+the+organization.+‘It+creates+a+clear+separation+ between+ primary+ and+ secondary+ processes+ and+ is+ organized+ around+ disciplines+ instead+of+the+process’.+Yet+on+the+other+hand+he+does+understands+that:+‘Such+a+ sectorial+ structure+ will+ by+ definition+ create+ certain+ walls,+ that+ could+ hinder+ cooperation+and+render+multiNfunctional+teams+almost+impossible+to+operate’.+The+ present+ sectorial+ structure+ might+ explain+ the+ opinion+ of+ five+ of+ the+ interviewees+ who+ experienced+ a+ silo+ culture+ between+ departments.+ Such+ a+ “culture”+ could+ directly+stem+from+the+established+structure.++
fast,+easy+and+abundant.+Moreover,+the+fact+that+both+the+sector+head+and+operator+ address+ this+ characteristic+ when+ discussing+ “their”+ organization+ is+ not+ odd+ because+Bretschneider+(1990)+and+Tullock+(1965)+indicated+a+greater+information+ intensity+ and+ more+ information+ leakages+ when+ employees+ communicate+ up+ the+ hierarchy+in+a+public+organization.++
+
4.2.4.'Management'support,'(OpEx)'focus'and'leadership'
The+final+point+of+the+leading+thread+through+all+the+interview+data+relates+to+the+ higher+ sections+ of+ the+ organization.+ The+ interviewees+ brought+ this+ last+ theme+ to+ the+ surface+ by+ ventilating+ their+ opinions+ about+ factors+ that+ were+ experienced+ as+ obstacles+for+their+set+OpEx+ambition.+The+clustered+factors+in+this+theme+all+relate,+ either+directly+or+indirectly,+to+the+organization’s+management+support,+their+focus+ for+the+OpEx+program+and+their+leadership+qualities.++
To+illustrate+the+inadequate+focus+of+the+management,+two+higher+placed+positions+ explained+how+managers+have+the+tendency+to+overbid+on+department+budgets+to+ achieve+‘easy’+successes+for+their+departments.+They+both+found+this+worrisome+in+ the+ light+ of+ the+ OpEx+ program,+ because+ it+ is+ disastrous+ for+ both+ organizational+ costs+ and+ efficiency+ gains.+ Rainey+ (1989)+ &+ (2009)+ noted+ that+ this+ intention+ of+ public+ managers+ to+ ask+ for+ more+ staff+ and+ resources+ than+ necessary,+ is+ a+ characteristic+ of+ the+ public+ sector.+ The+ interviewed+ managers+ had+ a+ similar+ opinion:+ when+ quality+ programs+ try+ to+ eliminate+ waste,+ increase+ efficient+ processes+ and+ lower+ costs.+ Will+ the+ same+ program+ be+ completely+ undermined+ when+ public+ managers+are+intentionally+increasing+organizational+costs+for+their+ own+gain.+The+drive+for+success+by+individual+departments+within+the+organization+ could+therefore+be+an+underlying+reason+as+to+why+a+silo+structure+exists,+as+it+was+ perceived+by+the+interviewees.+
Another+ related+ aspect+ to+ the+ management+ focus+ for+ OpEx+ was+ unanimously+ mentioned+ by+ all+ interviewees.+ It+ is+ generally+ known+ that+ within+ “their”+ public+ organization+ it+ may+ be+ extremely+ difficult+ to+ fire+ idle+ or+ underperforming+ personnel.+Notwithstanding,+managers+can+not+do+anything+about+this+fact,+and+is+ therefore+“a+rule+of+the+game”,+it+does+not+mean+that+it+will+barricade+the+focus+that+ managers+should+have+on+efficiency+gains+and+waste+elimination.++
‘We,+ the+ managers+ of+ this+ public+ organization,+ are+ not+ enough+ aware+ of+ the++ Operational+ Excellence+ phenomena.+ We+ were+ never+ sufficiently+ educated+ about+ such+ concepts+ like+ OpEx’.+ Besides+ the+ sector+ head,+ other+ interviewees+ did+ also+ address+their+insufficient+knowledge+about+the+OpEx+concept.+‘I+have+no+clue+what+ kind+ of+ organizational+ structure+ fits+ or+ misfits+ OpEx’+ (head+ of+ P&M).+ And+ ‘the+ higher+management+gave+its+own+interpretation+to+the+OpEx+ambition,+instead+of+ consulting+ some+ relevant+ literature+ first’+ (team+ leader).+ An+ interviewee+ also+ mentioned+ the+ absence+ of+ an+ expert+ in+ the+ OpEx+ field,+ who+ could+ have+ helped+ carrying+ out+ the+ 2008+ + ambition.+ Pavnaskar+ et+ al.+ (2003)+ listed+ a+ similar+ requirement+ by+ stating+ that+ Lean,+ and+ thus+ OpEx,+ requires+ adequate+ knowledge+ about+ manufacturing+ and+ its+ techniques.+ While+ such+ condition+ may+ be+ true,+ no+ relation+ was+ found+ between+ the+ inadequate+ knowledge+ of+ OpEx+ and+ the+ specific+ public+sector+on+which+this+study+is+focused.++
public+organizations+(Rainey,+1989;+Buchanan,+1974).++
+
5.'Conclusion'
'
This+ research+ has+ looked+ for+ consequences+ and+ challenges+ for+ public+ organizations,+which+successfully+want+to+implement+Operational+Excellence.+This+ research+was+done+by+reviewing+and+collecting+current+literature+about+both+OpEx+ as+ public+ organizations.+ The+ thereafter+ following+ case+ study+ investigated+ an+ organization+ wherein+ both+ elements,+ being+ public+ and+ aiming+ at+ OpEx,+ were+ present.+ The+ findings+ from+ this+ case+ study,+ combined+ with+ the+ theory+ from+ the+ literature+review,+were+displayed+in+the+results+section.++
From+ these+ results+ emerged+ four+ main+ themes.+ These+ themes+ form+ the+ leading+ thread+through+all+the+collected+expressions+and+opinions+of+the+interviewees.+All+ the+factors+mentioned+by+the+interviewees+are+related,+or+sometimes+explained,+by+ these+themes.+Some+of+these+themes+and+factors+are+new+in+the+light+of+the+current+ literature+and+could+therefore+contribute+to+a+better+understanding+of+the+research+ subject.++ The+results+show+how+especially+the+theme+about+the+sense+of+urgency+reNoccurs+ through+the+majority+of+the+factors+perceived+by+the+interviewees.+In+the+first+place+ does+it+explain+the+theme+about+the+existing+resistance+to+change.+It+appeared+that+ the+ organization+ in+ the+ case+ study+ resists+ change+ because+ their+ public+ entity+ requires+stability+from+its+hierarchies.+Thereby+was+the+organization+in+a+luxurious+ position+wherein+organizational+change+isn’t+necessary+to+survive.+In+other+words,+ no+urgency+existed+to+change+organizational+practices.+Such+an+urgency+dilemma+is+ seen+as+a+characteristic+of+a+public+organization.+One+can+imagine+that+when+a+new+ program+ like+ OpEx+ is+ installed+ in+ this+ organization,+ it+ will+ “naturally”+ resist+ this+ new+aspiration,+which+comes+with+the+requirement+to+change+the+status+quo.+The+ contrast+between+the+required+stability+for+public+organizations+and+the+therewith+ hindered+OpEx+concept+was+not+addressed+before+by+theorists.++
because+ he+ will+ experience+ an+ ongoing+ fight+ against+ the+ head+ office+ who+ is+ still+ filled+with+employees+with+a+conservative+attitude.+Not+only+operators+will+become+ frustrated,+ also+ zealot+ employees+ in+ general+ will+ experience+ a+ fight+ against+ the+ ruling+ conservative+ culture,+ what+ changes+ these+ employees+ with+ a+ proNactive+ attitude+into+either+conservatives+or+“force”+them+to+leave+the+organization.++This+is+ a+worrying+development+because+particular+these+employees+are+needed+to+drive+ OpEx.+ The+ interviewees+ mentioned+ that+ the+ relative+ high+ average+ age+ of+ the+ workforce+causes+the+conservative+culture.+This+may+be+seen+as+an+additional+new+ challenge+or+consequence+for+OpEx+in+public+organizations.+Notwithstanding,+the+ management+ understands+ correctly+ that+ when+ they+ are+ not+ prepared+ or+ able+ to+ significantly+change,+no+significant+benefits+may+be+expected+from+OpEx.+And+this+ brings+ us+ back+ to+ the+ urgency+ dilemma,+ which+ questions+ whether+ or+ not+ this+ public+organization+needs+OpEx.++
mentioned+ that+ OpEx+ is+ not+ necessary+ to+ achieve+ the+ organization’s+ goals,+ the+ higher+ management+ should+ develop+ OpEx+ targets,+ which+ are+ inescapable+ by+ the+ workforce.+The+compliance+of+these+goals+require+a+constant+management+focus.+ But+the+public+literature+forecasted+an+obstacle+already,+which+was+also+addressed+ by+the+interviewees:+the+fact+that+public+managers+have+showed+a+relatively+high+ turnover+ of+ their+ positions+ in+ the+ last+ four+ years,+ has+ endangered+ the+ required+ constant,+ longNterm,+ focus.+ Further,+ the+ achievement+ of+ the+ OpEx+ goals+ require+ incentives,+ both+ inN+ as+ extrinsic,+ to+ provide+ employees+ with+ the+ right+ direction.+ Even+though+incentives+are+fewer+provided+in+the+public+sector,+could+it+be+stated+ that+ they+ are+ in+ this+ situation+ even+ more+ suitable+ and+ important+ + to+ be+ present+ than+in+the+private+sector.+Without+the+urgency+of+‘to+be+or+not+to+be’,+like+in+the+ private+ sector,+ should+ organizations+ focus+ even+ more+ on+ performance+ related+ rewards.++
hinder+proper+communication+and+quickNdecision+making,+which+were+both+set+as+ preconditions+for+Operational+Excellence.++
+
Accordingly,+ this+ research+ has+ addressed+ a+ set+ of+ clusters,+ filled+ with+ various+ factors,+ which+ challenge+ public+ organizations+ when+ they+ make+ an+ OpEx+ attempt.+ By+understanding+these+consequences+and+challenges+should+a+public+manager+be+ better+ equipped+ to+ make+ the+ right+ decisions+ when+ it+ targets+ at+ an+ Operational+ Excellence+ program.+ Future+ research+ will+ be+ needed+ to+ obtain+ more+ specific+ knowledge+about+this+interesting+subject.+Especially+insights+in+the+gravity+of+the+ addressed+obstacles+requires+more+research.+Only+when+organizations+understand+ the+mutual+degree+of+the+barriers+to+OpEx+in+a+public+organization,+can+one+look+ for+remedies.++
