by a. van den heever · a. van den heever submitted in fulfilment of the requirements for the...

THE ASSESSMENT OF THE INTERNATIONAL ORGANISATIONS

HIGH PERFORMANCE STRATEGY, THROUGH GLOBAL BUSINESS

UNIT MANAGERS’

By

A. VAN DEN HEEVER

Submitted in fulfilment of the requirements for the degree of Masters in

Business Administration to be awarded at the Nelson Mandela

Metropolitan University

December 2012

Promoter/Supervisor: Dr. W.L. Pretorius

i

ABSTRACT

In today’s competitive global environment it is vital for businesses to continuously

outperform their competitors, making each business more and more dependent upon

product quality and the ability to adjust rapidly to change. To survive, businesses

more and more depend on the creativity, initiative and problem-solving abilities of

their employees.

The research in this treatise will focus on the components of a high performance

organisation, when assessing the international high performance strategy of

Company A, developed by top management. The implementation of Company A’s

strategy relies on how well the organisation fosters an environment which is

conducive to high performance. At this stage it is not clear if the chosen strategy will

succeed and direct the organisation towards sustainable high performance in the

long run. Hence, the research question, which is the crux of this study, is to assess

the effectiveness of Company A’s international high performance strategy in creating

a sustainable high performance organisation in the long run.

To achieve the primary objective of this research study, the researcher compared

various prominent models of high performance organisations with one another.

Despite the limitations, the researcher believes that the significance of De Waal’s

model is that he managed to identify the factors involved in creating a high

performance organisation. Based on the quantitative and qualitative comparisons,

the researcher decided to use the research conducted by De Waal as the framework

for the basis of this study. The Delphi Technique was used to identify the

effectiveness of the strategy through a consensus seeking and commitment building

process.

Contrary to expectations, the empirical results indicated that Company A’s strategy

does clearly indicate a high percentage of effectiveness. Although it definitely

ii

indicates that there is still a long road ahead of Company A to reach ultimate

sustainable high performance, it definitely is on the right track. The research

highlighted a few areas of concern, but with continuous adjustment and alignment of

their strategy Company A would have a solid framework to work towards high

performance in the long run.

iii

ACKNOWLEDGEMENTS

“I would like to express my sincere gratitude and appreciation to the following

individuals:

God, to whom all praise, is due.

My supervisor, Dr. W.L. Pretorius, for his patience and willingness to share his

extensive knowledge and expertise.

My friends and family that stood by me despite of my long standing absence in their

lives over the last three years, while completing my degree.”

iv

TABLE OF CONTENTS

ABSTRACT.......................................................................................................... i

ACKNOWLEDGEMENTS.................................................................................... iii

TABLE OF CONTENTS....................................................................................... iv

LIST OF ANNEXURE.......................................................................................... viii

LIST OF FIGURES............................................................................................... ix

LIST OF TABLES................................................................................................ xi

CHAPTER 1: SCOPE OF THE RESEARCH

1.1. INTRODUCTION....................................................................................... 1

1.2. PROBLEM STATEMENT.......................................................................... 2

1.3. RESEARCH OBJECTIVES....................................................................... 4

1.3.1. Primary Objective...................................................................................... 4

1.3.2. Secondary Objectives............................................................................... 5

1.4. METHODOLOGY...................................................................................... 6

1.4.1. Research Paradigm................................................................................... 6

1.4.2. The Sample............................................................................................... 7

1.4.3. The Measuring Instrument......................................................................... 8

1.5. OUTLINE OF THE STUDY........................................................................ 10

1.6. DEFINITION OF CONCEPTS................................................................... 11

1.7. ASSUMPTIONS........................................................................................ 12

1.8. RESEARCHER’S QUALIFICATIONS....................................................... 12

1.9. CONCLUSION........................................................................................... 12

CHAPTER 2: MANAGEMENT PROBLEM

2.1. INTRODUCTION....................................................................................... 13

2.2. BACKGROUND ON COMPANY A............................................................ 14

2.3. COMPANY A’S STRATEGY..................................................................... 15

2.3.1. Company A’s Vision.................................................................................. 15

v

TABLE OF CONTENTS (CONTINUED)

2.3.2. Key Shareholder Benefits.......................................................................... 16

2.3.2.1. Market Leadership............................................................................... 16

2.3.2.2. Growth Opportunity.............................................................................. 16

2.3.2.3. Significant Profit Enhancement............................................................ 17

2.3.2.4. Strong Management............................................................................. 17

2.3.2.5. Flexible Business Model...................................................................... 17

2.4. SUMMARY OF PROBLEM........................................................................ 18

2.5. CONCLUSION........................................................................................... 19

CHAPTER 3: HIGH PERFORMING ORGANISATIONS – A LITERATURE

REVEIW

3.1. INTRODUCTION....................................................................................... 20

3.2. A BRIEF HISTORY OF HIGH-PERFORMANCE THEORY...................... 21

3.3. DEFINITION OF A HIGH PERFORMANCE ORGANISATION................. 25

3.4. FACTORS INFLUENCING ORGANISATIONAL HIGH PERFORMANCE 27

3.4.1. Talents and skills of the workforce............................................................ 28

3.4.2. Globalisation.............................................................................................. 29

3.4.3. Change...................................................................................................... 29

3.4.4. Technology................................................................................................ 29

3.4.5. Political and Regulatory Changes............................................................. 30

3.4.6. Influence of ethics..................................................................................... 31

3.4.7. Environmental Change.............................................................................. 31

3.5. OVERVIEW OF MODELS TO CREATE HIGH PERFORMING

ORGANISATIONS.....................................................................................

32

3.5.1. Collins – Good to great.............................................................................. 32

3.5.2. Holbeche – The High Performance Organisation...................................... 34

3.5.3. Light – The four pillars of high performance.............................................. 36

3.5.4. De Waal – The secret of high performing organisations........................... 38

3.6. DE WAAL’S MODEL OF HIGH PERFORMING ORGANISATIONS........ 41

3.7. CONCLUSION.......................................................................................... 44

vi


CHAPTER 4: RESEARCH METHODOLOGY

4.1. INTRODUCTION....................................................................................... 48

4.2. RESEARCH DESIGN................................................................................ 49

4.3. RESEARCH PARADIGM.......................................................................... 50

4.4. RESEARCH METHOD: DELPHI TECHNIQUE........................................ 52

4.4.1. The advantages of the Delphi Technique.................................................. 52

4.4.2. Circumstances ideal for the use of the Delphi Technique......................... 52

4.4.3. Appropriateness of the Delphi Technique for this study............................ 54

4.5. BACKGROUND OF THE DELPHI TECHNIQUE...................................... 55

4.6. DEFINITION OF THE DELPHI TECHNIQUE............................................ 56

4.7. IMPLEMENTATION OF THE DELPHI TECHNIQUE................................ 57

4.7.1. Questionnaire............................................................................................ 57

4.7.2. Standardised scale.................................................................................... 58

4.7.3. Delphi Rounds........................................................................................... 58

4.8. LIMITATIONS OF THE DELPHI TECHNIQUE.......................................... 59

4.9. RELIABILITY AND VALIDITY.................................................................... 61

4.10. POPULATION AND SAMPLE SELECTION.............................................. 62

4.11. CONCLUSION........................................................................................... 63

CHAPTER 5: EMPIRICAL RESULTS

5.1. INTRODUCTION....................................................................................... 64

5.2. DATA COLLECTION METHOD................................................................ 64

5.2.1. Round one................................................................................................. 64

5.2.2. Round two................................................................................................. 68

5.2.3. Round three............................................................................................... 70

5.3. INTERPRETATION OF RESPONSES...................................................... 72

5.4. RESULTS.................................................................................................. 72

5.4.1. Question 1: Quality of Management......................................................... 72

5.4.2. Question 2: Quality of Employees............................................................ 77

vii


5.4.3. Question 3: Openness and Action Orientation......................................... 81

5.4.4. Question 4: Continuous Improvement and Innovation............................. 85

5.4.5. Question 5: Long-term Orientation........................................................... 90

5.5. CONCLUSION........................................................................................... 94

CHAPTER 6: DISCUSSION, RECOMMENDATION AND CONCLUSION

6.1. INTRODUCTION....................................................................................... 96

6.2. DISCUSSION AND RECOMMENDATION................................................ 96

6.2.1. MANAGEMENT QUALITY........................................................................ 97

6.2.2. WORKFORCE QUALITY.......................................................................... 100

6.2.3. OPENNESS AND ACTION ORIENTATION............................................. 103

6.2.4. CONTINUOUS IMPROVEMENT LONG-TERM ORIENTATION.............. 107

6.2.5. LONG-TERM ORIENTATION................................................................... 112

6.3. CONCLUSION........................................................................................... 113

BIBLIOGRAPHY.................................................................................................. 115

viii

LIST OF ANNEXURE

PAGE

Annexure A Questionnaire Round One.................................................. 120

Annexure B List of Participants............................................................... 130

Annexure C Questionnaire Round Two.................................................. 131

Annexure D Questionnaire Round Three............................................... 141

ix

LIST OF FIGURES

PAGE

FIGURE 1 The 5 strands of success.................................................... 8

FIGURE 2 Transformation Flywheel..................................................... 34

FIGURE 3 The Burke-Litwin organisational performance model.......... 35

FIGURE 4 De Waal’s Five Strands of Success.................................... 44

FIGURE 5 Schematic Visualising of the Delphi Technique and its

processes..............................................................................

50

FIGURE 6 Sequential Designs............................................................... 51

FIGURE 7 Process for Delphi Research................................................ 59

FIGURE 8 De Waal’s Five Strands of Success...................................... 65

FIGURE 9 Percentage Respondents according to Respondents

(Round One).........................................................................

67

FIGURE 10 Percentage Respondents according to Position (Round

Two)......................................................................................

69

FIGURE 11 Percentage Respondents according to Regions (Round

Two)......................................................................................

70

FIGURE 12 Percentage Respondents according to Position (Round

Three)....................................................................................

71

FIGURE 13 Percentage Respondents according to Regions (Round

Three)....................................................................................

71

FIGURE 14 Asia Question 1 Mean........................................................... 74

FIGURE 15 EMEA Question 1 Mean....................................................... 74

FIGURE 16 Americas Question 1 Mean................................................... 75

FIGURE 17 Australasia Question 1 Mean................................................ 75

FIGURE 18 General Managers’ Question 1 Mean................................... 76

FIGURE 19 Operations Managers’ Question 1 Mean.............................. 76

FIGURE 20 Purchasing Managers’ Question 1 Mean.............................. 76






x

LIST OF FIGURES (CONTINUED)
























xi

LIST OF TABLES

PAGE

TABLE 1 Company Vision........................................................................ 15

TABLE 2 The five HPO factors with their 35 characteristics.................... 42

TABLE 3 Appropriateness of the Delphi Technique................................. 54

TABLE 4 Results for variables in Question 1........................................... 73





TABLE 9 Strength and weaknesses of Company A under the Quality of

Management variable................................................................

99

TABLE 10 Strength and weaknesses of Company A under the Quality of

Employees variable...................................................................

102

TABLE 11 Strength and weaknesses of Company A under the

Openness and Action Orientation variable................................

105

TABLE 12 Strength and weaknesses of Company A under the

Continuous Improvement and Innovation variable....................

110

TABLE 13 Strength and weaknesses of Company A under the Long-

term Orientation variable...........................................................

112

Scope of the research

1

CHAPTER 1: SCOPE OF THE RESEARCH

1.1. INTRODUCTION

In today’s competitive global environment, the overall performance of firms is ever

more dependent upon product quality and swift adjustment to shifting circumstances.

To survive in this environment, firms may desire to rely upon the ingenuity,

inventiveness, and problem-solving abilities of their employees (King, 1995:1).

As stated by De Waal (2008:1), “Under the pressure of ever increasing demands of

the external environment and stakeholders, organizations are more and more

searching for the elements that make up high performance. As it is the task of

managers to realize the goals of the organization by achieving outstanding

performance in the unit they are responsible for, these managers are under great

pressure to deal effectively with current and future trends and developments. They

are forced to adapt faster to growing international competition and to compete

simultaneously on the basis of price, quality, flexibility, delivery times, and after-sales

support. There is a growing consensus that effective approaches to management

offer organizations competitive advantages.”

In order to deal with intense competition, organisations must respond by dramatically

improving organisational, unit and individual performances.

With the above taken into consideration, this study focuses on Company A, a joint

venture between Company B and Company C. Company A came up with a strategic

plan for organisational high performance; it is going to move into a new market and

take a bold new approach to selling its product. It is therefore vital for Company A to

become and remain a high performing organisation in order to maintain a

competitive edge over their direct competition. Company A aims to be the world’s


2

leading supplier of adventure holidays. Company A operates and sells exceptional

journeys to a broad cross section of the world’s population. A multi-channel, multi-

brand strategy touches all the key travel markets with a diversified product offering

within the adventure and experiential sector. Company A strives to achieve

continued growth through a values based philosophy that should energise their

people to achieve great outcomes. Company A acquires and integrates companies,

starts new companies and achieves strong organic growth rates. Company A

endeavours to be profitable for their shareholders, inspirational to their clients and

sustainable to local communities and environments (Company A, 2011:4).

The current management dilemma is that Company A’s high performance strategy

was developed by top management and for the implementation of this strategy it is

vital that the organisation fosters an environment which is conducive to high

performance. At this stage, it is not clear if the chosen strategy will succeed and

direct the organisation towards sustainable high performance in the long run.

1.2. PROBLEM STATEMENT

The main research problem is thus as follows:

Company A’s high performance strategy was developed by top management and for

the implementation of this strategy it is vital that the organisation fosters an

environment which is conducive to high performance. At this stage it is not clear if

the chosen strategy will succeed and direct the organisation towards sustainable

high performance in the long run. It is thus vital to assess the current strategy from

the perceptions of the global business unit managers.


3

In order to understand the reasons behind the need for performance by Company A,

as well as the above indicated problem statement, one perhaps first needs to define

and debate the meaning of a High Performing Organisation.

Don Carew, Fay Kandarian, Eunice Parisi-Carew, and Jesse Stoner (cited by

Blanchard, 2007:9) conducted an extensive research project to define and identify

the characteristics of a high performing organisation. Firstly they had to define “high

performing organizations”. While many organisations grow quickly and then reach

an area of strength or fail, some continue to succeed, somehow reinventing

themselves as needed. The researchers focused on these kinds of organisations,

creating the following definition: “Because of their flexibility, nimbleness, and

responsive systems, high performing organizations remain not only successful and

respected today but also going on to succeed in the future. High Performing

Organizations demonstrate results consistently over time.”

Anon (2012:5) stated that “High performing organizations demonstrate shared values

in all they do. They are exceptional at communication. Their strategy is clear and

their brand is distinct, while both are demonstrated in the day-to-day behaviour of the

organization. Leadership thinks and acts systemically to create a high performing

culture. The company has an unwavering focus on results and is continually fine-

tuning the alignment of company resources to reflect shifts in strategy. These

organizations have clear operating models and a set of well-defined competencies

that are aligned with the vision, mission and strategy. The high performing business

demonstrates solid general management discipline that complements the value of

visionaries and strategists to unleash passion and an unwavering drive for financial

results, customer value creation, operational excellence and continual learning.”

The significance of leadership within high performing organisations is to clarify and

share the vision, then focus on helping and being open to the needs of the people,

understanding the leadership role of removing barriers and helping people


4

accomplishes the vision. The greatest leaders mobilise people to buy into, commit to,

and implement the strategy (Blanchard, 2007:24). The leadership of Company A is

committed to playing this leadership role and the objective of this study is to assist

them in this regard.

Should Company A fail to address the effectiveness of its high performance strategy,

it could jeopardise its long-term performance and directly affect negatively on

reaching its vision. As a global competitor, this would have a detrimental impact on

the overall present and future position of Company A.

1.3. RESEARCH OBJECTIVES

The primary and secondary objectives of this study are elaborated upon below.

1.3.1. Primary objective

Assess the effectiveness of Company A’s international high performance strategy

and its implementation through global business unit managers.

Research question: Is Company A’s international high performance strategy

effective in creating a sustainable high performance organisation in the long run?


5

1.3.2. Secondary objectives

Objectives

Questions

Outline the full context of the

problem.

What is the context of the

problem?

Define and describe the

characteristics of a high

performing organisation.

Why is it important to address

the problem?

What is a high performing

organisation?

How can a high performing

organisation be grown and

maintained?

Identify the best research

methodology and measuring

instrument.

How can one identify the

problem areas as per the

research problem through a

consensus seeking and

commitment building process?

How can a mixture of

qualitative and quantitative data

be gathered?

Analyse the results obtained

from the data-gathering

instrument.

How to identify the problem

areas by analysing data from a

quantitative and qualitative

paradigm?

Discussion, recommendations

and conclusion.

How to address the problems

identified?


6

1.4. METHODOLOGY

1.4.1. Research paradigm

According to Firestone (1987:16), quantitative methods express the assumptions of

a positivist paradigm which states that behaviour can be explained through objective

facts. Design and instrumentation convince by showing how bias and error are

eliminated. Furthermore, positivism tends to use large samples, hypothesis testing,

and produces results with high reliability and low validity. Results are normally

generalised and produce exact, objective and quantitative data.

Qualitative methods express the assumptions of a phenomenological paradigm that

there are multiple realities that are socially defined. Rich description persuades by

showing that the researcher was absorbed in the setting and gives the reader

enough detail to “make sense” of the situation (Firestone, 1987:17).

Phenomenological paradigms tend to use small samples, generate theories, produce

subjective, qualitative data, and present findings with low reliability and high validity.

However, research studies might also utilise a combination of quantitative and

qualitative methods. According to Johnson and Onwuegbuzie (2004:15), the mixed

method movement has the potential to lessen some of the problems associated with

singular methods. By utilising quanititative and qualitative techniques within the

same framework, mixed method research can integrate the strengths of both

methodologies. A combination of the two research methods also enables the

researcher to gain a better understanding regarding the results of the quantitative

enquiry by incorporating qualitative questions to explain certain quantitative

statements (Johnson and Onwuegbuzie, 2004:15).

For the purpose of this study the Delphi technique will be utilised, with its various

applications aligned to the specific circumstances of the study:


7

Brainstorming and participant feedback as desired to fully

understand: 1) the factors, and 2) the implications of the various

suggested outcomes or scenarios;

The target audience is globally distributed;

The problem researched is not simple; it requires that the group

share information and jointly analyse the issues in order to

understand the facts and implications;

For grounded research in order to produce real-life solutions or

strategies.

The research method for the Delphi Technique starts with qualitative research and

moves towards quantifying the factors identified in the first round.

1.4.2. The sample

The participants are both the reason for using the Delphi Technique in the first place

and the determinants of how the study is executed. They are often either specialised

in the area of interest or exclusively informed about the true target population to be

studied. The team process of the group of participants allows for a shared learning

process, where expertise and facts can be shared and analysed before attempting to

prioritise or propose solutions (Lentz, 2009:240).

For the purpose of this study the target population consists of 57 managers, all within

the top management of the globally distributed business units of Company A.

According to Theron as quoted in Nieuwoudt (1990:60) as well as Van Dyk et al.

(1997:264), the size of the panel may vary between 6 and 20.

During the identification of the target population it was taken into account that only a

small percentage of the target population would probably respond to the


8

questionnaire. In other words, it was expected that only part of the population would

participate.

1.4.3. The measuring instrument

The questions used during the first round (qualitative) of the Delphi Technique

process, will be based on the high performance organisation model below (Figure 1),

developed by A. de Waal:

Figure 1: The 5 strands of success (HPO Centre, 2012)

Making use of the elements under each factor as a basis for compiling the first round

of questions, the study will be able to focus on the main characteristics of a high

performing organisation. These factors, according to the HPO Centre (2012), are:

1. Quality of Management: The management of a High Performing

Organisation is of high excellence, builds relations based on trust

by combining integrity and coaching leadership with commendable

Quality of Management

Quality of Employees

Openness and action

orientation

Continuous improvement

and innovation

Long-term orientation


9

behaviour, is swift to make decisions, and is result-orientated and

committed to a long-term vision (HPO Centre, 2012).

2. Quality of Employees: The employees of a High Performing

Organisation are diverse, complementary and well able to work

together. They are flexible and tough when it comes to achieving

results. They are busy every day answering the question: “How

can I make our organisation more successful?”(HPO Centre, 2012).

3. Openness and action orientation: The culture of a High Performing

Organisation is an open one in which everyone is involved in

important processes through shared conversation, constant

knowledge sharing and learning from mistakes, where change is

encouraged and actions are taken to develop performance (HPO

Centre, 2012).

4. Continuous improvement and innovation: A High Performance

Organisation is aware of its unique (strategic) characteristics and

has all employees continuously contributing to improving,

simplifying, aligning and renewing processes, services and products

(HPO Centre, 2012).

5. Long-term orientation: To a High Performing Organisation,

continuity in the long term always takes preference over profit in the

short term. The long-term orientation of a High Performing

Organisation applies to clients, collaboration partners, as well as

relationships with employees. Employees rising from the ranks fill

management positions (HPO Centre, 2012).

(Refer to Annexure A for the research instrument used in round one of the Delphi

Technique.)


10

1.5. OUTLINE OF THE STUDY

The study will be conducted under the following Chapters:

Chapter 1: Scope of the study: This chapter will define the problem to be

researched and provide a short overview of the research objectives, the

methodology to be used as well as provide a short outline of the study.

Chapter 2: Management Problem: This chapter will be devoted to the management

problem, explaining the context, circumstances and current situation to better

understand the management problem relating to Company A.

Chapter 3: Literature Review: This is the main literature review chapter of the study,

focusing on the definition, characteristics and aspects of a high performance

organisation. The chapter will also address a methodology to create and sustain a

high performing organisation.

Chapter 4: Research Methodology: Within this chapter, the research methodology

for the purpose of the study (Delphi Technique) will be discussed. Its processes,

rounds, as well as adjustments for effectiveness will be discussed. Methods to

ensure reliability and validity will also be noted.

Chapter 5: Empirical Results: The empirical results will be analysed from the results

obtained during the analysis process.


11

Chapter 6: Discussion, Recommendations and Conclusions: This is the final

chapter in which the findings of the study are discussed and the necessary

recommendations made, before reaching a conclusion.

1.6. DEFINITION OF CONCEPTS

High Performing Organisation: “A high performing organisation is intentionally

designed to achieve excellence by bringing out the best in people, thereby

increasing organisational capacity to deliver sustainable results.” (Young, 2005:1)

Delphi Technique: “Delphi may be characterized as a method for structuring a

group communication process so that the process is effective in allowing a group of

individuals, as a whole, to deal with a complex problem.” (Linstone and Turoff,

2002:3)

Company A: “Company A is about growth. They recognize that today’s traveller is

more experienced and sophisticated than in the past, and they are seeking a more

engaging and adventurous holiday than before. Company A will be building upon

their current tour operating businesses and Destination Management Companies to

cater the needs of today’s – and tomorrow’s – traveller. They will develop new

capabilities and new products, commence new businesses and raise the bar on

responsible tourism standards.” (Company A, 2011:5)

“Collectively, Company A takes over 350,000 clients every year from 50 different

source markets. They operate adventure holidays in over 100 different countries,

with several thousand different itineraries, covering a multitude of styles and market

segments. Their turnover exceeds US$400 million and they have over 2,000

dedicated and passionate staff members to make it all happen! They are the world’s

leading adventure travel company.” (Company A, 2011:5)


12

Company, Organisation, Firm & Business: For the purpose of this study, all these

words will have the same meaning.

1.7. ASSUMPTIONS

Assume that the inputs from the unit managers taking part in the

study will reflect the perceptions of all the unit managers.

Assume that the management problem can be evaluated from the

perceptions of unit managers.

1.8. RESEARCHER’S QUALIFICATIONS

The main researcher on this study has 13 years’ experience within the Adventure

Travel Industry - eight years as Operations Manager - and is currently in her 3rd year

of a Masters in Business Administration degree.

1.9. CONCLUSION

In this chapter, a holistic perspective was provided of the proposed research. The

research process was elaborated upon and the research problem stated. The

research question forming the focus of the study and associated investigative

questions were formulated. The research design and methodology in which the

Delphi Technique forms the ruling paradigm were explained. The chapter concluded

with an outline of the chapter layout, content analysis and key research objectives of

the proposed research. In the next chapter, the management problem will be briefly

discussed.

Management Problem

13

CHAPTER 2: MANAGEMENT PROBLEM

2.1. INTRODUCTION

Ever increasing demands from stakeholders force organisations to adapt faster to

growing international competition and at the same time compete on the basis of

price, quality, flexibility, delivery times and after-sales support (Kasarda and

Rondinelli, 1998:73). They are pressured into defining the elements that make up

high performance, as there is a growing consensus that effective approaches to

management offer organisations competitive advantage (Lawler, 2003:24).

Identifying these elements is of paramount importance, because clients of

organisations are becoming more demanding and at the same time more dissatisfied

with the performance of the organisations (De Waal, 2008:1). In this day and age of

increased importance of tailoring to consumers’ needs, organisations cannot afford

bad relationships with their clients. In addition, organisations not only need to

become better, but must be able to sustain this performance over a long period of

time.

Organisations are made up of human beings - the most complex organisms on earth.

Like a snowflake, no two people are alike. Organisations are filled with several or

even thousands of these unique beings, challenging each organisation’s strategy

when they try to align these human beings with the organisation’s goals and mission

towards achieving a high performing organisation (Team Resources Incorporated,

1996:1).

Management Problem

14

2.2. BACKGROUND ON COMPANY A

Company A is an organisation that developed from a merger between two prominent

organisations within the adventure travel market. It was formally created on April 4,

2011, however its heritage dates back to the 1970s and 1980s and the very earliest

days of adventure travel. Within Company A are some of the world’s oldest

adventure travel companies – and some of the newest. As a group, Company A

aims to share their experience, build on their passion and create amazing travel

experiences that will have travellers coming back to the organisation for decades to

come (Company A, 2011:6).

Company A has a number of specialist adventure tour operator businesses within

the group. Each of these businesses offer a product range which is specific to the

niche market or demographic they serve. Company A also manages a number of

Destination Management Companies (DMC) in leading adventure destinations

around the world. These DMCs provide an unparalleled level of experience and

service to adventure travel businesses around the world (Company A, 2011:6).

Company A assists over 350,000 clients every year from 50 different source

markets. The organisation operates adventure holidays in over 100 different

countries, with several thousand different itineraries, covering a large amount of

styles and market segments. Company A’s turnover exceeds US$400 million and

the organisation has over 2 000 devoted and passionate staff members to make it all

happen (Company A, 2011:6).

Company A is about growth. The organisation recognises that today’s traveller is

more experienced and refined than in the past and they are seeking a more

engaging and adventurous holiday than ever before. Company A will be building

upon their current tour operating businesses and Destination Management

Companies to cater for the needs of today’s – and tomorrow’s – travellers. The

Management Problem

15

organisation will develop new capabilities and new products, commence new

businesses and raise the bar on responsible tourism standards (Company A,

2011:6).

Company A is an independent business with a management team that has over 50

years’ experience in adventure travel.

2.3. COMPANY A’S STRATEGY

According to Hough et al. (2011:5), “a company’s strategy consists of the competitive

moves and business approaches that managers are employing to grow the business,

attract and please customers, compete successfully, conduct operations, and

achieve the targeted levels of organisational performance.”

2.3.1. Company A’s Vision

Table1: Company Vision (extracted from Company A’s 5 year Business Plan)

Market To be the recognised global leader in adventure and

experiential travel.

Position To be the number one or number two brand leader in:

Major source markets (UK, Australia, North America);

Major product lines.

The Business To:

Be the world leading supplier of adventure and

experiential holidays:

o Offer an unrivalled product and destination range

o Leader in product innovation

Sell exceptional journeys;

Distribute to all key travel markets (multi-channel, multi-

Management Problem

16

brand strategy);

Grow strongly (organically/mergers and acquisitions/start-

ups/partnerships);

Be vertically integrated (Distributor/Tour Operator/Ground

Handler);

Be the market leader in efficiency and productivity; and

Have a values based philosophy which engages our

people.

2.3.2. Key Shareholder Benefits

2.3.2.1. Market Leadership

By combining two of the four major businesses in the adventure and experiential

travel sector, it will lead to strong revenue and profit growth opportunities.

2.3.2.2. Growth Opportunity

The adventure and experiential travel sector is a high growth market. Company A

will create an unmatched platform from which to benefit from favourable trends in

global demographics and the increasing demand for more active holidays from

mainstream travel.

It increases opportunities to:

Grow revenue through unrivalled distribution capabilities focussed on

multi-channel distribution with strong direct and controlled distribution,

complemented by strategically selected third party agent partners.

Management Problem

17

Offer consumers an unrivalled differentiated product range - a true one

stop shop for consumers.

Leverage the ability to innovate and develop new products.

Source complementary acquisition growth opportunities.

2.3.2.3. Significant Profit Enhancement

There is an opportunity to access significant profit enhancement opportunities and

raise barriers to entry through:

Cost rationalisation (back and mid-office)

Economies of scale (trip fill/purchasing)

Vertical integration of supply (tour costs)

Cost effective customer acquisition

Efficiency improvements through global systems (Starship)

2.3.2.4. Strong Management

Company A is led by a strong management team with significant:

Travel industry and professional experience; and

A demonstrable track record of growth, innovation and profitability.

2.3.2.5. Flexible Business Model

Company A has low asset commitment levels and is highly diversified in:

Source market distribution

Destinations

Channel mix

Management Problem

18

This makes it highly resilient to travel market instability.

2.4. SUMMARY OF PROBLEM

As mentioned in Chapter One, Company A’s high performance strategy was

developed by top management and for the implementation of this strategy it is vital

that the organisation fosters an environment conducive towards high performance.

At this stage, it is not clear if the chosen strategy will succeed and direct the

organisation towards sustainable high performance in the long run. It is thus vital to

assess the current strategy through the perceptions of global business unit

managers.

Company A went through rapid changes over the last two years, where employees

who had worked within the organisation for many years had to deal with a paradigm

shift around daily operations and the implementation of innovating systems within

their daily work environment. Although the innovative manner in which Company A

embraces change and makes it part of the daily operations is one of the components

currently allowing the organisation to have a competitive advantage, it could also be

the reason why employees do not buy into the changes quickly enough.

With the company’s business units being widely distributed globally, the organisation

not only has to deal with how quickly their employees can adapt to change, but also

various cultural differences regarding how change is perceived and dealt with. The

management problem came about after a global operations conference where all the

Operations Managers of the various business units had to attend. During this

conference it was clear that the vision and strategy set at head office level is not

always understood and implemented on the ground as perceived by top

management.

Management Problem

19

Establishing Company A’s international high performance strategy will only succeed

in the long run and create the necessary stability to ensure a leading position if the

employees are fully aligned with the strategy and implement it effectively on the

ground.

There is thus a need for the research conducted in this study. With the study the

researcher aims to establish if Company A’s international high performance strategy

is effective or if there are areas of concern. Should areas of concern come to light

as a result of the study, the organisation would be able to put forth the necessary

action plan to counter these and steer the organisation towards high performance.

2.5. CONCLUSION

Should Company A fail to address the effectiveness of its international high

performance strategy, it could jeopardise its long-term performance and directly

affect negatively on reaching its vision. As a global competitor, this would have a

detrimental impact on the overall present and future position of Company A.

In the next chapter the concept of high performance organisations are further

investigate through the means of a literature review.

High Performing Organisations – a literature review

20

CHAPTER 3: HIGH PERFORMING ORGANISATIONS – LITERATURE REVIEW

3.1. INTRODUCTION

“Performance represents an outcome, result, or accomplishment. A performance

outcome is often expressed as a function of some set of critical variables or

performance drivers. Although numerous variables can potentially affect a

performance outcome, the real key is identifying those critical few variables that truly

drive performance and in understanding the interrelationships between and among

such identified drivers. The important thing in better understanding performance is

identifying the underlying logic or DNA of performance, a derived logic that succinctly

and concisely describes what is true” (Harbour, 2009:58).

With the above taken into consideration, this study focuses on Company A, a joint

venture between Company B and Company C. Company A came up with a strategic

plan for organisational high performance; it is going to move into a new market and

take a bold new approach to selling its product. Therefore, it is vital for Company A

to become and remain a high performing organisation in order to maintain a

competitive edge over their direct competition.

The current management dilemma is that Company A’s strategy for organisational

high performance and its implementation is seemingly not clearly understood and/or

supported by all managers of the company’s global business units, resulting in

different time lines, expectations and direction of business units.

Should Company A fail to address the effectiveness of its international high

performance strategy, it could jeopardise its long-term performance and directly

affect negatively on reaching its vision. As a global competitor, this would have a

detrimental impact on the overall present and future position of Company A.


21

In order to deal with the research question the researcher decided to make use of

the high performance organisation theory, as a basis of approach to try and explain

and understand the current management problem.

3.2. A BRIEF HISTORY OF HIGH-PERFORMANCE THEORY

According to the American Management Association (2007:6), employers worked

hard to transform workers’ attitudes at the start of the Industrial Revolution. Most of

these changes were trying to change the attitudes of workers from an agrarian frame

of mind to a factory frame of mind. This meant that workers had to develop new

behaviour such as punctuality, regular attendance, unconscious pacing of work effort

and consistency.

Some observers did not support this type of work ethic while others picked up on this

line of thinking, with theories rising that increased confidence in the idea of

controlling workers through policy, structure and organisation.

In the early 1800s, Robert Owen made the statement that managers spent time

improving machines, specialising labour and cutting costs, yet they made no

investments in workers themselves (Butt, 1971:63).

These early viewpoints fixed thinking towards how to develop a high-performance

organisation. As industry developed, so did the theories about how to create or

produce better products and the difference between focusing on people versus

focusing on tasks and structures (American Management Association, 2007:7).

Many of the following theories focused on improving productivity. The Scientific

Management theory was developed by Frederick Taylor in the late 1800s and early


22

1900s, which mainly focussed on placing the responsibility of performance on

management, rather than the workers. Frank and Lillian Gilbreth emerged with a

similar method and in the early 1900s, Lillian wrote The Psychology of Management,

which focused on the human aspect within industry (Taylor, cited by the American

Management Association, 2007:7).

Weber stated (American Management Association, 2007:8) that large organisations

must function more systematically and promoted management by the office or

position, rather than by a specific person. Henri Fayol meanwhile promoted the

importance of managerial ability, rather than only the job design and structure, which

grew into the development of “principles of management”, which progressed to be

taught in Universities (Wren, 2005:143).

According to the American Management Association (2007:8), the early ideas of

these pioneers influenced the approach to general management, affecting not only

the business world, but academia as well. Along with education and training came

management research and a growing interest in the obstacles associated with trying

to improve productivity.

Towards 1933, Elton Mayo emphasised (American Management Association,

2007:9) the need for “effective collaboration” and a reinstatement of the “social

solidarity” in a changing world that left people without stability, purpose or norms. He

is recognised for establishing the Human Relations Movement that emphasised

interpersonal relations, listening, communication and socio-human skills for the

manager. One of his ideas was that leaders should poise the needs of the worker

with the economic needs of the organisation (American Management Association,

2007:9).


23

During the Human Relations Movement period there was some exploration into

group dynamics, participation in decision-making, leadership and motivational

appeals to group members, which led to a search for analytical tools and conceptual

models to explain the relations of the formal and informal aspects of organisations

(Wren, 2005:149).

After World War II, a few more theories evolved:

George Terry (1960) as cited by the American Management Association (2007:9), in

his book Principles of Management, defined management as “the activity which

plans, organises and controls the operations of the basic elements of men, materials,

machines, methods, money and markets, providing direction and coordination, giving

leadership to human efforts, so as to achieve the sought objectives of the

enterprise.”

Drucker (American Management Association, 2007:10) introduced the idea of

measuring success against market potential. He also consulted with managers and

encouraged them to ask the right questions. According to Drucker, “The important

decisions are strategic decisions. Anyone who is a manager has to make strategic

decisions and the higher the level in the management hierarchy, the more of them he

must make.”

Lawrence and Lorsch (1969:5) took the stance that organisational structure is vital to

performance and developed a theory that showed managers how to analyse issues

important to structure, such as the rate of change in the business environment and

the relative assurance of business-related information.


24

As time progressed business theories formed two distinct views – those around

organisational behaviours, which focussed on leadership, motivation and group

behaviours within the organisation, and those around business policy and strategy,

which pertained to work process and measurement (Pearce, 2003:1).

Considerable advancement in both areas was recorded from 1974. Research

emerged to show the impact of individual worker behaviour on factors such as

turnover, non-attendance and unhealthy lifestyles, which resulted in more effective

management of workers, boosting productivity and decreasing operating expenses

(Cascio and Wynn, 2004:428).

In the 1980s a quality movement emerged in the U.S. as Deming (1986:8) identified

various organisational “diseases” that caused the U.S. industry to go into decline. He

argued that most of these errors occurred due to the systems people worked under

rather than the people themselves. After the quality movement, tools and

technologies such as Six Sigma, computer technology and just-in-time inventory

management were developed to assist organisations in developing and maintaining

high performance.

In their book Creative Destruction, Foster and Kaplan (American Management

Association, 2007:11) made a strong case that existing is not the same thing as

performing. Over the last decade approximately half of the Built to Last companies

have not been able to maintain a high-performance level – roughly the same

percentage of In Search of Excellence companies that struggled in the decade

following the publication of Peters’ and Waterman’s best-selling book.

Literature has shown that the pursuit to finding the competitive edge when it comes

to high-performance theories is still developing on a daily basis. The theory is


25

developing through daily research and managers are still learning from their

experiences.

As Kirby (2005:30) argued in the Harvard Business Review, today’s management

experts are still building on one another’s work, developing more refined survey

instruments, mining richer data with better tools and creating theories with greater

clarifying powers about high performance.

3.3. DEFINITION OF A HIGH PERFORMANCE ORGANISATION

There is no simple description of a high performance organisation, mostly because

an organisation is made up of human beings which are the most intricate organisms

on earth. Even with this intricacy in organisations, many definitions are available in

the literature today.

The definitions of leading scholars and researchers who study High Performance

Organisations were investigated and the following definitions discovered summarise

and encompasses all the definitions found in the literature.

According to Roberts (2004:12), an organisation achieves high performance when it

manages to establish and maintain a fit between the strategy of the firm, its

organisational design and the environment in which it operates.

Carew, Kandarian, Parisi-Carew, and Stoner (cited by Blanchard, 2007:9) conducted

a widespread research project to define and identify the characteristics of a high

performing organisation. First they had to define “high performing organizations”.

While many organisations rise quickly and then reach an area of strength or crumple,


26

some continue to succeed, somehow reinventing themselves as needed. The

researchers focused on these kinds of organisations, creating the following

definition: “Because of their flexibility, nimbleness, and responsive systems, high

performing organizations remain not only successful and respected today but also

going on to succeed in the future. High Performing Organizations demonstrate

results consistently over time.”

Anon (2012:5) claimed that “High performing organizations demonstrate shared

values in all they do. They are exceptional at communication. Their strategy is clear

and their brand is distinct, while both are demonstrated in the day-to-day behaviour

of the organization. Leadership thinks and acts systemically to create a high

performing culture. The company has an unwavering focus on results and is

continually fine-tuning the alignment of company resources to reflect shifts in

strategy. These organizations have clear operating models and a set of well-defined

competencies that are aligned with the vision, mission and strategy. The high

performing business demonstrates solid general management discipline that

complements the value of visionaries and strategists to unleash passion and an

unwavering drive for financial results, customer value creation, operational

excellence and continual learning.”

Epstein (cited by De Waal, 2007:4) concluded that many more definitions in the

literature reveal strong financial results, satisfied customers and employees, high

levels of individual initiative, productivity and innovation, aligned performance

measurement and reward systems, and strong leadership as components of a high

performing organisation.

The following themes by De Waal (2007:4) summarise the main components of a

high performing organisation found in the various definitions.


27

A high performing organisation:

shows continued growth, which is better than the financial performance

of its peer group over a period of at least five years;

has the ability to adapt quickly to changes;

has a long-term orientation;

shows integrated management processes and the strategy, structure,

processes and people are aligned throughout the organisation;

focuses on constantly improving and reinventing its central capabilities;

spends much effort on developing its workforce.

Through the definitions found in the literature and comparing the components of

these with the summarised themes of De Waal (2007:4), the researcher concluded

that the most applicable definition for a high performing organisation is as proposed

by De Waal (2007:4). “A high performance organisation is an organisation that

achieves financial results that are better than those of its peer group over a longer

period of time, by being able to adapt well to changes and react to these quickly, by

managing for the long term, by setting up an integrated and aligned management

structure, by continuously improving its core capabilities, and by truly treating the

employees as its main asset.”

3.4. FACTORS INFLUENCING ORGANISATIONAL HIGH PERFORMANCE

Over the last three decades the global business environment has changed radically,

which can mainly be credited to advances in transportation and technology. This

has created opportunities and ever shrinking boundaries globally. The competition is

no longer limited to localised geographical areas, but rather globally situated

organisations (Hill, 2011:4).


28

“It is said that this is the age of extreme competition in which the combined forces of

global competition, technology, interconnectivity and economic liberalisation make

life tougher than ever before for companies” (De Waal, 2008:1).

Some of the most important factors influencing and reshaping the business

economy, impacting directly on organisational performance today, are:

3.4.1. Talents and skills of the workforce

The American Management Association (2007:12) stated that nine out of ten U.S.

manufacturers could not find enough skilled workers in 2006. The National

Association of Manufacturers in the U.S. further reported that 80% of its members

confirmed a lack of skilled workers influencing their production schedules.

According to an article published in the Chief Executive (The American Management

Association, 2007:8), talent scarcity is not limited to the U.S. “In both developed and

developing countries, the evolving workforce is creating a talent shortage.” The

publication pointed to aging and retiring Baby Boomers as one key cause of the

declining talent pool, also referring to the rapid and extensive growth of developing

nations as a contributing factor. It continued to argue that based on information from

the U.S. Department of Commerce, three-fifths of the new jobs in this century will

need skills that only about a fifth of today’s U.S. workers have.

According to the American Management Association (2007:12), an April 2007 talent

management survey conducted by the Institute for Corporate Productivity found that

among the most important drivers of talent management is the need to carry out

strategies, to stay competitive in the marketplace, to serve customers well and to

drive innovation - all elements inherent in high performance.


29

3.4.2. Globalisation

With fewer barriers to entry into new markets, competitors come from all over the

world, with mergers and acquisitions creating stronger and more powerful

corporations. The effortlessness of communication and sharing of information

makes it difficult for local businesses to stand strong against these organisations,

which are competing for a portion of their existing market share (De Waal, 2008:8).

Kaplan and Norton (2006:103) noted that today’s organisations are challenged by

the fact that intangible assets, such as knowledge workers, research and

development, are becoming an important factor in corporate success, taking into

consideration that globalisation has dispersed those assets globally. Organisations

increasingly rely on the resourcefulness and innovation of its human capital. These

factors are motivating companies to get better at aligning both physical and

intellectual resources, internally and externally, around the world.

3.4.3. Change

The speed of change is becoming faster and more disruptive, creating opportunities

for organisations which are more agile and resilient towards change. This will

accelerate as high performance organisations induce change and force others to

react. Only organisations with the ability to adapt quickly and effectively to change

will out-perform their competitors in this ever changing environment (American

Management Association, 2007:11).

3.4.4. Technology

Since the development of the microprocessor, which enabled the explosive growth of

high-power, low-cost computing, immensely increasing the amount of information


30

that can be processed by individuals and organisations, technology can be seen as

one of the most important change agents of the century (Hill, 2011:14).

However as much as technology contributed to the overall performance of business,

it can actually reduce performance when it is not applied correctly. The future of

technology is likely to show the same results, raising performance when used well,

but hindering performance when applied poorly. Various new forms of technology

promise to boost the performance of individuals and organisations in the future, but

only time will tell how successfully organisations can apply these technologies to

create a competitive advantage (American Management Association, 2007:12).

3.4.5. Political and Regulatory changes

A consequence of globalisation has been the decrease of barriers to entry into

foreign countries to conduct business, which has created both opportunities to

realise economies of scale and explore new markets, and threats such as increased

price competition and the governments commanding conditions on organisations

proposing mergers and acquisitions (Hill, 2011:290).

From a business point of view it is not just regulations affecting organisational

performance these days, but the political instability often found in many countries

globally (American Management Association, 2007:13). The financial gap between

the poor and the rich is ever increasing in the modern world, creating tension

between groups of people and between nations, resulting in conflicts, wars and the

raise of terrorism, disrupting organisations operating in and around these areas (De

Waal, 2008:4).


31

Therefore the keys to managing threats and opportunities are the ability to plan

proactively, craft industry alliances and stay informed about social and political

trends (Bonini et al., 2006).

3.4.6. Influence of ethics

With the ever increasing gap between the poor and the rich, business ethics and

corporate social responsibility becomes a must have element of the modern firm in

order to optimise its performance.

According to a 2005 white paper by ISR, research from DePaul University indicated

that organisations with a strong, open dedication to ethics had a superior market

value to organisations with no ethics policies or which adopted an ethics code and

did not action it (American Management Association, 2007:14).

Bansal noted that “There is a compelling business case for firms to operate in the

overlapping space where activities are both financially profitable and socially and

environmentally responsible. In this middle ground, firms reduce costs, mitigate

risks, protect their reputations, stimulate innovation and find new, sustainable

sources of economic well-being” (Bansal, 2005:23).

3.4.7. Environmental change

The increasing need of natural resources to maintain the human population will

intensify drastically, creating economic and political conflicts between nations as they

search for limited resources like water (De Waal, 2007:4). However, according to the

American Management Association (2007:15), environmental issues are not yet


32

impacting key business decisions to any major extent, but in time this might just

change due to compliance requirements and social pressures.

A time will come where the manner in which organisations implement “green

practices” will influence the organisations’ performance.

3.5. OVERVIEW OF MODELS TO CREATE HIGH PERFORMING

ORGANISATIONS

The purpose of this section is to identify the most practical and sensible model that

could be used for this particular study. During the literature review process the

researcher found four models that constantly emerged in other publications and

therefore selected these to compare in order to come to a conclusion on the model

to be used.

3.5.1. Collins – Good to great

Collins’ book was the result of a five-year study into the primary variables that cause

the transformation from “good to great”. In the study, Collins used a database of

1,435 established companies, all of which were Fortune 500 organisations at some

point. From this database he identified 11 companies to conduct his research on,

which had made this switch and maintained the same results for at least fifteen

years. The 11 companies all showed a clear transition point from “good” to “great”.

This transition had to be organisation-related and not industry-related for the

purposes of the study (Collins, 2001:83).


33

Collins’ study dealt with the primary factors of sustainable success that differentiates

one organisation from the rest. The following is a brief overview of the most

important components identified with the transition process.

Factor 1: Level 5 leadership. According to Collins (2001:27), level 5

leadership builds greatness by applying a combination of personal

humility and professional will; creates intense commitment and

dynamic pursuit of a clear and compelling vision; organises people and

resources efficiently around objectives; team members contribute their

personal capabilities effectively; and individuals make important

contributions based on talents, know-how, skills and good work

practice.

Factor 2: The right people. Even more important than strategy is to

draw the right people and retain them. Getting rid of those who are

inadequate must be done quickly.

Factor 3: Confront the true facts. Continuously facing the hard facts

of reality and incorporating these into the decision making of the

organisation will lead to smart decision making.

Factor 4: Hedgehog concept. Good to Great organisations

constantly stick to doing what they do best and avoid getting diverted

into new fields of business that are not part of their core competencies.

Factor 5: Culture of discipline. This creates a flatter management

structure allowing employees to take responsibility.

Factor 6: Technology accelerator. Collins believed that an

organisation must only adopt new technologies when it truly enhances

their performance within their core competencies.

Collins proposed that one development follows another and there is no formal

programme, which he describes as a flywheel gradually gaining momentum. He

suggested that organisations gain momentum depending on the decisions made and

actions taken, which could either be a forward momentum (positive) or a backward

momentum (negative) (Collins, 2001:267).


34

This flywheel effect is illustrated in the figure below.

Figure 2: Transformation Flywheel (Collins, 2001:297)

3.5.2. Holbeche – The High Performance Organisation

Holbeche’s book (2005) is based on the “high performance organisation” model by

Roffey Park. This model balances worker needs and expectations with

organisational needs. The model is based on various research projects conducted

by Roffey since 1996 into the changing work environment. The model focuses on

matters that affect the attitude and actions of employees, i.e. the degree to which

they are involved and put their best foot forward. The study also focused on how

organisations and their employees must function under ever increasing changes

within today’s world in order to be successful. Holbeche’s most important research

conclusion was that the creation of sustainable high performance is mainly a matter

of building the right culture (Holbeche, 2005:353).

Act Consistently

Accumulate Result

lt

People get enthused

Act Intermittently

Disappointing Results

Try a new direction

Lose Momentum

Add momentum

Positive Feedback Cycle

Negative Feedback Cycle

Flywheel


35

Making use of the original Burke – Litwin organisational performance model,

Holbeche adjusted this model to create a schematic understanding of the Holbeche

model.

Figure 3: The Burke-Litwin organisational performance model,

reproduced by Holbeche (Holbeche, 2005:381).

The most important factors of the model are:

The success of organisational change, flexibility, swiftness, constant

improvement and ability to learn;

Creating a knowledge-rich environment for innovation;

Creating an organisation without restrictions, maximising potential

synergies;

External Environment

Leadership

Motivation

Management

Practices

Work Unit

Climate

Individual and

organisation

performance

Mission and

Strategy

Organisation

Culture

Structure Systems

Task

Requirements

Individual needs

and values


36

Encouraging people to achieve sustainable levels of high performance

through reaching their potential;

Creating a positive work environment with the necessary employee

values; and

Becoming a value-based organisation, connecting with employees on

various levels.

The underlying characteristics of the model are:

Appropriate management and leadership;

Built-in flexibility;

Optimal employee value;

Empowerment and accountability.

The book does not provide a model to apply enhancement activities, rather, it

describes the various factors that can contribute to exceptional performance, but

does not provide insight into how these factors help to accomplish this.

3.5.3. Light – The four pillars of high performance

Light’s book is based on research conducted by the Research and Development

Corporation (RAND). According to Light (2005:143), there are a number of simple,

research-based principles that can ensure that an organisation can survive and

thrive in an uncertain world. Light refers to such an organisation as a “robust

organisation”. This type of organisation formulates the best plan for a range of

possible future scenarios in order to be able to react to all relevant developments,

and as a result, helps shape the future according to its own needs. The theory of the

robust organisation is based on various studies and research conducted by the

RAND Corporation at large numbers of organisations. Their statistical insights form


37

the basis for the following vision of what it takes to achieve long-term performance

(Light, 2005:143).

The research done by Light in association with the RAND Corporation, led to a result

of 13 factors that appears to have predictive value to a significant degree. After

being compared, the following seven factors turned out to have the strongest

predictive value:

Strategy, specifically focussing the mission and measuring results;

Internal structure, referring to delegating routine decisions and

investing in new ideas;

Leadership, specifically promoting open communication;

Resources, focussing on increasing access to information; and

Incentives, especially around establishing strong performance

incentives.

Through the years, RAND studies have produced a set of essential values that Light

believes are important for outstanding performance within organisations:

Alertness: high performing organisations remain alert by measuring

results, evaluating successful activities and creating clear expectations

with regard to the required performance.

Agility: they remain responsive by authorising employees with enough

decision making freedom, reducing barriers between departments,

promoting participative management and open communication.

Addictiveness: they remain adaptive by conducting regular customer

surveys, investing in new ideas and creating strong incentives for

performance.

Alignment: they stay aligned by providing sufficient information to the

entire organisation and ensuring ample information technology.


38

3.5.4. De Waal – The secret of high performing organisations

To establish the characteristics of high performance, De Waal spent five years

studying excellent organisations around the world. The aim was to provide the

management of organisations with important information on how to take action

towards establishing high performance in their organisations. Nearly 280 related

international studies into high performance were included, carried out over 30 years.

The results were then tested using surveys among more than 2,500 profit, non-profit

and government organisations. This involved a complete literature study of scientific

and non-scientific studies into high performance (De Waal, 2008:8).

The criteria for including studies into the assessment (De Waal, 2008:8) were:

Focused distinctively at identifying HPO characteristics with

organisations explicitly linked to achieving high performance;

The study consisted of either a survey with sufficient respondents or

case studies of several companies; and

Justification of the research method, research approach, selection of

research population, clear analysis, clear retraceable conclusions and

results were documented.

The objective, according to De Waal (2008:8), was to give managers the knowledge

and opportunity to implement targeted measures in order to allow their organisation

to grow in the high performance direction. De Waal’s high performance organisation

study shows that there is a direct and positive relationship between the five HPO

(High Performance Organisation) factors and organisational performance.

According to De Waal (2008:8), the HPO theory can be translated into a structural

scheme tailored for each organisation, i.e. the most important factors for that specific

organisation, their importance and their interrelationship. This provides management


39

with a better focus. These insights can then be used to create an HPO roadmap for

the organisation for implementing and formulating precise improvement activities.

As stated above, the five most distinct characteristics were determined for enabling

an organisation to be decisive and to excel in the long term. These factors according

to De Waal (2008:8) are:

High-quality management: The management of a High Performing

Organisation is of high superiority, builds relations based on trust by

combining integrity and teaching leadership with commendable

behaviour, is quick to make decisions, and is result-orientated and

committed to a long-term vision.

High-quality employees: The employees of a High Performing

Organisation are diverse, complementary and well able to work

together. They are flexible and tough when it comes to achieving

results. They are busy every day answering the question: “How can I

make our organisation more successful?”

Long-term orientation: To a High Performing Organisation, stability in

the long term always takes preference over profit in the short term.

The long-term orientation of a High Performing Organisation applies to

clients, alliance partners, as well as relationships with employees.

Employees rising from the ranks fill management positions.

Continuous improvement and innovation: A High Performance

Organisation is aware of its unique (strategic) characteristics and has

all employees continuously contributing to improving, simplifying,

aligning and renewing processes, services and products.

Open and action-oriented: The culture of a High Performing

Organisation is an open one in which everyone is involved in important

processes through joint conversation, constant knowledge sharing and

learning from mistakes, where change is encouraged and actions are

taken to develop performance.


40

In the study approach used by De Waal, it was not organisations that were selected

but potential High Performance Organisation characteristics. As many significant

scientific studies as possible were included in the very broad scope of the study and

the control group was selected randomly. The study, including the development of

the control group, had a global set-up, which included both the Western and Eastern

world in both developed continents. De Waal’s study also contained an

implementation plan for improvement activities.

There is a significant difference in the research approach used by De Waal

compared to the other researchers, who orientated their studies towards the secrets

“behind” high performance. These researchers used a financial analysis to make

their selection between excellent and less highly performing organisations and used

this as the point of departure for their comparisons. This was then used to draw

conclusions regarding unique characteristics. The question that must be asked is

whether these conclusions were valid. Was the selection based on the right

information, the right criteria and the right comparison method? Are the conclusions

applicable to all organisations, regardless of the era or location?

De Waal’s study did not examine specific organisations, but rather potential High

Performance Organisations characteristics. The study also concluded that there is a

direct relationship between the High Performance Organisation factors and

competitive performance, allowing organisations focused on these factors to

consistently out perform their peers in all types of industries and sectors globally (De

Waal, 2008:5).

The researcher therefore believes that the scope and statistical base of the study

guarantees that assumptions can be drawn regarding specific characteristics. The

testing of the findings took place randomly. The factors also appear to be strongly

interrelated and to equally strengthen one another (De Waal, 2008:6).


41

Organisations can use the five High Performance Organisation factors to establish

their High Performance Organisation status. This can in turn aid the management of

these organisations to focus on the necessary elements within their organisation to

improve the overall performance of the organisation. Similar organisations can also

be compared based on the findings of the High Performance Organisation studies.

The results of the analyses and resemblance to other organisations form the

foundation for an implementation plan of improvement activities (De Waal, 2008:6).

Based on the quantitative and qualitative comparisons, the researcher decided to

use the research conducted by De Waal as the core model on which the research for

this study would be grounded.

3.6. DE WAAL’S MODEL OF HIGH PERFORMING ORGANISATIONS

In today’s cut-throat business environment, managers of organisations are expected

to outshine the competition. The latest recession created a sense of urgency

amongst managers in determining those factors that create sustainable

organisational success.

The success factors identified by De Waal assist managers with the basic guidelines

on how to advance their organisation and work towards a high performing one.

These five factors can be broken down into 35 characteristics as shown in the table

below, which could create and maintain a High Performance Organisation.


42

Table 2: The five HPO factors with their 35 characteristics (De Waal, 2008:3)

Management Quality

1. Management is trusted by organisational members.

2. Management has integrity.

3. Management is a role model for organisational members.

4. Management applies fast decision making.

5. Management applies fast action taking.

6. Management coaches organisational members to achieve better

results.

7. Management focuses on achieving results.

8. Management is very effective.

9. Management applies strong leadership.

10. Management is confident.

11. Management is decisive with regard to non-performers.

Openness and Action Orientation

12. Management frequently engages in a dialogue with employees.

13. Organisational members spend much time on communication,

knowledge exchange and learning.

14. Organisational members are always involved in important processes.

15. Management allows making mistakes.

16. Management welcomes change.

17. The organisation is performance driven.

Long-Term Orientation

18. The organisation maintains good and long-term relationships with all

stakeholders.

19. The organisation is aimed at servicing the customers as best as

possible.


43

20. The organisation grows through partnerships with suppliers and/or

customers.

21. Management has been with the company for a long time.

22. The organisation is a secure workplace for organisational members.

23. New management is promoted from within the organisation.

Continuous Improvement

24. The organisation has adopted a strategy that sets it clearly apart from

other organisations.

25. In the organisation processes are continuously improved.

26. In the organisation processes are continuously simplified.

27. In the organisation processes are continuously aligned.

28. In the organisation everything that matters to performance is explicitly

reported.

29. In the organisation both financial and non-financial information is

reported to organisational members.

30. The organisation continuously innovate its core competencies.

31. The organisation continuously innovate its products, processes and

services.

Workforce Quality

32. Management always holds organisational members responsible for

their results.

33. Management inspires organisational members to accomplish

extraordinary results.

34. Organisational members are trained to be resilient and flexible.

35. The organisation has a diverse and complementary workforce.


44

The model formulated by De Waal, through his intensive research, developed into

the five strands of success:

Figure 4: De Waal’s Five Strands of Success

Making use of De Waal’s five strands of success model, a High Performance

Organisation analysis can be done on any organisation. This analysis will then

provide a good understanding of the strengths and improvement potential of the

organisation and focus on those aspects requiring attention in order to perform better

in the long-term.

3.7. CONCLUSION

Through the literature review, various models were evaluated and a clear difference

in the research approach adopted by De Waal compared to the other researchers,

who oriented their studies towards the secrets “behind” high performance, were

noted. These researchers used a financial analysis to make their selection between



Openness and action

orientation


and innovation



45

excellent and less highly performing organisations and used this as the point of

departure for their comparison. The question that must be asked is whether these

conclusions are valid. Was the selection based on the right information, the right

criteria and the right comparison method? Are the conclusions applicable to all

organisations, i.e. regardless of the era or location?

The model suggested by De Waal, provides managers with a framework for building

sustainable organisations, adding focus to their continuous improvement efforts in

order to achieve better performance. As such, this High Performance Organisation

framework could be the organisational model many organisations are in search of to

achieve economic, environmental and social sustainability (Freeman and Zollo,

2009:3).

There are two main factors regarding De Waal’s study, making it stand out from the

rest; one is that the data collected in the study were without equal due to the broad

variety of studies, organisations, industries and countries concerned; and secondly,

the observation that globalisation creates similarities within the transfer of

management techniques from one country to the other, leading to similar patterns of

behaviour and ultimately to similar characteristics of importance for high

performance.

According to De Waal (2012:23), there were several restrictions to his study:

Potentially important studies may have been overlooked during the

literature review;

Common-method bias may have overstated the correlations, although

the magnitude of such effects is subject to intense debate; and

There is the possibility of attribution; respondents could have made

implicit attributions of characteristics, and in fact, causation.


46

De Waal also stated that “the High Performance Organisation framework stipulates

“what” is important to become and stay successful but it does not indicate “how”

organisations can achieve success” (De Waal, 2012:24). Therefore, the use of this

framework would only be able to direct Company A towards understanding their

shortcomings and creating an improvement plan, but would not necessarily allow the

organisation to succeed in becoming a High Performing Organisation.

De Waal’s study did not examine specific organisations, but rather the potential

characteristics of a High Performing Organisation. It is believed that the scale and

statistical basis of the study guaranteed that conclusions can be drawn regarding

unique characteristics. The testing of the findings also took place randomly.

Organisations that score highly on the five factors generally show better results than

other organisations in their sector. The factors also appear to be strongly

interrelated to, and mutually strengthen, one another. Organisations can use the five

High Performing Organisational characteristics and corresponding High Performing

Organisational diagnosis in a targeted manner to determine the situation in their

organisation. Comparable organisations can also be compared based on the

findings of the High Performance Organisation studies. The results of the analysis

and comparison to other organisations form the basis for an implementation plan of

improvement activities.

Despite the limitations, the researcher believes that the significance of De Waal’s

model is that he managed to identify the factors involved in creating a high

performance organisation. Based on the quantitative and qualitative comparisons,

the researcher decided to use the research conducted by De Waal as the framework

for the basis of this study.

This was done by distributing questionnaires to identify the High Performance

Organisation status of the organisation. The detailed result of the High Performance

Organisation factors will indicate both the strengths and weaknesses of the


47

organisation and will assist the management with creating the necessary roadmap to

develop the organisation towards a high performance organisation.

The next chapter will discuss the research methodology used during this study.

Research Methodology

48

CHAPTER 4: RESEARCH METHODOLOGY

4.1. INTRODUCTION

This chapter discusses the reason for the use of the Delphi Technique as the

research method for this study. The background, origin and process used when

applying this technique are outlined. A critical evaluation of the advantages and

disadvantages as seen in the literature is also undertaken.

In this regard the following is clarified:

The Delphi Technique can be used in various situations as a means of

supporting a decision-making process (Linstone and Turoff, 2002:3); and

The context of this study is conducive to the use of the Delphi Technique.

The nature of the problem statement, as described in Chapter One, is such that the

identification of the unit managers’ perceptions regarding the organisation’s high

performance strategy could only be obtained from the unit managers of Company A.

The determination of the current perceptions regarding the organisation’s high

performance strategy had to be based on a scientific, valid and reliable method. In

order to scientifically identify performance variables that had an influence on the

organisation’s high performance strategy, the Delphi Technique was chosen for its

suitability.

The application of the Delphi Technique will be discussed and special attention will

be given to the reason for applying the Delphi Technique and the technique’s step-

by-step progress. The technique also includes the gathering of both quantitative and

qualitative information, while allowing consensus to be reached on the management

problem. Following the prescribed steps of the Delphi Technique ensured a sound

method of research.


49

4.2. RESEARCH DESIGN

Creswell (2009:416) described research design as the plan or proposal to carry out

research, which involves the connection of philosophy, strategies of investigation

and specific methods. In order to start with the research, a design was needed to

set the layout and direction of the study. According to Yin (1994:19), a research

design can be defined as: “the logical sequence that connects the empirical data to a

study’s initial research question and ultimately, to its conclusions. Colloquially, a

research design is an action plan from getting from here to there, where here may be

defined as the initial set of questions to be answered and there is some set of

conclusions (answers) about these questions”.

The research design for this study was conceptualised as follows:

The research was conducted within Company A’s global business units, which were

distributed all over the globe. As outlined in Chapter Two, Company A’s high

performance strategy was developed by top management and for the

implementation of this strategy it is vital that the organisation fosters an environment

conducive to high performance. At this stage, it is not clear if the chosen strategy

will succeed and direct the organisation towards sustainable high performance in the

long run. It is thus vital to assess the current strategy through the perceptions of

global business unit managers’.

To obtain data on the main research problem, a mixed method design was used for

data collection. This involved the Delphi Technique, which consisted of a

combination of quantitative and qualitative techniques to obtain expert opinion in a

systematic manner. The targeted population consisted of the top management of

the globally distributed business units of Company A.


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Figure 5: Schematic Visualising of the Delphi Technique and its processes.

An open ended questionnaire was administered followed by a questionnaire with a

rating scale.

4.3. RESEARCH PARADIGM

Mixed method research combines or links both qualitative and quantitative forms of

research and involves philosophical assumptions in a study. It is therefore more

than just collecting and analysing both kinds of data; by involving both quantitative

and qualitative approaches the general strength of the study is greater than either

one standing alone (Creswell and Plano Clark, 2007:23).

According to Johnson and Onwuegbuzie (2004:25), the mixed methods movement

has the potential to reduce some of the problems associated with singular methods.

By utilising quanititative and qualitative techniques within the same framework,

mixed methods research can incorporate the strengths of both methodologies. A

combination of the two research methods also enables the researcher to gain a

better understanding regarding the results of the quantitative enquiry by

First Round Open Ended Questionnaire

Second Round Intensity Rating Scale

Questionnaire

Feedback on Results with option to comment by participants


51

incorporating qualitative questions to explain certain quantitative statements

(Johnson and Onwuegbuzie, 2007:131).

Many different expressions are used for this approach, such as integrating,

synthesis, quantitative and qualitative methods, multi-method and mixed

methodology, but the latest writings use the term ‘mixed methods’ (Bryman, 2006:27;

Tashakkori and Teddlie, 2003).

The challenges of this form of research include the need for extensive data

collection, the time needed to analyse both sets of data and the need for the

researcher to be familiar with both quantitative and qualitative forms of research

(Creswell, 2009:632).

The mixed method research approach taken in this study was a sequential mixed

method strategy. The researcher sought to elaborate or expand on the findings of

one method with another method. The study consisted of a first round of qualitative

data collection and analysis, followed by a second round of quantitative data

collection and analysis that built on the results of the first qualitative phase. The

main intention of this strategy was to use quantitative data and results to aid in the

interpretration of qualitative findings (Creswell, 2009:416).

Figure 6: Sequential Designs (Creswell, 2009:4566)

Sequential Exploratory Design

Qualitative Qualitative Quantitative Quantitative Interpretation of Data Data Data Data Entire Analysis Collection Analysis Collection Analysis


52

The Delphi Technique includes both quantitative as well as qualitative methods;

therefore it can be considered a mixed method research design.

4.4. RESEARCH METHOD: DELPHI TECHNIQUE

4.4.1. The advantages of the Delphi Technique

Lentz (2009:76) indicated that the use of the Delphi Technique for doing mixed

method research is a great instrument that can produce quick and inexpensive

research results, even in difficult circumstances with vague information. According

to Burnes (1992:106), the Delphi Technique can be seen as a scenario building

approach. The team process creates a shared learning environment where expertise

and facts can be shared and analysed, allowing the necessary buy-in from the

participants involved, before attempting to prioritise or propose solutions (Lentz,

2009:218).

The ability to conduct research without bringing the respondents together in one

location is another advantage of the Delphi Technique, especially within a large

corporation with units spread over a wide geographical area (e.g. multi-national

corporations). Overseas personnel can be drawn into the process with minimal ease

and at a nominal cost (Linstone and Turoff, 2002:6).

4.4.2. Circumstances ideal for the use of the Delphi Technique

According to Lentz (2009:96), one or more of the following properties leads to the

utilisation of the Delphi technique:

All issues or factors have not been established by prior

(qualitative) research;

Doing the qualitative research only is not sufficient for the

purpose of the study;


53

Forward thinking and forecasting is often required;

Brainstorming and participant feedback is desired to fully

understand: 1) the factors, and 2) the implications of the various

possible outcomes or scenarios;

Only a relatively few people are available to participate or it is

preferable to maintain the anonymity of the participants;

The target audience is difficult to get to or unaffordable to reach;

The problem being researched is not a simple question of

amounts or importance; it requires that the group shares

information and together analyses the issues in order to fully

understand the facts and implications;

The act of conducting the research on the true target population

might be detrimental, destructive, or impossible;

For scenario planning, where various scenarios of the future can

be defined and then analysed;

Complex or ambiguous issues;

For grounded research in order to produce real-life solutions or

strategies.

The following circumstances present also contribute to the selection of the

technique:

The forecast of current and future variables requires creativity,

but not necessarily a high level of skill. According to Adelson

and Aroni (cited by Linstone and Turoff,1975), creativity comes

from the result of the subjective ideas of people, based on past

and present experiences;

The problem does not lend itself to exact analytical techniques

(Van Dyk et al., 1997);

Individuals who are able to contribute find it difficult to

communicate with each other (Linstone and Turoff, 2002:6);

Some participants may dictate the interpersonal group process

(Linstone and Turoff, 2002:6);


54

To produce real-life solutions or strategies (Lentz, 2009:52); and

Linstone and Turoff (1975:4) stated that the Delphi Technique

can be used with established validity and reliability.

4.4.3. Appropriateness of the Delphi Technique for this study

All these characteristics can be regarded as typical of the circumstances of the

study. It was therefore decided that the research methodology would be that of the

paper-and-pencil Delphi Technique.

Table 3: Appropriateness of the Delphi Technique

Research objectives,

needs and circumstances.

Delphi technique advantages,

characteristics and circumstances.

Solve the management problem.

Produce real-life solutions or strategies.

The problem does not lend itself to exact

analytical techniques.

Forward thinking and forecasting is often

required.

Ensure anonymity. Anonymity.

Reach consensus.

Group analysis of problem.

Buy in from participants through team

process.

Brainstorming

Participants are globally

distributed. Participants geographically far apart.

Participants are from various

cultures and educational

backgrounds.

One individual may dictate the process.

Contributing individuals find it difficult to

communicate with each other.


55

Need to be cost effective and done

within a set timeframe. Produce quick and inexpensive results.

4.5. BACKGROUND OF THE DELPHI TECHNIQUE

The word “Delphi” originates from the name for the Greek Oracle at Apollo from the

sixth century BC. During that era people who wanted to look into the future came to

the Oracle’s temple in Delphi to consult the prophetess (Zemke et al., 1982:150).

The Delphi model may be viewed as a contribution of defence research. “Project

Delphi” was a study conducted by an Air Force-sponsored Rand Corporation

research project starting in the early 1950s, which pertained to the use of expert

opinion. The objective of the original study was to “obtain the most reliable

consensus of opinion of a group of experts by a series of intensive questionnaires

interspersed with controlled opinion feedback” (Linstone and Turoff, 2002:3).

It was only after the release of the Report on a Long-Range Forecasting Study by

T.J. Gordon and Olaf Helmer, published in 1964, that individuals outside of the

defence society took notice of this method. This study, together with an excellent

related philosophical paper providing justification for the Delphi Technique, formed

the basis in the early and mid-1960s for a number of individuals to begin

experimenting with the Delphi Technique in non-defence areas (Linstone and Turoff,

2002:3).

According to Linstone and Turoff (1975:3), the numbers of Delphi studies have

increased since 1969. They claimed that: “Delphi has found its way into

government, industry and finally the academic world. This explosive rate of growth

in utilisation in recent years seems, on the surface, incompatible with the limited


56

amount of controlled experimentation of academic investigation that has taken

place”.

4.6. DEFINITION OF THE DELPHI TECHNIQUE

According to Linstone and Turoff (2002:3), the “Delphi may be characterized as a

method for structuring a group communication process so that the process is

effective in allowing a group of individuals, as a whole, to deal with a complex

problem.” The technique is seen as a procedure to obtain the most reliable

consensus of opinions of a group of experts by a series of intensive questionnaires

interspersed with controlled opinion feedback. It delivers qualitative as well as

quantitative results and has a diverse application (Rowe and Wright, 1999:354).

To achieve this “structured communication” the following procedures are

implemented: feedback of individual contributions of information and knowledge;

assessment of the group judgement or view; an opportunity for individuals to adjust

views and some degree of anonymity for the individual responses (Linstone and

Turoff, 2002:3).

Ultimately the Delphi Technique is a team process and has the qualities of team

dynamics. The process starts out with providing the entire team with available

information. Round one will ask all participants general and open-ended questions

in an effort to gather information from the various experts in information silos. The

researcher will then organise the factors and information before presenting them

back to the team for review. The second round will involve categorising, organising,

prioritising and discussing what is meant or understood by each factor. The

researcher again organises the results and presents them back to the team to see if

consensus can be reached (Lentz, 2009:52).


57

At the end of the process the group judgement is taken as the statistical average

(mean/median) of the final round. The final judgement may thus be seen as an

identical weighting of the members of a statistic group (Rowe and Wright, 1999:355).

4.7. IMPLEMENTATION OF THE DELPHI TECHNIQUE

Although a description of how the technique should be used in different applications

is not available, it is important to explain the various elements of the Delphi

Technique.

4.7.1. Questionnaire

According to Linstone and Turoff (2002:5), there are two distinct forms to the Delphi

Technique, namely the paper-and-pencil (referred to as the Delphi Exercise) version,

used in this project, and the new computer based form know as the Delphi

Conference. The main difference between the two forms is that through the paper-

and-pencil version the result of each round is processed manually, where the results

in the Delphi Conference version are processed through a computer programme

(Linstone and Turoff, 2002:7).

Although there seems to be no fixed number of questions or ways in which questions

should be formulated, Cascio (1995:155) presented the following guidelines to make

the Delphi useful:

Give the expert enough information to make an informal

judgement;

Ask the kind of questions the expert can answer;

Answers don’t require precision;

Keep the exercise as simple as possible;


58

Make sure that definitions are understood in a similar way;

and

Enlist senior management and expert support by

continuously showing the technique’s benefit.

4.7.2. Standardised scale

An important issue in developing the second Delphi questionnaire is the rating scale.

According to Cascio (1995:290), a wide variety of techniques exist. Cascio

(1995:290), supported by Linstone and Turoff (2002:7), were of the opinion that the

Likert scale is commonly used with the Delphi Technique. The reason for using the

Likert scale is because of its reliability in judging descriptive ratings (Cascio,

1995:290).

Wegner (2007:22) explained that a Likert rating scale measures the degree of

agreement or disagreement with a statement.

4.7.3. Delphi Rounds

Linstone and Turoff (2002:5) stated that the Delphi Technique consists of three to

four distinct rounds: First, the exploration of the subject under discussion, during

which each individual contributes additional information he/she feels is relevant to

the issue. Secondly, it involves the process of reaching an understanding of how the

group views the issues. If there is significant disagreement, the disagreement is

explored during the third round to bring out the underlying reasons for the differences

and possibly to evaluate them. The last round, namely a final evaluation, occurs

when all previously gathered information has been analysed and the evaluations,

together with a presentation of the median views, have been provided for

consideration and report.


59

According to Linstone and Turoff (2002:6), three rounds generally prove sufficient to

attain stability in the responses; further rounds tended to show very little change and

excessive repetition is unacceptable to participants. A schematic representation of

the different rounds and the procedure is shown below.

Figure 7: Processes for Delphi Research (Lentz, 2009:70)

4.8. LIMITATIONS OF THE DELPHI TECHNIQUE

Fink et al. (1991:83) noted that the Delphi technique has some notable limitations:

Reliability increases with the size of the group and the number of

rounds, but respondents lose interest if consensus is not reached

within a reasonable time;

Coordinating large groups and several rounds can be complicated

and time consuming; and

Interactions between participants and the researcher are not face-

to-face. Depending on the subject matter this fact can hinder or

assist in information gathering.

Researcher organises background information, develops package with

questionnaire

Questionnaire #1

(Open ended)

Round 1

* Responses

* Comments, etc.

Researcher organises results and develops new

questionnaire

Questionnaire #2

(Rating scale)

Round 2

* Prioritise/Rank

* Comments, etc.

Done?

If not repeat Round 2

Final Results


60

According to Linstone and Turoff (2002:6) some of the common reasons for failure of

Delphi are:

The results are manipulated to fit the needs of the research

problem;

Making the assumption that Delphi can replace all other means of

communication in a given situation;

The execution of the techniques is not controlled;

The urge to predict tendencies rather than to focus on current

tendencies;

Understanding the time consuming process of partaking in the

Delphi method and the fact that respondents should be

appropriately rewarded for their time if the Delphi is not a basic part

of their job function;

Researchers tend to discount the future;

The urge to simplify the area of research; and

The issue of research is oversold.

Linstone and Turoff (2002:6) also referred to the “virtual” problems, which do not in

themselves affect the usefulness of the technique and cannot imply to the Delphi

Technique per se.

The challenge of choosing a good respondent group;

Making the Delphi definition too precise and restricted;

Integrity of the researcher or monitoring team; and

Misunderstanding may arise from differences in language and

judgment if participants come from various cultural backgrounds.


61

4.9. RELIABILITY AND VALIDITY

Collis and Hussey (2009:64) defined reliability as “the absence of differences in the

results if the research were repeated” and validity as “the extent to which the

research findings accurately reflect the phenomena under study.”

The Delphi method has become part of the technology for solving problems.

Although the validity and reliability have not been scientifically established the format

and results seem so successful that supporters of the Delphi method appear to

outnumber critics. If the Delphi method manages to create structured environments

in which expert judgement and clinical data can be wisely combined, this will only be

made known with time.

In the meantime, to warrant that useful and credible outcomes are produced, it is

important to pay special attention to the themes that emerge from the literature.

Among these are the need to cautiously select problems that are open to solution by

consensus, closely monitor the choice of participants, identify valid consensus levels

and then make sure the findings are useful and available (Fink et al., 1991:84).

In order to ensure the best reliability and validity during the implementation of the

Delphi technique, the following aspects will be considered:

Aiming for fewer rounds. According to Lentz (2009:197), participants

fall out with each additional round, causing validity and reliability

issues.

The participants. The quality of the participants determines the quality

of the results (Lentz, 2009:198).

Questionnaires. Ensuring that the questionnaires are correctly

designed, eradicating any communication errors, ambiguous wording,


62

and different interpretations of the statements and/or questions posed

(Collis and Hussey, 2009:204).

Consensus. As mentioned by Kosecoff et al. (cited in Lentz,

2009:198), forcing a consensus when there is none is counter-

productive.

Results. Rank ordering and indicating importance and degree of

consensus is valuable information (Lentz, 2009:198).

4.10. POPULATION AND SAMPLE SELECTION

The participants are both the reason for using Delphi in the first place and the

determinants of how the study is executed. They are often either specialised in the

area of interest or exclusively informed about the true target population to be studied.

The team process of the group of participants allows for a shared learning process,

where expertise and facts can be shared and analysed before attempting to prioritise

or propose solutions (Lentz, 2009:240).

For the purpose of this study the target population consisted of 57 managers, all

within the top management of the globally distributed business units of Company A.

All departmental and unit managers currently employed at each global business unit

were allowed to participate. The chosen population for this study was relatively

small, therefore the entire population was chosen as the sample for this study.

According to Theron as quoted in Nieuwoudt (1990:60), as well as Van Dyk et al.

(1997:264), the size of the Delphi panel may vary between 6 and 20.

During the identification of the target population it was taken into account that only a

small percentage of the target population would probably respond to the

questionnaire. In other words, it was expected that only part of the population would

participate and that participation would decrease between the different rounds of the

Delphi method.


63

Special care was taken to ensure that the technique itself was introduced to the

target population in a sensitive manner. Each participant was approached

individually and requested to participate in this study. During the discussion,

background information on the broad principles of the technique was provided to

every participant.

In order to maintain the interest of the participants in the process and therefore

increase the possibility of a higher response rate, special attention was given to the

design of questionnaires and the time lapse between each round.

4.11. CONCLUSION

In this chapter the Delphi process and the advantages and disadvantages of the

Delphi technique were discussed. Although the Delphi technique was originally

developed as a technological forecasting tool, it is evident that the Delphi Technique

is useful in the management decision-making process. Guidelines to make the

Delphi Technique useful and proposals as to the formulation of the questionnaire

were also given. Despite the shortcomings of the Delphi Technique it is evident that

the Delphi Technique can be used as a scientific approach.

Empirical Results

64

CHAPTER 5: EMPIRICAL RESULTS

5.1. INTRODUCTION

The aim of this chapter is to discuss the use of the Delphi Technique to identify the

problem areas through the data analysis of the qualitative and quantitative paradigm.

The study’s problem statement refers to Company A’s high performance strategy

that was developed by top management, and that for the implementation of this

strategy it is vital that the organisation fosters an environment which is conducive to

high performance. As it is not clear if the chosen strategy will succeed and direct the

organisation towards sustainable high performance in the long run, it is vital to

assess the current strategy through the perceptions of global business unit

managers’.

The Delphi Technique was used as the research method to obtain this information as

several authors in the literature on this subject recommended this method as suitable

for the circumstances of this particular study. It has to be emphasised that the

Delphi Technique was not used to highlight different views of the problem. The

consensus achieved during the third round will be discussed in this chapter.

5.2. DATA COLLECTION METHOD

5.2.1. Round one

Making use of the guidelines provided in the literature on the composition of the first

round Delphi questionnaire, the following were considered:

Elements of the problem should be covered by the questions

(Cascio, 1995:155). In Chapter Three (Literature Review) the

theory and available models around a high performing organisation

Empirical Results

65

was discussed and De Waal’s model was chosen for the purpose of

the study. Making use of the elements under each factor as basis

for compiling the first round of questions, the study would be able to

focus on the main characteristics of a high performing organisation.

Figure 8: De Waal’s Five Strands of Success

Open statements at the beginning of the Delphi questionnaire can

be used to neutralise cultural perceptions, subject bias, and

knowledge and language differences (Cascio, 1995:155).

Questions should be kept as simple as possible otherwise low

consensus could result. Questions should be formulated in such a

way that they are easy to understand (Linstone and Turoff, 2002:3).

In this regard, five open ended questions were formulated (Refer to

Chapter One).

A covering letter was compiled addressing the method, background and reason for

the study. The cover letter is very important since the purpose and the method of

the research is described therein. In this regard, Nieuwoudt (1990:64) mentioned



Openness and action

orientation


and innovation


Empirical Results

66

that the covering letter should also influence participants positively with regard to the

research and allow them to clearly see their role in the study.

A period of 30 minutes was allocated as the maximum preferable time it should take

to respond to the questionnaire to prevent a low response rate. In order to allow

ample space for remarks, a blank page was included in each questionnaire.

Questions must be pre-tested to identify poorly worded questions or

confusion (Linstone and Turoff, 2002), the background information

relating to the questions can be presented and the respondents

should understand the goal of the study. Linstone and Turoff

(2002:3) mentioned that background information on the questions

may be included during the first round of the questionnaire. A pilot

study was conducted by testing the questionnaire on four co-

workers in the local business unit.

A design team must consist of at least two members so that one

can check the other and each questionnaire should be pre-tested

(Linstone and Turoff, 2002:3).

In this regard the questionnaire was pre-tested on a group of four co-workers.

Results from this pilot indicated that respondents tend to over complicate the

questions posed. Instead of answering the question at hand, they tried to equal the

terminology used in the posed question, in their answer. This created a loss of

confidence from the respondents in answering the question as they were more

concerned with their writing skills. This could be a result of terminology used specific

to the field of high performing theory, as the researcher found that respondents

would try to answer in an academic manner, although the understanding of the

question was clear and precise.

Empirical Results

67

To counteract this, additional electronic correspondence went out with the first round

of questions to encourage respondents to look past the terminology and answer the

questions as honestly and truthfully as possible, in plain English. This seemed to

work as the first round of completed questionnaires did not have the same difficulties

encountered as during the pilot.

The first Delphi questionnaire (Annexure A) consisted of five open questions. Each

respondent received the questionnaire with a covering letter and short pre-reading of

the management dilemma. These were electronically emailed to all participants with

a short message to encourage respondents to look past the terminology and answer

the questions as honestly and truthfully as possible, along with an open invitation to

contact the researcher should they encounter any difficulties in completing the

questionnaire or would like to pose any questions.

The questionnaire was forwarded to 53 people, of whom 21 (39.62%) responded.

Participants who did not return the questionnaire within 21 days were approached

individually through electronic correspondence and requested to complete the

questionnaire. Those people who participated in the entire study are listed as

Annexure B. The below figure indicates the distribution of participants for round two.

Figure 9: Percentage Respondents according to Position (Round One)

14%

38% 14%

5%

5%

14%

10%

Percentage Respondents according to Position (Round One)

General Manager

Operations Manager

Purchasing and Reservations Manager Assistant General Manager

Sales and Marketing Manager

Financial Manager

HR Manager

Empirical Results

68

5.2.2. Round two

According to Green (1981:17), the second Delphi round questionnaire should include

a summarised version of generic statements of corresponding answers obtained

from the first round questionnaire. An attempt should be made to avoid ambiguity

and provide a reliable interpretation of all the responses received. A total of 97

responses, spread over the five questions, were received. These responses were

reduced to 44 generic statements spread over five questions.

In the second Delphi round, questionnaire participants were requested to indicate the

importance of each of the 44 responses (on a scale of one to five). In so doing, the

process of reaching consensus was activated in order to commence with the

following rounds. The questionnaire was again pre-tested on four co-workers.

The pilot showed a clear understanding of the instruction on the questionnaire and

none of the statements or questions created any confusion. From this information it

was decided to launch the second round questionnaires.

It was decided to make use of a Likert scale, with the following values:

5 Strongly agree

4 Agree

3 Disagree

2 Strongly disagree

1 Impossible to evaluate

The participants were requested to indicate the importance of each response, with

regard to the set question, on a scale.

Empirical Results

69

NR Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

Dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

Ag

ree

1 The sky is blue. (Example) X

The second Delphi questionnaire (Annexure C) consisted of five questions, each

with a number of statements, which had to be rated on the provided scale. Each

respondent received the questionnaire with a covering letter and short pre-reading of

the process. A period of 20 minutes was allocated as the maximum preferable time

it should take to respond to the questionnaire to prevent a low response rate. These

were emailed to all participants, along with an open invitation to contact the

researcher should they encounter any difficulties in completing the questionnaire or

would like to pose any questions.

The questionnaire was forwarded to 53 people of whom 24 (45.28%) responded.

Accordingly, the given responses were statistically processed in order to determine

the median response. The below figures indicate the distribution of participants for

round two.

Figure 10: Percentage Respondents according to Position (Round Two)

26%

26% 26%

5%

4% 9% 4%

Percentage Respondents according to Position (Round Two)

General Manager

Operations Manager

Purchasing and Reservations Manager Assistant General Manager

Sales and Marketing Manager

Financial Manager

HR Manager

Empirical Results

70

Figure 11: Percentage Respondents according to Regions (Round Two)

5.2.3. Round three

According to Green (1981:17) the third Delphi questionnaire should be identical to

the second Delphi questionnaire, but in this round the group’s statistical responses

are provided to them. Participants are then requested once again (based on

statistical feedback on the second questionnaire) to evaluate the statements and to

motivate briefly if their opinion differs significantly from the group’s opinion (mean).

In this study the statistical responses were introduced in the form of a median on the

Delphi questionnaire for round two. Steyn et al. (1995:104) indicated that the

median is an indication of the group’s considered opinion, in that it is the middle

value of a data set. They mentioned further that the median, in contrast with the

accounting average, is rarely influenced by the high and low divergence of the group

ratings. The principle is very relevant to this particular study as one high or low

divergent rating would have a profound effect on the accounting average because of

the small set of data used for this study.

Annexure D contains the Delphi questionnaire and covering letter sent out for round

three. If a participant wished to alter his or her specific response, he or she had to

37%

13%

4%

33%

13%

Percentage Respondents according to Regions (Round Two)

Asia

America's

Australasia

EMEA

NON RESPONSE

Empirical Results

71

do so by making a clear mark on the scale. If the responses differed significantly

from the group’s opinion, the participants were requested to motivate the differences

in the space provided.

The results questionnaire was forwarded to 53 people of whom 22 (41.51%)

responded. Accordingly, the given responses were statistically processed in order to

determine the median response. The below figures indicate the distribution of

participants for round three.

Figure 12: Percentage Respondents according to Position (Round Three)

Figure 13: Percentage Respondents according to Regions (Round Three)

27%

27% 18% 0%

5%

9% 14%

Percentage Respondents according to Position (Round Three)

General manager

Operations manager

Purchasing & Reservations manager Assistant General Manager

Sales & Marketing manager

Financial Manager

HR manager

45%

14%

5%

36%

Percentage Respondents according to Regions (Round Three)

Asia

America's

Australasia

EMEA

Empirical Results

72

5.3. INTERPRETATION OF RESPONSES

After completing the third round of the Delphi questionnaire, the median was

calculated. The median can be defined as the descriptive measure of locality (Steyn

et al., 1995:104).

The graphics of the results were compiled by means of the software programme,

Microsoft Office Excel. The results of the study are discussed with reference to the

third round of the questionnaire.

5.4. RESULTS

5.4.1. Question 1: Quality of Management

Question 1 was formulated as follows: “What in your opinion are the strengths and

weaknesses of Company A’s organisational management, from a global perspective,

to implement a high performing organisational strategy?”

The variables stated under question 1 were as follows:

1.1. Management is trusted by organisational members.

1.2. Management has integrity.

1.3. Management is a role model for organisational members.

1.4. Management applies fast decision making.

1.5. Management applies fast action taking.

1.6. Management coaches organisational members to achieve better

results.

Empirical Results

73

1.7. Management focuses on achieving results.

1.8. Management is very effective.

1.9. Management applies strong leadership.

1.10. Management is confident.

1.11. Management is decisive with regard to non-performers.

Table 4: Results for variables in Question 1

Variable

Frequencies per Question

Median

Response

(2nd

Round)

Median

Response

(3rd

Round)

Imp

os

sib

le t

o e

va

lua

te

(1)

Str

on

gly

dis

ag

ree

(2)

Dis

ag

ree

(3)

Ag

ree

(4)

Str

on

gly

Ag

ree

(5)

1.1 3 0 2 12 7 4 4

1.2 0 0 0 15 9 4 4

1.3 2 0 0 16 6 4 4

1.4 1 0 5 13 5 4 4

1.5 1 0 4 13 6 4 4

1.6 0 0 4 12 8 4 4

1.7 0 0 0 11 13 5 5

1.8 3 0 3 17 1 4 4

1.9 1 0 2 17 4 4 4

1.10 2 0 0 16 6 4 4

1.11 3 2 2 15 2 4 4

From the above table it is clear that there was no deviation from the median between

round two and round three, indicating clear consensus on the outcome of the results

in question 1. None of the results of the statements (variables) posed under

question 1 indicates a major area of concern, instead the majority outcome clearly

agrees with the statements made, with statement 1.7 indicating a strongly agreed

position.

Empirical Results

74

Due to the nature of Company A being an international organisation, the four

different regions that responded and took part in the study’s answers are also

compared. With the below graphical representation of each region’s average

response to each variable statement, the researcher could make certain deductions

from the data (Figure 14 – 17). The mean or average according to Wegner

(2009:95) is that value which lies at the centre of a set of data values.

Figure 14: Asia Question 1 Mean

Figure 15: EMEA Question 1 Mean

0.00

1.00

2.00

3.00

4.00

5.00

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11

Rat

ing

Statement (Sub-variable) Numbers

Asia Question 1 Mean

0.00

1.00

2.00

3.00

4.00

5.00

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11

Rat

ing


EMEA Question 1 Mean

Empirical Results

75

Figure 16: Americas Question 1 Mean

Figure 17: Australasia Question 1 Mean

To further analyse the results from this study, the three major managerial roles within

each global business unit’s answers to question 1 were also compared (Figure 18 –

20). These roles were those of the General Manager, Operations Manager and

Purchasing and Reservations Manager.

0.00

1.00

2.00

3.00

4.00

5.00

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11

Rat

ing


Americas Question 1 Mean

0

1

2

3

4

5

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11

Rat

ing


Australasia Question 1 Mean

Empirical Results

76

Figure 18: General Managers’ Question 1 Mean

Figure 19: Operations Managers’ Question 1 Mean

Figure 20: Purchasing Managers’ Question 1 Mean

0

1

2

3

4

5

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11

Rat

ing


General Managers' Question 1 Mean

0

1

2

3

4

5

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11

Rat

ing


Operations Managers' Question 1 Mean

0

1

2

3

4

5

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11

Rat

ing

Statement (Sub-variable) numbers

Purchasing Managers' Question 1 Mean

Empirical Results

77

5.4.2. Question 2: Quality of Employees


weaknesses of Company A’s employees from a regional perspective to implement a

high performance strategy?”


2.1. Organisational members feel responsible for their results.

2.2. Organisational members are inspired to accomplish extraordinary

results.

2.3. Organisational members are trained to be resilient.

2.4. Organisational members are trained to be flexible.

2.5. The diversity of our workforce is a strength that we use.

2.6. The diverse workforce complements each other.


Variable


Median

Response

(2nd

Round)

Median

Response

(3rd

Round)

Imp

os

sib

le t

o e

va

lua

te

(1)

Str

on

gly

dis

ag

ree

(2)

Dis

ag

ree

(3)

Ag

ree

(4)

Str

on

gly

Ag

ree

(5)

2.1 0 0 2 15 7 4 4

2.2 1 0 3 17 3 4 4

2.3 0 0 8 13 2 4 4

2.4 0 0 6 14 4 4 4

2.5 0 0 3 15 6 4 4

2.6 1 0 2 16 5 4 4

Empirical Results

78




question 2 indicated a major area of concern, although statement 2.3 raises an alarm

with the response score of 8 under disagree, compared to the agree response score

of 13. This could be one variable worth investigating further to establish the reason

for the high response of disagreement.

Due to the nature of Company A being an international organisation, the four

different regions that responded and took part in the study were also compared.

With the below graphical representation of each region’s average response to each

variable statement, the researcher could make certain deductions from the data

(Figure 21 – 24). The mean or average according to Wegner (2009:95) is that value

which lies at the centre of a set of data values.


0.00

1.00

2.00

3.00

4.00

5.00

2.1 2.2 2.3 2.4 2.5 2.6

Rat

ing



Empirical Results

79




0.00

1.00

2.00

3.00

4.00

5.00

2.1 2.2 2.3 2.4 2.5 2.6

Rat

ing



0.00

1.00

2.00

3.00

4.00

5.00

2.1 2.2 2.3 2.4 2.5 2.6

Rat

ing



0

1

2

3

4

5

2.1 2.2 2.3 2.4 2.5 2.6

Rat

ing



Empirical Results

80







0

1

2

3

4

5

2.1 2.2 2.3 2.4 2.5 2.6

Rat

ing



0

1

2

3

4

5

2.1 2.2 2.3 2.4 2.5 2.6

Rat

ing



Empirical Results

81


5.4.3. Question 3: Openness and Action Orientation


weaknesses of the organisational culture in your business unit and how does it fit in

with the global organisational culture of Company A striving for high performance?”


3.1. Management frequently engages in a dialogue with employees.

3.2. Organisational members spend much time on communication.

3.3. Organisational members spend much time on exchanging

knowledge.

3.4. Organisational members spend much time on learning.

3.5. Organisational members are always involved in important

processes.

3.6. Management allows making mistakes.

3.7. Management welcomes change.

3.8. The organisation is performance driven.

0

1

2

3

4

5

2.1 2.2 2.3 2.4 2.5 2.6

Rat

ing

Statement (Sub-variable) numbers


Empirical Results

82


Variable


Median

Response

(2nd

Round)

Median

Response

(3rd

Round) Im

po

ssib

le t

o e

va

lua

te

(1)

Str

on

gly

dis

ag

ree

(2)

Dis

ag

ree

(3)

Ag

ree

(4)

Str

on

gly

Ag

ree

(5)

3.1 0 0 4 17 3 4 4

3.2 0 0 5 16 3 4 4

3.3 0 0 10 12 2 4 4

3.4 0 0 10 13 1 4 4

3.5 0 2 10 7 5 3.50 3.50

3.6 2 0 2 14 6 4 4

3.7 0 0 0 13 11 4 4

3.8 0 0 0 14 10 4 4



in question 3. Three of the results of the statements (variables) posed under

question 3 indicated an area of concern, namely 3.3, 3.4 and 3.5. Although the

majority of respondents agreed with the statement of variable 3.3 and 3.4, an almost

equal amount of respondents disagreed. Statement 3.5 is a clear disagreement

amongst respondents and these variables indicate an area of concern worth

investigating further to establish the reason for the high level of disagreement.

The four different regions that responded and took part in the study’s answers were

compared. With the below graphical representation of each region’s average

response to each variable statement, the researcher could make certain deductions

from the data (Figure 28 – 31). The mean or average according to Wegner

(2009:95) is that value which lies at the centre of a set of data values.

Empirical Results

83




0.00

1.00

2.00

3.00

4.00

5.00

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Rat

ing



0.00

1.00

2.00

3.00

4.00

5.00

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Rat

ing



0.00

1.00

2.00

3.00

4.00

5.00

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Rat

ing



Empirical Results

84







0

1

2

3

4

5

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Rat

ing



0

1

2

3

4

5

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Rat

ing



Empirical Results

85



5.4.4. Question 4: Continuous Improvement and Innovation

Question 4 was formulated as follows: “How do you think Company A and your

business unit fares when it comes to continuous improvement and innovation

towards a high performing organisational strategy?”

0

1

2

3

4

5

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Rat

ing



0

1

2

3

4

5

3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Rat

ing

Statement (Sub-variable) Number


Empirical Results

86


4.1. The organisation has adopted a strategy that clearly sets it apart

from other organisations.

4.2. In the organisation processes are continuously improved.

4.3. In the organisation processes are continuously simplified.

4.4. In the organisation processes are continuously aligned.

4.5. In the organisation everything that matters to performance is

explicitly reported.

4.6. In the organisation financial information is reported to

organisational members.

4.7. In the organisation non-financial information is reported to


4.8. The organisation continuously innovate its core competencies.

4.9. The organisation continuously innovate its products.

4.10. The organisation continuously innovate its processes.

4.11. The organisation continuously innovate its services.


Variable


Median

Response

(2nd

Round)

Median

Response

(3rd

Round)

Imp

os

sib

le t

o e

va

lua

te

(1)

Str

on

gly

dis

ag

ree

(2)

Dis

ag

ree

(3)

Ag

ree

(4)

Str

on

gly

Ag

ree

(5)

4.1 1 0 3 16 4 4 4

4.2 0 0 3 15 6 4 4

4.3 0 0 12 10 2 3.50 3.50

4.4 0 0 7 13 4 4 4

4.5 0 1 6 13 4 4 4

4.6 1 1 5 14 3 4 4

4.7 1 1 3 15 4 4 4

Empirical Results

87

4.8 0 0 3 17 4 4 4

4.9 0 1 3 16 4 4 4

4.10 0 0 6 14 4 4 4

4.11 0 0 4 17 3 4 4



in question 4. The only area of concern that is worth investigating further to establish

the reason for the high response of disagreement is statement 4.3, which the

majority of respondents disagreed with.






0.00

1.00

2.00

3.00

4.00

5.00

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

Rat

ing



Empirical Results

88




0.00

1.00

2.00

3.00

4.00

5.00

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

Rat

ing



0.00

1.00

2.00

3.00

4.00

5.00

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

Rat

ing



0

1

2

3

4

5

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

Rat

ing



Empirical Results

89



41). These roles are those of the General Manager, Operations Manager and




0

1

2

3

4

5

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

Rat

ing



0

1

2

3

4

5

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

Rat

ing



Empirical Results

90


5.4.5. Question 5: Long-term Orientation

Question 5 was formulated as follows: “In your opinion, what is the organisation’s

stance on long-term orientation and how does it affect its high performance

strategy?”


5.1. The organisation maintains good relationships with all

stakeholders.

5.2. The organisation maintains long-term relationships with all

stakeholders.

5.3. The organisation is aimed at servicing the customers as best as

possible.

5.4. The organisation grows through partnerships with suppliers.

5.5. The organisation grows through continuous input from customers.

5.6. Management has been with the company for a long time.

5.7. The organisation is a secure workplace for organisational

members.

0

1

2

3

4

5

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11

Rat

ing



Empirical Results

91

5.8. New management is promoted from within the organisation.


Variable


Median

Response

(2nd

Round)

Median

Response

(3rd

Round)

Imp

os

sib

le t

o e

va

lua

te

(1)

Str

on

gly

dis

ag

ree

(2)

Dis

ag

ree

(3)

Ag

ree

(4)

Str

on

gly

Ag

ree

(5)

5.1 0 0 0 18 6 4 4

5.2 0 0 0 19 5 4 4

5.3 0 0 0 9 15 5 5

5.4 0 0 1 11 12 4.50 4.50

5.5 0 0 1 15 8 4 4

5.6 1 0 1 12 10 4 4

5.7 1 0 1 15 7 4 4

5.8 0 0 1 16 7 4 4




question 5 indicated a major area of concern, as most statements were either agreed

upon or strongly agreed upon by respondents.





Empirical Results

92




0.00

1.00

2.00

3.00

4.00

5.00

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Rat

ing

Statement (Sub-variables) Numbers


0.00

1.00

2.00

3.00

4.00

5.00

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Rat

ing



0.00

1.00

2.00

3.00

4.00

5.00

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Rat

ing



Empirical Results

93







0

1

2

3

4

5

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Rat

ing



0

1

2

3

4

5

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Rat

ing



Empirical Results

94



5.5. CONCLUSION

The quality of the responses of the participants in this study was high. During each

round a high response percentage was obtained, which allowed for thorough

reflection of global unit managers’ perceptions of the current international high

performance strategy.

0

1

2

3

4

5

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Rat

ing



0

1

2

3

4

5

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

Rat

ing



Empirical Results

95

Although several authors mentioned the Delphi Technique as an aid to strategic

planning (Nieuwoudt, 1990:51; Linstone and Turoff, 1975:4; Schutte as quoted by

Nieuwoudt, 1990:16), the specific application, namely to assess the effectiveness of

the strategy, appears to be relatively unique. The use of the Delphi Technique for

this purpose was extremely effective and it can therefore be recommended for

studies of a similar nature.

In the next chapter the results will be discussed and the necessary

recommendations made, before reaching a conclusion.

Discussion, Recommendations and Conclusion

96

CHAPTER 6: DISCUSSION, RECOMMENDATIONS AND CONCLUSION

6.1. INTRODUCTION

The main research problem postulated that Company A’s high performance strategy

was developed by top management and for the implementation of this strategy it is

vital that the organisation fosters an environment which is conducive to high

performance. At this stage it is not clear if the chosen strategy will succeed and

direct the organisation towards sustainable high performance in the long run. It is

thus vital to assess the current strategy from the perceptions of the global unit

managers.

In order to determine the current status of Company A’s high performance strategy,

the Delphi technique was used to search for consensus between global business

unit managers’ perceptions of the current international high performance strategy.

As far as the research is concerned, making use of De Waal’s five strands of

success model, an analysis of Company A’s performance regarding its strategy was

made. From the perceptions of the global unit managers, by means of the Delphi

technique, the analysis provided a good understanding of the strengths and

improvement potential of the organisation, and focused on those aspects requiring

attention in order to perform better in the long-term.

6.2. DISCUSSION AND RECOMMENDATION

The purpose of this study, namely to assess the effectiveness of Company A’s

international high performance strategy and its implementation through global

business unit managers, was achieved. The identification of these perceptions was

facilitated by means of the Delphi technique. Based on the information identified


97

during this study, management plans and strategies can be developed and adapted

accordingly.

From the evaluation and results of the study it appears that the Delphi technique was

applied to good effect. A research project should be evaluated as a learning

experience. With this in mind, each strand of De Waal’s high performance model

was used to highlight the results of the research and categorise Company A’s

weaknesses and strengths under each strand separately.

6.2.1. MANAGEMENT QUALITY

When looking at the overall results under this variable it is clear that at a median of

4, Company A’s management fairs well when it comes to quality of management,

however there is still room for improvement as an overall median of 5 should be the

goal for a high performing organisation. This forced the researcher to analyse the

results further and compare the regions and major managerial roles to find any

weaknesses that might be worth further investigating.

During this comparison on a regional level, the results indicated that Asia scored

sub-variables 1.3 and 1.5 below 4 (Table 4), while the rest of the regions all scored

these sub-variables above 4. The EMEA and Australasia regions only scored sub-

variable 1.11 below 4 (Figure 14 – 17). This indicates areas that do warrant further

investigation, especially if Company A would like to improve their overall

performance.

When comparing the major managerial roles the regional scores make even more

sense, with General and Operations Managers scoring sub-variable 1.11 below 4,

while Purchasing Managers scored sub-variables 1.3, 1.5 and 1.11 below 4 (Figure

18 – 20). With these results it provides the organisation with a clear path of where to


98

focus their energy when wanting to improve the specific variables of their high

performance strategy.

To further investigate the sub-variables of concern mentioned above, one needs to

look into the sub-variables and what they mean to the high performing organisation:

Sub-variable 1.3 – Management is a role model for

organisational members. Managers of a high performance

organisation lead by example through showing involvement,

enthusiasm and respect; showing their vulnerability; not being

arrogant; asking for alternative opinions; not concentrating on the

negative; not being detached; publicly committing to objectives they

wish to achieve; working hard themselves; and being persistent

when things are going against them (HPO Center, 2012).

Sub-variable 1.5 – Management applies fast action taking.

Managers of a high performance organisation are action-orientated

by being bold when they need to be; inspiring members of the

organisation to action; always tracking the course and results of

actions; and reviewing each decision made and action implemented

in order to learn from them (HPO Center, 2012).

Sub-variable 1.11 – Management is decisive with regard to

non-performers. Managers of high performance organisations are

decisive as regards to “non-performers” by consistently evaluating

members of the organisation according to their performance and

how well they achieve results; not wavering in taking difficult

decisions; and not allowing non-performing members of the

organisation to “muddle on” too long, but helping them find a new

position within or outside of the organisation (HPO Center, 2012).


99

Company A’s weaknesses and strengths under the Quality of Management variable

is as follows:

Table 9: Strength and weaknesses of Company A under the Quality of

Management variable.

Overall Score 4

Major

Strength

Sub-variable 1.7 (management focuses on achieving

results) at a score of 5

Major

Weakness

No sub-variable scored under 4

Regional Weaknesses

Asia Sub-variable 1.3 (management is a role model for

organisational members) at a score of 3.85

Sub-variable 1.5 (management applies fast action

taking) at a score of 3.85

EMEA Sub-variable 1.11 (management is decisive with

regard to non-performers) at a score of 3.70

Australasia Sub-variable 1.11 (management is decisive with


Americas None scored under 4

Major Managerial Role Weaknesses

General

Managers

Sub-variable 1.11 (management is decisive with


Operations

Managers



Purchasing

Managers

Sub-variable 1.3 (management is a role model for

organisation members) at a score of 3.75

Sub-variable 1.5 (management applies fast action

taking) at a score of 3.75




100

Although none of the sub-variables noted as weaknesses above scored below 4 on

the overall median after round three of the consensus process, it is important to take

these weaknesses into consideration if Company A would like to improve its overall

management quality and become a sustainable high performance organisation.

6.2.2. WORKFORCE QUALITY

Although the overall median of variable 2 is at 4, it is concerning to see so many

respondents disagreeing with sub-variable 2.3 (Table 5). Company A should take

this information and see how they can work it into their action plan to improve this

variable. Once again it was decided to probe the results and further investigate

variable 2 from both a regional and major managerial role perception.

Interestingly, the only region that scored any of the sub-variables below 4 was Asia,

i.e. sub-variables 2.2, 2.3, 2.5 and 2.6 (Figure 21 – 24). When looking further into

this variable through the perceptions of the major managerial roles, it became clear

that the roots of these concerns are at the Operational Manager and Purchasing

Manager level; where the Operations Managers scored sub-variables 2.5 and 2.6

below 4, and the Purchasing Managers scored sub-variables 2.2, 2.3 and 2.5 below

4 (Figure 25 – 27).


look into the sub-variable and what they mean to the high performing organisation:

Sub-variable 2.2 – Organisational members are inspired to

accomplish extraordinary results. Members of a high

performance organisation want to be inspired to achieve

exceptional results by managers inspiring them to do their very

best; individual initiative being promoted; and the members of the

organisation being allowed to be proud of their results and those of


101

the organisation and the organisation stimulating self-confidence,

an entrepreneurial spirit, a mutual mindset and determination in

members of the organisation (HPO Center, 2012).

Sub-variable 2.3 – Organisational members are trained to be

resilient. A high performance organisation has a diverse and

complementary management team and group of employees,

thereby resolving complex situations and bottlenecks in the

operation creatively; ensuring that members of the organisation

differ in their talent, experience, backgrounds, personalities and

skills; stimulating and rewarding people’s creativity; using various

hiring procedures and methods to reach various types of people;

and ensuring that complementariness and diversity in experience,

knowledge and attitude can be found in each team (HPO Center,

2012).

Sub-variable 2.5 – The diversity of our workforce is a strength

that we use. Sub-variable 2.6 – The diverse workforce

complements each other. A high performance organisation trains

members to increase their flexibility and resilience; ensures that

members of the organisation can deal with uncertainties and

changes in their surroundings and even welcome these changes;

trains members of the organisation to never give up in the event of

setbacks, but to always seek out new ways of achieving set goals;

and searches for new employees who previously appeared to be

able to deal with uncertainty, who see opportunities and possibilities

in this uncertainty, and learn from the past and apply lessons in

order to change (HPO Center, 2012).

Company A’s weaknesses and strengths under the Quality of Employees variable is

as follows:


102

Table 10: Strength and weaknesses of Company A under the Quality

of Employees variable.

Overall Score 4

Major

Strength

No sub-variable scored over 4

Major

Weakness


Regional Weaknesses

Asia Sub-variable 2.2 (organisational members are inspired

to accomplish extraordinary results) at a score of 3.95

Sub-variable 2.3 (organisational members are trained

to be resilient) at a score of 3.95

Sub-variable 2.5 (the diversity of our workforce is a

strength that we use) at a score of 3.85

Sub-variable 2.6 (the diverse workforce complements

each other) at a score of 3.95

Americas None scored under 4

Australasia None scored under 4

EMEA None scored under 4


Operations

Managers



Sub-variable 2.6 (the diverse workforce complements

each other) at a score of 3.85

Purchasing

Managers

Sub-variable 2.2 (organisational members are inspired

to accomplish extraordinary results) at a score of 3.75

Sub-variable 2.3 (organisational members are trained

to be resilient) at a score of 3.75




103

Although none of the sub-variables noted as weaknesses above scored below 4 on

the overall median after round three of the consensus process, it is important to take

these weaknesses into consideration if Company A would like to improve its overall

employee quality and become a sustainable high performance organisation.

6.2.3. OPENNESS AND ACTION ORIENTATION

This was the variable with the most warning flags, with most of the respondents

disagreeing with sub-variable 3.5, adding up to an overall median of 3.50 for this

specific sub-variable. Although the overall median score for this variable is 4, there

were two sub-variables where a great deal of the participants disagreed with the

statement, namely sub-variables 3.3 and 3.4 (Table 6).

On a regional and major managerial role level, it became clear in which regions and

managerial roles the majority of the concerns creating a red flag situation lay. Asia

scored sub-variables 3.1, 3.2, 3.3, 3.4 and 3.5 under 4, with 3.2 scoring the lowest of

all countries. EMEA and Australasia both only scored sub-variable 3.5 under 4,

where the Americas scored sub-variables 3.3, 3.4 and 3.5 below 4 at an average of

3.50 (Figure 28 – 31). Looking at the managerial roles, it is clear that the majority of

the concerns lie with the General Managers, scoring sub-variables 3.1, 3.2, 3.3, 3.4

and 3.5 below 4, which is a concern, especially taking into consideration that the

General Managers play a vital role in providing vision and direction at the global unit

level (Figure 32). Operations Managers scored sub-variable 3.5 below 4 and

Purchasing Managers scored sub-variables 3.4 and 3.5 below 4 (Figure 33 – 34).




104

Sub-variable 3.1 – Management frequently engages in a

dialogue with employees. Managers of a high performance

organisation stimulate interactive internal communication (“an

open dialog”) with the members of the organisation so that free

and continuous vertical information exchange can take place

and everyone can express themselves; create a simple and flat

organisation; develop new communication channels; stress the

importance of informal contacts; regard communication as a

responsibility of senior management to promote the strategy and

achieved results (HPO Center, 2012).

Sub-variable 3.2 – Organisational members spend much

time on communication. Members of a high performance

organisation devote a lot of time to sharing information,

knowledge and best practices within the entire organisation so

that free and continuous horizontal information exchange takes

place; a culture of transparency, openness and trust is created;

mutual understanding is promoted; integrity and openness in all

interactions with others prevails; cooperation with others is

furthered; and the use of new ideas and knowledge is stimulated

(HPO Center, 2012).

Sub-variable 3.3 – Organisational members spend much

time on exchanging knowledge. Sub-variable 3.4 –

Organisational members spend much time on learning.

Managers of a high performance organisation stimulate and

welcome change and improvement by continuously striving for

renewal; intentionally developing their own flexibility and that of

members of the organisation; being agents of change; always

supporting renewal and creativity; and being visibly involved in

this personally and for the organisation (HPO Center, 2012).


105

Sub-variable 3.5 – Organisational members are always

involved in important processes. Managers of a high

performance organisation involve members of the organisation

in important business processes such as developing a vision

and organisational values; and hold interactive discussions

about strategy, the decision-making process and shaping the

future of the organisation together with members of the

organisation, which creates an adult relationship between

employees and management (HPO Center, 2012).

Company A’s weaknesses and strengths under the Openness and Action Orientation

variable is as follows:

Table 11: Strength and weaknesses of Company A under the

Openness and Action Orientation variable.

Overall Score 4

Major

Strength


Major

weakness

Sub-variable 3.5 (organisational members are always

involved in important processes) at a score of 3.50

Regional Weaknesses

Asia Sub-variable 3.1 (management frequently engages in

a dialogue with employees) at a score of 3.95

Sub-variable 3.2 (organisational members spend

much time on communication) at a score of 3.85


much time on exchanging knowledge) at a score of

3.95


much time on learning) at a score of 3.95


106



EMEA Sub-variable 3.5 (organisational members are always


Americas Sub-variable 3.3 (organisational members spend


3.65





Australasia Sub-variable 3.5 (organisational members are always



General

Managers

Sub-variable 3.1 (management frequently engages in

a dialogue with employees) at a score of 3.90


much time on communication) at a score of 3.50



3.80





Operations

Managers



Purchasing

Managers






107

Sub-variable 3.5 scored under 4 and should therefore be seen as a major concern

hindering Company A from reaching sustainable high performance. Although none

of the other sub-variables noted as weaknesses above scored below 4 on the overall

median after round three of the consensus process, it is important to take these

weaknesses into consideration if Company A would like to improve its overall


6.2.4. CONTINUOUS IMPROVEMENT LONG-TERM ORIENTATION

Although the overall median of this variable is 4, sub-variable 4.3 stood out at a

median of 3.50, with most of the participants disagreeing with the statement (Table

7). After probing into the results of this variable, the researcher compared the

regional and major managerial role results under this variable.

From this comparison it became clear that all the regions and major managerial roles

that took part in this research scored sub-variable 4.3 below 4, making this a concern

across the organisation and not just for a specific region or managerial role (Table

7). Apart from the one sub-variable that stood out, it also became clear that Asia

also scored sub-variable 4.6 below 4, where the Americas scored sub-variables 4.2,

4.10 and 4.11 under 4. EMEA scored sub-variables 4.2, 4.5 and 4.8 below 4, in

addition to sub-variable 4.3 (Figure 35 – 38).

The results under the managerial roles, indicated that General Managers scored

sub-variable 4.2, 4.10 and 4.11 below 4 with sub-variable 4.3 scored at 3.50 (Figure

39). Operations Managers scored sub-variable 4.2, 4.5, 4.6 and 4.8 below 4, while

sub-variable 4.3 also reached the low score of 3.50 (Figure 40). Purchasing

Managers only scored sub-variables 4.3 at 3.50, while 4.6, 4.7 and 4.9 are scored

above 4, totally contradicting the scores of the other managerial positions (Figure

41).


108



Sub-variable 4.2 – The organisation has adopted a strategy

that clearly sets it apart from other organisations. A high

performance organisation has a strategy that clearly

distinguishes it from the competition or from comparable

organisations by continually researching and testing many new

options and alternatives; specifically seeking strategies with high

risks and high yields; abandoning outdated strategies on time;

and letting customers and employees clearly feel the difference

(HPO Center, 2012).

Sub-variable 4.3 – In the organisation processes are

continuously simplified. A high performance organisation

simplifies processes by standardising them, removing

bottlenecks and making processes as simple as possible; and

continuously searching for opportunities for constructive re-

engineering (HPO Center, 2012).

Sub-variable 4.5 – In the organisation everything that

matters to performance is explicitly reported. A high

performance organisation measures and reports on that which is

important for the organisation, based on a good and clear

business model; scrupulously measuring the progress of the

organisation; consistently translating the business model into

objectives and goals at lower organisational levels; consistently

verifying that objectives are being met; seeing the hard facts and

creating a performance-orientated culture at all organisational

levels that is focused on results (output) and not on effort

(process) and resources (input) (HPO Center, 2012).


109

Sub-variable 4.6 – In the organisation financial information

is reported to organisational members. A high performance

organisation reports the necessary financial and non-financial

information to the members of the organisation in order to

improve so that all employees can come to logical conclusions

and improvement measures and can implement these in a

disciplined manner; learn from each other by everyone’s results

being transparent; continuously incorporate improvement in

everything they do; and allow facts to prevail over opinions and

emotions (HPO Center, 2012).

Sub-variable 4.8 – The organisation continuously innovates

its core competencies. A high performance organisation

excels in its core competencies and continuously renews these

by determining what the organisation does best and

concentrating on further developing its core competencies within

the organisation and outsourcing non-core competencies, only

starting up new activities that are complementary to the core

activities and strengths of the organisation; creating a balanced

portfolio; quickly disposing of loss-incurring organisational units

or activities; and training people in the core competencies (HPO

Center, 2012).

Sub-variable 4.10 – The organisation continuously

innovates its processes. Sub-variable 4.11 – The

organisation continuously innovate its services. A high

performance organisation continuously renews products,

services and processes by always discovering and quickly

developing new sources of competitive advantage, through

which the organisation can not only comply with changing

market requirements, but can also anticipate them, continuously

seeking improvements in existing products (incremental

improvement) as well as entirely new products, services and


110

processes (abrupt improvement) and by encouraging members

of the organisation to (further) develop, maintain and renew

individual competencies in order to make innovation a core

competency of the organisation (HPO Center, 2012).

Company A’s weaknesses and strengths under the Continuous Improvement and

Innovation variable is as follows:

Table 12: Strength and weaknesses of Company A under the

Continuous Improvement and Innovation variable.

Overall Score 4

Major

Strength


Major

weakness

Sub-variable 4.3 (in the organisation processes are

continuously simplified) at a score of 3.50

Regional Weaknesses

Asia Sub-variable 4.3 (in the organisation processes are


Sub-variable 4.6 (in the organisation financial

information is reported to organisational members) at

a score of 3.95

EMEA Sub-variable 4.2 (in the organisation processes are

continuously improved) at a score of 3.90



Sub-variable 4.5 (in the organisation everything that

matters to performance is explicitly reported) at a

score of 3.90

Sub-variable 4.8 (the organisation continuously


111

innovate its core competencies) at a score of 3.90

Americas Sub-variable 4.2 (in the organisation processes are





innovate its products) at a score of 3.60


innovate its services) at a score of 3.60

Australasia Sub-variable 4.3 (in the organisation processes are



General

Managers






innovate its products) at a score of 3.90


innovate its services) at a score of 3.90

Operations

Managers





Sub-variable 4.5 (in the organisation everything that

matters to performance is explicitly reported) at a

score of 3.90

Sub-variable 4.6 (in the organisation financial

information is reported to organisational members) at

a score of 3.90


innovate its core competencies) at a score of 3.90


112

Purchasing

Managers



Sub-variable 4.3 scored under 4 and should therefore be seen as a major concern

hindering Company A from reaching sustainable high performance. Although none

of the other sub-variables noted as weaknesses above scored below 4 on the overall

median after round three of the consensus process, it is important to take these

weaknesses into consideration if Company A would like to improve its overall


6.2.5. LONG-TERM ORIENTATION

Under this variable Company A fared well, with most of the sub-variables at a

median score of 4 and two at a 4.50 and 5.00 (Table 8). Even after the researcher

further investigated the results on a regional and major managerial role level, the

results all scored a 4 and above.

Company A’s weaknesses and strengths under the Long-term Orientation variable is

as follows:

Table 13: Strength and weaknesses of Company A under the Long-

term Orientation variable.

Overall Score 4

Major

Strength

Sub-variable 5.3 (the organisation is aimed at

servicing the customers as best as possible) at a

score of 5

Sub-variable 5.4 (the organisation grows through

partnerships with suppliers) at a score of 4.50


113

Major

Weakness


Regional Weaknesses

None scored under 4


None scored under 4

The overall effectiveness of this variable within Company A’s international high

performance strategy makes this variable one of the more stable ones within its

strategy.

6.3. CONCLUSION

The primary objective during this study was to assess the effectiveness of Company

A’s international high performance strategy and its implementation through global

business unit managers. This lead to the main research question: Is Company A’s

international high performance strategy effective in creating a sustainable high

performance organisation in the long run?

From the initial management problem one could have made the assumption that

sufficient warnings signs around Company A’s implementation of its international

high performance strategy is evident and that the research would indicate major

concerns towards the current strategy. These assumptions would most probably

have been based on the tremendous amount of change that all employees had to

deal with over a very short period, combined with the challenges of a multi-cultural

organisation dispersed over the globe.

The results of the research indicates a different picture of Company A’s international

high performance strategy, however. Although it indicates that there is still a long

road ahead of Company A to reach ultimate sustainable high performance, it is on


114

the right track. The research highlighted a few areas of concern, but with continuous

adjustment and alignment of their strategy, Company A will have a solid framework

to work towards achieving high performance in the long run.

The detailed results of the research highlighted both the strengths and weaknesses

of the organisation and will assist management with the creation of the necessary

roadmap to develop the organisation towards high performance. If the leadership of

Company A focuses on these components within their organisation they could further

improve the overall performance of the company.

It is important to know that this framework will only be able to direct Company A

towards understanding their shortcomings and creating an improvement plan, but will

not necessarily allow the organisation to succeed in becoming a High Performing

Organisation. The task of performance will depend on Company A’s leadership to

act on these results, adjust their strategy accordingly and re-evaluate their progress

and status on a yearly basis.

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115

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Wegner, T., 2009. Applied Business Statistics. 2nd ed. Cape Town: Juta & Co. Ltd.

Wren, C., 2005. The history of management thought. 5th ed. Hoboken: John Wiley

and Sons Inc..

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Yin, R., 2003. Case Study Research: Design and Methods. 2nd ed. CA: Sage :

Thousand Oaks.

Young, N. , 2005. 5 Qualities of a High Performing Organisation. Optimal Solutions

Consulting, p. 1.

Zemke, R. & Kramler, T., 1982. Figuring things out: A trainers guide to needs and

task analysis. Massachusetts: Addison-Wesley Company.

120

ANNEXURE A

Dear Respondent

The assessment of global business unit managers’ commitment levels to the

international organisations high performance strategy.

As a final requirement for my MBA degree (Masters in Business Administration) at

the Nelson Mandela Metropolitan University, I undertook the above study. I chose to

do my study based on our organisations international high performance strategy. In

order to ensure that this study does not affect the organisations strategy or position, I

will be referring to the organisation as Company A. This will allow the organisation

anonymity when I hand in the final study. I would like to invite you to partake in this

study, as a manager your knowledge, perception and commitment will greatly

contribute towards the research topic.

Enquiries: A. van den Heever

Contact Details:

(W) +27 (0)11 471 7400/6

121

Participants will consist of middle management at our organisations international

business units. The research conducted around this topic, will assist our

organisation to adjust our application of the High Performance Strategy.

The design of this study is based on the Delphi Technique: a method for structuring

a group communication process so that the process is effective in allowing a group

of individuals, as a whole, to deal with a complex problem. Usually Delphi undergoes

three distinct rounds. The first round is characterized by the exploration of the

subject under discussion (electronically distributed and collected), wherein each

individual contributes additional information he/she feels is significant to the issue.

The second round involves the process of reaching an understanding of how the

group views the issue, if there is considerable disagreement, then that disagreement

is explored in the third round to bring out the underlying reasons for the differences

and to evaluate them.

The Delphi Technique also allows anonymity, when feedback after every round is

provided to the participants to respond on, it is a combination of results of the

previous round and no one participants identity are connected to the feedback.

For the purpose of the study and as a requirement of the Delphi Technique, it is

important to insure that all questionnaires are returned to the researcher in the

shortest possible timeframe. Therefore the questionnaire used during this round of

the Delphi Technique, are designed to take approximately 30min to complete

reducing the inconvenience of participation for all participants. The current timeframe

between the completion of round one and the start of round two, are being estimated

to be no more than 2 weeks.

You are requested to respond to the best of your knowledge on all questions posed

within the questionnaire in a complete and thorough manner. Questionnaires should

be completed electronically and not by hand.

122

It would be highly appreciated if you could email the completed first round

questionnaire before the 5th of August 2012 to (email address omitted due to

anonymity of Company A).

I would like to make use of this opportunity to thank you for your participation in this

study.

Kind Regards

Andette van den Heever

123

DELPHI QUESTIONNAIRE ROUND 1

SECTION A: Pre-reading

Prior to answering the questions posed in round one, I would suggest that you read

through the below information, which describes the current management dilemma

being researched, defines the various concepts within this study and provide

clarification around the questions posed.

Company A’s international high performance strategy was developed by top

management and for the successful implementation of this strategy it is vital that

global unit managers understand, accept and commit to the strategy. At this stage, it

is not clear what the unit managers’ commitment levels regarding the strategy are. It

is thus difficult to manage the implementation of the international high performance

strategy.

In order to understand the reasons behind the need for performance by Company A,

one must understand the definition of a high performance organisation.

A High Performance Organisation is an organization that achieves results that are

better than those of its peer group over a longer period of time, by being able to

adapt well to changes and react on these quickly, by managing for the long term, by

setting up an integrated and aligned management structure, by continuously

improving its core capabilities, and by truly treating the employees as its main asset.

The results of this questionnaire could assist the organisation to streamline the

strategy and identify any problem areas, hindering the organisation from the

successful implementation of its international high performance strategy.

124

Answer questions 1 to 5 truthfully and thoroughly according to your perception,

relating to the current situation within the organisation. A short description of each

characteristic analyzed is provided before each question.

SECTION B: Demographic Information

The following information is required to statistically process the questionnaire

received from respondents. Without the information it would not be possible to

provide specific feedback to respondents after each round of the Delphi technique.

Position in Company:

Years Employed:

Age:

Sex:

Region:

SECTION C: Delphi Questionnaire (Round One)

QUESTION 1:

Quality of Management: The management of a High Performing Organisation is of

high excellence, builds relations based on trust by combining integrity and coaching

leadership with commendable behaviour, is swift to make decisions, and is result-

orientated and committed to a long-term vision.

125

Organisational Management in this question will refer to the top management

structure of Company A.

1. What in your opinion are the strengths and weaknesses of Company A’s

organisational management, from a global perspective to implement a high

performing organisational strategy?

ANSWER 1: (Type your answer below)

QUESTION 2:

Quality of Employees: The employees of a High Performing Organisation are

diverse, complementary and well able to work together. They are flexible and tough

when it comes to achieving results. They are busy every day answering the

question: “How can I make our organisation more successful?”

Employees in this question will refer to the teams at each international business unit

of Company A.

126


employees from a regional perspective to implement a high performance

strategy?


QUESTION 3:

Openness and action orientation: The culture of a High Performing Organisation is

an open one in which everyone is involved in important processes through shared

conversation, constant knowledge sharing and learning from mistakes, where

change is encouraged and actions are taken to develop performance.

Organisations Culture in this question will refer to the culture in the international

business unit of Company A that you are involved in.

3. What in your opinion are the strengths and weaknesses of the organisational

culture in your business unit and how does it fit in with the global

organisational culture of Company A striving for high performance?

127


QUESTION 4:

Continuous improvement and innovation: A High Performing Organisation is aware

of its unique (strategic) characteristics and has all employees continuously

contributing to improving, simplifying, aligning and renewing processes, services and

products.

Company A in this question will refer to the entire organisational structure and

Business Unit, will refer to the unit you are personally involved with.

4. How do you think Company A and your business unit fares when it comes to

continuous improvement and innovation towards a high performing

organisational strategy?

128


QUESTION 5:

Long-term orientation: To a High Performing Organisation, continuity in the long

term always takes preference over profit in the short term. The long-term orientation

of a High Performing Organisation applies to clients, collaboration partners, as well

as relationships with employees. Employees rising from the ranks fill management

positions.

Organisation in this question refers to Company A in its entirety (the business unit

you work in, your peers and the other international business units, as well as head

office).

5. In your opinion, what is the organisations stance on long-term orientation and

how does it affect its high performance strategy?

129


130

ANNEXURE B

LIST OF RESPONDENTS:

1. Balaram Shrestha (Operations Manager – Nepal)

2. Jo Crisp (Purchasing and Reservations Manager – Asia)

3. Carlos Vidal ( Purchasing and Reservations Manager – South America)

4. Bruce Gray ( General Manager – Turkey)

5. Huiying Zhao ( Operations Manager – China)

6. Joanne Edgley ( Operations Manager – Australia)

7. Alfred Dena ( Financial Manager – East Africa)

8. Nhung Tran ( HR manager – Asia)

9. Gary Cohen ( Operations Manager – South America)

10. Bina Patel ( Financial Manager – North America)

11. Kym Campton ( Purchasing and Reservations Manager – Europe & Morocco)

12. Kristijan Svajnzger (Operations Manager – Europe & Morocco)

13. Long Nguyen ( Operations Manager – Vietnam)

14. Crystal Wang ( HR manager – China)

15. Anton Jurgens ( General Manager – Asia)

16. Sameh Tawfik (Operations Manager – Egypt)

17. Chris Hardy ( Operations Manager – China)

18. Mary Moses (General Manager – South America)

19. Sean Ryan (General Manager – South Africa)

20. Natasha Fox (Financial Manager – South Africa)

21. Lorell Strydom (Sales Manager – South Africa)

22. Carl Needham (General Manager – Asia)

23. Li Jia (Purchasing and Reservations Manager – China)

24. Jub Yata ( Purchasing and Reservations Manager – Asia)

25. Merle Ryan (HR Manager – South Africa)

26. Gideon Langat (Purchasing and Reservation Manager – East Africa)

27. Katy Birchett ( Purchasing and Reservations Manager – North America)

28. Pravin Tamang ( General Manager – India)

131

ANNEXURE C

Dear Respondent



Thank you for your assistance and co-operation in completing the first round

questionnaire as presented to you. Your participation is highly appreciated.

Attached is the second round questionnaire as explained in the previous round

forming part of the Delphi Technique used as the method during this study. This

questionnaire is compiled from the summarized feedback received during the first

round. The feedback has been summarized in generic statements that encompass

the comments received by respondents. Participants might not find their specific

responses to the questions stated in round one, but rather a summarized generic

statement that encompass the comments received by all participants.


Contact Details:

(W) +27 (0)11 471 7400/6

132








reducing the inconvenience of participation for all participants. The current timeframe

between the completion of round two and the start of round three are being

estimated to be no more than 2 weeks.

You are requested to respond to the questionnaire by choosing a number on a scale

next to each statement made on the questionnaire. Questionnaires should be

completed electronically and not by hand.

It would be highly appreciated if you could email the completed second round

questionnaire before the 21st of September 2012 to (email address omitted due to



study.

Kind Regards


133


SECTION A: Demographic Information





Years Employed:

Age:

Sex:

Region:

134

SECTION B: Delphi Questionnaire (Round Two)

When completing this questionnaire, please indicate your response according to

your opinion by marking the relevant number with an x. Each response must be

evaluated separately according to its relevance regarding the stated question.

The value of the scale is as follows:

5 Strongly agree

4 Agree

3 Disagree

2 Strongly disagree

1 Impossible to evaluate

Example - how to complete the questionnaire:

Nr Statement 1 2 3 4 5

1 The sky is blue. x

QUESTION 1:





135






Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 Management is trusted by organisational members.

2 Management has integrity.

3 Management is a role model for organisational members.

4 Management applies fast decision making.

5 Management applies fast action taking.

6 Management coaches organisational members to achieve

better results.

7 Management focuses on achieving results.

8 Management is very effective.

9 Management applies strong leadership.

10 Management is confident.

11 Management is decisive with regard to non-performers.

QUESTION 2:





136


of Company A.



strategy?

Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 Organisational members feel responsible for their results.

2 Organisational members are inspired to accomplish


3 Organisational members are trained to be resilient.

4 Organisational members are trained to be flexible.

5 The diversity of our workforce is a strength that we use.

6 The diverse workforce complements each other.

QUESTION 3:







137




Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 Management frequently engages in a dialogue with

employees.

2 Organisational members spend much time on

communication.

3 Organisational members spend much time on exchanging

knowledge.

4 Organisational members spend much time on learning.

5 Organisational members are always involved in important

processes.

6 Management allows making mistakes.

7 Management welcomes change.

8 The organisation is performance driven.

QUESTION 4:




products.

138






Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 The organisation has adopted a strategy that sets it clearly

apart from other organisations.

2 In the organisation processes are continuously improved.

3 In the organisation processes are continuously simplified.

4 In the organisation processes are continuously aligned.

5 In the organisation everything that matters to performance

is explicitly reported.

6 In the organisation financial information is reported to


7 In the organisation non-financial information is reported to


8 The organisation continuously innovate its core

competencies.

9 The organisation continuously innovate its products.

10 The organisation continuously innovate its processes.

11 The organisation continuously innovate its services.

139

QUESTION 5:





positions.



office).



Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 The organisation maintains good relationships with all

stakeholders.

2 The organisation maintains long-term relationships with all

stakeholders.

3 The organisation is aimed at servicing the customers as

best as possible.

4 The organisation grows through partnerships with

suppliers.

5 The organisation grows through continuous input from

customers.

140

6 Management has been with the company for a long time.

7 The organisation is a secure workplace for organisational

members.

8 New management is promoted from within the

organisation.

141

ANNEXURE D

Dear Respondent



Thank you for your assistance and co-operation in completing the second round

questionnaire as presented to you. Your participation is highly appreciated.

Attached is the third round questionnaire as explained in the previous round forming

part of the Delphi Technique used as the method during this study. This

questionnaire is compiled from the statistical responses received during the second

round. The median value of each statement is highlighted in bold and shaded. You

should only indicate on this questionnaire where your opinion might differ from the

median value. Therefore should you agree with the median value, you are not

required to respond on that statement. However, if you disagree significantly with


Contact Details:

(W) +27 (0)11 471 7400/6

142

the median value you need to indicate your answer with an X and also briefly

motivate in the space provide why you disagree.








reducing the inconvenience of participation for all participants.

You are requested to respond to the questionnaire by choosing a number on a scale

next to each statement made on the questionnaire. Questionnaires should be

completed electronically and not by hand.

It would be highly appreciated if you could email the completed second round

questionnaire before the 22th of October 2012 to (Email address omitted due to



study.

Kind Regards


143


SECTION A: Demographic Information





Years Employed:

Age:

Sex:

Region:

SECTION B: Delphi Questionnaire (Round Two)

When completing this questionnaire, please indicate only if you disagree significantly

with the median value provided. If this is the case please indicate your response

according to your opinion by marking the relevant number with an x and motivate

your indifference in the space provided. Each response must be evaluated

separately according to its relevance regarding the stated question.

The median value will be printed in bold and shaded.

144

The value of the scale is as follows:

Median Value

Nr Statement

1 2 3 4 5

Imp

ossib

le

to e

valu

ate

Str

ongly

Dis

agre

e

Dis

agre

e

Agre

e

Str

ongly

A

gre

e

1 x

QUESTION 1:










145

Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 Management is trusted by organisational members. x

2 Management has integrity. x

3 Management is a role model for organisational members. x

4 Management applies fast decision making. x

5 Management applies fast action taking. x

6 Management coaches organisational members to achieve

better results.

x

7 Management focuses on achieving results. x

8 Management is very effective. x

9 Management applies strong leadership. x

10 Management is confident. x

11 Management is decisive with regard to non-performers. x

Motivate:

QUESTION 2:





146


of Company A.



strategy?

Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 Organisational members feel responsible for their results. x

2 Organisational members are inspired to accomplish


x

3 Organisational members are trained to be resilient. x

4 Organisational members are trained to be flexible. x

5 The diversity of our workforce is a strength that we use. x

6 The diverse workforce complements each other. x

Motivate:

147

QUESTION 3:










Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 Management frequently engages in a dialogue with

employees.

x

2 Organisational members spend much time on

communication.

x

3 Organisational members spend much time on exchanging

knowledge.

x

4 Organisational members spend much time on learning. x

5 Organisational members are always involved in important

processes.

x

6 Management allows making mistakes. x

148

7 Management welcomes change. x

8 The organisation is performance driven. x

Motivate:

QUESTION 4:




products.






149

Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 The organisation has adopted a strategy that sets it clearly

apart from other organisations.

x

2 In the organisation processes are continuously improved. x

3 In the organisation processes are continuously simplified. x

4 In the organisation processes are continuously aligned. x

5 In the organisation everything that matters to performance

is explicitly reported.

x

6 In the organisation financial information is reported to

organizational members.

x

7 In the organisation non-financial information is reported to


x

8 The organisation continuously innovate its core

competencies.

x

9 The organisation continuously innovate its products. x

10 The organisation continuously innovate its processes. x

11 The organisation continuously innovate its services. x

Motivate:

150

QUESTION 5:





positions.



office).



Nr Statement

1 2 3 4 5

Imp

os

sib

le

to e

valu

ate

Str

on

gly

dis

ag

ree

Dis

ag

ree

Ag

ree

Str

on

gly

ag

ree

1 The organisation maintains good relationships with all

stakeholders.

x

2 The organisation maintains long-term relationships with all

stakeholders.

x

3 The organisation is aimed at servicing the customers as

best as possible.

x

4 The organisation grows through partnerships with

suppliers.

x

5 The organisation grows through continuous input from

customers.

x

151

6 Management has been with the company for a long time. x

7 The organisation is a secure workplace for organisational

members.

x

8 New management is promoted from within the

organisation.

x

Motivate:

by a. van den heever · a. van den heever submitted in fulfilment of the requirements for the...

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