STUDY OVERVIEW
Phase 2: Expanded Testing and Further Validation
The objective of Phase 2 of this study was to further test and validate the definitions and measurements. This was accomplished in two ways. First, identical tests from Phase 1 were performed on a larger sample to see if the results matched. Second, BPO was compared to several organizational variables to determine if the proposed relationship of BPO to these organizational variables actually matches statistical reality. The organiza- tional impact variables examined were the conflict and connectedness between functions within and organization, the overall business perfor- mance of the organization, and the overall feelings of esprit de corps in the organization. All of these organizational variables were thought to be logically linked to BPO. The logic of the BPO measures can be tested by examining these relationships utilizing a “Does this make sense?” test. If BPO can be shown to increase or decrease in a way that tracks the increase or decrease of other organizational factors that have already been defined and tested, then the BPO measures can be said to have a logical or face validity.
The relationship to these organizational factors will be examined in greater detail in the following chapters. Figure 3.1 shows the proposed variables that relate to BPO in an organization.
Figure 3.1 BPO and Organizational Impact Variables
Inter-functional
Conflic (IF)
Inter-departmental Connectedness
(IC)
Business Performance
(OP 1) Esprit de
Corp (EC)
Business process Orientation
(BPO)
Defining and Measuring BPO 39
As a proposed “Does this make sense?” logic, it was thought that BPO would reduce conflict between functions, improve the connectedness between these functions, improve overall business performance and increase feelings of esprit de corps. All of these factors had well-established measures that could be included in the BPO survey instrument and, thus, were easily distributed with the BPO questions.2
For the final data gathering in Phase 2, a judgmental sample of partici- pants was selected from Hammer and Co. reengineering seminar attendee lists based upon company type; manufacturing firms in the U.S. were the unit of analysis. Data were gathered from participants at a cross-company internal Motorola seminar.
Approximately 500 survey questionnaires were distributed by regular and electronic mail to the list of participants. A total of 115 responses were received and subject to identical statistical tests used in Phase 1.
Figure 3.2 shows the industries responding to the survey as very broad, with a strong concentration in the electronics.
Furthermore, in order to ensure that one department or function was not overly represented, a functional distribution of the sample respondents was conducted. As Figure 3.3 shows, no single function was overly represented.
Figure 3.2 Industries Represented in the Sample
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A final check was conducted on whether the survey respondents were fairly represented based on the management levels of the survey respon- dents. The data were examined for the number of respondents by position in their organization, as shown in Figure 3.4. The respondents are broadly distributed across different levels, from individual contributor to senior leadership. Based on the foregoing analyses of the sample respondents, we concluded that the data collected were generally representative of the manufacturing organizations in the United States and would provide conclusions that would be broadly applicable to this population as a whole.
These data became the basis for examining BPO and its impact on the organization, which will be discussed further in the following chapter.
Using statistical data reduction techniques, the statistical relationships from Phase 2 were compared to the results in Phase 1. The results in Phase 2 duplicated the Phase 1 results and thus provided the first level of validation for the measurements. The relationship statistics of the Figure 3.3 Functional Breakdown of Survey Respondents
Defining and Measuring BPO 41
measures to each other and to overall BPO were almost identical thus providing validation that the measures were operating in a repeatable way.
For the second level of validation, whether the proposed relationships match, statistical tests were used to test the proposed relationships between BPO and the impact factors shown in Figure 3.1. The relationships between BPO and esprit de corps and business performance were all strong, significant, and in the right direction, meaning that when BPO increases, business performance and esprit de corps increase. The relationships to interdepartmental (or interfunctional) conflict and connectedness were also strong and significant. Interdepartmental conflict was considered to have an inverse or negative relationship with BPO, and this was shown to be true.
The conclusions from Phase 2 were that the measurement or survey instrument was actually measuring BPO and could provide repeatable results. Additional validation of the measures and the BPO concept was provided by the fact that the organizational relationships logically pro- posed as a “Does this make sense?” validation test came through in the statistical testing. Actual use of the BPO definition and measures seem, at least on the surface, to make sense.
Figure 3.4 Positions Responding to the Survey
Missing .9%
Sr. Leadership 13%
Sr. Manager 19.5%
Manager 30.2%
Ind. Contributor 36.2%
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