A role for cross-functional teams in community college strategic performance

Community colleges today face a challenging mix of flat or declining resources at a time of increasing expectations and demands. Access and affordability, long standing pillars of the community college movement, are threatened by the economic climate as well as the “New Normal” expectations of higher productivity through increased completion rates. This study examined how cross-functional teams could contribute to increased efficiency and effectiveness through the realization of improved strategic performance in community colleges. The analysis examines twenty-one studies from higher education and industry through a lens of context, process, and outcomes to determine those elements that are critical to successful cross-functional teams and improved strategic performance. The synthesis results in a framework for teams that may be employed by community college leaders to create teams that can achieve results despite limited human and financial resources. The study posits that teams can contribute significantly to improved student success as an outcome, but does not definitively establish greater economic efficiency as an outcome.A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE Joseph T. Nairn A Thesis Submitted to the Graduate Faculty of University of Maryland University College In Partial Fulfillment of The Requirements for the Degree of Doctor of Management Mary Kay Shartle-Galotto, Ph.D. and James Tschechtelin, Ed.D. August, 2013 A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE ii Abstract Community colleges today face a challenging mix of flat or declining resources at a time of increasing expectations and demands. Access and affordability, long standing pillars of the community college movement, are threatened by the economic climate as well as the “New Normal” expectations of higher productivity through increased completion rates. This study examined how cross-functional teams could contribute to increased efficiency and effectiveness through the realization of improved strategic performance in community colleges. The analysis examines twenty-one studies from higher education and industry through a lens of context, process, and outcomes to determine those elements that are critical to successful cross-functional teams and improved strategic performance. The synthesis results in a framework for teams that may be employed by community college leaders to create teams that can achieve results despite limited human and financial resources. The study posits that teams can contribute significantly to improved student success as an outcome, but does not definitively establish greater economic efficiency as an outcome. A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE iii Dedication This dissertation is dedicated to my wife, Terri Lynn Shaffer Nairn, who believed in me when I did not, supported me when I despaired, and cheered me on when I most needed it. You are my love, my friend, my everything, always and all ways. To my children, Caitlin, Thomas, and Craig, who make me proud every day. You are a source of inspiration and hope for me. I love you all more than words can describe. And finally, to my parents, who sadly did not live to see me complete this journey. I hope I have made you proud. You inspired me and made me who and what I am, thank you. A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE iv Acknowledgments I would like to acknowledge the support I received from family and friends who accepted that I could not always make time while I completed this process, who graciously allowed me the time and space to finish. I want to thank Dr. Barbara G. Risser, President of Finger Lakes Community College, for her support and encouragement as I traveled this path literally and figuratively. I thank my colleagues at FLCC for their interest and emotional support as I made progress toward this goal. I want to thank Dr. Mary Kay Shartle-Galotto for her unflagging support, even when I was unsure if I had taken the wrong turn in my work. I appreciate your willingness to take my calls whenever, wherever and to give me advice and needed perspective. Thank you also to Dr. Jim Tschechtelin, while you joined our group in the latter stage of our journey, your consistent support and unwavering positive attitude made a huge difference. We do indeed become what we think. The other members of my cohort have become good friends and colleagues, and I thank them all and wish them the best going forward. Rick, Johnnie, Lydia, Ed, Claudia, Trish, and the others who started with us, thank you for your friendship, support, and sharing. Together, we have learned so much. Finally, this trip would not have been the same without the camaraderie I enjoyed with Terry Keys and Larry Dugan, the other “fun guys” who made every residency an adventure, kept things loose when we needed perspective, and made it through nine epic “road trips.” I may have made it without you two, but it would not have been nearly as much fun! A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE v © Copyright by Joseph T. Nairn 2013 A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE vi Table of Contents Chapter 1 INTRODUCTION ..................................................................................................... 1 Statement of Problem ................................................................................................. 1 Statement of Purpose ................................................................................................. 2 Context or Background Related to the Problem ........................................................ 3 Factors That Affect the Success of Cross-functional Teams ..................................... 7 Theoretical Bases ....................................................................................................... 9 Strategic Thinking and Planning .......................................................................... 9 Organizational Culture ......................................................................................... 10 Change Management ........................................................................................... 11 Horizontal Integration/Cross-functional Teams .................................................. 12 Research Questions .................................................................................................... 14 Definition of Terms.................................................................................................... 14 Significance................................................................................................................ 17 Summary .................................................................................................................... 19 2 LITERATURE REVIEW .......................................................................................... 20 Approach .................................................................................................................... 21 Strategic Planning ...................................................................................................... 22 Organizational Culture and Leadership ..................................................................... 24 Change Management ................................................................................................. 27 Cross-functional Teams ............................................................................................. 31 Viewing the Literature through “The New Normal” ................................................. 34 Summary .................................................................................................................... 37 3 CONCEPTUAL MODEL .......................................................................................... 39 Conceptual Model ...................................................................................................... 42 Essential Elements ..................................................................................................... 48 Cross-functional Teams ....................................................................................... 48 Internal and External Inputs ................................................................................. 49 Strategic Planning ................................................................................................ 50 Strategic Performance .......................................................................................... 51 Innovation ............................................................................................................ 51 Summary .................................................................................................................... 52 4 RESEARCH METHODOLOGY............................................................................... 53 Rationale for Systematic Review ............................................................................... 53 Research Design......................................................................................................... 55 Key Words and Search Criteria ................................................................................. 56 A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE vii Chapter 4 Research and Retrieval ........................................................................................ 61 (con’t) Classifying the Research ...................................................................................... 62 Review Process .................................................................................................... 63 Evaluation of Literature Reviewed ............................................................................ 67 Expert Opinions ................................................................................................... 67 Subject Matter Experts ............................................................................................... 76 Experts ................................................................................................................. 77 Summary .................................................................................................................... 78 5 ANALYSIS AND DISCUSSION............................................................................. 82 Expert Panel Analysis and Responses ....................................................................... 82 Overall Comments and Recommendations .......................................................... 87 Response to the Findings of the Expert Reviewers ............................................. 88 Analysis of the Literature Reviewed .......................................................................... 89 Analytical Matrix ................................................................................................. 93 Summary of Studies ................................................................................................. 100 Findings and Tentative Conclusions ........................................................................ 101 Study Limitations ..................................................................................................... 107 Summary .................................................................................................................. 108 6 IMPLICATIONS FOR PRACTICE, AREAS FOR FUTURE RESEARCH AND FINAL CONCLUSIONS ...........................................................................................109 Framework .................................................................................................................110 Context .................................................................................................................110 Process .................................................................................................................111 Outcomes .............................................................................................................112 Implications for Management Practice in Community Colleges ...............................113 Recommendations for Future Research .....................................................................114 Conclusion .................................................................................................................115 APPENDIX A ........................................................................................................................117 REFERENCES ......................................................................................................................118 A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE vii i List of Tables Table 1 Productivity and the Three Dimension Model ........................................................... 35 2 Key Words and Contextual Application .................................................................... 58 3 Results of Pairing Themes and Key Words ............................................................... 59 4 Literature Relevant to Topics: Qualitative Studies .................................................... 68 5 Literature Relevant to Topics: Quantitative Studies .................................................. 73 6 Literature Relevant to Topics: Expert Opinions ........................................................ 76 7 Analytical Matrix ....................................................................................................... 93 8 Practices of Effective Organizations ........................................................................ 106 A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE ix List of Figures Chapter 1 Higgins’ (2005) Eight S’s strategy execution model in alignment ............................ 4 2 Higgins’ (2005) model with non-aligned elements ................................................... 5 3 The ABCs of strategic planning ................................................................................. 43 4 Integrated Planning process elements ........................................................................ 44 5 Factors influencing strategic performance in community colleges ........................... 45 6 Applying the conceptual model ................................................................................. 46 7 Diagnostic model for cross-functional teams ............................................................ 48 A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE 1 Chapter 1 INTRODUCTION Statement of Problem Community colleges are no strangers to strategic planning and performance. As community resources and centers for workforce development, community education, and traditional higher education activities (e.g., preparation for transfer), community colleges have long engaged in processes of environmental scanning and assessment of strengths, weaknesses, opportunities, and challenges (Bryson, 2004; Cross, 1983; Greer, 1999; Groff & Cope, 1985), while also focusing on satisfying an array of internal and external stakeholders. The current climate of diminishing state support coupled with constrained local resources has resulted in a “new normal” where community colleges and other institutions of higher education must plan to increase efficiency while also maintaining their focus on student success, serving the college’s broader mission (Budd, 2011; Lumina Foundation, 2010), and addressing external and internal standards of accountability. Higher education is a human resource intensive undertaking and improvements in efficiency require “working harder, often with less” as well as “working smarter, not just harder,” as noted at the 2010 Lumina National Productivity Conference. State and local budgets have been reduced while expectations placed on community colleges have increased. The Obama administration’s 2009 community college initiative recognized the challenges community colleges face, but has not addressed the resource requirements necessary to meet increased demands from financially-constrained families, dislocated workers, underprepared learners, and A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE 2 workforce investment boards (Kellogg & Tomsho, 2009). Addressing the gap between demands and available resources involves improving productivity measures, engaging in administrative reforms, and strategically reducing payroll, benefits, and consumables (Lumina Foundation, 2010), while continuing to focus on student success and completion. Given resource constraints, limits on tuition increases, higher expectations, public and private sector pressures to meet workforce needs, and the mission to return value to the community, community colleges currently face a kind of “perfect storm” in trying to meet their missions (Blose, 2010). Taking the Lumina Foundation’s “working smarter, and often with less” caution, a compelling need clearly exists to examine the community college mission and functions and, through a focus on strategic performance, seek opportunities for operational efficiencies and enhanced student success and completion. Statement of Purpose Strategic plans in community colleges and throughout higher education are developed through collaborative and inclusive processes that address issues presented by internal and external stakeholders. The resulting plans often specify goals and activities that are assigned to operational units or divisions. The purpose of this study was to examine how a cross-functional approach, similar to the collaborative and inclusive process of planning, can be realized to facilitate greater efficiency and effectiveness as measures of strategic performance. As community college strategic plans address “student success” and “completion,” cross-functional teams with their shared responsibilities and accountability increase in criticality. Plans that cross divisional lines and areas of responsibility should recognize the important role of cross-functional teams and more horizontally-oriented organizational structures. This study was primarily concerned with examining the connection between cross-functional team strategies and A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE 3 the ways in which community colleges can work across functions and divisions to facilitate student success and completion, or strategic performance. While student success and completion may be the college’s superordinate goals, cross-functional teams should also result in cost savings to the institution (efficiency) and provide relief from financial pressures. Together, the emphasis on teaming for effectiveness and efficiency should result in greater strategic performance by the entire college organization. Context or Background Related to the Problem Planning is an essential activity for any organization and lends legitimacy through ceremony and engagement. Organizations without plans may be perceived as reactive, directionless, and lacking in vision. Strategic planning adds even greater status and legitimacy to organizations as they set direction and take a long-term view (Goho & Webb, 2003; Mintzberg, 1994). To be successful, community colleges must link the needs of the external stakeholders, noted in the statement of the problem above, with planning for effective decision-making (Goho & Webb, 2003). The plan as a product is critical, but the process of strategic planning is of equal importance. Stakeholder participation throughout the college and community is essential to gaining acceptance of the plan and direction. In this way, the planning process may be “transformative” when strategic planning focuses on the evolution of the college, leading to the ability to adapt to change, greater organizational resiliency, creativity, and recognition of the importance of strategy to the organization (Goho & Webb, 2003). The process of developing strategic plans in higher education is, as stated above, an inclusive and collaborative process, while the execution of the plan, or strategic performance, falls to the functional units. Leaders of successful community colleges and organizations recognize that execution of the strategy is of equal or greater importance than the formulation of A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE 4 the strategy (Higgins, 2005). Higgins’ Eight S’s strategy execution model, based on McKinsey’s Seven S’s first introduced by Peters and Waterman (1982), is a cross-functional approach to implementing strategic change and achieving strategic performance that is drawn from business and industry, with application to higher education. The Eight S’s, as re-conceived by Higgins, are: Strategy and purpose, Structure, Systems and processes, leadership Style, Staff, reSources, Shared values, and Strategic performance. An organization where the elements are aligned for optimal strategic performance appears as: Figure 1. Higgins’ (2005) Eight S’s strategy execution model in alignment A ROLE FOR CROSS-FUNCTIONAL TEAMS IN COMMUNITY COLLEGE STRATEGIC PERFORMANCE 5 Where the elements are not aligned, because of a change in leadership, a poorly communicated change in strategy, or weak internal communications, the model appears as: Figure 2. Higgins’ (2005) model with non-aligned elements The eighth “S” in the model, Strategic Performance, is derived from the other seven S’s and is an overall measure of organizational success. Performance can be quantified at any