Spangenberg Integrated Model:
The Spangenberg Integrated Model is a structured approach that integrates several key
management practices to drive organizational success. The model emphasizes a continuous
improvement process, aligning departments, and engaging employees at all levels, while
focusing on long-term sustainable performance.
Step 1: Vision, Disciplined Methodology, Support Team, People
Involvement, Long-Term Commitment, Training
1. Vision
○ Definition: The guiding light for the organization, providing a clear picture of what
the company aims to achieve in the future.
○ Example: A car manufacturing company sets its vision to become a global
leader in eco-friendly vehicles by 2030. This vision sets the direction for all
company actions.
2. Disciplined Methodology
○ Definition: Using structured, proven approaches like Lean or Six Sigma to drive
improvements, ensuring calculated and aligned actions.
○ Example: The company implements Six Sigma methodology to reduce defects
in its production process, improving efficiency and product quality.
3. Support Team
○ Definition: A team that ensures necessary resources, infrastructure, and tools
are available for implementing strategies effectively.
○ Example: The IT department provides software systems to track inventory,
ensuring smooth coordination across departments.
4. People Involvement
○ Definition: Actively engaging employees in decision-making and improvement
initiatives ensures better ownership of processes and results.
○ Example: Employees on the shop floor are encouraged to suggest
improvements, resulting in reduced waste and more efficient processes.
5. Long-Term Commitment
○ Definition: Dedication to long-term goals and continuous growth, even in the
face of challenges.
○ Example: The company remains committed to investing in R&D to develop
more eco-friendly car models, even when short-term profits are impacted.
6. Training
○ Definition: Ongoing training ensures that employees are equipped with the
necessary knowledge and skills to carry out new methodologies.
○ Example: The company organizes training programs to teach employees about
Six Sigma and quality control techniques, ensuring that every worker contributes
to process improvement.
Step 2: Define the Mission of Each Component of the Organization
Each department or function within the organization should have a clearly defined mission that
aligns with the overall company strategy. This ensures alignment of efforts across all functions.
● Example:
○ The R&D Department’s mission is to develop eco-friendly vehicle technologies.
○ The Production Department’s mission is to optimize the production process for
efficiency.
○ The Marketing Department’s mission is to promote the company’s eco-friendly
cars worldwide.
Step 3: Set Performance Improvement Opportunities, Goals, and Priorities
● Performance Improvement Opportunities
○ Definition: Identifying key areas where improvements can be made in quality,
cost, or efficiency.
○ Example: The company identifies waste in production and explores opportunities
for automation to reduce costs.
● Goals and Priorities
○ Definition: Setting clear, measurable objectives and priorities to tackle critical
improvement areas.
○ Example: The company sets goals to reduce production waste by 20% in the
next year, and prioritizes automation to achieve this goal.
Step 4: Strategic Alignment, Performance Planning, Performance
Monitoring & Feedback, Performance Evaluation and Development,
Continuous Improvement
1. Strategic Alignment
○ Definition: Aligning all efforts with the company’s long-term goals to ensure
consistency and focus across departments.
○ Example: The R&D department focuses on developing fuel-efficient vehicles,
supporting the company’s long-term goal of becoming a leader in sustainable
vehicles.
2. Performance Planning
○ Definition: Setting SMART (Specific, Measurable, Achievable, Relevant, and
Time-bound) performance goals.
○ Example: The company sets a goal to reduce production waste by 20% in the
next year and increases its eco-friendly product production by 15% in the next
5 years.
3. Performance Monitoring and Feedback
○ Definition: Regular tracking of progress and providing constructive feedback to
ensure continuous alignment with goals.
○ Example: The company conducts monthly reviews to track progress on
production goals and provides feedback to improve areas falling behind, such
as production efficiency.
4. Performance Evaluation and Development
○ Definition: Evaluating whether performance goals have been met and focusing
on further development of employee skills and competencies.
○ Example: The company evaluates production efficiency, reviews employee
performance, and organizes training programs to develop necessary skills for
handling new technologies or processes.
5. Continuous Improvement
○ Definition: The process of incrementally improving processes, products, or
services over time.
○ Example: The company adopts Kaizen, encouraging employees to suggest
small daily improvements, leading to overall enhanced productivity and product
quality.
Step 5: Implement Projects Using Improvement Methodologies
Implementing improvement projects using structured methodologies such as Lean, Six Sigma,
or Kaizen to address identified issues and improve performance.
● Example: The company adopts Six Sigma’s DMAIC methodology (Define, Measure,
Analyze, Improve, Control) to reduce defects and improve production efficiency in the
manufacturing process.
Step 6: Evaluate
Evaluating the outcomes of the implemented projects and comparing them to the goals and
performance standards set in previous steps.
● Example: After applying Six Sigma, the company evaluates the reduction in defects,
assesses the impact on cost savings, and compares the results to the original goals to
measure success.
Lastly: Improved Performance in Terms of Cycle Time, Lower Cost, and
Innovation
At the end of the improvement process, evaluate whether the company has achieved desired
results such as reduced cycle time, lower costs, and increased innovation.
● Example: After implementing Lean and Six Sigma:
○ Cycle time is reduced by 15%, enabling the company to produce cars more
quickly.
○ Production costs are lowered by 20%, increasing profit margins.
○ The company introduces a new, innovative eco-friendly car model, increasing
market share in the green vehicle segment.
Summary of the Spangenberg Integrated Model
The Spangenberg Integrated Model offers a comprehensive framework for improving
organizational performance through structured methodologies and continuous improvement.
The steps are:
1. Vision: Setting long-term goals and ensuring alignment throughout the organization.
2. Disciplined Methodology: Using structured, proven methodologies to improve
processes.
3. Support Team: Ensuring necessary resources are available to implement
improvements.
4. People Involvement: Engaging employees in the improvement process.
5. Long-Term Commitment: Dedication to long-term goals and continuous growth.
6. Training: Ongoing development of employee skills to align with new methodologies.
7. Define the Mission of Each Component: Ensuring every department’s goals align with
the company’s vision.
8. Set Performance Improvement Goals: Identifying key areas for improvement and
setting measurable objectives.
9. Strategic Alignment: Ensuring all efforts support the company’s strategic direction.
10.Implement Projects Using Improvement Methodologies: Using structured
methodologies to implement improvements.
11.Evaluate: Reviewing the success of implemented projects and identifying further areas
for improvement.
12.Improved Performance: Achieving improvements in cycle time, cost reduction, and
innovation.
By following this model, organizations can improve performance, reduce costs, and achieve
long-term success through alignment, employee involvement, and continuous improvement.
Spangenberg Integrated Model: Case Study Example
Let’s illustrate the Spangenberg Integrated Model with a case study involving a hypothetical
company: EcoDrive Motors, a company that manufactures eco-friendly cars. The goal of
EcoDrive Motors is to become a market leader in sustainable automotive solutions while
improving its operational efficiency and product quality.
Case Study: EcoDrive Motors
Background: EcoDrive Motors is facing challenges with high production costs, slow production
cycles, and quality issues in their manufacturing processes. The company has decided to
implement the Spangenberg Integrated Model to enhance its performance, focusing on
sustainability, cost reduction, and innovation.
Step 1: Vision, Disciplined Methodology, Support Team, People
Involvement, Long-Term Commitment, Training
1. Vision
○ EcoDrive's Vision is to become the global leader in eco-friendly, affordable,
and innovative vehicles by 2030. The company aims to reduce carbon
emissions and develop the next generation of electric vehicles.
○ Example: The entire company aligns its operations with this long-term vision,
focusing on energy efficiency and sustainability.
2. Disciplined Methodology
○ EcoDrive implements the Six Sigma methodology to reduce defects in its
production process and optimize operations.
○ Example: The company adopts Six Sigma’s DMAIC (Define, Measure, Analyze,
Improve, Control) approach to identify areas of inefficiency and implement
process improvements.
3. Support Team
○ EcoDrive establishes a cross-functional support team consisting of IT, R&D,
and Production departments to ensure that the necessary resources, technology,
and infrastructure are available for the improvement initiatives.
○ Example: The IT department develops a real-time monitoring system to track
the performance of production lines and address issues immediately.
4. People Involvement
○ The company engages its employees at all levels in the improvement process,
encouraging them to submit ideas for process improvements and solutions for
sustainability challenges.
○ Example: Employees from the production floor suggest improvements, such as
reducing energy consumption by adjusting equipment settings to optimize
efficiency.
5. Long-Term Commitment
○ EcoDrive is committed to long-term goals, like reducing production costs by 20%
over the next three years, regardless of short-term challenges.
○ Example: Despite initial high investments in electric vehicle development,
EcoDrive continues to focus on innovation, aiming for market leadership.
6. Training
○ The company invests heavily in training its employees on Six Sigma, Lean
Manufacturing, and sustainability practices to ensure the workforce is
prepared to implement and sustain improvements.
○ Example: A training program is launched, where all employees, from line
workers to senior managers, are taught about the principles of sustainable
production and how to reduce environmental impact.
Step 2: Define the Mission of Each Component of the Organization
Each department within EcoDrive Motors defines its specific mission in alignment with the
company’s overall goals:
● R&D Department: Focus on developing eco-friendly, high-efficiency engines and
battery technologies for electric vehicles.
● Production Department: Focus on reducing waste and optimizing production
processes to meet sustainability goals while improving efficiency.
● Marketing Department: Promote the sustainability of EcoDrive’s vehicles and highlight
their carbon footprint reduction.
Step 3: Set Performance Improvement Opportunities, Goals, and Priorities
1. Performance Improvement Opportunities
○ Identify areas of inefficiency: EcoDrive identifies the high energy
consumption in its manufacturing plants and the high defect rate in its engine
components.
○ Example: The company discovers that overproduction and high scrap rates
are driving up costs. These inefficiencies are selected as the focus for
improvement.
2. Goals and Priorities
○ Set SMART goals for improvements.
■ Goal 1: Reduce production costs by 15% within the next year by
optimizing energy use and reducing scrap.
■ Goal 2: Decrease defect rates in the engine components by 20% within
six months through better quality control processes.
○ Prioritize: The company focuses first on reducing production costs by
improving energy efficiency and reducing scrap in the manufacturing process.
Step 4: Strategic Alignment, Performance Planning, Performance
Monitoring & Feedback, Performance Evaluation and Development,
Continuous Improvement
1. Strategic Alignment
○ Ensure that all goals and activities align with the company’s vision of becoming a
leader in sustainable automotive solutions.
○ Example: The Production and R&D departments work together to ensure that
improvements in manufacturing processes support the goal of producing
eco-friendly cars.
2. Performance Planning
○ Set clear, measurable objectives for each department.
○ Example: R&D sets a goal to improve the battery life of electric vehicles by 10%
within the next year.
3. Performance Monitoring and Feedback
○ Track progress on goals through monthly performance reviews.
○ Example: A monthly performance review is conducted where the company
evaluates the energy consumption per vehicle produced, and provides feedback
on potential improvements.
4. Performance Evaluation and Development
○ At the end of the year, the company evaluates the results of its initiatives and
assesses employee performance.
○ Example: Employee performance is assessed on how well they adhered to the
new processes, and further training is provided to ensure continuous
development.
5. Continuous Improvement
○ EcoDrive adopts Kaizen, encouraging employees to submit small improvement
suggestions that can make incremental changes to processes.
○ Example: Employees suggest improvements such as adjusting the speed of
conveyor belts to reduce energy consumption without affecting production output.
Step 5: Implement Projects Using Improvement Methodologies
1. Implement Six Sigma Projects
○ Implement Six Sigma projects to improve the production process.
○ Example: The company implements the DMAIC approach to analyze and
reduce the number of defects in engine components. The Measure phase finds
that the defects are primarily caused by poor machine calibration, which is
corrected in the Improve phase.
2. Implement Lean Manufacturing Projects
○ The company uses Lean Manufacturing principles to eliminate waste and
improve operational efficiency.
○ Example: EcoDrive implements Just-In-Time (JIT) inventory management,
reducing overproduction and storage costs.
Step 6: Evaluate
● Evaluate Results: After implementing Six Sigma and Lean projects, EcoDrive evaluates
the improvements.
● Example: After six months, the company achieves a 20% reduction in defect rates, a
15% reduction in production costs, and a 10% improvement in production
efficiency.
Lastly: Improved Performance in Terms of Cycle Time, Lower Cost, and
Innovation
● Cycle Time: The company reduces cycle time by 20% through improvements in
workflow and production line efficiency.
● Lower Cost: The company achieves cost savings of 15% due to reduced energy
consumption, waste, and overproduction.
● Innovation: The company successfully develops a new, more efficient battery that
extends the range of its electric vehicles by 30%, increasing its market competitiveness.
Conclusion
By following the Spangenberg Integrated Model, EcoDrive Motors successfully aligned its
operations with its strategic vision, improved performance across various departments, reduced
costs, and introduced innovations in product development. Through disciplined methodologies
like Six Sigma and Lean Manufacturing, EcoDrive was able to achieve its goals of improving
sustainability, efficiency, and product quality.
This case study demonstrates how a structured approach like the Spangenberg Integrated
Model can drive long-term success and continuous improvement within an organization.
Origin of the Spangenberg Integrated Model
The Spangenberg Integrated Model was developed by Dr. Horst Spangenberg, a prominent
scholar in the field of Total Quality Management (TQM). This model emerged from his extensive
work in the areas of business performance improvement, strategic management, and
organizational effectiveness. The model draws from various established principles in quality
management, strategic planning, and continuous improvement methodologies, blending
them into a comprehensive framework.
The Spangenberg Integrated Model was designed to address the need for a holistic and
integrated approach to organizational management. Spangenberg aimed to create a model that
could help organizations align their operations with broader strategic goals, drive performance
improvements, and ensure sustainability in the face of ever-evolving business challenges.
The model incorporates elements of leadership, teamwork, performance monitoring, and
continuous improvement, which are essential for long-term business success.
Need for the Spangenberg Integrated Model
The need for the Spangenberg Integrated Model arose due to several challenges faced by
organizations in the late 20th century and early 21st century. As industries became more
competitive and globalized, companies were required to continuously adapt and improve in
various areas, including cost reduction, quality enhancement, and innovation. The
Spangenberg Integrated Model addresses these needs by providing a structured approach for
integrating strategic and operational goals, improving organizational performance, and
sustaining improvements over time.
Key factors that highlight the need for this model include:
1. Complexity of Modern Organizations:
○ Organizations today are more complex than ever before, with multiple
departments, diverse functions, and teams working on various initiatives. The
need to integrate strategic planning and operational execution becomes
crucial for ensuring overall organizational success.
2. Focus on Continuous Improvement:
○ Companies must focus on constant improvement to stay competitive in a
rapidly changing market environment. The Spangenberg Integrated Model
emphasizes continuous improvement through strategic alignment, performance
planning, and regular monitoring, helping organizations stay relevant and
efficient.
3. Integration of Various Management Tools:
○ Many organizations face difficulties in aligning the various tools and
methodologies they use for performance management, quality improvement, and
strategic planning. The model helps integrate tools like Six Sigma, Lean,
Balanced Scorecard, and other TQM principles into one cohesive framework,
ensuring that all initiatives are aligned with organizational objectives.
4. Achieving Long-Term Sustainability:
○ In the face of increasing pressure to reduce costs, improve quality, and foster
innovation, companies must also ensure that their improvements are
sustainable. The Spangenberg Integrated Model provides a pathway for
achieving not only short-term performance gains but also long-term sustainability
in operations, innovation, and market competitiveness.
5. Alignment with Strategic Goals:
○ Often, companies struggle to align their daily operations with their long-term
strategic objectives. The model’s emphasis on strategic alignment ensures that
all operational activities and performance improvement initiatives are directed
toward achieving the company's vision and mission.
6. People-Centric Approach:
○ The model places significant importance on people involvement. By engaging
employees at all levels and fostering a culture of empowerment and
continuous development, it ensures that the entire organization is committed to
the improvement process.
7. Quality and Innovation:
○ As businesses strive to innovate and improve product and service quality, the
Spangenberg Integrated Model ensures that these objectives are integrated
into every aspect of the organization’s operations, making innovation a
sustainable process rather than a sporadic effort.
Conclusion
The Spangenberg Integrated Model was developed to meet the growing needs of
organizations to effectively manage performance improvement, innovation, and quality
enhancement in a dynamic, competitive environment. Its origin lies in the need for a
comprehensive, integrated approach to organizational success, with an emphasis on long-term
sustainability and continuous improvement. The model is particularly beneficial for
companies looking to align their strategic goals with operational execution, ensuring that all
efforts contribute to the overall vision and mission of the organization.
