Posts in Process Improvement

Kickstarter Project: Overcoming Organizational Myopia

Overcoming Organizational Myopia, stovepipes, sandboxes, short sightedness

At 2:30 pm, Central Time, on June 27, 2015, KS Project, Overcoming Organizational Myopia lifted off.  Overcoming Organizational Myopia will be a new nonfiction book about successfully breaking through stovepiped organizations to obtain organizational effectiveness.

https://www.kickstarter.com/projects/1551087231/overcoming-organizational-mypoia

The Short Story: I discovered that it really does not matter what company or organization I work with, they all have stovepipes.  What I learned is that they are a product of human nature.  The problem is that everyone wants to “break down the silos” as the typical management response. Unfortunately, this NEVER works! All you do is cause confusion and drive unproductivity as the people in your business seek to rebuild the stovepipes that make them feel secure.  This book is about breaking through the stovepipes to become an effective and efficient organization.  It respects the stovepipes and teaches you how to navigate through them using a consistent and systematic application of full-spectrum strategic and organizational methods.  The book is designed to provide you with situational examples so you can self-diagnose your organization.  Across nine areas, the book helps you identify problem areas and, like a business doctor, treat the root causes with solid business solutions.

Fix Your Roof When the Sun is Shining

Lisa Hershman, Denovo Group, has a phrase, “We never fix the roof when the sun is shining.”

I don’t know if I really need to explain the saying, but often businesses wait until stuff goes wrong to try to fix it. Then, it becomes an emergency break fix and it is done poorly because they lack sufficient time to really solve the problem.

The thing is, in business, fixing things when the sun is shining applies to everything. This basically means fixing things that really are not broken.

Off the top of my head, here are a few items that we neglect until it is too late and then do wrong because we are hard-pressed to simply get it done.

Planning. Strategic, operational, and even tactical planning, we are tremendously poor at in business, but specifically strategic planning is often overlooked. All too often, businesses look to strategic planning when they are having significant problems and they think it will solve their problems (the proverbial silver bullet). The problem is that strategic planning is a long range effort (hence strategic) and not designed to solve tactical problems.

Process improvement. All too often businesses let shoddy processes continue as the company grows and they ignore things like defects, poor customer service, and excessive process variance until too late. Then, when everything related to the process is falling apart, suddenly the business tries to solve the problems that took years to manifest in the process. What is worse, all too often all of the business processes are in the same state of disrepair and instead of just fixing one process, the business tries to create a full blown process organization and expect it to happen overnight.

Development. Businesses often look to training to solve a problem, but do not look at development when there isn’t a problem. If you are considering going into a leadership position, this is when you start learning about leadership, not six years after becoming a leader and you suck at it. However, we get very tactical when it comes to solving problems with training as the solution.

These are just a few examples of how businesses become very reactive to things and treat everything as a fire fighter versus a fire marshal. Living the advice of Lisa Hershman is very important for all of us.

Bad Leadership is Becoming an Epidemic

It might be me, but the more I look around, the more I am finding bad leadership. Specifically leadership apathy and leaders that lack accountability. “It’s good enough” leaders and leaders who are “just getting by.”

“Why are we seeing this,” I ask myself?

Bad leaders hire and promote bad people. Bad Leadership isn’t just destroying corporate America, but they are doing it at a record pace and doing it way into the future.

These leadership charlatans are building armies of apathy to follow in their footsteps. If you are someone that gets things done, you are kept in a position to get things done because bad leaders don’t want you–you threaten them.

No wonder more than 70% of employees are disengaged at work. Who wouldn’t be with such a sorry leadership outlook.

Often, we talk about the qualities and actions of good leadership, but I think it is important that we learn to spot bad leadership. Here are the top ten results of bad leadership:

1. The realm under the leader has little if no strategy or plan to inspire and drive people. Literally there is no vision, the purpose of the business is primarily focused on making money, becoming bigger, and taking care of itself. Any goals are developed to ensure each subordinate leader can justify their position in the strategic plan and do little to overcome barriers to a future vision. Any vision and goals are such low targets that they in most cases have already been attained.

2.  Program accountability is slowly eroding and nothing is done about it (i.e., deadlines are missed, people not qualified are in positions, reports are misleading, etc.). Expectation barely exists in the organization because targets, rules, and requirements are ignored. Organizations like audit, risk, and compliance are seen as the enemy and kept away from the organization. When there is a finding from one of these organizations, the leaders spends all resources to make it go away and cover it up, but does little to nothing to solve the root causes that created the issue in the first place.

3.  There is a complete lack of organizational performance and process management and accountability. No one knows deeper than monthly what they are doing from a measurement perspective and there is a complete lack of process focus. Everyone simply does their own thing and what little process documentation is lodged tightly in the heads of the employees and passed down like tribal knowledge. Knowledge systems are busting at the seems with senseless information without any organization. Variance across processes run rampant and unchecked.

4.  There is a significant lack of communication both internally and externally. What communication that is occuring lacks any direction or strategic intent. The leadership doesn’t even know who their stakeholders are to communicate to. The term customer is used, but they are a faceless entity that nothing is really known about. Specifications for work are all internally created and bear no resemblance to competition or what customers actually want. In some cases, the customer is seen and portrayed as the enemy.

5.  The organizational structure looks like a Christmas tree and is broken into functional and operational departments that are so siloed that the company looks like an island chain. There is little communication and less cooperation across departments. Each silo is only focused on what they do for themselves, they see everyone else as a competitor for money and manpower, and they simply throw work over the wall versus work in an end-to-end process.

6.  Education and training opportunities might exist, but there is no plan or strategy to develop employees and leaders. The activity, if it happens at all, is chaotic and clearly broken. Employees mainly spend resources to gain skill through training so they can leave the company.

7.  Operational effectiveness, based in things like defect counting, process timing, first pass yield, on time delivery, customer satisfaction, etc. is barely looked at (if at all) and nothing of substance is done about it.

8.  Leaders across the organization focus on tactical operations, ignore problems, lack methodical problem solving, micromanage work, and have little vision at work.

9.  Good, hard working employees are consistently overlooked for promotion opportunities and are kept “getting the work done.”  The great employees have either turned apathetic in the workplace, are looking for other opportunities, or have already left.

10.  Almost all the leadership and management below a bad leader looks the same. The problems above spread to every corner what that leader controls. Bad leaders conspire with other bad leaders to corrupt the entire organization because this eliminates the need for accountability. Soon, the disease has spread to the highest level executives and even possibly the president or CEO. The leadership ranks become bloated with high-paid executives who do little and hold no one accountable to organizational values.

These companies are like the undead. The disease has corrupted the body so badly that it doesn’t even realize it’s dead. It just keeps operating and destroying everything in its path. This mindless company lumber on making money in spite of itself and it decays and starts to collapse. Yet, the bad leadership are so unaware of the situation that they can’t even fathom there is a problem.

Bad leadership is running rampant in corporate America and the undead companies are lumbering across the landscape. Is there nothing that can be done?

Finding Process Improvement in Service Functions

Is your business internal service related? As in things like Human Resources, Information Technology, Facilities Management, Contracting, etc?

If it is, then you probably are having difficulty identifying process improvement benefits within your own area. Sure, you probably have some waste in your processes that require trimming, but more than likely you already operate with a pretty lean staff. This is because you are a 100% cost to the business–you are not a revenue generator.

If this describes you, then this blog was meant for you. You might already know what I am about to say, but if you don’t then I hope this information helps. If you already know this information, then please share your experiences.

As a service provider to internal customers, the benefit you provide is to the customers themselves. Yes, you want to focus on eliminating as much waste in your processes as possible and get to standard work, but you should be focusing on eliminating waste and improving processes that reduce work on the part of the customer.

Let me provide an example using a medical office–they are always ripe targets for this discussion.

My wife recently went to a medical imaging center to get an MRI done on her ankle. Her doctor set it up, she had to provide information online before going, and then they required her to be there 15 minutes early to fill out paperwork. This paperwork was the exact same information her doctor could have provided and that she filled out on line.

She was called upon only a few minutes past the appointment time, so that was good. However, the put her in a room and she waited for several minutes doing nothing. Normally this type of activity allows the function to believe they are meeting their set appointment time by shifting you to an internal waiting room.

Obviously this was for an MRI, but if it is a normal doctor’s appointment, she probably would have some tests run, like blood pressure and temperature and someone would ask her what was going on and write it all down.

For her, she didn’t really see a doctor, they just took her in and did the MRI when the space was available. If this were a doctor’s office, there is a good chance that the doctor would come in and ask the same questions all over again and then leave for a good 30 to 45 minutes to see other paitients.

The operation probably has specific process reasons for everything they do. There is a good chance they are trying to meet some internal metrics that they feel are important to the business–just like you.

The problem is that their processes are wasting the customer’s time.  Think of the time my wife spent filling out paperwork twice, when the doctor could have sent over the information and all she would have to do is validate it. Think of the time she spent waiting around for the open waiting room and then to get the MRI done. This is a waste to the customer,  but often invisible to the service.

Remember, the customer’s job is not to do your job. The more time they spend in your process, is time they are not doing their job. Consider an average employee that has a burdened (all-in) hourly rate of $50 and you consume an average of 30 minutes of their time in your process every time they deal with you. Consider that you deal with 100 internal customers a day. Every day you are costing the business and average of $5,000 on processes that have no value to the business. That’s approximately $1.3M a year your process is costing your business!

This is how internal service providers find value. Remove waste and make processes easier and more effective form the customer’s point of view. Reduce the amount of time they spend in your process and make it a “one and done” experience. Obviously they are not going to cut manpower as a result, but they now have more time to spend in their core competency than in yours and that means they can earn more revenue for the business than waste on a process that just costs money.

When You Need A Swiss Army Knife in Business

Lately I have met several organizations that are at a crossroads in their own evolution. Many companies realize the importance of things like strategy, change management, process improvement, strategic communication, and employee engagement. However, these organizations are making tactical decisions on the direction of these areas versus truly looking at this from a strategic perspectives.

Instead of hiring several different individuals or creating separate teams all focused on doing the same thing, companies today should should focus on bringing all their Operational Excellence activities under one team working directly for the CEO or President of the company.  This group should be led by a senior leader that sits at the same table as the companies other leaders.

This Swiss Army Knife professional–SVP/VP, Operational Excellence–should manage things like:
– Strategy development, execution, and change
– Performance optimization through process, product, and functional continuous improvement
– Strategic communication inside and outside the organization
– Strategic human capital management to include education, training, and development and employee satisfaction, commitment, and engagement
– Information and innovation engagement

This team does not need to be big…depending on an organization’s size, it could be as small as three or four people.  However, it should leverage other support areas throughout the organization, like Human Resources, Finance, IT, etc. These organizations would not report to the position, but work with the position.

Today, some organizations have some or all of these activities occuring, but they are scattered across the organization and have very little singular direction. By bringing the functions together into a small effective team, an organization is equipped to deal with the challenges of today and the future.

Of course, the leaders of these types of organizations have to have a solid understanding of all these functions at strategic, operatiomal, and tactical levels and not focused on creating some massive sandbox of people with various skills. They need to be highly skilled with a focus on lean and mean.

Measuring the important things

This was posted last month, but I forgot to share it.

In order to run a quality organization, all you really need to measure is three things. Many organizations measure everything and anything and often, what’s being measured isn’t something you can do anything about. Learn about these big three measures and how to collect and use them to deliver on a continuous improvement culture.

http://ngs.edu/2014/11/24/cic-03-02-three-important-metrics-continuous-improvement-culture/

Engaging Partners and Suppliers on your CI Journey

The whole is greater than the sum of its parts

If your business relies on consultants, contractors, vendors, and suppliers to deliver your products and services, their lack of focus on continuous improvement can significantly hamper your attempts to build a continuous improvement culture.  If you’re really trying to build a continuous improvement culture, you need to engage your partners and suppliers on your journey.  This blog covers why and five steps to get you there.

http://ngs.edu/2014/07/11/building-culture-continuous-improvement-engaging-partners-suppliers-ci-journey/

Developing Leadership through Tours

How do you get leaders to model a behavior of continuous improvement if they don’t know what it looks like?

If your leadership doesn’t know “what” it looks like, then a good chance is they’ll never be able to model the operating styles or behaviors required of a continuous improvement culture.  Field trips (or tours) to places that can demonstrate quality activities can be an effective teaching method and good team building event.  If you think outside of the box, this can be a very valuable developmental tool for your leadership along your journey.  This blog examines ways to accomplish this.

http://ngs.edu/2014/06/27/building-culture-continuous-improvement-developing-leadership-tours/

Continuous Improvement Development for Leadership and Professionals

Train your leaders first to change the culture

Oftentimes we get leadership support to an initiative to change the culture, but they don’t have the actual skills to implement the changes they’re supporting.  Before you can expect your front-line employees to live a culture of continuous improvement, you have to develop your leaders, managers, and professionals.  Everything we’ve discussed over the past six blogs have built to this.  See how building a culture of continuous improvement starts with developing leadership and professionals.

http://ngs.edu/2014/06/20/building-culture-continuous-improvement-continuous-improvement-development-leadership-professionals/

Fully Understand the Continuous Improvement Culture Model

Strategy is only the start of continuous improvement

The strategy to build continuous improvement culture involves an equal portion of measuring, improving, and changing work.  This model is further fueled by a level of employee commitment and innovation.  In this blog, we will explore the various facets of the model I use at a high level.

http://ngs.edu/2014/06/13/building-culture-continuous-improvement-fully-understand-continuous-improvement-culture-model