The journey of Continuous Improvement is long, arduous, and best of all, never-ending.  One could say that is the whole nature of the word “continuous”.  This road does, however, have several checkpoints.  With that said, here we’ll provide an overview of the entire journey, but spend more time at the beginning – because that’s where it all starts!

When organizations determine they want to embark on the CI journey, they often just want to jump right in.  Process Improvement is where most start.  This, however, can be wrought with peril.  I once worked with an organization who did just that – started a Process Improvement Initiative.  They did all the training on Lean, Six Sigma, Team Building, etc.  There was mixed reception from the operations team, and mixed results at best.  What they did not realize was that, for them, PI did not mean Process Improvement; it meant Process Identification.  They wanted to jump right in to improving without establishing a fundamental, core foundation of what they were actually doing.  This led to much frustration and confusion among the staff.

Many organizations fall into this trap.  They think they are better than they actually are – or at least farther along the CI journey.  After all, who wanted to admit they don’t even have a consistent identification of their processes?  That would mean a failure of management, and no manager is going to admit to that!  Well, guess what people, time to take a hard look in the mirror.  I once had the opportunity to work for a manager, who, whenever a “sticky” problem was presented to him, would pull out an old truck mirror from under his desk, take a look and ask, “Is the problem me?”  When was the last time you did this? But, I digress.

If one wants to embark on a journey, while the destination may not always be known, the starting point darn well better be!  If not, how will you be able to measure your progress? Only once we have identified (honestly) where we are, can we improve; otherwise, we are just kidding ourselves. So, Process Identification leads to Process Improvement.

Once processes start to be improved, we can expect to see performance be improved through the use of well defined measurement systems and processes – remembering to measure what is important – not everything needs to be measured!  Now, Process Improvement leads to Performance Improvement.

As our performance in focused areas improves, we begin to see excellence in our processes and areas of focus.  We have best practices that can be shared across the organization into other areas.  Performance Improvement leads to Performance Excellence.

As we begin to seek and strive for excellence in our impacted areas, we start to share the approach across the organization, through all operational activities.  We integrate ideas, share best practices, and continually work on improving the way we do things.  Now, Performance Excellence leads to Operational Excellence.

Operational Excellence becomes the way the company does things.  There is a mindset of always wanting to improve.  Celebrating successes along the way, and appreciating the gains made by all to improve the organization.  It becomes a de facto thought process.  It is never ending….

A Summary:

Your thoughts?

While in one of our outstanding facilities a few weeks ago, I listened intently as the leadership team proposed a way to increase their census. As they went through their presentation, it occurred to me that they had not thought through the solution to verify that it would indeed increase census. They were simply guessing at the solution they “felt” would work. When pressed for more data on what led them to this conclusion, they quickly realized they needed to go back to the drawing board.

How often do we do this? Just jump to a solution because it “feels good” or we “think” it will work, when we may not even understand the problem we are trying to solve?

To prevent this, one of the first things we need to do is make sure we clearly understand what we are trying to accomplish.  We need to ask, “What is our purpose?” Once this is determined, we can use a thinking process to work through the issue and solve the problem or create the opportunity. For example, the following is a simple 8-step method that can be used to think through any problem or opportunity:

1. Clarify/understand the problem
2. Define the current situation
3. Set a goal/target
4. Perform root cause analysis
5. Provide recommendations
6. Develop an implementation plan
7. Follow up
8. Share the results with others

The depth of each step will vary with the issue being resolved, but it is critical to note the importance of Steps 1 & 2: To clearly understand the problem you are trying to solve (or opportunity you are trying to create) and the current situation.

Using this process can take a little more time than just jumping in, but it will produce better, more sustainable results.

If you want to know more, drop me a line!

Until next time,

Glenn

The opening sentence reinforced to the reader the biggest misperception about Lean out there – it is all about eliminating waste.  Reading on, it all made sense to me that this was the angle the author chose since he’s a CPA from a local Accounting and Consulting firm.  Now I’m not trying bash CPA’s or accounting firms (I used to work for one), or the writer himself – he’s trying to get a lead, make a sale, get someone to call him and his firm for help.  And what better way to get people’s attention than to say you can help them eliminate waste (read as cut costs)?

And while talking about eliminating waste with Lean Management principles may make for quick and easy cocktail fodder, after all, if I cut costs, I will make more money – simple right (not); it is not what Lean is about.

Lean is about Increasing Value with Respect for People.

But this is a much harder conversation.  I mean, when you start talking about increasing value, and what it takes to do that, it can become a deep conversation with a lot of critical thinking skills involved.  And this respect for people thing? You mean you want me to involve the people doing the work in changing the system?  Well, that will take a lot more time and we just don’t have time for anything like that – we need to act now.  Let’s just eliminate waste – that sounds a lot easier! And so it goes…

We need to continue to teach others about what Lean is truly focused on and not take the easy way out.  If all you’re going to do is eliminate waste, don’t call it Lean, call it what it really is – cost cutting.

Let me know your thoughts!

Glenn

If they do, then why are so many people with such big titles unable to make decisions in their organizations?  If they don’t, then why does everyone seem to want a bigger and more grandiose title?

Maybe it makes us feel good at the summer cookout when we can say we’re the “Executive Senior Vice President of (fill in the blank)”.  And people go “wow – now that sounds impressive”.    But does it matter?

It might matter to some external aristocrat who won’t take a meeting with anyone below a Vice-President (yes they are out there), but internal to the organization – the place that actually pays you, does having a title help you be effective?

For some it may, but for many, I wonder.

So, would you rather have a title or influence?

Most times we do it poorly, perhaps only scratching the surface of what we intend to do, how we intend to do it, and what impact we believe it will have.  So why do we do something so important so poorly?  After the fact, when the project is implemented – usually behind schedule, over budget, and underwhelming to desired expectations – we rationalize that it would have taken too much time and we really needed to get started. This was, after all, a VERY important project.  We romanticize with each other about the “battles” we had to fight to get it done (the war stories), and promise to do better the next time!  But the next time, it’s another VERY important project, and we repeat.

The rationalization (or excuses) we make really have less to do with the fact that we needed to start, and more to do with the fact that to properly define something, to get to its essential nature, is hard.  It doesn’t just happen.  It takes a lot of work.

Properly defining a project is essential to the success of the project – how it will work, the value it will provide, who will benefit, how we will know if we’re successful, what risks are present, what is and isn’t included, who owns the process, and so on.  These require a lot of thought and preparation before what we traditionally thought was “getting started.”

President Abraham Lincoln once said, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”  So the next time you have a project, give some thought to properly defining what you are trying to do. Take the time to sharpen the axe – it just might save you some time in the long run.

Let me know your thoughts!

Until next time,

Glenn

To set it up a little for you, Barcelona are one of the best teams ever, they are aggressive, and play with such grace, that to watch can be magical.  They have a style of play, and they have been very successful in its execution.  In this match, they needed a goal to advance to the final.  Chelsea were forced to play a different style due to being reduced to 10 players and were “bunkered in” for the 2^nd half.  As the game went on, you could see the frustration in the Barca players as they were unable to break through the Chelsea defense; however, they refused to change the style of play.  They were completely confident they, and their style, would prevail.

It didn’t. Chelsea not only did not allow a goal, but were able to net another one in the waning minutes of the match.

Barcelona refused to adapt to the conditions.  Their confidence became arrogance.  And they paid the price. The good news for them is they get to try again next season.

In your business, are you confident or arrogant?  It’s a fine line, but in business, when confidence becomes arrogance, you rarely get to try again next season.

What value do you really provide to your customers, organization, or whomever you are providing a product or service?  Do you know or do you just think you know?  You may provide a product (or service) that is very unique, or you deliver it in such a unique way that it provides value to those who purchase the product; but do you truly understand why they buy?

We often become self-delusional on the value we provide, thinking it is because we, or our product, are so superior the customer has no other choice.  But have we asked our customers?  And have they told us the truth?  Have we been truly self-reflective and gone deep to find the answer?

It may be that the product is great.  It may be that the service is outstanding.  It may be that the ambiance and atmosphere are terrific.   Do you know?  Do you even care?  As long as people are buying, then why does it matter?

One reason it might matter is when demand exceeds capacity, and you want to expand, are you expanding for the right reason?  For example, say you own a small restaurant that is always packed and has a great buzz.  You see the long lines and wait, and decide it’s time to expand.  The space next door is larger, and available, so you go for it, investing lots of time and money to grow the business.  At first it goes well, but after a while, you notice the restaurant is not even 1/3 full.  What happened?

The question you needed to answer is why did people come to my restaurant? Was it the food, the service, or was it the ambiance and exclusivity?   If you thought it was the food and service, but was really the fact that people had to wait to get in, and it had a great ambiance (which you destroyed when you expanded), then you chose…poorly.

So ask questions, be inquisitive, find out what your customers really think, but also take a good look in the mirror and ask yourself, “Why would I buy from me; what value to I really provide?”

A few months later, the first minor storm of the season hits the area.  The force of the waves and current suck the sand out from under the house and it crumbles.  The owner is furious.  He contacts the builder asking how this could have happened; how this was missed.  The builder says all he did was build to the plan and meet the timing demands of the owner.  Besides, he believed the owner had it all taken care of, so how could he be responsible.  To which the owner replied – that’s what I paid you for….

How many times does this happen?  We need to get a project done because the customer has told us how important it is to complete, we collaborate to develop timelines, resource allocations, etc., we brush over foundational items because they don’t seem relative at the time and should be in place, and, if brought to our attention, rationalize it away that it must be there, and we don’t have the time to effectively start over – the customer wants it now.  But what if the customer (and team) is wrong?  What if the basis of their assumptions is flawed?

Did they check their fundamental assumptions in an honest and objective way?  The importance of verifying assumptions fundamental to the success of our project cannot be overlooked, and is critical to the success of any project.  Don’t assume, verify.

Let me know your thoughts!

I have taught Lean Sigma Green Belt classes and defined the goal of Lean as “the elimination of waste” (and Six Sigma as the elimination of variation), but as I have progressed through different organizations, my view of Lean has changed, or should I say, evolved to one that focuses more on increasing value.  However, how one defines Lean depends on the situation.

For example, when trying to first implement Lean in an organization, especially an organization that is hemorrhaging cash, trying to sell a higher level, more philosophical (to some) view of Lean is the surest way not to ever get it implemented.  Selling Lean as a way to eliminate waste (interpreted as “cut costs”) provides the best chance for success (with success being defined as the approval to start introducing the concepts in the organization).  After all, these executives are in a “show me the money” mode, and Lean can certainly do that!

Most organizations start Lean as a program or initiative, but many times it never really gains the traction to become ingrained in the culture, or become the “way the company does things.”  Part of the reason for this results from never being able to get past the initial focus of elimination of waste, which most managers translate to cost cutting, to the higher level view of increasing value (with respect for people).

As practitioners, evangelizers, or philosophers of Lean, I believe we need to keep moving organizations toward the goal of increasing value, and to do that, we need to change the conversation.  One that moves us from minimizing (wastes) to maximizing (value).  Although it can easily be argued that by eliminating waste, value will be increased; it can also be argued that by increasing value, waste will be eliminated.

As humans, we are conditioned to respond to certain stimuli and form opinions base on the way information is presented to us.  To that end, think about your first thoughts on the following statements:

“I want to eliminate waste in the organization”

“I want to increase value in the organization”

Which one invoked more positive thoughts?  Which one had you thinking about the long term with growth and expansion, and which one about the short term with cutting and contraction?  Minimizer or Maximizer?

Back to the three word response for the question, “What is Lean?”  My answer: Value, Respect People.  With a more expanded goal of “increasing value through continuous improvement with respect for people.”

What are your thoughts?

When entering a new organization, the first thing one must remember is it has it’s own culture – and that how important that culture is to each person will vary.  So what a new person says in meetings, emails, and hallway conversations becomes very important as to how they will fit into, and be perceived by, the culture.  Understanding and respecting the culture is critical, and it can’t be learned through reading a mission and vision statement – it must be learned experientially.

So while I may be tasked with helping improve lots of systems and processes, the first thing I need to understand is what makes the company tick, and how I can use my skill set to make it tick better.  Too often new executives try to make instant impacts and impressions, implementing (or trying to implement) new programs and ideas in the first few months – after all, why else are they there.  Often times they fail, not because the ideas were bad, but because they did not understand how the idea would work in the culture of the organization, especially if that organization has a very deep, strong culture.  The conundrum is, they often times don’t have a choice, as the CEO who hired them wants immediate results and expects nothing but success, regardless of the culture; almost as if the CEO is blind to it (which could be the root cause of the problem…).

I’m fortunate enough to work for an organization that can take a longer term view, and although there may be opportunity for immediate impact, it is more important the impact is sustainable, and not a “flash in the pan.”

So for now, it’s simply time to sit down, shut up, listen, and most importantly, learn!

Any thoughts?