All posts by pdonehue

Engagement

Engaging Today’s Workforce

engagement

Given the widespread challenges of hiring and retaining talent, it’s no surprise that leaders are taking a harder look at how to engage their people.

It’s likely we have all seen the data indicating that increasing employee engagement is a good thing:

  • Gallup: Only 33% of American employees are engaged at work (as of this post), and the 67% not engaged costs the nation over $500 billion per year in lost productivity
  • Towers Perrin: Companies with engaged employees have higher net profit margins
  • Kenexa Research: Engaged companies have 5 times higher shareholder returns over 5 years

Possibly of greater importance are some of the additional documented positive benefits of engaged workers, which include lower turnover, better safety, fewer product defects and shrinkage, reduced absenteeism, higher productivity, and better customer satisfaction metrics.

The key question, of course, is how to best go about it!

Gallup offers a wide range of research on the subject, and The Enterprise Engagement Alliance provides many free resources, tools, and advice that could be of use.

In addition, our white paper “Engagement Around the Work” might also provide some good insights into going beyond “engagement for engagement’s sake” and give you a straightforward process, guidelines, and clear targets for leveraging the relationship between engagement and productivity.

Problem Solving, Process Improvement, Project Management

Tools for Solving Problems

puzzle

Persistent problems cannot be solved by repeatedly using the same knowledge and insights. Or, as Albert Einstein phrased it, we can’t solve the problems at the same level of thinking with which we created them!

Few decisions have a greater impact on the likelihood of success of an improvement project than the definition of the problem.

Stephen Covey says that the way we see the problem is the
problem.

Dr. Don Wetmore of the Productivity Institute says that a problem well defined is at least 50% solved!

However you choose to look at it, the way we define and communicate the problem the team is expected to solve will greatly influence the speed and efficiency with which a team will complete its work, the
degree of satisfaction between the team and the project sponsor, and the efficacy with which an organization prioritizes and sequences the problems to devote resources to.

So the first key step to problem solving is to define the problem. Four key best practices for doing so are:

  1. Write it down and share it
  2. Quantify the waste it is causing
  3. Be specific about the metric you are using to size the problem
  4. Avoid judgments or opinions about root causes

Once a problem is well defined, it is often best to use classic problem-solving tools to examine current reality from a variety of different angles. This will most often require the use of multiple tools to reveal more advanced insights and solutions, as in many cases no one tool will provide all the answers. These tools can include:

  • Pareto Charts to explore ideas about possible causes
  • Process Mapping to spot and quantify the waste and trace it to the primary cause
  • Cause and Effect Diagramming to stretch beyond initial ideas about possible root causes
  • Histograms to provide new insights into the dynamics of process performance
  • Run Charts to understand current process performance and distinguish between random variation and special causes
  • Scatter Diagrams to clarify the importance of possible causal factors on results measurements
  • Affinity Diagrams to find breakthrough ideas and natural relationships among the data
  • Priority Matrices to consider alternatives and identify the right things to work on
  • Interrelationship Digraphs to visually demonstrate the relationship among factors—causal factors (drivers) vs. symptoms
Continuous Improvement, Strategic Planning

Planning Matters!

strategic planning

According to data from the Project Management Institute (PMI), at least 40% of the ideal project life-cycle consists of planning!

Yet in too many instances, and often with good intentions such as ‘zeal for getting started quickly,’ people fail to effectively plan their improvement efforts.

As a result, if strategic plans do not deliver expected results it leaves senior leaders wondering what happened — was it a flawed strategy or poor execution?

To be successful, strategic planning requires a mix of imagination and realism — often referred to as Imagineering. Imagination to describe an innovative product or service, or a way to market for which there is little or no competition, and realism to make sure that there is a practical way of executing the strategy — i.e., engineer it back to reality.

Other steps for effectively crafting a strategic plan before launching an improvement project include:

  • Assess current reality and opportunities, both external and internal
  • Develop and communicate mission and vision
  • Define the gaps between “is” and “needs to be” and set the right goals
  • Develop, assess and select strategic alternatives
  • Compare best practices to ensure the strategy can be executed
  • Convert strategy into action, using strategy maps and a balanced scorecard
  • Launch and build high performance teams and work groups to execute the strategy
Continuous Improvement, Execution

The “Top 10” for Implementation

implement

Continuing with our previous post’s theme of staying the course, if you truly want to achieve maximum results from an improvement effort, it’s essential to have an effective implementation and sustainability plan.

Consider that, even when people excel at identifying major opportunities for improvement, if they don’t execute, they don’t make gains. In our work with hundreds of organizations, we have observed that the most successful are outstanding at execution.

These execution plans involve the use Continuous Improvement (CI) tools for measurement, applying accepted best business practices such as the “4 Disciplines of Execution” (see related post), as well as a maintaining focus on the following “top 10” implementation best practices:

  1. Get senior leaders to become actively involved
  2. Identify clear project plans for delivering results, including measures and milestones
  3. Engage team members and stakeholders
  4. Set expectations and consequences — both positive and negative
  5. Set protocols for monitoring progress on a timely basis
  6. Develop an organized structure and an activity / accomplishment reporting plan – communication matters!
  7. Identify and making prudent use of prioritization tools
  8. Organizational support for structure and reporting
  9. Corrective action models (not punitive) when results are sub-par
  10. Strategic actions to lock in the gains
Continuous Improvement, Culture building, Execution, Leadership, Process Improvement, Project Management

Staying & Steering the Course

ship's wheel

Statistically, most Continuous Improvements (CI) initiatives fail. Many never truly get started, and many more are abandoned mid-term.

However, with proper guidance you can emerge as a true leader in your marketplace and reap the ongoing and significant benefits associated with a culture of continuous improvement.

To accomplish this, the most successful organizations establish an infrastructure to maintain focus once projects are launched; to monitor progress and maintain momentum until continuous improvement goes beyond “just projects” and becomes a way of life.

When organizations start anything which will affect almost everyone, strong leadership is key. It helps to have a Steering Committee of senior leaders to provide energy and leadership, keep focus and monitor progress. So it is with Continuous Improvement.

But infrastructure does not mean bureaucracy! The key is to provide the structure for focus and organizational visibility, but to be nimble and lean to respond quickly to organizational needs.

We help you decide on the right structure for your organization, including roles & responsibilities, resources needed and how best to operate.

We have found that these components are essential for long term success:

Corporate Level:
  • C I Steering Committee (made up of senior leaders)
  • A corporate CI Champion
 Regional or Facility Level:
  • CI Steering Committee at each region or location
  • A CI Coordinator at each region or location
  • Facilitators available at each region or location
Continuous Improvement, Identifying Waste, Root Cause, Theory Blindness

WYSIATI?

Continuing the theme of keeping improvement projects on track, CI leaders should be very careful to avoid falling prey to “theory blindness.”

Theory-blindness is an “expensive” pitfall that extracts a huge economic toll in organizations of all types and sizes. In some cases it leads companies to invest in expensive solutions that completely miss the real cause. In other instances, organizations will live with costly problems for years because of a shared but erroneous theory about the cause of the problem.

Psychologist Daniel Kahneman, (the only non-economist to win the Nobel Prize in Economics) describes the phenomenon in his book, Thinking, Fast and Slow.

The human brain, he illustrates by describing decades of research, is wired to apply a number of biases, theory-blindness being one of them. Understanding the biases gives us the tools to overcome them.

The most powerful mental bias underlying a great deal of the flawed decision making is what he calls: WYSIATI (which is a acronym for “what-you-see-is-all-there-is”). It occurs because we are inordinately influenced by what we see, and greatly undervalue information we do not have. As a result, paradoxically, the less we know, the more sure we are of our conclusions.

Based on research and many years of experience, we’ve determined the best way to avoid theory blindness is to rigorously adhere to an improvement process; one that includes a comprehensive method of identifying and quantifying root causes and the real waste.

Continuous Improvement, Execution

Remove Obstacles to Keep Improvement Projects on Track

obstcle

Continuing with the theme of our previous post, while leadership, communication, and alignment are essential they are not totally sufficient.

People also need the training and skill development to follow the organization’s improvement methodology. Lack of training will prevent people from progressing very far.

But personnel policies or practices can also easily obstruct productivity improvements. Sometimes jobs are defined so narrowly that managers cannot easily move people around to take advantage of productivity improvements. When managers are rewarded financially or in organizational prestige based on the number of people who report to them rather than how efficiently and effectively they operate, managers have powerful disincentives to increase productivity and move their people to where they would add more value.

Often organizations lack an effective mechanism to match up the skills and capability that one department has in excess resources with the needs of another department with a need for resources. To move resources effectively to their point of maximum value, you must develop a system of information about the skills and capabilities of your workforce.

Who possesses what skills?

Who’s good at math? Computers? Customer service? Selling? Equipment maintenance? Attention to detail?

Knowledge of the whole person will enable an organization to move freed-up resources to where they can contribute the most value rather than laying off the excess people and snuffing out motivation for further improvements.

Hiring practices can also hamper the ability to move people from position to position as improvements are made. If narrowly-skilled people are hired, when their jobs are streamlined, it may be difficult to find another place where they can truly add value. Continuously improving organizations seek out people who have flexible skills and abilities so they can continue to add value when needs change.

One of the most challenging barriers to remove is that of an important individual in the organization who is simply not on board. The individual may feel uncomfortable or threatened by the new way of working and leading; or may simply not agree with one or more key principles of a continuously improving organization, such as the import of what the customer values, or the way to treat employees, or the imperative of constantly improving the work, or using facts and data instead of just opinion.

When someone in a position of influence is not on board, he or she creates a misalignment between what people hear and what they see. Actions speak louder than words, so if the misalignment is not corrected, the situation has the potential to bring the CI journey to a close.

No one but the leadership of the organization can remove the barriers to effective continuous improvement. Careful monitoring of progress to identify and remove barriers is essential to achieving a culture of continuous improvement.

Continuous Improvement, Project Management

Keeping Your New Year Plan On Track

strategic plan

Continuing with our previous post’s them of implementing strategic or New Year plans, many people struggle to keep those plans on track.

If your organization has experienced this challenge, take heart, because it is much more common than one might think!

In fact, we have also noticed that regardless of the specific methods used for making improvements, strategic plans or longer-term initiatives aimed at gaining greater efficiency, quality, speed, and/or customer delight have two important things in common:

  • They generally produce some improvements
  • Then they peter out

Based on our research and experience, there are some common reasons why these improvement efforts lose steam.

The most common pitfall is unclear or delegated leadership.

improvement projects or plans must be fully embraced by every line manager. Delegating the effort to a Quality Manager, HR leader, strategic planning manager, or other staff person, is very likely to lead the effort to fizzle.

John Kotter, a recognized pioneer in the field of leading change, uses the term ‘guiding coalition’ to describe a powerful and strategic group that works together to bring about the desired changes within an organization. The team must be committed to the achievement of a continuously improving culture. It should include a majority of the most powerful people in the organization and may also include some people who may not be a part of senior management.

The next culprit is insufficient communication. Leadership must continue to communicate at every possible opportunity and every possible way why continuous improvement must become part of the organization’s DNA.

The vision must be clear and simple, and throughout the organization, people in leadership positions should constantly communicate the importance of the plan and the progress to date. Successes must be widely shared, learnings must be plowed back into the organization to accelerate results, and new opportunities to become better at improving should be identified and clearly communicated. New employees must hear the why, the how, the history, and the vision of what’s next.

Finally, neglecting alignment is a sure way to undermine a comprehensive improvement effort.

Every one of us has our own personal goals and objectives in addition to the goals and objectives of our organization as a whole and our job in particular. When these get out of alignment, progress will stop.

For example, a natural and intended outcome of most process improvement is the ability to do more with less — often with less people-time. Instantly, we have a conflict between the organization’s goals for cost saving and people’s need for income retention. And processes cannot be effectively improved or improvements effectively sustained without the support of the people doing the work. Not coincidentally, the company with the longest history of a continuously improving culture, Toyota Motors, promises employees a very high level of job security.

The leadership must think several moves ahead to both maintain alignment and to capture financial gains from productivity improvements. The choice of where to focus improvement efforts is probably the most critical.

Among the best areas on which to focus are:

  • Aim improvement methods to address the constraint to sales.
  • Improve productivity in the parts of the organization with too much work, in order to eliminate the need to hire.
  • Improve productivity in an area where people have the skills that, if freed up, could be transferred to departments with too much work or that have had attrition.
  • Improve non-people costs, such as energy, scrap, paper waste, and work with suppliers to identify ways to reduce costs.
Strategic Planning

Your New Year Strategic Plan?

As a new year begins, many organizations will formulate and launch a strategic plan, which is essentially a high level description of what you intend to do, what you do not intend to do, and how you will move from where you are to where you want to be. Naturally, the goals of these plans will vary; and while some of these plans may be designed for completion or goal achievement within the year, others may target longer periods of time.

But regardless of objective or time span, all too often, strategic plans do not deliver expected results and senior leaders wonder what happened — was it a flawed strategy or poor execution?

To be successful, strategic planning requires a mix of imagination and realism.

  • Imagination to describe an innovative product or service, or a way to market for which there is little or no competition
  • Realism to make sure that there is a practical way of executing the strategy

A few best practices that can help leaders formulate and execute strategic plans include:

  • Assess current reality and opportunities, both external and internal
  • Develop and communicate mission and vision
  • Define the gaps between “is” and “needs to be” and set the right goals
  • Develop, assess and select strategic alternatives
  • Compare best practices to ensure the strategy can be executed
  • Convert strategy into action, using strategy maps or similar tools
  • Launch and build high performance teams and work groups to execute the strategy
  • Maintain robust communication throughout the execution phase, including regular interactions with all stakeholders
  • Measure both progress and results
Change

Tips for Managing Change

change

As the year winds down and the New Year approaches, many organizations will be formulating strategic plans.

Naturally, just like all improvement plans, these New Year plans will involve a necessary but most often unpopular component — change!

While change is not always perceived as being good, without change comes stagnation and potential loss. Examples include: Converse in sneakers or Kodak and Polaroid in photography, Blockbuster, Blackberry, and so many more… each experiencing significant declines in market share (or worse!) as competitors introduced new and improved, lower-cost alternatives.

The first step in any change effort is to help people develop the right mental attitude and understand that change is a constant part of long-term success.

Here are a few tips that might help people develop a better attitude toward change or a heightened “readiness” to change:

  • Plan ahead. If you know change is on the horizon, do some prep work. …
  • Reframe your thinking. Figure out what’s going on in your mind when you’re feeling sad or anxious, and break negative patterns.
  • Recognize that improvement or change is not an indictment of the current way but rather a never-ending search for a better way.
  • Take time to reflect. Is my “resistance” putting my career in jeopardy? Am I being overly stubborn? Am I afraid to try?
  • Strive to maintain some normalcy/routine.
  • Take a long term view. Sure, a new process or procedure will feel foreign at the start, but how will it feel six months from now? Next year?
  • Test yourself! Look at upcoming change as a challenge; remember that we tend to learn the most when we step outside of our comfort zone!
  • Recognize that it is a lot easier to change when you “can” rather than when you “must”