Continuous Improvement, Customer Satisfaction

Key Drivers of Customer Satisfaction?

satisfied customer

Satisfied and delighted customers are the lifeblood of any organization. Our business will operate more smoothly and our professional lives will be more rewarding when customers love what we do or provide for them.

Providing customers with the highest quality products and services at the best possible price starts with clearly understanding the customers’ needs and requirements and then designing and implementing processes that consistently deliver value.

But there are two types of customers:
• external customers
• internal customers

It’s important to recognize that both types of customers are important and have needs that must be met. External customers are the people who pay for our products and services. As Dr. Deming said: “No customers, no orders, no jobs!”

Paying attention to the external customers’ requirements is essential and helps us keep the entire organization focused on doing value added work (i.e., “work the external customer would pay for if they know what we were doing”).

However, to effectively meet the external customers’ needs, we must also work with our internal customers. Understanding and meeting our internal customers’ needs and requirements helps the process of producing our product or service to flow smoothly, be problem-free and deliver the highest quality at the lowest total cost. In other words, our satisfying the needs of our internal customers is a key driver of external customer satisfaction!

When we work with our internal customers we are, in fact, “internal suppliers.”

Of course, this customer-supplier relationship extends to our external suppliers as well. From our external customer’s point of view, we are responsible for what they buy from us; and our suppliers are part of the system – and are also a key driver of external customer satisfaction!

It is increasingly important to build strong customer/supplier partnerships that ensure that we get exactly what we need, in the right quantity, at the right price to be able to meet our external customers’ needs.

Continuous Improvement, Identifying Waste

Is Year-end a Good Time for a Fresh Look?

question mark

As we approach the end of this year and look ahead to 2023, this might be an ideal time to gather the group together for a fresh and penetrating look at where the business has the biggest opportunities for getting more of the waste out.

Over the past year, you likely have studied the work in a number of areas and found and eliminated a substantial amount of waste.

Congratulations! And while bringing those results to the bottom line, you almost certainly got close enough to the work to identify even more waste and opportunities for the new year. As long as you are willing to roll up your sleeves and really learn about the work, the opportunities for improving the business will continue to grow larger and larger. The more you gain, the more possibilities you can see.

Now is an excellent time to gather up these insights, step back, and make sure you are focusing your efforts on the right thing.

Inventory the Opportunities
Where do you go for your inventory of next best ideas?

Many organizations make sure that they document their findings about additional waste as a regular part of their improvement efforts, and it is a good idea to make a habit of capturing the improvement opportunities that become visible when a team goes after an area of waste.

By maintaining an easily accessible repository for these newly visible opportunities, not only does the organization gain the benefit of these insights and observations, but it helps teams to avoid scope creep as well because each new opportunity is documented, but not added to the initial scope.

But in addition to collecting these insights, step back and do some Imagineering: what would the business look like if everything were right? When people start to answer this question in detail, some major areas of waste are bound to surface.

Ask your group what problems and challenges are delaying the organization from achieving the vision and mission.

What strategic challenges does the organization face? What changes to the business are necessary to ward off strategic threats and capture strategic opportunities?

How do these translate into specific problems to solve?

Go through your list of improvement possibilities and areas of waste you have identified so far.

Which ones further your most important objectives?

Which ones should we focus on when the New Year arrives in January?

Leadership

Leadership Don’ts!

leadership

Our previous post focused on the importance of strong leadership when developing and sustaining high-performing teams.

Strong leaders provide the initial and ongoing energy for change and improvement, and people will only follow leaders if they trust them, if they see the need for change, if they believe improvement will benefit “all” parties, and if they are involved in creating the change.

Here are several behaviors from SmartBrief and Gallup that those in leadership roles should avoid if they hope to enjoy sustainable success:

“You can tell me anything, but…!” This statement is made (without the “but”) to solicit input or feedback on a particular idea or course of action. But, sometimes leaders will completely discount the idea or opinion offered, especially if it’s something with which they don’t immediately agree.

Giving feedback at the wrong time and in the wrong place. The proper place to give any kind of negative feedback is in private! Some leaders feel it is appropriate to give negative or critical feedback to a person on the spot and in front of others. Some of these managers have said that they like giving feedback in this way because it is motivating to others. But in reality, such behavior strikes fear into the heart of any conscious team member who learns to dread interactions with these managers or leaders. Sharing negative or critical feedback in front of others is highly disrespectful and does not inspire candor or openness. In fact, it will likely cause people to keep bad news to themselves and hide their mistakes.

Failing to provide any feedback. People crave feedback, In fact, in one Gallup poll, the most engaged team members say that they receive feedback from their immediate supervisor on a weekly (if not more frequent) basis!

Coercing support. Sometimes in an attempt to win approval for an idea or decision, leaders will say something like, “I need you to support my position today in the meeting. You have to back me up!” Often there’s an implied, “Or else.” Such behavior destroys candor, honesty and team morale.

Solicitation or decision making without action. Simply stated, solicitation implies action. When a leader asks for ideas or solutions, it is implied that the leader will do something with the ideas or solutions that are provided. This doesn’t mean that a leader has to implement or take action on every idea that is offered, but it does require that the leader share what they might do and why. This reinforces the importance of contribution and collaboration. To solicit ideas or input for decisions and then do nothing signals to individuals that their ideas are not important. Do this, and it won’t be long before people quit speaking up or offering ideas.

Manipulation. Sometimes a leader will ask people for ideas and then use them as evidence that the leader’s original idea was the best idea. This ends up feeling like manipulation. If leaders ask for ideas, then they should be open to exploring those ideas.

Leadership, Teams and Motivation

Team Leadership

leadership

Continuing with the theme of our previous post, one of the most prudent steps you can take to maximize the impact of a team or a team improvement initiative is to appoint a strong leader.

An effective project team leader moves the team forward and inspires team members to do their best work. They also manage many of the organizational systems needed to keep a project on track.

The roles of a team leader include the following:

  • Manage the team toward accomplishing tasks and maintaining focus
  • Take a vested interest in solving the problem
  • Build commitment to the team charter and objective
  • Develop, with the members, the project plan
  • Lead activities such as problem solving, progress monitoring and team building
  • Interaction between meetings, offering help with action items
  • Meet with the facilitator between meetings to review the previous meeting and to plan for the next meeting
  • Keep the necessary people (sponsors, functional management) informed of progress, barriers and roadblocks and provide guidance to the team based on management direction
  • Maintain documentation of the team’s efforts
  • Behave in a way that contributes to team effectiveness

An effective team leader must also possess a range of skills if they are to fill these roles, such as project management skills, communication skills, and the ability to understand problem solving as well as the differences between team members.

Continuous Improvement, Teams and Motivation

A Closer Look at High Performing Teams

high performing team

Spring boarding off of recent posts that focused on workplace relationships, and building on a point made in our previous post that nothing brings to light the quality of relationships more than in the workings of a team, today’s focus is on building high-performing teams.

Building high performing teams can bring about significant gains – gains that go beyond those typically achieved by individuals — and for good reasons:

  • It is nearly impossible for a single person to possess the same amount of knowledge and experience that a high performing team possesses
  • The exchange of ideas leads to new thinking and innovation
  • The involvement of multiple people in decision-making strengthens commitment levels
  • A team environment provides mutual support and a sense of belonging

Yet virtually every organization we’ve encountered struggles with developing teams. Many teams are dysfunctional; they take too long to accomplish tasks, the work is filled with errors and waste, the costs are excessive and turf wars abound.

Based on our work with thousands of teams, there are eight key attributes associated with high performing teams:

  1. Work on what matters
  2. Create the “right” structure, including sponsor, leader, facilitator and members, all with clear roles
  3. Create a team charter
  4. Manage team meetings effectively
  5. Follow a defined methodology for problem solving and continuous improvement
  6. Monitor and improve teamwork skills
  7. Share accountability
  8. Recognize and publicize accomplishment
Continuous Improvement, Culture building, Teams and Motivation

Teams & The “R Factor”

team

While the quality of relationships can be observed and evaluated within one-on-one interactions as discussed in our previous two posts, nothing brings to light the quality of relationships more than in the workings of a team.

Teams have become the primary and core structure for getting work done and it would be difficult to find an organization which does not have “teamwork” as a fundamental value.

This is highly logical when you consider that it is nearly impossible for a single person to possess the same amount of knowledge and experience that a high performing team possesses, and that the involvement of multiple people in decision-making strengthens commitment. The exchange of ideas that takes place in a team environment, (as opposed to a setting in which people work in individual silos), promotes new thinking and innovation as well.

Yet, it is interesting that although the value of teams is readily accepted, it is rare to find teams that have truly reached their potential. In team language, this means they have yet to reach a level of high performance.

What is often missing is the realization that creating high performing teams is not just about implementing the basics of team structures. Going from an effective team to a high performing team requires additional skills, practice, commitment, and most importantly, in the words again of Mike Morrison, “It’s the relationship!” Teams seeking to become high performing must have strong relationships at their very core.

Consider the following key areas when measuring the strength of your organizational or team relationships:

  • Mutual Accountability
  • Trust and Loyalty
  • Esprit de Corps
  • Commitment to Results

These characteristics are exemplified by the preeminent model for high performance — The Navy SEALs! Their creed, actions, and success solidly point to their reputation of high performance.

Observe any high performing team and you will find these same characteristics evident — and not just “some of the time.” A high performing team reflects these characteristics in every way and at all times.

You might also take a look upward, or a more reflective look depending upon job function, because a concerted, focused effort needs to take place. And as is most often the case with any change or improvement initiative, it needs to happen at the top. Hence it is an absolute requirement that the Senior Executive Team “walks the talk” of high performing teams. It is not enough to accept a “do as we say, not as we do” attitude. Failure to model high performing team characteristics at the executive level is a sure path to mediocre team results throughout the organization.

In actuality, high performing executive teams are less plentiful than high performance workforce teams, and possibly for good reason. Many executives got to the top by their individual ability to be the best; and many successful executives have not necessarily had a track record of either leading high performing teams, or even having been a part of a high performing team. In addition, because of the rotating door of management (one of Dr. Deming’s “deadly sins”), many executives aren’t around in one position long enough to develop the skills and most importantly the relationships required for high performing teams.

Yet, in spite of the inherent challenges for executives to truly create high performing teams, it is a challenge worth overcoming.

This need is particularly strong, not only because of the clear advantages of a high performing team anywhere in an organization, but also because of the need to model such behavior at the executive level. When any value is proclaimed by an organization (in this case teamwork), the first and constant litmus test of the value is evidence that the value is demonstrated at the top levels.

Continuous Improvement, Culture building, Employee Development, Leadership

The “R” Factor Part 2: Show Me the Money!

Our previous post focused on the importance of relationships within the workplace and the impact on people.

It has also been well-documented with facts and data that the cost of poor relationships in the workplace is significant; and in contrast, improving relationships improves the bottom line.

For example, a Watson Wyatt Worldwide study found a direct correlation between trust and profitability. Where employees trusted executives, companies posted returns 42% higher than those where distrust was the norm.

In a different study, they found that of the 7,500 employees surveyed only half trusted their senior managers. So imagine the impact of improving the relationships with the ‘other’ half!

Another study on trust in the workplace conducted by Leadership IQ, which involved a database of 7,209 executives, managers and employees, revealed that 44% of participants’ responses ranged from not trusting to strongly distrusting their top management, and that trust significantly predicts employee loyalty and their inclination to stay or leave the organization. Having employees “go” is costly and especially so at the managerial and executive level. As once cited in the Orange County Business Journal, the cost of losing one executive who underperforms or one who chooses to join another executive team is an average of $1.5 million per executive hire. Calculated another way, the cost can reach 400% of the yearly salary of a high level employee.

Along the same lines, in his book The Speed of Trust, Covey quoted Professor John Whitney of Columbia Business School, who said “Mistrust doubles the cost of doing business.”

In addition to the obvious and direct costs of attrition (recruitment, severance, training, etc.), there are other costs associated with dissatisfied employees at any level. There is the pervasive, though
often not measured, cost of wasted time and lowered productivity — the unproductive time spent in unresolved conflicts, complaining about management or co-workers, lack of engagement and not putting forth best efforts. It follows that reducing wasted time, like reducing other forms of waste, can contribute to improved profitability.

Imagine how much better-off we all might be if we could better manage our relationships; as noted above, the improvements could be staggering!

Developing People, Employee Development, Engagement

The “R” Factor

In a past newsletter, Senior Associate Ellen Kendall shared some thought-provoking perspective on the importance of relationships in the workplace – a perspective that has proven to be very accurate over the past two-or-so years.

Somehow along the evolutionary path of business and commerce, it appears some of us became increasingly enamored with the efficiency that a mechanistic and impersonal focus could bring us, and concentrated on using the “hands” of employees at the neglect of
employing their hearts and minds.

We created command and control hierarchical organizations and an emphasis on functional competency and silos. In the process, we lost sight of the human need for connection and interaction and minimized the importance of productive and meaningful relationships.

Or, said another way, in the words of Don Corleone in the movie, The Godfather, “It’s not personal, it’s business.”

But for many the pendulum is swinging back, as more of us are finding that the old attitude about separating business from personal issues no longer serves us well.

In fact, there is increasing belief that becoming more personal in the workplace might actually work to the advantage of organizations; and topics such as trust, interpersonal relationships, engagement, coaching, mentoring, and values-based leadership are now critical in an increasing number of organizations.

Similarly, it is becoming more evident that relationships, and the quality of relationships in the workplace, do matter. For example, Mike Morrison, VP and Dean of Toyota University in an interview went so far as to boldly say, “My message to leaders is actually quite simple: It’s the relationship… stupid!”

He went on to suggest that human capital is useless without relationships — particularly in our fast-paced, global economy — and that leaders can be best measured by their ability to create social capital or the sum total of all their relationships.

“It is through this network of relationships that their work is conducted,” Morrison stated. “As leaders, we need to be relentless relationship-builders and be 100 times more deliberate about relating to people.

“Work is much more relational than it was twenty years ago, when you could have narrow, clearly defined jobs. Those jobs don’t exist anymore… today we get work done through others… in today’s world we achieve results primarily through relationships.”

Morrison concluded that relationships are truly the most effective pathway to the highest levels of commitment, creativity, and performance within organizations. The reason is that positive
relationships have a transformational impact on the individual. They draw out the best in each of us.

Management guru Peter F. Drucker also commented on the need to focus on workplace relationships.

“Increasingly, command and control is being replaced by or intermixed with all kinds of relationships,” he said.

“Alliances, joint ventures, minority participations, partnerships, know-how, and marketing agreements… these are all relationships in which no one controls and no one commands. These relationships have to be based on a common understanding of objectives, policies, and strategies; on teamwork; and on persuasion — or they don’t work at all”.

Spring boarding off of these respected viewpoints, we’ll take a deeper dive into the value of the “R” factor in our next post.

Engagement, Leadership

Leadership Best Practices Too: A Simple Solution?

Continuing our previous post’s theme of leadership, a recent Gallup article cited the fact that approximately 70% of the US workforce is either detached from their work or “miserable” during their workday!

The solution is, as the saying goes, simple but not necessarily easy: managers need to be better listeners, coaches, and collaborators.

“Great managers help colleagues learn and grow, recognize their colleagues for doing great work, and make them truly feel cared about. In environments like this, workers thrive.”

The question then posed refers to shareholder capitalists, and asks if they would embrace this perspective?

“How does this impact the bottom line?” they’d ask.

Well, as it turns out, “it pays to have thriving workers!

Based on Gallup research and several of our posts on the topic of workforce or employee engagement, business units with engaged workers have 23% higher profit compared with business units with
miserable workers.

Additionally, teams with thriving workers see significantly lower absenteeism, turnover and accidents; they also see higher customer loyalty.

As the article points out, “Wellbeing at work isn’t at odds with anyone’s agenda. Executives everywhere should want the world’s workers to thrive. And helping the world’s workers thrive starts with listening to them.”

Leadership

Leadership Best Practices

Leadership is getting people to want to do what needs to be done, and it provides the energy for change and the commitment to sustain it. It requires a range of activities, including empowerment, motivation, communication, listening, and providing both direction and feedback to team members.

But in a recent article, Gallup reported that only 21% of U.S. employees strongly agree that they have received meaningful feedback in the last week.

The piece goes on to list the following guiding principles:

  1. Make feedback timely and futuristic. It’s important for managers to address issues as they come up, but rather than looking “backward” it is best to focus on the future. “Be specific and timely with suggestions so the employee can implement them immediately, but don’t criticize the person as a person — that’s looking backward. Instead, emphasize specific improvements to look forward and get results faster.” In other words, instead of telling people what “not” to do, share the actions they should take going forward.
  2. Promote strengths. Highly engaged workers say that they use their strengths at work. In addition, the article notes that positive reinforcement helps people recognize their potential. As noted above, giving people feedback based on weaknesses simply alerts them as to what they shouldn’t do. It’s possible to work on weaknesses, but the learning process is significantly more frustrating, progress is slower and the result tends to be average instead of excellent. Telling employees how to succeed — not how to stop failing — is more effective.
  3. Explain the fallout. Actions have consequences, but not all consequences are punitive, and people may not know what they are. “Managers should share with people the downstream effects of their behavior on other team members, the company and their own potential for advancement.”

Read the full article…

Challenges and best practices associated with continuous improvement