Developing a Strategy at the Beginner Stage Firms at the Beginner stage understand the need for improvement is understood and have already invested time and resources to implement a strategy. At this stage the firm typically partners with an expert consultant to develop the problem solving abilities of their employee group to be able to solve problems on the shop floor to root cause and collaborate on implementing corrective actions. My strategy advice can be condensed to relating to Process and People. Process Beware the temptation to fall in love with a continuous improvement strategy that is many years of maturity beyond your firms development. A 6 Sigma implementation or the trendy ‘agile’ approach to improvement are not what I would recommend. The latest and greatest is often just an overhyped complex system that is difficult to implement, harder to maintain, and potentially impossible to realize return on investment. My advice, as with the Awakening firms, is the full implementation of a 5S discipline to move your culture toward learning and disciplined systemic approaches. 5S done well will transform your business ability |
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If you already have a successful 5S and Standard work process in place, focus on the implementation of a sound total productive maintenance system. These three foundational pillars of Lean are so powerful that you will see dramatic improvements in employee engagement, productivity, and quality before you even begin to implement Lean production. No other continuous improvement strategy ties these elements together better than does Lean.
People
When Standard work and 5S are in place employees can move from one position to the next wherever demand requires them to be. A key recommendation is to cross train employees within their departments while also involving them in workstation improvement projects leveraging the Kaizen approach.
Leaders must continue to improve their skills and it is strongly recommended they work with a leadership coach who is a skilled Lean practitioner. In this way leaders will learn how to reinforce a learning culture that is embracing the Lean approach.
Subsequent Years
Process
The strategy remains largely the same, complete the implementation of foundational Lean elements and begin to look at the requirements of Lean production. Learning the process of designing the future state value stream map is a crucial progress milestone. When you can clearly see the significant gap between the 'as is' and 'future state' map, you will have your next strategic plan input. Recognize that as with lean foundations, lean production itself has many levels of sophistication. In early years the pursuit of perfection and elimination of waste will be sufficient to fuel your continuous improvement strategy. This will soon evolve to pursuing level flow, SMED (single minute exchange of dies) and cellular work design. More mature facilities will also pursue Kanban systems as well as moving toward an enterprise view of lean.
People
In subsequent years your continuous improvement strategy should move from relying on external experts to growing your own expertise. If your lean manager is able to successfully facilitate Kaizen events and is actively teaching others in the organization how to live lean, you are well on your way. A word of caution, Lean is a culture of respect for persons. This is not only the typical respect we demonstrate toward others in the west, it also contains a clear expectation that we challenge other to grow and demonstrate their knowledge. If respect isn’t at the core of your lean initiative, it will struggle to realize its true revolutionary benefit to your firm.
People
When Standard work and 5S are in place employees can move from one position to the next wherever demand requires them to be. A key recommendation is to cross train employees within their departments while also involving them in workstation improvement projects leveraging the Kaizen approach.
Leaders must continue to improve their skills and it is strongly recommended they work with a leadership coach who is a skilled Lean practitioner. In this way leaders will learn how to reinforce a learning culture that is embracing the Lean approach.
Subsequent Years
Process
The strategy remains largely the same, complete the implementation of foundational Lean elements and begin to look at the requirements of Lean production. Learning the process of designing the future state value stream map is a crucial progress milestone. When you can clearly see the significant gap between the 'as is' and 'future state' map, you will have your next strategic plan input. Recognize that as with lean foundations, lean production itself has many levels of sophistication. In early years the pursuit of perfection and elimination of waste will be sufficient to fuel your continuous improvement strategy. This will soon evolve to pursuing level flow, SMED (single minute exchange of dies) and cellular work design. More mature facilities will also pursue Kanban systems as well as moving toward an enterprise view of lean.
People
In subsequent years your continuous improvement strategy should move from relying on external experts to growing your own expertise. If your lean manager is able to successfully facilitate Kaizen events and is actively teaching others in the organization how to live lean, you are well on your way. A word of caution, Lean is a culture of respect for persons. This is not only the typical respect we demonstrate toward others in the west, it also contains a clear expectation that we challenge other to grow and demonstrate their knowledge. If respect isn’t at the core of your lean initiative, it will struggle to realize its true revolutionary benefit to your firm.
A related recommendation is the implementation of standard work on all repetitive processes. Standard work unlike standard operating procedures, require a more in depth measurement of tasks and processes allowing a more thorough understanding of your performance and opportunities for employees to make further gains. 5S and Standard Work (along with Total Productive Maintenance) are foundational elements that allow Lean production to succeed in the first place.
Many organizations in their obsession with Lean Kaizen
blow past 5S, Standard Work, and TPM
and cannot figure out why
their implementation failed so completely.
|
If you already have a successful 5S and Standard work process in place, focus on the implementation of a sound total productive maintenance system. These three foundational pillars of Lean are so powerful that you will see dramatic improvements in employee engagement, productivity, and quality before you even begin to implement Lean production. No other continuous improvement strategy ties these elements together better than does Lean.
People
When Standard work and 5S are in place employees can move from one position to the next wherever demand requires them to be. A key recommendation is to cross train employees within their departments while also involving them in workstation improvement projects leveraging the Kaizen approach.
Leaders must continue to improve their skills and it is strongly recommended they work with a leadership coach who is a skilled Lean practitioner. In this way leaders will learn how to reinforce a learning culture that is embracing of the Lean approach.
Subsequent Years
Process
The strategy remains largely the same, complete the implementation of foundational Lean elements and begin to look at the requirements of Lean production. Learning the process of designing the future state value stream map is a crucial progress milestone. When you can clearly see the significant gap between the as is and future state map, you will have your next strategic plan input. Recognize that as with lean foundations, lean production itself has many levels of sophistication. In early years the pursuit of perfection and elimination of waste will be sufficient to fuel your continuous improvement strategy. This will soon evolve to pursuing level flow, SMED (single minute exchange of dies) and cellular work design. More mature facilities will also pursue Kanban systems as well as moving toward an enterprise view of lean.
People
In subsequent years your continuous improvement strategy should move from relying on external experts to growing your own expertise.
If your lean manager is able to successfully facilitate Kaizen events and is actively teaching others in the organization how to live lean, you are well on your way.
People
When Standard work and 5S are in place employees can move from one position to the next wherever demand requires them to be. A key recommendation is to cross train employees within their departments while also involving them in workstation improvement projects leveraging the Kaizen approach.
Leaders must continue to improve their skills and it is strongly recommended they work with a leadership coach who is a skilled Lean practitioner. In this way leaders will learn how to reinforce a learning culture that is embracing of the Lean approach.
Subsequent Years
Process
The strategy remains largely the same, complete the implementation of foundational Lean elements and begin to look at the requirements of Lean production. Learning the process of designing the future state value stream map is a crucial progress milestone. When you can clearly see the significant gap between the as is and future state map, you will have your next strategic plan input. Recognize that as with lean foundations, lean production itself has many levels of sophistication. In early years the pursuit of perfection and elimination of waste will be sufficient to fuel your continuous improvement strategy. This will soon evolve to pursuing level flow, SMED (single minute exchange of dies) and cellular work design. More mature facilities will also pursue Kanban systems as well as moving toward an enterprise view of lean.
People
In subsequent years your continuous improvement strategy should move from relying on external experts to growing your own expertise.
If your lean manager is able to successfully facilitate Kaizen events and is actively teaching others in the organization how to live lean, you are well on your way.
Lean is a culture of respect for persons.
If respect isn’t at the core of your lean initiative, it will struggle
to realize its true revolutionary benefit to your firm.
|
A word of caution, Lean is a culture of respect for persons. This is not only the typical respect we demonstrate toward others in the west, it also contains a clear expectation that we challenge other to grow and demonstrate their knowledge. If respect isn’t at the core of your lean initiative, it will struggle to realize its true revolutionary benefit to your firm.
If you' built a continuous improvement strategy, and not seeing the results you want, we're here to help.
Schedule your complementary STRATEGY SESSION and together we will design a plan that fits your unique business.
Schedule your complementary STRATEGY SESSION and together we will design a plan that fits your unique business.
Developing a Strategy at the Entrepreneurial Stage
(Part 2 of 3)
PLAN
Okay now you have assessed your business and identified those customer facing processes that are under performing. You have evaluated the effectiveness of your teams problem solving and leadership abilities. It is time to consider a strategy that will be effective for you.
You will find that your business can largely be broken into three categories; Process, Product, People.
Each of these are explained below, assuming a perfect business. Start by summarizing how well you perform in each of these three categories:
Process
Your processes are well defined and formalized making it straightforward for employees to perform their tasks in fulfillment of customer need.
Product
You provide a solution to a customer problem or need in the form of a product or service that includes a high perceived value.
People
Your business has skilled, dedicated, and motivated employees in every position. These employees consistently execute their roles allowing the company processes to deliver a desired product and or service to a valued client.
(Part 2 of 3)
PLAN
Okay now you have assessed your business and identified those customer facing processes that are under performing. You have evaluated the effectiveness of your teams problem solving and leadership abilities. It is time to consider a strategy that will be effective for you.
You will find that your business can largely be broken into three categories; Process, Product, People.
Each of these are explained below, assuming a perfect business. Start by summarizing how well you perform in each of these three categories:
Process
Your processes are well defined and formalized making it straightforward for employees to perform their tasks in fulfillment of customer need.
Product
You provide a solution to a customer problem or need in the form of a product or service that includes a high perceived value.
People
Your business has skilled, dedicated, and motivated employees in every position. These employees consistently execute their roles allowing the company processes to deliver a desired product and or service to a valued client.
The first objective has to be stabilizing critical
customer facing business processes.
customer facing business processes.
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Priorities
Keep in mind that the first objective has to be stabilizing critical customer facing business processes. This may seem too conservative for your tastes and I understand. I will also tell you that there are no silver bullets that will magically transform your business processes. Build a solid healthy foundation and then we can begin to accelerate.
A second priority is to evaluate your products / services and ensure that they are delivering the value you promise your customers.
The third priority is to consider the skill set of your people. Enacting a continuous improvement strategy is a multi-year enterprise. This means you have time to intentionally build the skill set of your employees and leaders as you build your strategy.
Year 1 Plan
Identify SMART goals (Specific – Measurable – Achievable – Relevant – Timed) for each of the three areas.
I recommend setting 90 day goals and tracking progress weekly. In this way you can quickly shore up any liabilities that put your business at risk and set a foundation for the future. I fully expect that you will begin to see immediate payback from this effort. Once business processes and products/services are stabilized, customer perceptions of value will strengthen.
With respect to your people, consider a training program for your managers on how to be effective leaders in your business. This will become a foundation for the follow on years plans.
Now let's talk about Step #3 what to IMPROVE.
Keep in mind that the first objective has to be stabilizing critical customer facing business processes. This may seem too conservative for your tastes and I understand. I will also tell you that there are no silver bullets that will magically transform your business processes. Build a solid healthy foundation and then we can begin to accelerate.
A second priority is to evaluate your products / services and ensure that they are delivering the value you promise your customers.
The third priority is to consider the skill set of your people. Enacting a continuous improvement strategy is a multi-year enterprise. This means you have time to intentionally build the skill set of your employees and leaders as you build your strategy.
Year 1 Plan
Identify SMART goals (Specific – Measurable – Achievable – Relevant – Timed) for each of the three areas.
I recommend setting 90 day goals and tracking progress weekly. In this way you can quickly shore up any liabilities that put your business at risk and set a foundation for the future. I fully expect that you will begin to see immediate payback from this effort. Once business processes and products/services are stabilized, customer perceptions of value will strengthen.
With respect to your people, consider a training program for your managers on how to be effective leaders in your business. This will become a foundation for the follow on years plans.
Now let's talk about Step #3 what to IMPROVE.
If you' re ready to begin building your continuous improvement strategy, we're here to help. Schedule your complementary STRATEGY SESSION and together we will design a plan that fits your unique business.
Developing a Strategy at the Entrepreneurial Stage
(Part 1 of 3)
Step 1: ASSESS
In some ways a continuous improvement strategy deployed on an entrepreneurial firm is about as oxymoronic as it can get! And yet…
The Oxymoron Problem: The entrepreneurial firm that is ready to make a step toward stable processes and consistent delivery of value to its customers is poised to become even more successful. Yet, a critical factor to keep in mind is that most quality nerds (you know the people you think you need to hire to enact a continuous improvement strategy) are actually the last people who should do so.
Your entrepreneurial edge is undoubtedly based in the innovation and forward thinking that launched your products in the first place. Traditional quality management and hence continuous improvement is more akin to hardening of the arteries than it is increasing organizational strength. We need to protect your innovative core while stabilizing your customer focused processes.
Strategic Thinking
What are the processes in your business that are absolutely customer facing?
There are several: Sales, Customer Service, Accounts Receivable, Shipping & Fulfillment, possibly even final manufacturing.
How are they performing currently?
Excellent, above average, mediocre, below average, worse? Any process not rating an “above average” score as measured by your customer must become a priority improvement target.
How will you know?
The best way is to ask your customer. If this isn’t easily available then review your customer complaints, rejects, claims, online reviews, and customer facing employee comments. Prioritize the list. Think about triage, our goal is to stop the bleeding and stabilize the patient. You may be thinking by business isn’t in mortal danger what’s with the medical metaphor?! Simple, any one of the processes above that is mediocre or worse is an invitation for your competitor to steal away your client base and then where are you? No customer no business.
How effective is your problem solving?
Another critical area to examine relates to actions taken when a customer problem is received. Do you throw people and money at the problem and spare no expense to take care of the concern? Do your employees and leaders actually know how to solve problems beyond putting on band-aids. Chances are high that they do not and this has a serious consequence, problems that happen over and over again.
(Part 1 of 3)
Step 1: ASSESS
In some ways a continuous improvement strategy deployed on an entrepreneurial firm is about as oxymoronic as it can get! And yet…
The Oxymoron Problem: The entrepreneurial firm that is ready to make a step toward stable processes and consistent delivery of value to its customers is poised to become even more successful. Yet, a critical factor to keep in mind is that most quality nerds (you know the people you think you need to hire to enact a continuous improvement strategy) are actually the last people who should do so.
Your entrepreneurial edge is undoubtedly based in the innovation and forward thinking that launched your products in the first place. Traditional quality management and hence continuous improvement is more akin to hardening of the arteries than it is increasing organizational strength. We need to protect your innovative core while stabilizing your customer focused processes.
Strategic Thinking
What are the processes in your business that are absolutely customer facing?
There are several: Sales, Customer Service, Accounts Receivable, Shipping & Fulfillment, possibly even final manufacturing.
How are they performing currently?
Excellent, above average, mediocre, below average, worse? Any process not rating an “above average” score as measured by your customer must become a priority improvement target.
How will you know?
The best way is to ask your customer. If this isn’t easily available then review your customer complaints, rejects, claims, online reviews, and customer facing employee comments. Prioritize the list. Think about triage, our goal is to stop the bleeding and stabilize the patient. You may be thinking by business isn’t in mortal danger what’s with the medical metaphor?! Simple, any one of the processes above that is mediocre or worse is an invitation for your competitor to steal away your client base and then where are you? No customer no business.
How effective is your problem solving?
Another critical area to examine relates to actions taken when a customer problem is received. Do you throw people and money at the problem and spare no expense to take care of the concern? Do your employees and leaders actually know how to solve problems beyond putting on band-aids. Chances are high that they do not and this has a serious consequence, problems that happen over and over again.
Leaders are the change agents that either help a strategy succeed
or cause it to wither and fail.
or cause it to wither and fail.
|
How effective is your leadership?
This is a tough one. Every leader I meet acts as if they are in the top 20% when it comes to leadership skill. This obviously is false for 80% of them. The problem is confounded by another factor. John Maxwell a prolific author on leadership, has an excellent rule when it comes to leadership called the law of the lid. Essentially of leaders are rated on a 1-10 scale with ten being excellent, we tend to hire leaders for our teams that are at best equal to our leadership ability and generally worse. What is the implication? The deeper you go the weaker the leaders. I will add to this that leaders who rate less than seven rarely are thinking about leadership development of their direct reports. Again leading to weaker leadership.
Why is leadership important to this conversation?
Simple, leaders are the change agents that either help a strategy succeed or cause it to wither and fail.
I ask again how effective is your leadership?
Once you've done the assessment, advance to Step #2 PLAN.
This is a tough one. Every leader I meet acts as if they are in the top 20% when it comes to leadership skill. This obviously is false for 80% of them. The problem is confounded by another factor. John Maxwell a prolific author on leadership, has an excellent rule when it comes to leadership called the law of the lid. Essentially of leaders are rated on a 1-10 scale with ten being excellent, we tend to hire leaders for our teams that are at best equal to our leadership ability and generally worse. What is the implication? The deeper you go the weaker the leaders. I will add to this that leaders who rate less than seven rarely are thinking about leadership development of their direct reports. Again leading to weaker leadership.
Why is leadership important to this conversation?
Simple, leaders are the change agents that either help a strategy succeed or cause it to wither and fail.
I ask again how effective is your leadership?
Once you've done the assessment, advance to Step #2 PLAN.
If you' re ready to begin building your continuous improvement strategy, we're here to help. Schedule your complementary STRATEGY SESSION and together we will design a plan that fits your unique business.
Dr. Ron Hurst
Avid cyclist, dog lover, life long learner, enthusiastic problem seeker. My life's work is to challenge leaders like you to grow your abilities to create empowering, positive, high performing workplaces.
President, CEO
Developing Leaders Inc.
Avid cyclist, dog lover, life long learner, enthusiastic problem seeker. My life's work is to challenge leaders like you to grow your abilities to create empowering, positive, high performing workplaces.
President, CEO
Developing Leaders Inc.
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