Archive for the ‘Uncategorized’ Category

Creating Short Term Successes

Monday, November 2nd, 2009

Short term success in a transformation is important for a number of reasons. First, it provides a sense of accomplishment for those who have already engaged in the process, giving them something to celebrate and increasing their energy to do more. Second, it provides evidence of resolve and commitment to those who have not yet made up their minds. Third, it sets a standard and provides an example of what success looks like. And finally, it clarifies existing mindsets about change so managers can begin or accelerate the process of clarifying expectations and coaching those in need.

It is safe to say that most organizations don’t do enough to create and sustain short-term success. In fact, many actually create short-term failure which has the opposite effect of all of the benefits of a success. In our experience, there are three common errors that leaders make in the early stages of transformation. Unfortunately, many of them don’t learn from these mistakes and make them over and over again until they become convinced that change isn’t meant to be and rationalize their position by claiming that they’re different. So what are these common mistakes?

1.       Declaring victory too soon and moving to the next project before there is stabilization and sustainment of results.

2.       Underestimating the level of resistance that exists and taking no news as good news.

3.       Underestimating the importance of the first line supervisor and manager and failing to prepare them with the skills required for success.

Here are some best practices for avoiding the first mistake that will help you create sustained success. I believe this is important whether you’re early in the transformation process or have years of experience behind you. We’ll cover 2 and 3 in the next two newsletters.

Make improvements an inch wide and a mile deep

If a picture is worth a thousand words, a working success is priceless. Driving the probability of success to 99% in a small, controlled area of the business is far better than taking multiple areas to 50%. Make early projects the gold standard, a model for all others to aspire to.

Keys to success:

Choose a project where the chances of success are high. This is commonly referred to as low hanging fruit. The best area for a model work cell may not be the one with the highest ROI but that’s ok. We’re not just looking for ROI, we’re looking for mindset change. What we want is for people to start believing that they can make processes and systems better than they are today and that their work will become more rewarding and less frustrating in the process. Choose an area where reasonable results will be evident and the tools that you’ll be using fit with little modification.

Stack the deck. Make sure that your model project has a team of all winners. You’ll have plenty of time to engage the fence sitters and CAVEs later. You want the best minds and attitudes you can find. Give them everything they need, allow them to learn from others, and communicate your need for a gold standard. When they deliver, celebrate their success and recognize their contribution. These are likely to be your future leaders.

Stay with it until it’s everything you want it to be. Resist the urge to move on until the area is near perfection. This will take great patience but it will have long term rewards. Put metrics in place before the improvement events take place and keep the focus in that area until each metric is at world class standards. Keep all available resources focused on resolving issues and insist on regular updates.

Examples of adequate performance:

  • On-time delivery of 99.9 %
  • DPM of 250 or less
  • Lead time < 10x the value added time (less curing etc.)
  • Productivity 150% compared to pre-improvement level
  • Scrap and rework < 10% compared to pre-improvement level

Test the mindsets before you move on. Once you are convinced that you are ready to move on to the next area, do this test. Take the spotlight off for a week and see what happens, don’t jump in right away. When we do this, we want to see the reaction of the employees when they encounter problems. Do they give up, wait for someone to do something, or dig in and get the problem resolved? When you observe their behavior with the hand holding gone you will see what else you need to do in order to create sustained change. You will likely find that you need to provide problem-solving skills, clarify expectations, deal with conflicts or interpersonal skills, etc. The point is that you want to test drive the people in their new setting before you take away a significant amount of their support.
PDG provides a number of products and services that will help you create and sustain continuous improvement using lean, six sigma, and organizational development. If you would like a free 30 minute consultation to help you deal with any CI issue you are experiencing, you can email me at slage@pdgconsultants.com to set it up.

Thanks for reading our newsletter. Please feel free to pass it on to anyone who could benefit from it.

Steve Lage
President, PDG

www.pdgconsultants.com 1-866-404-7221

Creating a Compelling Case for Change

Monday, November 2nd, 2009

Creating a compelling case for change is probably one of the most overlooked and underutilized steps in the process of continuous improvement. Whether the objective is as basic as implementing standard work or as complex as leading a total organizational transformation, leaders almost always fail to adequately help people understand the need for change. It’s a fatal mistake. Here’s why.

Change requires people to take action, to do things differently, to think and behave in different ways, and even the most straightforward change will almost always cause anxiety and discomfort, at least at the outset. In addition, many organizations will have a large amount of complacency to overcome. Past success and signs of excess can cause people to believe that change isn’t really necessary. Too many times the call for change is interpreted as the next management fantasy that will pass in time, especially if it is delivered in a weak or unconvincing manner. There will always be skepticism about change; it could be in the form of anxiety, complacency, apathy, entitlement, or a host of other entrenched beliefs and behaviors. The bottom line is this; leaders must create a case for change that is strong enough to cause people to move past their anxieties and make personal sacrifices and choices that are consistent with the future state.

Four keys to creating a compelling case for change

Share the real story

There is always a reason for change. It could be that you are losing market share, or your quality doesn’t meet your customer’s expectations. You might be getting pressure from the company owners, share holders, or banks. You could be having trouble finding people to fill open positions so you are forced to turn away business instead of growing. Perhaps you are thinking about retiring and are concerned that the business may not survive without you. Why do you feel the need for change? Do your managers and employees know why change is needed? Whatever the reason, the first step in creating a compelling case for change is to be sure you are clear about what needs to change and why. One common mistake leaders make during this step is to share too little information, fearing that it may cause panic or a lack of confidence. Don’t make this mistake. You have to provide enough evidence to convince people that change is imperative, and it has to be compelling enough for people to overcome fear and make personal sacrifices. This may mean that you have to share information that makes you uncomfortable.

Take short-term actions consistent with your message

Change leaders need to act in a way that is consistent with their message. If you are telling people that the company’s financial performance is poor but at the same time you are driving a company-owned BMW or having your office remodeled, you are being inconsistent. Worse yet, you are giving people ammunition to blow holes in your case for change. You need to look at the things employees see and make sure that your actions are matching your words. If you are implementing 5S, make sure you are doing it in the office as well as the factory. Consider starting with your office. If you’re putting standard work in place make sure that supervisors and managers have standard work as well. If you are trying to improve productivity, conduct kaizen events throughout the organization and establish productivity metrics for every work team. If your focus is financial performance, eliminate perks and all signs of excess.

Benchmark the best and set high goals for performance

A little time and research can help you make a stronger case for change. There are companies who are annually achieving 10-15% increases in productivity, 40-50% reductions in scrap, rework and external defects, 50-90% reductions in lead time and inventories. These are big numbers associated with big changes that will help people calibrate with your expectations. Contrasting what’s possible with how your organization has performed in the past can be a powerful way to show the limitations of the status quo. There will always be the skeptics who will say, “but we’re different.”  Results from a variety of different organizations will usually disarm this resistance. If hospitals, banks, printing companies, and the State of Minnesota can make dramatic changes, your organization can too. Helping your people see what other organizations are achieving and setting similar goals for performance is important when it comes to reducing complacency.

Communicate the voice of the customer

Far too many people blame the customer for their problems: Increasing quality expectations, pricing pressures, fluctuating schedules, inaccurate forecasts, and so on….Some people blame the customer for just about everything. The reality is that nearly every market segment is becoming a customer’s market; if you don’t do a good job of meeting their needs there are plenty of competitors that will. Unfortunately, many managers and employees haven’t come to that conclusion and are waiting for the good old days to return. I’m afraid they’re going to be disappointed. Yogi Berra said it best. “The future ain’t what it used to be.” Every member of your organization needs to understand that the customer is the reason for the organization’s existence and that meeting their needs isn’t a burden, it’s a privilege. There is no substitute for hearing the voice of the customer and this should be something you do at the beginning of the change initiative and at regular intervals throughout. Reinforce the voice of the customer by consistently reminding employees and managers that this is the reality of today’s marketplace and that it isn’t going to change.

PDG provides a number of products and services that will help you create and sustain continuous improvement using lean, six sigma, and organizational development. If you would like a free 30 minute consultation to help you deal with any CI issue you are experiencing, you can email me at slage@pdgconsultants.com to set it up.

Thanks for reading our newsletter. Please feel free to pass it on to anyone who could benefit from it.

Steve Lage
President, PDG

www.pdgconsultants.com 1-866-404-7221

Aligining Your Management Team

Monday, November 2nd, 2009

Aligning your management team isn’t important, it’s essential. If just one member of your team isn’t committed to your continuous improvement journey, you’ve got a problem to fix. Why? It’s really pretty simple. When any change initiative is started, the members of the organization will have a variety of opinions about the need for change, the direction taken, the commitment level, and so on. There will be the early adopters who will welcome almost any change that seems reasonable and necessary. In contrast, there will be a fair number of CAVE dwellers (Citizens Against Virtually Everything) who will choose not to engage no matter what the cause or benefit. But the critical mass of people in most organizations will not let their opinions control them at the outset, instead, they will wait and observe the behavior of managers and assess their level of commitment. It is this level of commitment that will strongly influence their decision to get on board with a change initiative or not. This is why alignment is so critical. A manager who is not aligned with an initiative single handedly creates and perpetuates skepticism, apathy, and complacency. These mindsets are fierce opponents of change and make the work of improvement much more difficult that it has to be.

3 keys to aligning your management team


First determine what you want to achieve

Most managers consider themselves pretty good problem-solvers, but sometimes a rush to solutions prevents people from first defining what is wrong or what they want. It is critical to be clear about what you want to achieve before you decide how to achieve it. This may seem elementary or obvious, but most failed continuous improvement initiatives never had a clear and concise goal or objective. Many times, if there is a goal, it is vague and hard to measure, something like “we want to create a continuous improvement culture.” It is much more effective to define quantitative and measurable goals like reduce lead time to two days and reduce external defects by 90%. When you have these types of goals you can easily measure progress and people can see the scale of the initiative and eventually, how they will contribute. By clearly articulating what you want to achieve, you create something for managers to align with, without this, you leave it up to interpretation.

Define the roles and behaviors required of managers

Most people need to know what they are signing up for before they can fully commit. Likewise, most managers vastly underestimate what will be required of them in leading change. Once the goals are defined, the management team should spend time together discussing and documenting what will be required from each of them in the change process. It is important to define both the roles and behaviors of managers in these discussions. For instance, a goal that we often see is to improve relationships with customers. A role of a manager might be to initiate feedback from a customer in order to understand what needs to change to improve the relationship. A required behavior change might be to never utter an unappealing word about a customer and to take immediate action when someone else does. This might seem like a waste of time to many managers but it is critical to define different roles and behaviors if you want to achieve different results. Be wary of anyone on your team who is not engaged in this process and appears to be going through the motions. Alignment means that each of your managers is in full agreement with the goals and accepts their responsibility to be a leader.

Create a high performing management team

Whether it’s in business or sports, high performing teams with exceptional teamwork skills achieve the greatest results. Your organization is no exception. The success of your business will be heavily influenced by the level of teamwork that your management team can achieve. This is not soft, tree-hugging stuff, teamwork skills are just that…skills! Your managers need to develop the skills to effectively communicate, utilize resources, trust and be trustworthy, give and receive feedback, support and be supported, and be good team members. Managers who choose not to be good team members need to be removed. In addition, you should spend no less than 10% of your time in the early stages of a change initiative developing teamwork within your management team.


PDG provides a number of products and services that will help you create and sustain continuous improvement using lean, six sigma, and organizational development. If you would like a free 30 minute consultation to help you deal with any CI issue you are experiencing, you can email me at slage@pdgconsultants.com to set it up.

Thanks for reading our newsletter. Please feel free to pass it on to anyone who could benefit from it.

Steve Lage
President, PDG

www.pdgconsultants.com 1-866-404-7221

Developing Supervisors and Leads

Tuesday, August 11th, 2009

We wrote the feature to help people understand how important supervisors are in achieving and sustaining improvement and what they need to do about it.  This is something most organizations just don’t get, and the impact is staggering.

 

High performing supervisors are leaders that run their departments like business owners.

  • They set goals and measure performance
  • They take swift and effective action when goals aren’t met
  • They facilitate problem-solving teams
  • They coach and mentor employees and peers
  • They hold people accountable for performance and behavior
  • They build high performing teams
  • They engage employees through shared decision-making
  • They continuously improve productivity, quality, delivery, and safety performance

Unfortunately, most supervisors and leads don’t match this description. In fact, what is more common is to find these critical people firefighting, reacting to the most urgent issue with little control over how they spend their time. We call this the addiction to the heroic recovery.

 

While we always want people to be willing to go the extra mile, supervisors who spend all of their time on defense aren’t able to move their teams forward and continuously improve performance. At best, they maintain the status quo.

 

Our leadership feature, Lesson’s from Larry, will help you start the process of developing high performing supervisors. It will take you about 15 minutes to read and you will learn:

  • How high performing supervisors will benefit your organization
  • The critical skills and behaviors of high performing supervisors
  • What the day in the life of a supervisor should look like
  • What you need to do in order to develop high performing supervisors

Download a free copy of Lessons from Larry

Please feel free to contact me with any questions you may have.

Steve

Changing behavior to sustain results

Tuesday, August 11th, 2009

This is the second in our series of five best practices for sustaining change. Last time we talked about the limitations of auditing systems, this week we’ll discuss changing behavior.

Best practice #2: Leaders’ behavior must change first

I believe it is Einstein who said “Insanity is doing what you have always done and expecting different results.” This couldn’t be more relevant when it comes to sustaining improvements. Kaizen events and auditing systems are not enough. Sustaining changes will ultimately require behavior change from every member of the organization, but it must start with the leaders. If you’re not ready to do things differently yourself, don’t expect much from anyone else. If you are, here are some things to do.

First: Identify the behaviors that will be required to sustain improvements. Don’t trivialize this. You should spend time as a leadership team discussing and agreeing on what you want. It is also important that every leader agree to hold people accountable for the behaviors that you have defined.

Second: Tell and show people what you expect from them. This isn’t enough but it’s necessary. Communicate the expectations you have defined with great clarity and in different formats. Use all employee meetings, emails, letters, visual reminders, informal conversations, progress reviews, etc. This may seem like overkill, but it isn’t. Behavior change is personal and only happens when people decide it is worthwhile. In addition, people will interpret your commitment to change in part by how much energy you put into it. A small amount of energy will be interpreted as a small level of commitment.

Third: Change your behavior. People will pay much more attention to what you do than what you say, so you must act in a way that tells them you mean what you are saying. This goes for the entire leadership team. If you walk by a tool board and something is missing, stop and insist that it be put in the proper place. Audits and steering committee meetings are not the tools to deal with non-conformance. Counterproductive behaviors need to be dealt with in person at the instant they are observed. If a manager or supervisor isn’t dealing with behaviors, give them the choice to change and remove them if they make the wrong choice. In contrast, be sure to recognize and reward people who are doing the right things. Communicate examples of success with enthusiasm and offer praise to the early adopters.

 All of this may seem like more work than it’s worth, but it isn’t. While the process of behavior change is front-end loaded and full of challenges, the returns on cultural change are enormous and almost impossible for your competitors to replicate.  In fact, I recently had the privelage of meeting with a leader who is making tremendous progress. He said “If you’re not focused on changing behavior, beginning with yourself, you’re faking it.”

Next time we’ll discuss holding people accountable.

If you would like to discuss how to get help on this or any other change topic, email me at slage@pdgconsultants.com to arrange a time for us to talk.  

Thanks for your time. As always, your feedback is much appreciated.

Steve

5S Audits

Tuesday, August 11th, 2009

This week we are sharing our first of five best practices for
sustaining 5S. These are lessons learned from dozens of our
consulting clients.

Best practice #1: Audits aren’t enough

I can’t tell you how many factories I have toured where the 5S
auditing system is better than the 5S program itself. The truth is
that audits, no matter how good, are vastly insufficient when it
comes to sustaining 5S. Worse yet, they take time and energy to
manage. I suppose the reason so many organizations focus on the
audit is that they believe that measuring something will
automatically cause it to change. The problem is that what they are
measuring is the result of behavior, and behavior is tough to
change.

So the bottom line is that audits by themselves are a waste of
time and energy. What is really needed is for supervisors and
managers to learn how to change behaviors. Then an auditing system
can be effective because what it is really measuring the the
capability of the supervisor or manager of the area.

This doesn’t mean that you should abandon your auditing system.
However, if you’re not dealing with behavior change along with your
audit, you’re missing the boat.

Next week we’ll talk about changing behavior.

Steve

FYI: Last week I mentioned our 5S Self Study CD. There have been a lot of requests for more information so we created a link where you can see a short demonstration.

5S Basics

 

Feel free to email me or call Lisa at 1-866-404-7221 for more information.

Getting started with 5S

Tuesday, August 11th, 2009

This week we deal with one of our most common questions from email
subscribers.

“We have read about 5S and been on several tours to other
organizations and they all seem to have traveled different
paths on their 5S journey. Is there a best practice when it comes
to starting a 5S program.?”

While there is no cookie cutter 5S approach that seems to work with
every company, there are some common lessons learned that we can
share.

First: Start small, keep the focus tight and confined to one
manageable area. Go an inch wide and a mile deep. Raise the level
of 5S so high that people can’t help but notice.

Second: Develop and practice sustainment skills before you begin
work in the next area. It does you no good to run rampant through
the factory or office if you can’t sustain.

Third: Use your success to set 5S expectations for all areas of the
business and move through the entire company (factory and office)
one step at a time.

Remember the most challenging and important part of 5S is to change
behavior. This takes new skills and persistence from leaders. Do
not underestimate the importance of this. You should expect to
spend a good amount of time with first line supervisors and leaders.
Next week, we’ll share our first of five best practices for
sustainment. In the mean time, feel free to contact me for a free,
20 minute 5S consultation. Email me at slage@pdgconsultants.com to
set up a time.

Steve

P.S. If you’re looking for training materials and a practical approach to establishing an effective 5S system, we invite you to take a look at our 5S Kit.

 

To receive more information, contact Lisa at 1-866-404-7221