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The Three “I”s to Improving Organizational Performance

The Three “I”s to improving organizational performance

In these challenging times it is imperative that companies are focusing on how to improve their operations. This means looking for more effective and less wasteful ways of doing all things. I have an acronym consisting of three easy to remember “I”s. They are as follows:

  • Information
  • Involvement
  • Improvement

 

I will go into more detail on each of these points below.

 

Information:

–          Provide clear roles, goals, and expectations for everyone. Fuzzy expectations means fuzzy results.

–          Provide clear and candid feedback on an individual level as well as performance of the organization. This is in the form of metrics, personal work goals/ targets, customer complaints, scorecards, awards, etc… Do not make the mistake of only providing feedback on the negative. Employees need to hear the positive as well.

–          Provide clear instructions on how to perform work as well as any additional information or resources needed to effectively perform the work.

 

Involvement:

–          Involvement of the workforce is probably the biggest factor in creating effective culture changes, improvements and developing an effective quality system. When these are created and implemented in a vacuum they will be far less effective and supported.

–          I am a firm believer in involving the workforce in as much as possible. Some examples include internal auditing, layer process audits, problem solving, improvement initiatives, QMS/ process development, process development (where feasible and value added), customer visits, presentations, setting goals & targets, etc…

–          An involved and engaged workforce also reduces resistance to change.

 

Improvement:

–          If we are not improving both as individuals and as a organizations we are falling behind. Those that are maintaining the status quo will soon find themselves behind their competition who is improving.

–          Improvement teams and individual improvement programs can be a great way to improve quality, improve safety, reduce costs, improve customer satisfaction and make for a better work environment.

–          For those that are certified to ISO 9001, TS 16949 and other ISO based systems, improvement is a requirement. Many companies have reaped huge rewards and savings by the implementation of improvement initiatives as described above. Once we have implemented a good “process based QMS” with objectives that are measured, we can then use these measurements to improve the way that we manage our company and our quality system.

–          In addition and related to the 2nd “I” (involvement) it is a great way to engage the workforce as well.

   

Here is to improvement!

Mark   

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Performance: You get what you expect and accept

Performance: You get what you expect and accept

I will start with a fitting quote:

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“Don’t lower your expectations to meet your performance. Raise your level of performance to meet your expectations. Expect the best of yourself, and then do what is necessary to make it a reality.”
author – Ralph Marston

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Undoubtedly we have all seen this in action and experienced it in different areas of our lives. Parents that fail to hold their child accountable for poor grades, and bad behaviors. Bosses or managers  that do not provide feedback and guidance on not achieving goals (or worse not setting goals/ objectives).  The examples are widespread.

 

In regards to quality management and operational excellence, the same applies. If we as management do not set the bar high enough to provide challenging objectives, performance may actually decrease to the expected levels. If management “settles” and accepts product quality, personnel performance, operational performance (example – productivity, delivery, scrap, rework, etc…) and even personal performance that is low, that is precisely what we may get. If we provide objectives and goals that are challenging, yet achievable we stimulate the interest. Most people in my experience like a challenge. If we do not provide this in the work environment, people may just “get through the day” to get home to do the “mentally stimulating” things that they enjoy.

 

Having said this however, we as management need to make sure that we also provide the following to employees and staff:

–          Clear objectives/ goals that are a stretch yet achievable

–          Clear explanation/ communication and understanding of the objectives

–          Resources to be able to achieve the objectives (tools, equipment, data, personnel, time, etc…)

–          Competency (knowledge, training, experiences) to achieve the objectives

–          Feedback. We need to make sure that employees know that there is a process to evaluate progress and to provide positive and 

           negative feedback on how the process is going.

–          An action plan/ process and or resources if there are roadblocks or progress is stalling

 

One problem that I have seen in the past is that the objectives/ goals are lowered to meet the performance. An example might be increasing plant scrap levels to match that of the current performance level instead of developing a plan or project to improve this.

 

Another example occurs on the personal side as well. People that do not like to exercise or monitor what they eat, accept their current health levels as “that’s just the way I am”, instead of devising an action plan to change it.

 

 

Establishment of the targets

I would like to elaborate on the setting of these objectives. Many times these expectations are set from the management team. Other times they are set by department managers, or leaders. In my experience we achieve the best scenario when we involve the employees, staff, etc… in developing and understanding the process and the objectives. Not only does this help reduce resistance and obtain “buy in” from employees but it makes them part of the process and creates ownership of the objective.  To reiterate: the objectives must be challenging and achievable.

 

Clear Communication of expectations and specific feedback   

As managers we must ensure that we have clearly stated the objectives in language that the targeted employees will understand as well. Posting objectives in the plant or work areas in a terminology not used or understood is a surefire way to set them up to fail. We must also make sure that we talk about the process, objectives with the employees so that it is known that these objectives are important. For example – Hanging a trend chart on the wall with results of scrap levels is great but if there is no interaction or discussion of what the results mean and what is to be done to change then not much will happen many times.  These results and actions should be discussed in meetings, even written about in company newsletters, or websites/ blogs. If we do not show that the objectives are important then the excitement of the initial discussions will wear down and everyone will go back to business as usual.

 

In short – if we are not getting better we are falling behind the competition. In order to get better we must understand the processes, measure the processes and hold people accountable to the results and goals.  If we do not involve our employees in the planning, and setting of goals they become bystanders and do not “own” the process or objectives. It is management’s job to clearly communicate these and provide for removing of roadblocks beyond the employees control.

 

Here is to improvement!

Mark

Quality Leadership – Vision is crucial

Quality Leadership – Vision is crucial
I may as well start with a fitting quote:
“The fact is that all flights, short or long distance, are off course 99% of the time..”
(Brian Tracy)
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“Complacency is the enemy”
If we do not have a crystal clear picture of what we want our quality system to be or do, there is a very high probability that we will merely coast along into complacency. This can be dangerous because when we become complacent we stop improving.
It is my belief that quality leadership begins with a “Quality Vision for the organization”. This is not to imply a placard hanging on the wall with a flashy statement that no one looks at, much less cares about.

Without a clear picture in our minds of where our quality system will be in the future, the employees (including management) will likely have no idea of what needs to be done or what improvements they should be working on. As a matter of fact, employees may actually be working on projects that are in conflict with what the organization is trying to achieve. Without this clear “vision” of where you plan (or need) to be in terms of your quality system and product/ service quality, you will end up in a place that you do not want to be. Like the plane (above in the quote) that is constantly off course and is constantly having its course adjusted to reach the desired destination (Vision), your organization needs to know what the end destination is. Without this, you may jump around on project after project, yet not be moving any closer to where you truly need to be moving towards. Some will refer to this as “busy work”. Confusing this “busy work” or movement for progress is a waste of resources and lost time.

“How do we do it?”
Here are some initial steps to what I consider crucial in becoming an effective quality organization:
1) Have a clear vision or picture in your mind as to where you want to be as an organization in “X” number of years or months. This will set the stages for the next steps thus it is important.
2) Next, develop a meaningful quality policy. Quality policies should be in terminology that all employees understand and can translate into clear direction for the daily activities. ISO 9001 requires one as well.
3) Develop and communicate actionable “Objectives”. These should be directly linked to your Quality Policy and your Vision. Each of these objectives should use the “S.M.A.R.T’ approach. (Specific, Measureable, Action Oriented, Realistic and time bound).
4) Define the critical business processes within your organization, the process owners, objectives & measures of success of each and monitor/ measure them.
5) Have clearly defined jobs for your employees with objectives and constant feedback.
6) Develop a robust hiring and employee development program.
7) Develop a rock solid contract review and product launch process. If you are not doing this correctly and effectively, you will likely fight problems during the entire product life cycle.
8) Implement a top notch internal audit process made up of all departments, units. There is no better method to engage and educate employees on the “big picture” of the business than to involve them.
9) Important one – management must walk the talk. Saying one thing and doing another is probably the worst thing for an organization. This can be as damaging as trying to implement new programs every month that go nowhere (start/ stops).

Obviously there are tasks that need to be done as well, but this is just a starting point as is intended by this post.

Here is to improvement.
Mark

Developing an Effective Quality Management System (QMS)

Developing an Effective Quality Management System (QMS)

 Let’s start by breaking down and defining what a Quality Management System (QMS) is in its simplest form:

–          Quality (Q) – Effectively and efficiently giving the customer what they are expecting and paying you for.

–          Management (M) – is the most effective and efficient use of resources (people, equipment, processes, etc…)

–          System (S) – is a stable, repeatable way of meeting some goal/ objective by effectively managing the processes making up the system.

If we put this together we see that a QMS is the repeatable method of managing all of the processes that form the system by which you provide a customer (internal or external) for something that they find value in.

 

In the not so distant past developing a QMS meant nothing more than writing a quality manual, procedures and work instructions to meet the requirements of some standard (such as ISO 9001).

 

More recent approaches are looking at the entire system and the QMS (business) processes that make it up, the objectives and measures of success (goals) of these processes and then the documentation aspect of it. The “bottom line” is that you can have the most perfectly written procedures in the world that are followed to the letter of the law, but if they are not adding value by meeting the “real” goals of the processes they mean nothing.

 

QMS processes are meant to add value, be measured, require the use of resources and data and be managed to fulfill the stated objectives.

 

Developing a QMS can be difficult if it is done correctly. Now there are those that buy a pre-packaged documentation package or have a Consultant write the entire system for them.

Many companies and quality professionals find the biggest hurdle to be resistance to change. In developing a QMS, one has to try to minimize this resistance where possible. A few strategies that I personally find helpful to minimizing this resistance are to:

  • Involve and empower the workforce that will be working in the processes.
  • Find out which of the current practices, processes, procedures, etc… are working well and try to use them and only changing/ adding/ revising those aspects that need to be changed, initially.
  • Get Senior Management buy in and support right at the outset. If this is lacking you are almost always doomed to failure. This helps in obtaining the resources for the project, and getting the process owners to take ownership of the processes that they were tasked to manage.

 

Here is a brief path that I find useful in developing a QMS (note – this is not claimed to be the only path as there are many).

 

1)      Establish a steering committee/ team to guide the process and an overall champion

2)      Determine the overall project required completion and work backwards on the pieces that make up the project.

3)      Determine the QMS process and objectives. These may not formally exist yet, but you can sometimes determine them by talking to those involved in the processes of the QMS. These should also drive your quality policy and quality objectives.

4)      Perform a baseline audit to the required QMS standard or other requirements.

5)      Based on the audit, determine the “gaps” and put a priority on them based on those that impact the customer, effect the company bottom line or the order needed to build a basic quality management system if one does not exist. More on this later.

6)      Develop your Quality Policy Manual/ Documentation. (Sometimes called Level 1 documentation)

7)      Develop your QMS procedures (Who is responsible for what) in the determined format (process maps, text based, pictures, etc…). (Sometimes called Level 2 documentation)

8)      Where deemed necessary develop any needed work instructions (The How To) documentation of your system. (Sometimes called Level 3 documentation)

9)      Train your entire team on the required new or revised QMS documentation and verify the effectiveness. This is a chance to give the changes a “dry run”.

10)  Gather and analyze data on the QMS process metrics/ measures/ etc…

11)  Make sure that the QMS process measures have been given careful planning. Mainly what is being measured, who will produce the data, who will gather it, how, how often, who will analyze it and who will take action on it?

12)  Perform another QMS system audit and address any “gaps” with your corrective action process.

 

Developing a QMS can be intimidating but if you keep a cool head and focus on the important things first as discussed above you will be fine with some simple project management. Keep in mind that you still have a business to run and you need to keep the customer serviced and satisfied.

 

Good luck.

Mark

Deming’s Point No. 9 – Break Down Barriers Between Staff Areas

Deming’s Point No. 9 – Break Down Barriers Between Staff Areas

 

W. Edwards Deming’s 9th point is what organization leadership is all about.

To quote Deming himself – “Management Creates the System” which simply means that the culture, focus and goals of the company start at the top.

 

I want to begin this blog topic with a few quotes that are very relevant:

a) “Teamwork is the ability to work together toward a common vision, even if that vision becomes extremely blurry” (author unknown).

 

b) “Talent wins a game, but teamwork wins championships” (Michael Jordan).

 

This topic is near and dear to my heart, as I truly believe that we achieve more as an organization working in teams than individuals. Teamwork has a strange effect called “synergy” in which the whole becomes greater than the sum of the individuals. I do not believe that any initiative can be effectively and permanently implemented if it is not supported by the other staff or departments. In many instances organizations develop goals that are not supported by all staff areas and can actually result in conflicting departmental goals. This can be devastating to the organization and can lead to moral issues, departmental rifts and outright battles that can tear apart the very fabric of an organization.

 

Having worked in quality for over 20 years I have been part of different initiatives from developing procedures, processes, systems, etc… and in my experience when this can be done in a non-adversarial way the result is much more effective.

 

At times and in many companies there is an antagonistic relationship between quality and production. This can be a result of a perceived difference in objectives or goals. Quality may feel that production is trying to ship product that is not to standards and production may feel that quality is only a roadblock that creates problems of rigid standards that are not needed. This “gap” between the staff areas can be made worse when a clear goal or stance by Upper Management is not communicated and adhered to. If organizational goals are not made clear, then each may feel that they are right and the other wrong which is usually not the case in reality. Sometimes personalities can come into the equation. If the personality issues are not dealt with, these types of problems will persist.

 

An example related to quality is the development of a new process or even a quality system. If the process or quality system involves inter-departmental linkages (which most do) there needs to be involvement and “buy-in” by all involved areas. To create these processes in a vacuum will not result in an optimal implementation usually.                

 

Bottom line is that as Deming stated – “Management Creates the System” and thus the organizational goals as well. Fuzzy goals equal an ineffective organization.    

 

Here is to improvement.

Mark            

 

Company Culture Is Management Controlled

Some of the most commonly cited mechanisms for changing company culture are as follows:

1) Formal statments of mission, vision, quality policy, values, etc (These are set by Management).

2) The physical design and organization of work spaces (desk layout, cubicles, no walls, departmental segregation, etc..) (These are set by Management)

3) Slogans, sayings, language used, etc… (Driven by or accepted by Management)

4) Deliberate new employee orientation, socialization or training programs (Set by Management) 

5) Reward systems (promotions, awards, status symbols, etc..) that are reinforced by the organization (Set by Management)

6) Company stories, legends, tales, etc.. that are talked about and cherished by key people at key events. This is used to reinforce what is thought to be important to an organization. (These are also Management reinforced)

7) Organizational structure or systems (org charts, etc…) (Designated by  Management)

8) Organizational Goals – leading to departmental and personal goals (Established by Management)

In analyzing these it becomes apparent that the culture that exists within an organization is determined mainly by Management either directly by policies or by what is reinforced on an ongoing basis.

Keeping this in mind, it reinforces the fact that company cultures can be changed if Management is willing to commit to doing what it requires to instill these new beliefs, attitudes and actions and has the right Managemt personnel in place that support these values.

Even with the right personnel in place company culture change can still sometimes take a period of time to have the desired results.

As is the case with many company initiatives culture definitely starts at the top.

Mark