Posts Tagged ‘change’

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

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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

Tags: , , , ,
Posted in Uncategorized | No Comments »