All Posts Tagged With: "process improvement"

Ask What, Not Who

Several years ago I did a Baldrige assessment for a well-known service company. It was quickly apparent that a siege mentality permeated its offices with leadership blaming the production facility for problems and production blaming leadership and everybody blaming the customers, who generally disliked the company. When I presented my evaluation of the company’s management system, I told leaders they had a “culture of blameology.”

The most common question in response to any problem was, “Whose fault is it?” As a result, people kept their heads down. Nobody took initiative. Everybody avoided responsibility. Unhappy and unmotivated employees spent more time looking over their shoulders than focusing on what was in front of them.

So the first task was to change the question. Instead of asking whose fault a problem was, the more effective question is, “What’s the process?” W. Edwards Deming and Joseph Juran liked to point out that 80 to 90 to 95 percent of an organization’s problems are problems with the system, not with the people working in the system, so if you really have to blame someone, blame the people responsible for the system. Blame leadership. That won’t solve the problems but at least you’ll be holding the right people accountable.

You solve problems by understanding and improving the processes that produce them. This is a process issue, not a people issue. As someone once said, if you put a good performer up against a…

6May2010 | Steve George | 0 comments | Continued

Get Your Free Report Today!

This is how seven recent Baldrige Award Winners design, manage, and improve their processes:

  • Process design or redesign includes clearly identifying customer requirements, piloting or testing to make sure the process works as planned, training or retraining for those involved in the process, and identifying key process performance measures.
  • Process measurement is vital to process management and improvement.
  • A person or group is responsible for every key process.
  • Everyone needs to be involved in process improvement.
  • Process improvement must be managed.
  • Best-practice process improvements are identified and shared.

To read how each organization does this, sign up for the free report in the orange box on the right. You will receive the free report, and then you will get an email with a second free report on performance management. You will receive three emails over the next three weeks that talk about information on Baldrige.com that you may not be aware of—all of which is free. Finally, you will receive email occasionally to alert you to special features on Baldrige.com, such as the next free report. Everything is free. I won’t bug you with a lot of email. I won’t share your email address with anyone (see our Privacy Policy). And you can opt out easily if you change your mind.

When you sign up, you will receive an email to confirm your subscription (and to make sure nobody else is using your email address). Click on the link to get your free report.

Get…

2Apr2010 | Steve George | 0 comments | Continued

Find Your Bright Spots

I’ve been reading Switch: How to Change Things When Change Is Hard by Chip and Dan Heath. It’s well-researched, well-written, and thought-provoking, and I highly recommend it.

One of the brothers’ recommendations is to pursue the bright spots in your organization. In an interview in McKinsey Quarterly (March 2010), Chip Heath says, “The principle of bright spots is that you shouldn’t try to be more like Apple; you should try to be more like yourself at your best moments.” As the Heaths write in their book, figure out “what’s working and how can we do more of it.”

The Baldrige Criteria address this by asking how you manage organizational knowledge to accomplish the rapid identification, sharing, and implementation of best practices. To many organizations, identifying best practices means benchmarking. Chip Heath is not a big fan of benchmarking. In the interview, he says, “If you believe that organizations differ in their cultures, capabilities, and structures, there’s something fundamentally odd about saying that you want to be more like another company that has a very different culture, structure, and set of capabilities.”

While most formal benchmarking processes try to address these differences, a lot of time can be wasted trying to fit someone else’s best practice to the way your organization operates. Your own bright spots should be easier to replicate because you already know they work in your culture and structure. The Heaths offer suggestions on how to recognize and…

16Mar2010 | Steve George | 0 comments | Continued

We Are All Idiots

I first saw poka-yoke in action when I helped Zytec with its Baldrige Award-winning application in 1991. The company had adopted  Japanese quality improvement approaches, including hoshin planning, to create robust processes for manufacturing power supplies.

Poka-yoke is Japanese for “avoid mistakes.” In “Poka-Yoke is Not a Joke” (Harvard Business Review, February 4, 2010), Michael Schrage tells the story of how Shigeo Shingo introduced his idea to Toyota assembly line workers, describing his clever techniques to make production processes “idiot-proof”:

“One of the plant’s employees burst into tears,” Schrage writes. “‘I am not an idiot!’ she cried. A stricken Shingo quickly recanted. He scrapped ‘idiot-proof’ in favor of declaring his initiatives essential to making assembly lines ‘mistake-proof.’”

The spell checkers in document creation software, from word processing to email creation to filling out online forms, “mistake-proof” your writing. They are poka-yoke devices that have saved us all from embarrassment. New luxury cars use technology to stop the car if the driver falls asleep or isn’t paying attention to how close the car in front is getting. That’s poka-yoke. Hospital employees draw an “X” on an arm or leg on which surgery will be performed. Poka-yoke.

Poka-yoke works because we are all idiots, especially when it comes to tasks we repeat so often that we stop paying attention to how we do them. Like writing. Or driving. Or operating, if you’re a surgeon.

In the Process Management category of the Baldrige Criteria,…

5Feb2010 | Steve George | 0 comments | Continued

Process Management Review

I realize there’s a lot of stuff on this site that may obscure what you’re looking for. If you want to read about process design, management, and improvement, these articles will interest you. Just click on the name of the article to go to it.

  • The Process Matrix. A good way to identify your key work processes, requirements, and performance measures—and to see what’s missing.

Process thinking and a systems perspective are key characteristics of Baldrige Award recipients. If you know what your key processes are and systematically improve them, your management will deliver a competitive advantage.

4Jan2010 | Steve George | 2 comments | Continued

Baldrige and Quality Results

In earlier articles, we listed some of the world-class financial, customer, and workforce results achieved by Baldrige Award recipients. Another area where they excel is in the quality of their work processes:

  • Cost savings from increased productivity and deployed innovations of $23.5 million to $27 million annually for past three years (Honeywell Federal Manufacturing & Technologies)
  • Cost savings from process improvement increased from $8 million in 2005 to more than $25 million in FY2009 (Heartland Health)
  • Error-free delivery rate of 99% or better from 2005 to 2008 (Cargill Corn Milling)
  • In 2006, average charge $2,000 lower than that of its main competitor and $7,000 lower than the Denver metropolitan area (Poudre Valley Health System)
  • Crime rate cut in half over the last ten years (City of Coral Springs)
  • Achieved overall Lean/Six Sigma improvements in quality (91%), cost (70%), schedule (67%), and risk (84%) with an overall cost avoidance of $3.22 billion since 2001 (U.S. Army Armament Research, Development and Engineering Center)
  • Delivered services within 3 days of customer request compared to 40 days for competitors (Boeing AS)
  • Quality ratings 21% higher than closest competitor (Motorola CGISS)
  • 1 error in every 3,325 transactions—and 18 seconds between placing and receiving an order compared to competitors’ 70 sec. (Pal’s Sudden Service)

To find out more about world-class performance, read:

23Dec2009 | Steve George | 1 comment | Continued

The Next Big Thing?

A couple years ago a consultant friend asked me what I thought the next big thing would be after Six Sigma and Lean. I didn’t have an answer, but BusinessWeek thinks it knows.

It’s called jugaad, and it’s “fast becoming the latest buzzword in academic and management consulting circles” (“From India, the Latest Management Fad,” Reena Jana, BusinessWeek, December 2, 2009).

Pronounced joo-gaardh, jugaad is a Hindi slang word that means innovation to meet a customer’s immediate needs using scarce resources. Literally translated, it means “put-together contraption that moves.” In India, it’s commonly used to describe vehicles made out of whatever materials are available, most notably water pump sets that are converted into engines. According to Wikipedia, “the brakes of these vehicles very often fail and one of the passengers jumps down and applies a wooden block as a brake.”

If you don’t think that’s much of a threat to replace Six Sigma, you’re not thinking big enough. McKinsey consultants have begun discussing jugaad principles with their clients. Even Best Buy and Oracle are using jugaad to create more economical products and services.

We’re probably lucky they don’t build cars.

Still, the idea behind jugaad—innovation that is affordable and scalable—sounds appealing. Distancing it from its shoddy reputation will require a new horde of experts who can create a methodology that incorporates Six Sigma standards, Lean efficiency, and jugaad innovation.

Umm, excuse me while I call my consultant friend about that next big thing.

8Dec2009 | Steve George | 0 comments | Continued