Posts Tagged ‘system’

Effectiveness, value then efficiency

December 10, 2013

All of us have a responsibility for achieving more with less. To be more efficient, we experiment to see what works for customers, what nearly works and what does not work.

Organizations should start by studying themselves as systems. Once their leaders understand how their system helps employees to fulfill their mission or not, they think and work differently. They start their efficiency improvement cycles by developing their management system to drive their processes through the walls of silos to focus on customers. Then they can focus on improving the system to deliver what customers value.

Given an environment that supports such thinking, together with our colleagues, we start the experiment by studying customer demand, what customers’ value and waste. We may then set ourselves a hypothesis to test the best way to satisfy value demand and reduce failure demand. We carefully work to our new or updated procedure to see if it is effective. We try again until successful. We institutionalize the successful new process so others in the system can depend on it. This also enables us to improve efficiency further with another cycle of improvement.

Improvement often starts by eliminating the local causes of problems from a process. Perhaps by mistake-proofing the riskiest processes too. But, after several improvement cycles, we find the wider system has the greatest impact, both adverse and beneficial, on our process. System-wide impacts come from other processes in the system. These impacts include the shared organizational beliefs (or culture) that leaders reinforce or weaken with their processes.

When the continual improvement cycle is effective it continues to make the system and its processes more efficient. The speed of this investment should be a result of the calculation of risk and reward on behalf of investors who share the mission for customer value. The management system should deliver the information needed for these risk-reward decisions from the data collected on what customers’ value.

Conformity is necessary for effectiveness and predictable effectiveness is necessary for delivering value and improving efficiency. Predictable outcomes are a mark of effective processes and systems. “Luck” best describes an organization happening to fulfill a requirement with an unknown process or system.

Start by understanding your organization as a system. How does it help your organization to fulfill your mission? What are the leadership processes? Be prepared to think and work differently. Start your efficiency improvement cycles by developing your management system so it is process-based leaving no silos. Then focus on improving your system and its processes to deliver what your current and future customers value.

Serving the People to Lead the Organization

May 26, 2013

Live and work to serve the people. This is the vital but rarely mentioned part of any effective management system. Servant leaders live and work this way. They foster a community that shares commitment to the needs of others. Indeed, servant leaders are selfless. They put themselves last. They put first the interests of the community, so their organization can make a positive difference. Next, they put the well-being and interests of the people who rely on them. Last, and last all the time, they consider their own interests.

What are the other attributes of the leaders who serve to lead?

Servant leaders understand the power of their organization as a system. They take responsibility for their system. They ensure their organizational management system is responsive to the needs of stakeholders. They consider the needs of employees, customers, suppliers, owners and others affected by the organization. A servant leader does not blame others for the poor performance of their system. They make followers less fearful of speaking up; however unpopular the truth may be.

Servant leaders ensure departments collaborate effectively. Their management system is cross-functional or process-based. Such systems enable organizational learning of future opportunities. Such systems also reduce the associated adverse risks. Servant leaders persuade, monitor and coach users to show respect for the requirements. They also show their respect for the organizational management system. They ensure it is improved and changed as necessary to enable the organization to improve its performance for stakeholders.

Servant leaders know their strengths and weaknesses. They understand that their team members have innate strengths and weaknesses too. They ensure process teams blend the different strengths of individuals for shared success. They nurture the personal, professional and spiritual growth of individual team members so individuals can make the best use of their talents.

Servant leaders are able communicators. Their systems gather data. After data analysis, information helps with effective decisions. Servant leaders actively listen and encourage active listening by decision-makers. Servant leaders also observe and seek to understand the needs of any silent stakeholders.

Servant leaders see beyond the limits of their organization with respect for customer needs and the needs of other stakeholders. Servant leaders focus on long-term organizational change. They develop future leaders so their organization continues to enable success for the stakeholders.

Servant leaders exemplify, align and share the behaviors, ethics and values of their organization. Their inspirational organizational culture creates and sustains a healthy work environment. It is integral to the holistic management system that is conducive to quality in everything the organization does.

How do I measure the effectiveness of training?

February 19, 2013

Why do we feel a need to measure the benefits of doing the right thing? We find this in quality costing too. Most quality costing is about the cost benefits of keeping promises instead of the cost benefits of making the promises valued by customers. Likewise, we need to do enough of the right thing the right way with our organization as a system to fulfill our collective objectives of creating (and keeping) more successful customers.

People, of diverse innate abilities, benefit in different ways from education and training. Some employees benefit immediately from the formal education and training. Others benefit more from workplace experiences following the education or training. Moreover, we all benefit from a process-based management system that helps us to determine requirements and coordinate our work to fulfill requirements.

Taking the individual out of the system, one could measure the abilities, skills and knowledge of each individual before and after the training session. However, we cannot change the innate abilities of anyone and the slower learners from workplace experiences may be marked down. This is not to mention the contributions or impediments of the leaders and the rest of the system.

Diverse process and project teams comprising individuals of different strengths and weaknesses help each other to fulfill objectives. Managers wisely play to the strengths of their people and avoid exposing their weaknesses. We cannot make everyone the same like robots.

What counts is competence of the individual, the process, leadership and the system of which all three are part. Therefore, we have to optimize the system (parts that work together) so it adds value faster and prevents loss sooner. $ per millisecond may be the ultimate metric appearing on the dashboard for all to see as a smoothed moving average.

Playing our part in value networks

December 22, 2012

Stakeholders may dream of having their requirements satisfied by the organizations that affect them. Some politicians and NGOs say the stakeholders have the right to have their requirements fulfilled. Others say that stakeholders, who can, should earn that right. It is intensely political as the forces for “equal opportunities” fight the forces for “equal outcomes”.

Organizations can understand themselves as systems and then develop their process-based organizational management systems to enable workers to add value faster and prevent loss sooner to benefit all stakeholders. They reward employees for working to benefit customers so employees can look after their families, their communities and themselves.

Businesses network and these networks comprise many different organizations so they are complex. Members may organize themselves to become a value network. Organizations are the nodes in the value network. Each node interfaces with other nodes that use contracts to govern their relationships as customers and as suppliers. Building, supporting and running a value network requires transparent, voluntary, consensus standards. Some of these standards specify more reliable management systems. Organizations develop and use their management systems to govern their work. They may even show they are ethical and competent enough to join and remain members of the value network. Once a supplier promises a standard, customers may use contracts to enforce even the voluntary standards. Organizations can and do impose strict selection and re-selection criteria on the members of their value networks.

Of course, the leaders and managers of the value networks and the organizations that comprise these networks should personally be transparent and accountable. However, to encourage risk taking to generate wealth, the individual decision makers are largely protected by their organization becoming the person accountable in the eyes of the law.

This separation of the organization from the people that run it creates mistrust. How then are customers confident enough to do business? Personal relationships count for a lot in making and accepting promises. The organizational management system helps salespeople and sales processes to make and keep competitive promises for their customers.

Customers and other stakeholders rely more and more on the law to protect them from poor decisions and broken promises. Organizations can see the rules are changing and want to stay ahead by broadening their duty of care to include customers, employees and communities. Indeed, the 2006 Companies Act in the UK reminds company directors of these wider duties.

Now we see companies climbing on the long bandwagon named “Sustainability for ALL Through Being Socially Responsible in Everything We Do”. Even if it were available, ISO 26000 certification would not “prove” social responsibility or sustainability credentials.

Instead, organizations have to perform to prove their heads, hearts, decisions and actions are socially responsible to their stakeholders. Stakeholder trust may then grow from websites that truth-check the social responsibility and sustainability claims of any organization. Indeed, stakeholders may fund these websites directly or indirectly.

Instead of publishing socially irresponsible versions of “greenwash”, may we see more leadership by global companies benefiting their stakeholders wherever they operate?

The primacy of process

November 3, 2012

Many people confuse processes with procedures. Processes are the work of cross-functional teams. Procedures are the specified way of doing the work. Procedures can be mind-numbing for competent workers especially when they specify unnecessary detail or are used instead of training.

A process may or may not add value. A procedure may or may not be effective and may or may not be documented.

Processes are the counterculture where the culture is for functions to congregate in departments to politick for promotion. Such departmental thinking has to change for the functions to coordinate their work to form a joined-up process to create more successful customers.

Indeed, processes refocus workers from keeping old-style departmental bosses happy to collaborate in satisfying customers. Processes that add value to inputs are the lifeblood of organizations that want to create more successful customers. This makes the new-style process bosses very happy.

Processes usually bring resources and controls so the work of humans can add value to a wide variety of inputs. Resources include skills, knowledge, facilities and equipment. Controls include care, coordination, methods and decisions. Get the inputs, resources and controls right and the output will be free from defects and other failures to fulfill requirements

Middle managers add value by coordinating, monitoring and improving the performance of cross-functional process teams to make sure everyone has what they need to keep their work in balance with customer demand. When customer demand reduces, middle managers or coaches help process teams improve their skills, facilities, equipment, methods or remove kinks from their processes. Or, as a last resort, they may be redeployed to under-resourced processes.

Leaders add value by establishing and living the values that impart care for customers and the requirements of other stakeholders. They ensure their organizations work effectively as systems to direct, nurture, support, redesign and remove processes as necessary to fulfill the organization’s mission. Small companies grow and become successful by providing value and continually improving their management systems, processes and products.

Process Management within well-designed systems are necessary for our work to pay our way in this world as we create more successful customers.

Who is responsible for quality?

June 17, 2012

The top manager is responsible for quality. He or she cannot effectively delegate this responsibility. Quality (good and bad) is the result of the organization working as a system.

The organizational management system exists to help the organization’s employees (and suppliers) to determine and fulfill requirements in creating more successful customers.

Some of the leader’s authority can be delegated to a competent manager who reports direct to them. This person can then:

– Ensure the processes necessary to fulfill requirements are in place

– Respond to suggested improvements to the system

– Ensure the system makes the team aware of customer requirements

– Facilitate actions to improve the system

– Run the internal audit programme to fulfill top management’s objectives

– Recommend system improvements to the leaders

– Report on the performance of the organizational management system

Making this person report to someone other than the top manager may remove the strategic focus on emerging and future customer needs.

Process improvement remains the primary responsibility of each process owner (or their boss). These process level improvements would be coordinated via this person who, instead of being called VP Quality, is the VP Management System.

Without this person the top manager has to do all this herself or himself.

This approach enables all of us to remain responsible for the quality of our work.

Reasons ISO 9001 projects fail or succeed

September 26, 2011

Big Q thinking says everything the organization does is for quality. Organizational thinking in this way can result in highly successful holistic system development projects. Some organizations, though, are stuck in little-q thinking, perhaps kept in that state of mind by their dying QC department.

Since 1986 here are four reasons we have observed for organizations failing to obtain the full benefits of ISO 9001:

1. The leaders are not willing volunteers in developing their system.
2. The leaders ignore the system that actually is their organization.
3. The leaders delegate implementation of procedures written around ISO 9001 instead.
4. The quality professionals do not include the financial processes in the management system.

The key to developing a process-based management system is to go with the flow of work in the organization.

Embark on a voyage of discovery rather than implementing a standard:

A. Discover what the organization already does to determine customer requirements (and get paid for meeting them).
B. Discover what the organization already does to fulfill these and other requirements.
C. Discover the processes in the management system (and determine any new ones needed by the management system).
D. Discover what is done in each process to prevent nonconformity instead of how nonconformity is detected.

Telling an individual to implement ISO 9001 is not a good idea. The system development project needs a cross-functional team that is able to analyze its system, determine its key processes and analyze each of those key processes and their interactions.

Just a few of the management system’s processes need to be newly designed and implemented after training of the process team.

Respect the system that is the organization otherwise the system development project will fail. One way to do this is to use the “as-is rule”. Document the process lightly as it is not as you would like it to be. Then, by using and improving the management system it will cause any needed improvements and grow the detail where needed.

What if the process is so bad it does not conform to the standard? Well then, use the two-week rule: record the nonconformity and say “you have a fortnight to correct the process then we will re-document the improved process as it is”. If too difficult to correct in two weeks then feed the nonconformity into an early corrective action using the newly developed management system.

A summary of common mistakes:

i) Leaders not showing their commitment to requirements.
ii) Putting the documented procedure ahead of the process.
iii) Ignoring the system that is the organization.
iv) Implementing ISO 9001 instead of developing the organization’s existing management system.

The system should help people to determine and meet requirements including the requirement for continual improvement. The procedures should be owned by the people not the “we know best department”. That way QA is delivered as a result of everyone using their management system to fulfill requirements.

Learn how to do this for yourselves here.

Process…

December 4, 2009

…is your work that should add value to data, information or materials and is supported by resources (facilities, equipment, talent, skills and knowledge) and controls (methods, procedures, care and coordination).

After deducting the cost of the resources, controls and inputs from value of the outputs we should receive a reward to share with our families, communities and, perhaps, spend on ourselves. If our life or work continues to add no value then we are subsidized by our savings or by people whose work does add value or we die.

Such is the vital importance of all processes.

How well does your organizational management system help you to do even better work?