Decision Making: 5 Common Pitfalls to Avoid

Being a manager can be both stimulating and challenging. Transitioning from an individual contributor to a manager comes with the opportunity to influence decision-making processes, implement business strategies, and oversee organizational change initiatives.

It can also increase the likelihood that you’ll make mistakes, as you take on greater responsibility and learn how to manage not just yourself, but others. If leveraged correctly, these professional missteps can become learning opportunities.

Being aware of common pitfalls that managers encounter when facing critical business decisions is a great way to ensure you are equipped with the know-how to overcome organizational challenges and lead your team to success.

Here are several common pitfalls in decision making that should be avoided if you want to be effective.

1. Deciding alone. There are many benefits to consulting with others on a decision: gaining different perspectives, more resources to draw upon and more commitment to the decision by those consulted.
2. Every decision a major decision? Not every decision requires a lengthy decision-making process. Don’t get bogged down with minor problems. If they’re minor, make a reasonable decision and move on.
3. “The last time I was wrong was when I thought I made a mistake.” No one is always right. If you’ve made a bad decision, admit it and get started on fixing it. Remember – it’s impossible to force a bad decision into being a good one.
4. “Boy! I sure wish I hadn’t.” Just the opposite of pitfall #3. Because no one can be right all the time, don’t waste your energy regretting bad decisions. Get on to current issues.
5. Failing to use past precedent. Maybe the same problem has come up before and been effectively solved. Perhaps, if it has come up enough, there is a company policy that covers it.

Understanding how to leverage and navigate the decision-making process is essential to becoming a better manager. By learning about the common pitfalls that managers encounter when facing important business decisions, you can ensure you’re equipped with the know-how to overcome organizational challenges and lead your team to success.

Lean Quote: Providing Praise Pays Off!

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Research indicates that employees have three prime needs: Interesting work, recognition for doing a good job, and being let in on things that are going on in the company."   —  Zig Ziglar

As a leader, do you consistently acknowledge the accomplishments of others? When recognition is lacking, work efforts can also be lacking. Providing praise pays off!

In a Global Gallup poll of hundreds of organizations and thousands of teams in a variety of industries, 25% of the employees strongly agreed that they had received recognition or praise for doing good work in the last week.  Does that number feel low to you?

The article: From Praise to Profits: The Business Case for Recognition at Work provides many statistics worth reading, but I want to highlight the Five Key Pillars they shared that are required for a successful recognition program:

1.    Fulfilling: It feels appropriate to the accomplishment

2.    Authentic: It feels genuine rather than a formality.

3.    Personalized: It’s the way someone wants to be recognized.

4.    Equitable: It’s about achievement, not favoritism.

5.    Embedded: It’s part of the values and practices throughout the organization.

How is your recognition process? Are the 5 Pillars helpful? Sharing praise will foster a work culture that is positive, motivating, and energized, and will ultimately increase your results.

Sense of Urgency: Good or Bad?

When the topic of sense of urgency comes up, most leaders would agree it’s a discriminator which can mean the difference between thriving or surviving. It shows drive and purpose in an individual or business. It’s usually contagious, so the display of urgency will influence others to demonstrate drive as well. As a leader, I’ve learned that having a sense of urgency is important, but not always the only thing to consider. Let’s take a deeper dive into this behavior.

The challenge for many leaders of continuous improvement is two fold. First, you must inspire the desire or enthusiasm necessary to change. Second, you must harness this energy in the right direction. To make this change real and combat complacency, the death of many an organization, leaders seek to create a sense of urgency. John P. Kotter, a Harvard Business School Professor and author of A Sense of Urgency, was recently interviewed by Inc.com about leading during a recession.

Here is how Kotter explains the difference in an interview with Inc.com.

• Bad Urgency. "There are lots of signs of false urgency. Frenetic activity. Everyone is exhausted, working 14-hour days. One red flag is how difficult it is to schedule a meeting. With true urgency, people leave lots of white space on their calendars, because they recognize that the important stuff -- the stuff they need to deal with immediately -- is going to happen. If you're overbooked, you can't manage pressing problems or even recognize they're pressing until too late."
• Good Urgency. "The leader should be telling them to do just the opposite. He should say, 'I want everyone to look at your calendars. What's on there that doesn't clearly move us forward? Get rid of it!' True urgency is the most important precursor of real change."

Urgency is important because meaningful organizational change cannot occur without the cooperation of the affected stakeholders. This is why creating a sense of urgency for a needed change is the first step leaders must take to gain the cooperation of management and employees.

There are several steps leaders can take to create a sense of urgency and gain the commitment of managers, employees, and other stakeholders.

They include the following:

·        Showing the seriousness of leadership commitment to the coming change by eliminating obvious waste;

·        Sharing  bad news with the organization;

·        Requiring managers and employees to talk directly regularly with unhappy suppliers, customers, and other stakeholders to understand their concerns;

·        Sharing data throughout the organization that supports the claim that change is necessary; and

·        Ensuring organizational decisions and management actions are in agreement with change communications (walk the talk).

 

Leaders create a sense of urgency by both selling the value of a future state to organizational stakeholders and making the status quo a dangerous place for the stakeholders to remain.  In effect, senior leaders create a compelling narrative that tells stakeholders why it is not in their best interest for the organization to stay in its current state.

This is often done through frank discussions about the current market and competitive realities, sharing relevant financial and customer data, and discussing opportunities and crises facing the organization.  Communication is critical and the communications about the urgent need for change must be honest.  A manufactured sense of urgency will soon be seen for what it is and this will doom a change effort to mediocrity.

Lean Tips Edition #203 (#3256 - #3270)

For my Facebook fans you already know about this great feature. But for those of you that are not connected to A Lean Journey on Facebook or Twitter I post daily a feature I call Lean Tips.  It is meant to be advice, things I learned from experience, and some knowledge tidbits about Lean to help you along your journey.  Another great reason to like A Lean Journey on Facebook.

Click this link for A Lean Journey's Facebook Page Notes Feed.

Here is the next addition of tips from the Facebook page:

Lean Tip #3256 – Make a Plan for the Change

When bringing up a problem to someone, they’re much more likely to be receptive to you if you also bring a solution. Change works similarly. If you want to institute change in your organization, you need to come up with at least a partial plan for enacting that change. It doesn’t have to be set in stone, as the company executives are going to have a say, but if you at least have a framework ready to go, it’ll make implementing the change much easier.

Lean Tip #3257 – Change What You Can Change: Yourself

There is an old saying that too many cooks spoil the soup. Similarly, too many leaders during change can make everything confusing and fragmented. If you are not in a position to formally influence the change, instead of trying to create a leadership role, take the opportunity to change your own attitude, behaviors, and beliefs. You can do this by setting realistic goals for yourself and then eliciting feedback on them from peers, managers, and perhaps even customers. Remember that organizational change and personal change have strong similarities: You must clearly identify what you want to change, what the change looks like, and the specific steps and milestones for meeting them.

Lean Tip #3258 – Become an Early Adopter And Ally for Change 

Adapting early to change and being an ally for it is one of the simplest and most visible ways of leading change when you are not running the show. This entails wanting change to happen and working toward that goal as soon as you have a logical explanation for a particular alteration or modification.

The nice thing about being an ally and early adopter is that you aren’t seen as someone who is just giving facetime to the change; you are actually doing it and helping to spread enthusiasm among your team members.

Lean Tip #3259 – Help Other Employees Cope With Change

Even if you’re excited about change, not everyone will be. Some team members might find the going to be extremely tough; they might also feel confused, angry, or taken advantage of. You can help make the transition easier for them. First, be on the lookout for signals that someone needs help coping, like absenteeism, depressed or despondent behavior, or attacks on team members. You might want to intervene one-on-one or help steer a bickering session into a change session. You can also help others cope through active listening. Try to act as a sounding board, and make it your goal to help the other person reduce emotionality and increase rational discussion.

Lean Tip #3260 – Encourage Communication Among Your Peers

Remember, the sum of the parts is always greater than individual contribution levels added together. On a regular basis, ask yourself how you can help build a better organization by diffusing confusion, expediting the flow of information, or reaching out to others. Communication between peers and up through management helps make your job easier in a number of ways. It uncovers what is valuable to the business and what is not, it minimizes the amount of time required to achieve goals, and it maximizes productivity.

Lean Tip #3261 – Choose Change Champions.

It’s important that the change is supported by people throughout all levels of the organization, and not just by those at the top. Even though the directive for any change typically comes from leadership, people are much more likely to buy in to a new initiative if others they work with are, too. For this reason, having champions at all levels who are engaged in the change process is key. Hold focus group meetings to get feedback on what may be difficult about the change and take this feedback seriously.

Lean Tip #3262 – Anticipate Pitfalls.

With any change, there is going to be an adjustment period. There will also likely be negative aspects. It’s important to think through these potential pitfalls ahead of time and come up with ideas to combat them. Skipping this step could leave you unprepared once the initiative is already underway. There is no way to predict everything that could go wrong, but putting real thought into this ahead of time will save a lot of pain later. 

Lean Tip #3263 – Enable Good Communication within the Organization 

A good communication system is very important especially when the organization is facing change. Lack or poor communication with the employees can result to negative impact while positive will ensure that everyone understands what the company is going through hence more likely to embrace it.

From a clear stand point, managers need to have detailed information about the change so that they can access how it is going to affect the organization. Don’t sit back and wait for miracle to happen but talk to your boss and all your co-workers and get them to understand what is happening. When doing this, be warned because the news can be distorting and yield mixed rumors that are not good at the workplace.

Lean Tip #3264 – Follow Through on Plans — But be Flexible

Without commitment and determination, your team won’t get far in shifting to the “new normal” you are asking them to embrace. But you still need to remain flexible. Be ready to alter your strategies, if necessary, to get past bumps in the road.

Change is a process. And, to manage change effectively, you need to be prepared to take detours at times so that, ultimately, your team can stay on course and reach the intended destination.

Lean Tip #3265 – Engagement is Everything

Don’t underestimate the power of engagement here. Change requires engagement to succeed. Highlighting employee strengths and where these can be put to effective use within the change itself will move focus away from resistance towards more positive actions.

Identify any informal leaders within the business and ensure they are a champion for change. You could create an internal campaign to identify those who are quick to adapt to the change and show leadership qualities in their positive adoption.

Lean Tip #3266 – Encourage Collaboration

Create work practices to encourage employees to work together and openly discuss ways to improve. For example:

·        allow job swaps that foster new perspectives from different employees

·        hold process improvement brainstorming sessions with employees from different parts of the business

·        introduce a new ideas or 'what if?' section to your regular meetings

If you can, provide a dedicated area that will promote employee interaction. Ideally, an open space where they can sit and chat in a relaxing environment. Informal discussions often lead to improved employee relationships and trust, which encourages teamwork and leads to innovation.

Lean Tip #3267 – Give Employees Time and Space to Innovate

Be open and approachable to new ideas, and set aside spaces for employees to create and share ideas.

Many large companies often allocate time for their employees to break from routine roles to inspire new thoughts. This could be an employee retreat, allocated time each day or a day out of the office.

You can also support innovation by setting up:

·        meetings to share ideas

·        suggestion boxes

·        a suggestion area on the staff intranet

·        dedicated times or rooms 

Lean Tip #3268 – Accept Failure and Make it the Norm

It’s an unavoidable fact that innovation carries the risk of failure. For every example of world-changing innovation, there’s a whole trash heap of failed ideas.

Rather than running from this fact, companies need to come to peace with it. Acknowledge the possibility of failure, dedramatize it and encourage risky initiatives to help employees approach innovation in a more open and inventive way.

Lean Tip #3269 – Be Positive About Every Suggestion 

Treat every idea with the same amount of respect. Record or write every idea your team suggests, but try to limit how much time you spend on each idea. This can help encourage your team to continue thinking of new ideas and using previous suggestions as inspiration.

Lean Tip #3270 – Recognize and Reward Successful Innovations

To get the best out of your people when it comes to innovation, you need a way to recognize and reward successful new ideas - especially when they have the potential to save the company money or boost revenue.

This can be as simple as providing public recognition, for example, giving out awards at all-hands meetings. Though, if you also feel like offering flashy rewards, we’re sure your staff won’t mind!

Lean Quote: 7 Leadership Behaviors of Leadership Excellence

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Behavior is the mirror in which everyone shows their image."   —  Johann Wolfgang von Goethe

Great leaders know that development is a necessity -- not a "nice to have." They're obsessed with personal growth and relentlessly focused on growing their leadership abilities.

But too often, leaders struggle to build leadership strength because they use development "solutions" that are based on a faulty premise: that becoming a better leader begins with correcting weaknesses. Other leadership development offerings teach skills that aren't actually connected to outcomes.

Whether you're a CEO, team leader or entrepreneur, Gallup's science uncovered seven universal behaviors that directly affect performance and big-picture outcomes. In fact, these seven behaviors apply to many roles -- they are crucial behaviors that define a high-performance workplace.

Here are the 7 Leadership Behaviors that Gallup has identified as essential competencies required for universal leadership excellence:

1. Build relationships – We’ve spoken extensively about this. "Great leaders build genuine connections and trusting relationships with their peers, followers and networks."

2. Develop people – Again, this is not a new thought. "Leaders must prioritize ongoing development for every individual in their organization".

3. Lead change – Understanding and leading through change is a given. "Leaders should model desired behaviors and challenge people to take responsibility for change".

4. Inspire others - Leadership matters! "People thrive in a positive and encouraging environment that conveys purpose, celebrates accomplishments and recognizes each person's unique importance".

5. Think critically - This requires awareness and constant learning. "Great leaders are in a never-ending pursuit of information . . . establishing the goal, understanding risks . . . and devising a comprehensive, multifaceted plan for execution".

6. Communicate clearly – It’s not just about speaking and listening, it’s also about connections. "Leaders should . . . fuel a culture with streamlined information sharing and informed decision-making. People need to be listened to and listen themselves -- and communication enables meaningful connections".

7. Create accountability - Leaders hold themselves and others accountable. "Leaders should define what employees are accountable for, set and cascade goals, and infuse accountability in employee development".

These seven behaviors are a guiding light for ongoing leadership development. You will find that you easily excel in some areas, while others might not come as naturally. Whether you're a team leader or an executive, your time is best spent developing what you're good at, not worrying about what you're bad at. Understanding your strengths is the most effective way to grow in the seven behaviors -- and it's a proven way to become a better leader.

10 Lean Blogs to Follow 2023

A key part of Lean (or continuous improvement) is continuous education – learning new ideas to challenge your thinking. The Lean community of thinkers is a generous one that believes in paying it forward. Many share their knowledge and experience in blogs they write. Reading these Lean blogs can keep Lean principles and practices at the forefront of your mind as you make decisions in work and in life.

Here’s a list of ten Lean blogs you should follow, in no particular order…

1) Bobemiliani.com – by Bob Emiliani

Location: Providence, Rhode Island

About: Bob Emiliani is a professor of Lean management at Central Connecticut State University. He is an author of 17 books and 47 research papers based on his deep researches in the fields of leadership and management. Prior to his academic career, Dr. Emiliani has 15 years of industry experience and he is more than passionate about Lean management. All this knowledge converts into insightful articles presented in his blog. A gold mine for both, Lean practitioners and Lean enthusiasts.

Frequency: 7 posts / month

 

2) Curious Cat Management Improvement Blog – by John Hunter

Location: Houston, TX

About: In Curious Cat, John Hunter shares opinions and challenges derived from his professional and personal experience. John is an author, lean management practitioner, software development consultant and much more. Here you can find original commentaries related to different topics such as lean management, management improvement and etc.

Frequency: 3 posts / day

 

3) Gemba Academy Blog – by Jon Miller, Ron Periera, Kevin Meyer, Steve Kane

Location: USA

About: Gemba Academy offers online Lean Manufacturing, Lean Office, and Six Sigma training to companies around the world. They teach topics such as 5S, the 7 Wastes, Kanban, Standard Work, Value Stream Mapping, Quick Changeover, and how to leverage these methods in Kaizen Events.

Frequency: 2 posts / week

 

4) JFlinch Blog – by Jamie Flinchbaugh

Location: Lehigh Valley, PA

About: Jamie Flinchbaugh is a lean advisor, speaker, and author. He has advised over 300 companies around the world in a lean transformation. Previously he co-founded the Lean Learning Center, and he has helped build nearly 20 other companies as either a co-founder, board of directors member, advisor, or angel investor.

Frequency: 3 posts / week

 

5) Lean Blog – by Mark Graban

Location: Fort Worth, TX

About: Mark started this blog back in 2005. He is a veteran Lean management practitioner in the manufacturing industry and later he decided to dedicate his professional life to incorporating the principles of Lean in the healthcare industry.

Frequency: 1 post / day

 

6) Lean Pathways – by Pascal Dennis and Al Norval

Location: Toronto, CA

About: In this outstanding Lean blog, you can enjoy insightful articles, find interesting facts and curious points of view. The author often presents commonly accepted norms and theories related to Lean but from a different angle. Pascal Dennis is a professional engineer, advisor and author of several books. He has a solid background with Lean and has supported lean implementation at leading international companies from different industries.

Frequency: 1 post / week

 

7) The Lean Thinker – by Mark Rosenthal

Location: Washington

About: Mark is seasoned in lean manufacturing and has more than 20 years of professional experience. He has helped various organizations to implement and understand continuous improvement. Whether you are a beginner or an advanced professional, in this Lean blog you may find valuable information about broad or more specific topics.

Frequency: 1 post / week

 

8) Katie Anderson Blog – by Katie Anderson

Location: Massachusetts

About: For over 20 years, Katie has helped thousands of leaders around the world develop the mindset and capabilities to create organizational learning cultures that foster innovation, engagement, and longevity. She’s on a mission to empower leaders at all levels to lead with intention to achieve higher levels of performance, increase their personal and professional impact, and create a meaningful legacy.

Frequency: 1 posts / month

 

9) Old Lean Dude – by Bruce Hamilton

Location: Massachusetts

About: Bruce has been around the Lean scene since 1985, first as a practitioner and later as a consultant. He is passionate about learning and shares all his thoughts and learned lessons on his blog. As he says “Everyday there is something new to learn and to share.” His blog is an ongoing reflection on Lean philosophy and practices with an emphasis on keeping good jobs close to home.

Frequency: 1 post / week

 

10) A Lean Journey – by Tim McMahon

Location: Massachusetts

About: Tim is a Lean implementation leader, author, and blogger. Tim has more than 20 years of leadership experience implementing Lean manufacturing. A proven leader in high tech manufacturing companies, he is passionate about quality improvement methods by actively learning, thinking and engaging people.

Frequency: 3 posts / week

Note: I know this is my own blog, but I am partial to my own labor of love.

 

Bonus:

The Lean Post – by The Lean Enterprise Institute (collection of authors)

Location: Worldwide

About: LEI brings together authors from around the world sharing articles about making the world better through lean thinking and practice.

Frequency: 3 posts / week

 

KaiNexus Blog – by The KaiNexus Team (collection of authors)

Location: Texas

About: This blogs brings shares articles from KaiNexus consultants who’s mission is to use their technology and experience to foster and help spread continuous improvement.

Frequency: 3 posts / week

 

The blog landscape has changed a lot over the last decade and likely will continue to evolve. I have chosen to focus on personal blogs here, my preference. Yet, there are many other helpful Lean blogs that are not on this list. Let me know the blogs that you enjoy reading.

Quality Costs: A Guide to Managing Them

The business climate is becoming increasingly more competitive. With multiple options for consumers companies must stay competitive to survive. Many organizations consider improving quality as the best way to enhance customer satisfaction, to reduce manufacturing costs and to increase productivity. For this, the cost of quality (COQ) must be reduced.

The costs associated with making sure that your product is of good quality are called quality costs. It includes preventing, detecting, and fixing any issues with the product. It's crucial to ensure that your product meets the customer's expectations, which is not just a matter of making it look nicer.

As defined by Philip B. Crosby in his book Quality Is Free, the cost of quality has two main components: the cost of good quality (or the cost of conformance) and the cost of poor quality (or the cost of non-conformance).

Cost of Poor Quality

External failure costs are associated with deficiencies that are found after the customer receives the product. Also included are lost opportunities for sales revenue.

• Sales returns and allowances
• Replacing defective products
• Service level agreement penalties
• Complaint handling
• Field service labor and parts costs incurred due to warranty obligations
• Product recalls / Legal claims
• Lost customers and opportunities
• Downgrading
• Processing of customer complaints

Internal failure costs are the cost of deficiencies discovered before delivery that are associated with the failure to meet explicit requirements or implicit needs of customers. Also included are avoidable processes losses and inefficiencies that occur even when requirements and needs are met. Internal failure costs consist of: (1) the cost of failure to meet customer requirements and needs and (2) the cost of inefficient processes.

• In-process scrap and rework
• Troubleshooting and repairing
• Design changes
• Inventory required to support poor process yields and rejected lots
• Re-inspection / retest of reworked items

Cost of Good Quality

Appraisal costs are incurred to determine the degree of conformance to quality requirements.

• Test and inspection (receiving, in-process and final)
• Supplier acceptance sampling
• Product Audits
• Calibration

Prevention costs are incurred to keep failure and appraisal costs to a minimum.

• Quality planning
• Education and training
• Conducting design reviews
• Supplier reviews and selection
• Quality system audits
• Process planning and control
• Product modifications
• Equipment upgrades

The Total Quality Cost can be summarized as all investments in the prevention of defects, the testing of product to assure Quality, or the failure of a product to meet a customer requirement.

Many of the costs of quality are hidden and difficult to identify by formal measurement systems.

The iceberg model is very often used to illustrate this matter: Only a minority of the costs of poor and good quality are obvious – appear above the surface of the water. But there is a huge potential for reducing costs under the water. Identifying and improving these costs will significantly reduce the costs of doing business.

It is important for companies to understand what they need to do to reduce their overall cost of quality. This will help them improve their business processes and operations, which ultimately lead to better profitability.

The worst type of cost out of these four categories of the cost of poor quality is the external failure costs. Organizations should make their best effort to reduce the external failure cost.

Spending more on prevention and appraisal costs usually leads to a reduction in internal and external failure costs.