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Wednesday, November 18, 2009
Tuesday, November 17, 2009
The Key to Upcoming Retention Concerns is Recognition
A WSJ article yesterday talked about a growing concern for businesses to retain top talent. The author indicates that based on historical data workers will look elsewhere as the economy improves. This would pose a significant problem to those employers who may have weeded out weak performers while keeping top performers during this recession. A survey from last winter cites pay and benefits as the most important factors employees' value. Normally I would not concur with this but can understand with this recession why compensation is a top concern for workers.
"We will not retain our staff if we can't get them to believe in us," Mr. Stack says. "If you value your employees, their trust will grow and they will not look around for another position."
According to the DOL, employee turnover cost American businesses about $5 trillion each year. Employee recognition is still one of the powerful strategies to combat turnover. A recent HR Daily Advisor Tip covered eight keys to successful retention. The advice includes exuding confidence in employee's ability, including significant others in praise, knowing what motivates and inspires employees, encouraging employees develop new skills, and simply saying thanks. Successful companies learn that you get what you reward.
In Lean retention and recognition come under the respect for people pillar of TPS. Respect for people comes from organizations building employee relationships that are fulfilling for their people as well as for the business.
Sunday, November 15, 2009
What is Lean?
A reader studying quality management and researching Lean recently asked me, what is Lean really about? In realizing that I have never fully defined my view of Lean on this blog I thought I should.
Let me preface this by saying it is difficult to succinctly define Lean in way that would capture the breadth and depth of knowledge. There are volumes and volumes of written text on many aspects and concepts of Lean. I have been studying in this field for a dozen years and my learning will never be done.
Lean is all about respecting people while eliminating Muri (overburdening), Mura (unevenness), and Muda (non value added activity) in all business processes. It is a philosophy which embodies a manufacturing culture of continuous improvement based on setting standards aimed at eliminating waste through participation of all employees.
The originators of Lean include thinkers like Henry Ford but its most notable and well studied collection of thinkers comes from
The Five Fundamental Principles:
1) Specify Value – End-use customer view
2) Indentify Value Stream – Activities that create value
3) Flow – Make value flow
4) Pull – Respond to customer demand
5) Perfection – Zero waste
The Lean Rules-in-Use:
1) Activity Rule – Specify all work to content, sequence, timing, and outcome.
2) Connection Rule – Customer-supplier connections must be direct & unambiguous.
3) Pathway Rule – Pathways for product/service must be simple & direct.
4) Improvement Rule – Improvements are made using scientific method (PDCA) at place of activity (Gemba) under the guidance of a teacher (Sensei)
It is the endless pursuit of perfection which I refer to in the title of this blog “A Lean Journey: A Quest for True North”. True North is making 1 by 1, defect free, on demand, immediately, safely, and at no cost. It is the ideal target condition not easily achieved. It is approached by eliminating waste, the opposite of value. Value-added activities are those activities that transform materials or information, increase the form or function of products or services, and the customer wants. All other activities are wasteful; add no value; and consume resources, time, and space. The eight wastes are characterized as:
Defects
Over-production
Waiting
Non-utilized Resources/Talent
Transportation
Inventory
Motion
Excess Processing
This is only made possible by believing people are the cornerstone. You must engage all human resources and provide knowledge. These two elements are the key drivers to the speed of continuous improvement.
Lean is creating and implementing processes throughout the entire organization that are highly responsive and flexible to customer demand. Lean paves the way for delivery high quality products and services, at the right location, at the right time, all in a cost effective and profitable manner.
Here are some other resources for Lean definitions:
Lean Enterprise Institute's lean definition page
This is a post that I will continue to reflect on (hansei) and update throughout my Lean Journey.
Friday, November 13, 2009
Quote of the Day 11/13/09
I am going to try a new thing here at A Lean Journey Blog. On Friday’s 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.
Feel free to share some of your favorites here as well.
November 13, 2009
The world we have created is a product of our thinking; it cannot be changed without changing our thinking. ~Albert Einstein
Wednesday, November 11, 2009
Lean Is About More than the Myths
It is important when you are starting out your lean journey to understand what Lean is really about. Steve Cook, a former Dell Computer supply chain executive and newly appointed chief operating officer of MFG.com recently took time to explain three common myths about Lean.
Myth #1: Lean = Job Cuts
"If done well, Lean initiatives are less a cost-cutting exercise and more a growth exercise," said Cook.
Myth #2: Lean = Doing More with Less
Lean is about doing more to get more, knowing that reducing waste is a growth strategy, a way to help the company be more competitive, Cook said.
Myth #3: Lean = a Cost Reduction Strategy
While Lean initiatives clearly involve reducing costs, "it's a myth if it's the reason why you're doing Lean," emphasized Cook. "The underpinning of Lean must be about making the organization more successful."
Lean is really a systematic way to learn to see the inefficiencies in your processes and to solve these opportunities in such a way to grow the business profitably by adding value the customer will pay for. If you want to be a successful company you will learn to empower and engage the entire organization to focus improvement on value-added work from the customer’s perspective.
Cook added a saying from Dell which reflects this, “You’ll get beat up for high cost, but you’ll get fired for quality/availability issues.”
Is your organization solving problems only for themselves or are they solving those for their customers?
Monday, November 9, 2009
Leadership Strategies from Disney Part 2
To continue from the previous post on Great Leader Strategies from Disney we will discuss the last 6 strategies.
#7 Explore, Probe, And Know What Is Going On In Your Organization… And Act Upon The Information!
Leaders cannot make the right decisions or take the right actions without knowing the truth. You need many ways to stay informed. One of the best ways to know what is going on is to establish comfortable relationships so that people at every level feel comfortable discussing an issue or topic with you. Be available for people when they need you. Learn the truth by observing your operation from the customer and employee points of view regularly.
#8 Actively Observe And React To The Performance Of Your Direct Reports - Take Time For Recognition, Coaching, And Counseling!
Feedback is a powerful thing, and it is hard to improve without it because we have a hard time seeing our own faults as others see them. Train yourself to always notice performance, both positive and negative, and provide feedback. Coach and train your team on better ways to perform as a role model because people learn from what they observe more than what they are told. You deserve what you tolerate so never ignore or tolerate poor performance or bad behavior. Learn to think of “ARE”: Appreciation, Recognition, and Encouragement.
#9 Expand And Act Upon Knowledge And Experience Of The Best Service Available Anywhere!
Don’t be a dinosaur. Continuously learn and expand on your knowledge and experience in these four areas:
1) Technical competence
2) Management competence
3) Technology competence
4) Leadership competence
Keep up with the fast pace change in your business. Participate in professional networking, learn from your competitors, and aggressively solicit input on best practices.
#10 Partner Effectively And Successfully With Staff And Other Cross-functional Partners!
Partnership skills may be one of the reasons that some Leaders get such great results and are remembered fondly while other fail because they do not develop strong relationships with people. A good partner is available, keeps people informed, honors commitments, responds promptly, and stands up for what is right. Build trust by welcoming input and constructive feedback and asking for and offering help.
#11 Demonstrate A Passionate, Professional Commitment To Your Role!!!
Passion is the driving force that enables people to attain far more than they ever imagined. Commitment means you will go all the way for what you believe in. Passion and commitment go hand in hand. Demonstrate personal ownership by doing it right, and doing it right each and every time you do it. Make sure your job is something you love to do and be excited about coming to work. Remember to have a positive attitude because of the saying “Good attitude, good results; bad attitude, bad results.”
#12 Understand And Demonstrate Mastery Of Business Fundamentals!
Understand your business unit’s strategic plan and that of the company. Continuously improve your core business processes so they will create a competitive advantage. Be aware of global trends that may impact your business for the better and the worst. Don’t be a fence sitter. Be decisive and make tough choices. Know where and when to take risks and when to be cautious. Learn to operate the business as if it were your own.
The trail always leads back to leadership. Poor leadership or great leadership has a lot to do with everything that happens in the world in one way or another. Leadership is simply defined as making the right things happen. Are you employing these strategies to be a great leader or do you know someone you exemplifies these strategies?
Sunday, November 8, 2009
Leadership Strategies from Disney Part 1
A new book on leadership called Creating Magic: 10 Common Sense Leadership Strategies from a Life at Disney claims “It's not the magic that makes it work; it's the way we work that makes it magic.” The author Lee Cockerell, a former Executive Vice President of Resort Operations for the Walt Disney Company, shared his insights from his incredible 16 years of front-line experience operating 18 resort hotels, four theme parks, three water parks, five golf courses, a shopping village and nighttime entertainment venue, and sports recreation complex. Lee's years, living the Disney principle, helped make The Walt Disney Company the front- runner in quality, service excellence and guest satisfaction. This book is based on his "Great Leader Strategies,” which Cockerell developed for Walt Disney World cast members.
The 12 strategies that Corkerell defines of a Great Leader are:
#1 Foster An Inclusive Environment!
Workplace inclusion is making sure that everyone matters and that everyone knows that he or she matters. It is about engaging and involving your team by asking their opinion and making it clear you want to hear their point of view. One of the main responsibilities of Leader is to develop future Leaders. Personally get involved and take time to do the so-called soft stuff really well otherwise your team won’t take care of the hard stuff. Disney defined its approach to inclusion with the acronym RAVE for Respect, Appreciate, and Value Everyone.
#2 Design Your Organization Structure For Success… “Break the Mold!”
Organization structure is critical to getting the best results. The most important thing is to make sure that every individual clearly and completely understands what he or she is responsible for, what level of authority he or she has, and how he or she will be held accountable.
#3 Make Sure You Have The Right People In The Right Roles!
Hiring new people and promoting people to new levels are really important to do well and carefully. Each time you have an opening you have the opportunity to add talent and strength your team. Make sure the candidate has the right level of expertise and experience for the job but also consider how the person will blend in with the current team.
#4 Ensure That Cast Members Are Knowledgeable About Their Roles!
Leaders are responsible to train and develop their team members. Education is power. Training and development are two of the best ways to improve self-confidence and self-esteem in everyone. Lead by example - attend all training, communicate best practices, and observe actual conditions and behaviors. The best way to develop people is for the leadership to be actively involved in coaching, counseling, and educating the employees.
#5 Make Dramatic Leaps In Guest Service!
Make dramatic improvements for customers, employees, and for business results. Great leaders don’t maintain anything. In order to improve things you need to know how good they are. Demonstrate zero tolerance for anything but perfection. Visit other places known for “world class excellence” and see what you can learn.
#6 Implement Effective, Structured Processes For Getting Work Done!
We have a process for everything. Leaders have the responsibility to identify process problems and opportunities for improvement so that they are not a hassle and that the make sense. Ask the people doing the work and customers using your products or services for their opinion. Spend time finding out what process made things go wrong and change that versus looking for someone to blame. Great Leaders ask “why” a lot. Implement processes that work and follow-up to ensure they are still working.
In the next post I will present the other 6 great strategies of a Great Leader.
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