7 Tips of Successful Organizational Change

The success of an organization depends more and more on how fast it can adjust to new conditions and situations, to new and different demands. New technologies, trends, regulations, changes in style, and fierce competition force companies to make major changes in order to remain competitive.

The faster the change, the more important employee participation becomes, as well as getting the best use of people’s talent. In a less stable business climate, when innovation is forced upon even the most conservative organizations, employee participation – bringing fresh ideas and creative improvements in process or work practices – is indispensable.  Where routine response does not exist, people cannot be replaced by machines.

Equally important is the timing of major organizational changes. Timing reflects on the vision of the leader. Oftentimes, a company makes changes too late - after the company starts losing money and market position, when cash flow and funds for the necessary investments are no longer available. A good leader begins change when it is still sunny, and the first clouds are far away.

There are seven considerations that can help make major organizational changes a success.

1. Planning

Careful planning saves time and money. Chances for success improve with:

·         A well prepared disclosure and good communication.

·         Careful weighing of potential resistance and its consequences.

·         A detailed timetable for execution.

2. Motivation

Employee resistance is often in self-defense to the fear of losing security, power, or status. To offset such resistance:

·         Discuss potential new career paths within the company.

·         Discuss the necessity and advantages of a different position.

·         Give the reasons for the change.

·         Show appreciation for loyalty.

Some employees who lack self-confidence consider any change a threat. They are afraid to cope with new responsibilities, another boss, or different colleagues. Patience is needed to explain and convince. Teaching, training, and full support are good remedies.

3. Communication

Good communication is vital. Reasons for the change must be explained beforehand. Clear communication is the best investment, since resistance is often due to misinterpretations, half-truths, and rumors that recede the change. Easy to understand written and verbal communication should reach all layers of the company.

4. Involvement

Employee involvement prevents mistakes and wrong assessments, as well as expensive consequences. Those affected by the change can usually provide the best insight, but their objectivity must be scrutinized.

The sooner people are involved in the plan, the more involved they become. Employee involvement during the planning stage has two advantages:

1.    Learning from the experience of people on the job. Early employee involvement improves the plan. Those who come aboard early support the plan and spread the word, preventing rumors. And the build-up of resistance.

2.    When people get seriously involved everything becomes easier. It is no longer an “Us and Them” scenario. A well justified change becomes every body’s project, not just management’s. The motto is “We, the company, will benefit from the change.”

5. Trust

Another great facilitator of change is trust. Credibility of management, based on past experience plays a key role. Where trust is lacking problems will multiply. The best remedy is honest information and better communication; these are stepping stones in developing trust.

6. Contingencies

In spite of your best efforts, some resistance may remain. If the problem is wage loss, then negotiation is necessary. In some situations, leaders of the resistance and their motivations have to be identified. If direct communication does not resolve the problem, negotiation and cooperation must be pursued.

7. Execution

Once everything is prepared and in place, execution should be fast. An implementation date must be set to introduce the new organization. Even if there is a last minute problem, postponement is not recommended.

Coherence of management and trust in leadership eliminate opposition, and ease the way to permanent ongoing renewal.

Lean Quote: Focus on Preventing Problems

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.

"An ounce of prevention is worth a pound of cure." — English Proverb

Generally the most effective way to achieve quality is to avoid having defects in the first place. It is much less costly to prevent a problem from ever happening than it is to find and correct the problem after it has occurred. Focusing on prevention activities whose purpose is to reduce the number of defects is better. Companies employ many techniques to prevent defects for example statistical process control, quality engineering, training, and a variety of tools from the Lean and Six Sigma tool kit.

Seek to prevent problems and waste, rather than to inspect and fix.  Shift the emphasis from failure and appraisal to prevention.  Inspecting the process, not the product, is prevention.  Use poka yoke to mistake proof process errors.

Although it’s generally understood that it costs more to deal with crises than to prevent them, many companies do not recognize and reward those who push past the symptoms to the root causes, preventing future occurrences. If you want to focus on prevention, be sure to reward those who do it successfully.

 

Daily Lean Tips Edition #77 (1156-1170)

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 #1156 – Coach Your Employees

Your role as a manager is to support, inspire and coach your employees to their highest levels of performance. Coach your employees so they understand their responsibilities and your expectations. Managers who provide regular coaching increase overall engagement among their employees.

Lean Tip #1157 – Earn Trust From Your Employees

Earn trust every day. Trust provides the essential foundation for your effectiveness as a manager, whether we’re talking about engagement, innovation, or high performance. To build it, you need to reveal who you are as a person. Your title and accomplishments aren’t enough.

Lean Tip #1158 - Stress Employee Ownership

You can’t create an engaged team if your employees don’t have clear visions of personal success. Make sure they know that you’re available to provide guidance, remove barriers, and help them find fulfilling work. However, they are ultimately the ones responsible for their success.

Lean Tip #1159 - Remove Systemic Barriers

In a business like those in manufacturing environments, I’ve found some key themes that can get in the way of engagement across an entire site no matter how good the frontline supervisor might be at it. Themes such as communication and trust, pay and benefits, office vs. plant culture, and (lack of) change management must be identified by actively listening to your frontline associates and addressed by the senior leadership in addition to direct manager-associate conversations.

Lean Tip #1160 - Create a Productive Work Environment

A workplace that is trusting, open and fun will be the most productive and successful. Be open to new ideas and suggestions that come from your employees, and show them that their voices are being heard. Regularly set time aside for team-building exercises and meetings, and make them fun so your employees actually look forward to participating rather than looking for reasons to ditch them.

Lean Tip #1161 - Keep Promises

Never make a promise you can’t keep, and when you do make a promise -- no matter how small it might be -- be sure to follow through with it. Even if you think your employees don’t care about it, you can be sure that they are keeping score. If you aren’t certain that you will be able to follow through on a promise, then don’t make it.

Lean Tip #1162 - Let Your Team in on the Plan

Be as transparent with your people as you can be, in terms of providing information on how the company makes and loses money, letting them in on any strategies you may have and explaining to them their role in the big picture. When your employees understand the overall plan, they will view themselves as an important, vital piece of the puzzle.

Lean Tip #1163 - Involve Your Employees

Involve employees more deeply in your organization by inviting them to join cross-functional teams that draw on the expertise and talent of people from different parts of the organization. Let each team have the authority they need to make decisions on their own -- especially when the decisions directly affect them.

Lean Tip #1164 - Create a Partnership With Your Employees

The best way to encourage your people to consistently give their very best on the job is to create a partnership. Treat each employee as a valuable member of your team, and give them the autonomy to make decisions and do their work as they see fit, so long as they meet their performance standards.

Lean Tip #1165 - Solicit Ideas for Improvement

If you do one-on-one meetings with your team, or in informal "stop-by" talks, ask your employees individually for their thoughts on the department's operations. Ask "What should we be focusing on? What could run better in our group?" If the solutions offered seem impractical, don't shoot them down—talk through the obstacles so your colleagues will understand the challenges of implementing what they've suggested. Above all, don't send the message that you're the only one who is qualified to make improvements. We don't keep smart people unless we make them part of our brain trust.

Lean Tip #1166 – Draw You Value Stream Map by Hand First

Some VSM software programs help you draw maps and perform many data manipulations. In my opinion, you should learn to draw it by hand first, because it will help you better understand the methodology. By putting pencil to paper, you emerge yourself in the mapping process, and that’s how it becomes real. Yes, it may seem like a struggle at first, but with practice it becomes easier. The day you can grab a piece of paper, start discussing a problem with a colleague, and draw a map is the day you really start to understand the power of VSM.

Lean Tip #1167 - Use a Team to Create the Maps and a Plan

Having one person create the map means you used only one brain and two hands. The information gathered may be biased or, even worse, incorrect. Decisions need to be made for what is best for the entire value stream, and that’s hard to do with only one person. Make sure you use a good cross-functional team to walk the shop floor, analyze part flow, gather the information, and then draw the map.

Ideally, someone with experience in VSM should lead the initial meetings. A person who has drawn several maps can help determine the process families with the team, teach the team the correct way to collect data and information, show how to draw the maps, coach toward a better future state, and facilitate a successful event.

Lean Tip #1168 – Don’t Expect Everything to Show up on the Map

Even though the maps will give you great information and insights for improvement, they typically do not have other enterprise wide initiatives that an organization should undertake during its lean journey, such as 5S workplace organization and standardization. A company needs to have 5S everywhere, and VSMs may show only an area or process that needs 5S, not the entire facility. Also, other important functions like communication and training do not usually show up as an action item on a VSM, but these functions are extremely important while implementing lean concepts.

Lean Tip #1169 - Post Maps Where People Will See Them 

Don’t hide your maps. A key benefit of displaying your value stream maps is to communicate what is going to happen at your organization over the next few months or during the next year. Many people resist change because they fear the unknown. Posting the maps with the plan removes or eliminates this fear. It’s also a way to start discussions and obtain buy-in and ideas for improvement. Don’t hide your maps; be proud of them!

Lean Tip #1170 - Eliminate Waste, Don’t Create It

When it comes to VSM, people often become so enamored with their own bureaucracy or analysis that they are just wasting valuable resources, especially time. I’m talking about the people who spend too much time making fancy graphs from the data that was collected, or the ones that want to get the data down to the one-hundredth decimal point. Remember what you are trying to do here: eliminate waste, not create more.

What Makes a Good Leader?

Leadership is not the sole responsibility of top company executives. Leaders are needed at every level of the organization. Although management is a leadership position, not all managers are leaders, and not all leaders are managers.

Leadership is a mix of skills, attitude, will, and motivation. To become a leader you must want it and work on it. It requires great effort to become a leader, greater still to remain one.

Managing, on the other hand, is an assignment – a job. A manager who is not a leader manages by title only. A leader inspires people, set an example, and builds trust. A leader:

• Makes things happen.
• Is a mentor and coach.
• Is respected and followed.
• Has a clear purpose.
• Single mindedly pursues common goals, regardless of obstacles or temporary setbacks.
• Leads people to accomplish what they thought impossible, freeing them from their inhibitions and limitations.

Leaders have a vision and focus on customer satisfaction; they act without hesitation whereas a manager will focus on planning and analysis. Leaders look for simplicity; they inspire and delegate rather than apply controls and give orders. Where managers see problems, leaders search for opportunities. Leaders look for new solutions rather than blindly following existing procedures. In the midst of chaos, leaders consider the situation from various perspectives; while a managers thinking is strictly rational, looking for continuity.

Leaders do not compromise, they want the best. If they are satisfied with mediocre results, that is what they will always achieve. A good manager is a leader through personality, not position. True leaders impact their organizations, they are strong, and they attract people and receive support from peers and employees. They draw followers by their ability to communicate vision and commitment; they make their ideas tangible and create positive feelings. They are reliable and effective.

Lean Quote: Demand Commitment By The People Involved

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.

"Great organizations demand a high level of commitment by the people involved." — Bill Gates

Without commitment, success is just but a far away dream. It is the force originating from within you that seeks to bring out the potential in you and drive you to your destiny. It is the desire of many to achieve success but a determined person is never satisfied until he gets what he is after. Commitment is what motivates one to strive and work hard towards success; therefore without it one tends to walk blindly and without purpose.

Commitment is demonstrated by a combination of two actions. The first action is called supporting. The second action underlying commitment is called improving. It is the combination of both supporting and improving behaviors that makes up the practice of commitment. Company leaders demonstrate their commitment to change and improvement by making these behaviors visible to everyone. Leading by example is the ultimate demonstration of your commitment.

When you make a commitment to do something, you are saying that they can trust you and rely on you. Commitments are involved in trust, and trust is the foundation of continuous improvement. Commitments are things that you say you will do and people trust you to do. When you fulfill those commitments, people trust you and will trust you in the future. Managers that do not follow through on commitments are not deemed as trustworthy, and trust is vital for transforming a business culture.

The best way to build commitment is by involving people. This way they will have a sense of ownership. By involving your frontline teams in selecting the project that they believe will make a difference, you’ll build ownership, engagement, and have their commitment.

Lean doesn’t work unless everyone is involved and has input. We must involve employees in the continuous improvement process because the people actually carrying out the job know how to do that job better. The best companies in the world tap the creativity and talent of the whole organization and not just a select few.

The lack of ongoing employee involvement at the shop-floor level has been identified as a major reason for the non-sustainability of Lean in the organization. When there is a lack of staff involvement, and management fails to seek employee input on critical decisions, employees may feel dejected and detached from the organization.

Employee involvement cultivates an atmosphere of collaboration, increases retention of talented staff, and intensifies dedication and commitment. Employees develop a sense of ownership over proposed changes when they are involved.  Employee engagement can not only make a real difference, it can set the great organizations apart from the merely good ones.

 

Process vs People Improvement

In most companies, Lean Thinking quickly becomes focused on process improvement. This type of improvement is easier, more obvious, measurable, and seemingly more profitable and transferable than people improvement. That’s why most places make the mistake of reporting only process improvement metrics.

People get taken for granted.

This occurs because (so called) Lean experts don’t know how to effectively include respect for people as they apply Lean tools.

The solution is simple. Measure respect for people improvement as much as you measure continuous process improvement.

For example:

Is every employee trained sufficiently to do the job successfully?

How often do workgroups suggest an improvement?

Can every employee access the boss when needed?

How many employees solve problems and implement solutions?

Are employees learning new skills?

Do employees end most days satisfied?

Is every employee part of a team?

Is the turnover rate low?

What’s the percentage of internal promotion?

And anything and everything else that leaders and employees think are important.

As a leader, if you prepare the people, respect the people, and grow the people, you’ll be improving the people side of Lean Thinking.

Coaching Is Critical to Develop a Lean Thinking Mentality

Coaching is a difficult skill for many leaders to acquire. It’s vague and slow. Leaders tend to want to move quickly toward defined goals, reach those goals, and immediately move on to the next set of goals. Coaching is frustratingly elusive to understand and seemingly convoluted in the doing; it is much easier to direct than to guide.

However, being able to coach is a critical skill in helping employees develop a Lean Thinking mentality. Being taught what waste is, is one thing, discovering how to see it is an enriching experience and more likely to stick.

Coaching is the process of preparing your employees to succeed. It is an ongoing, two-way process that involves using constructive, consistent feedback to reinforce positive behavior, resulting in improved performance.

You develop leader/coaches the same way you coach; by helping them discover what coaching is. Leaders need a collaborative and engaging style management. This approach focuses on developing employees in order to achieve business results rather than managing their every move. The mindset of the coach is to create an environment that fosters learning, independent thinking and opportunities to contribute.

Important coaching behaviors to emphasize are many: being open and honest, taking risks, empathy, reflecting, linking coaching and performance, asking open-ended questions, providing emotional support and supporting self-discovery. Coaches are a role model for others. They are excellent listeners and communicators, providing perspective and encouragement while also setting high standards and expectations.

Becoming a good coach is not being taught how to do it, but experiencing how to do it.  The coach doesn't want to be seen as a solution provider. Rather, they want to be seen as a facilitator, paving the way for the employee to achieve their results.

The best way to empower employees is not to manage them. Coach them to success. This is a process of developing their skills and providing them specific feedback to meet high standards. Employees want to be on the same team with their bosses.

Coaching is one of the premier skills of a good Lean leader, but one that is often overlooked. A leader whose goal is to help employees fulfill potential must be an exemplary coach.