{"id":24577,"date":"2018-11-28T17:37:11","date_gmt":"2018-11-28T23:37:11","guid":{"rendered":"https:\/\/centricconsulting.com\/?p=24577"},"modified":"2022-11-10T13:25:53","modified_gmt":"2022-11-10T18:25:53","slug":"process-five-factors-for-business-process-improvement-success_pex","status":"publish","type":"post","link":"https:\/\/centricconsulting.com\/blog\/process-five-factors-for-business-process-improvement-success_pex\/","title":{"rendered":"Process: Five Factors for Business Process Improvement Success"},"content":{"rendered":"

In part three of this series, we focus on the need to\u00a0establish high-performing processes, including five key factors critical to the success of any business process improvement initiative.\u00a0<\/span><\/h2>\n
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Part three of a series<\/a>.<\/em><\/p>\n

Most of us have at least heard the terms by now: Lean, Six Sigma, Toyota Production System, Theory of Constraints, Global 8D Problem Solving, Operational Excellence, Shainin Quality Tools and many more.<\/p>\n

Many have not only heard them but have been a part of an effort to implement one or more of these versions of Business Process Improvement or BPI<\/a>.<\/p>\n

Leading Business Process Improvement Initiatives<\/h2>\n

Here we are, some 75 years after Deming, Juran & Crosby conspired to create quality systems that would reshape most major companies and yet most organizations are still fraught with waste and errors.<\/strong><\/p>\n

Hospitals are responsible for 250,000 deaths annually due to medical errors, a staggering 30.7 million cars were recalled in 2017 (two recalls for every one car sold), and according to the Government Accounting Office, the U.S. government wastes $125 billion annually.<\/p>\n

However, this is not due to lack of effort, it is estimated that there are over 1.5 million people working in a full-time capacity as a Black or Green Belt. There are millions more throughout the world that have certifications but are in operational roles.<\/p>\n

Yet it is undeniable that things are \u201cbetter,\u201d even if we aren\u2019t exactly sure what that means. While there are millions of automobiles recalled each year, the quality is at an all-time high.<\/strong><\/p>\n

In fact, the sheer number of systems that are now considered \u201cstandard\u201d on a car have dramatically increased. In the U.S., it is almost impossible to buy a manual transmission car, anti-lock brakes are an afterthought, and power windows and locks are the poster child of moving from “Delighter” to “Must Have” in the Kano Model.<\/p>\n

Clearly BPI is essential in every organization, yet ASQ estimates that 70 percent of all BPI projects fail. <\/strong><\/p>\n

Given this high failure rate, how do we improve our process improvement<\/em>? How do we weed through the muda (Japanese word meaning “futility; uselessness; wastefulness” for those who don\u2019t know or thought we mistyped the word \u201cmud\u201d) to find the approach, tools, skillsets that actually work?<\/p>\n

How do we lead an organization through change to maximize on the gains that we make? And most importantly, how do we keep our ear to the ground and clearly hear what the voice of the customer is telling us?<\/p>\n

Five Factors for Business Process Improvement Success<\/h2>\n

People always ask me: What tool should I start with? My answer is always the same, start with the tool sitting behind your desk.<\/strong><\/p>\n

I am joking of course (sorta). When it comes down to it, process improvement<\/a> is, and always will be, about leadership.<\/p>\n

Leadership to shut down the highly expensive system that you installed in 2013 but never lived up to its billing. Leadership to change the organizational structure even though it will mean fewer people reporting to you. Leadership to actually lead and not merely manage the organization.<\/p>\n

There is no company operating today that didn\u2019t once face a critical moment that required extraordinary leadership. So, when you want to know what tool to start with, start with you.<\/strong><\/p>\n

Are you the right person to lead this change? Do you have buy-in from the key stakeholders? Is this the right time for the organization to embrace this? Are you willing to do the right things, no matter what the short-term consequences?<\/p>\n

If you survived the last paragraph, here are my thoughts on the top five things necessary to convert to a highly-functioning organization with an insatiable thirst for excellence:<\/p>\n

1. Get the right people<\/h3>\n

As James Collins says in Built to Last,<\/a> get the right people on the bus.<\/strong><\/p>\n

Make sure that you have a team that is humble by nature and absolutely willing to turn the hierarchical organizational pyramid upside down. Are they willing to change their bonus structure in order to reward one percent of ideas from the subject matter experts that do the work rather than being personally rewarded for hero management?<\/p>\n

Do they take more pride in what they have accomplished or what their team has accomplished? Are they willing to do whatever it takes to remove the roadblocks from the SMEs so that their team can focus on value-added work?<\/p>\n

Getting the right people in the right seats on the bus is absolutely critical and cannot be circumvented. Here’s an example:<\/strong><\/p>\n

I worked with a plant manager at a large factory in Ohio. He was a great guy but always too busy to meet with me.<\/p>\n

As an external consultant, I felt the pressure to show results quickly, yet oftentimes found myself in an empty meeting room waiting for others to join.<\/p>\n

Working with maintenance, I changed the lock on the plant manager\u2019s office door and moved his desk out to the factory floor. When he returned to his office to find the door locked, I told him that he had been relocated to the floor. I sat at a card table next to him, and we didn\u2019t enter the office area for two weeks. Every day his desk would be covered with a fresh layer of dust from the rubber extrusion process just a few feet away. It was loud and chaotic, and we got a lot of strange looks from everyone in the organization.<\/p>\n

After a few weeks, our little pod began to grow, and the quality manager joined us as well as the production scheduler. Very quickly, we created a support cell right next to where the value was being created.<\/p>\n

This changed their organization, soon all support offices were empty, and work cells were created for each value stream. This was clearly an organization that was willing to humble themselves, put the SME\u2019s above everything else and make the changes necessary to be successful.<\/p>\n

Almost 20 years later, this company is thriving and continues to grow dramatically. They have survived all ups and downs of the economy and have remained a manufacturer in the United States at a time where everyone else had moved offshore.<\/strong><\/p>\n

It was their willingness to do things the right way, get the right people on the bus and humble themselves that allowed them to flourish.<\/p>\n

2. Establish the Ruler: What is your value driver?<\/h3>\n

Understanding what value is and how you create it is the second step in this journey.<\/strong><\/p>\n

So many times, I engage with an organization that has system after system designed to manage their chaos. Yet, with all of this computing power they can\u2019t tell you the simple things like:<\/p>\n