Lean Performance Management: Moving Toward Peak Performance

What is lean?

The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources.  -Lean Enterprise Institute (lean.org)

 

Lean manufacturing is a process improvement methodology based upon the highly acclaimed Toyota Production System (TPS).  The main focus in lean manufacturing is the removal of waste from a value stream. leanprocess.net

So, “lean” has to do with trimming away things that get in the way of optimal performance. Processes and practices often take on a life of their own over time, and before you know it you have a monster on your hands. Normally lean consultants (six sigma/process improvement) are brought in when performance has devolved to a state of crisis, but smart organizations engage lean principles as part of their business-as-usual operating culture.

Lean manufacturing is underpinned by 5 principles:

  • Specify what creates value from the customer’s perspective
  • Identify all the steps along the process chain
  • Make those processes flow
  • Make/offer only what is pulled by the customer
  • Strive for perfection by continually removing wastes

(http://www.leaningforward.co.uk/principles.htm)

Applying these lean processes to human performance creates a focus on productivity, quality, and customer satisfaction. Practicing lean in performance management enables peak performance and allows employees to focus on value-adding tasks.

Performance management is a structured process for setting expectations, identifying key performance indicators (metrics), measuring outcomes, and improving performance through accountability and feedback. Performance management is both a science and an art. Performance technology provides the framework to structure and analyze human performance, while emotional intelligence and relational skills ensure a sensitivity and empathy. A solely scientific approach is dehumanizing and detrimental to lasting performance change.

Specify what creates value from the customer’s perspective.  Job descriptions and performance accountability should place a priority on customer- facing behaviors. Identify how the role supports customer satisfaction, identify how the customer is impacted when the job is (and isn’t) done well, and tie performance metrics and rewards to those behaviors.

Identify all the steps along the process chain. A job-specific SIPOC will do the trick here. A SIPOC is a picture of Suppliers – Inputs – Processes – Outputs – and Customers surrounding a specific role or task. Identify how performance is impacted along the way, from when work is handed off from one role to another, and the interdependencies that may create roadblocks and inefficiencies.

Make those processes flow. Remove barriers to performance and hold employees accountable for keeping things flowing smoothly. Reward process improvements and build expectations for internal customer service. Create a culture that challenges the status quo in pursuit of optimized performance.

Make/offer only what is pulled by the customer. This is somewhat of a repeat of the first principle, but an additional point when it comes to performance improvement is to be aware of processes, and even positions, that don’t add value. Just because a position has always existed, or a form is always used, or a handoff has always been a part of the process, doesn’t mean it adds value. Go back to the analysis of what supports customer experience, and eliminate everything that gets in the way. This streamlines performance management by simplifying the focus to one thing: the customer.

Strive for perfection and continually removing waste.Perfection is a lofty goal, and probably not realistic. But striving for perfection, as elusive as it may be, keeps us focused on continuous improvement. Waste is anything that hinders peak performance: tasks and deliverables that don’t add value to the customer; missed opportunities to leverage resources; and systems that create more work than they’re worth.

Using the principles of “lean” to manage human performance ensures an emphasis on quality work that ties to the customer experience. The benefit of applying lean to performance management is that “fluff” (waste) is removed on the front end, through better performance planning, and on the back end as performance is evaluated for efficiency and effectiveness.

In an age where “doing more with less” is standard, eliminating non-value-adding tasks, systems, and processes means you can still expect high quality work even if you’re running with a smaller staff. If the reports are correct that most of us work far below capacity (50-70% by some accounts), then applying lean will help us move toward better time management, stronger accountability for the things that matter, and continuous improvement across the organization.

   

Project Management Skills Should be Required for Everyone!

Project Management Lifecycle

An organization I work with recently switched to a new email server. The plan was that at the flick of a switch everything would migrate to the new server and in less than five minutes everyone would be up and running. A week later the mess is still being cleaned up.

Very few IT projects that I’ve participated in have been implemented without some unexpected glitch. In fact, I think the mantra of many in IT is “expect the unexpected.” The point being, as optimistic as one might be, it’s a good idea to think about what could go wrong and plan accordingly. And just as importantly, communicate accordingly.

In the scenario I described above, even if the switch would have worked and the system was up within minutes, there was additional set-up that every user needed to complete to activate the system. No one anticipated this. No email message with self-service instructions was provided, so the IT staff has had to work individually with everyone in the organization to get them set up.

Unfortunately, situations like this happen all the time.  We get focused on the core task and forget what is happening up and down stream. As a college professor I believe a critical skill that every college graduate must learn is basic project management. The project management body of knowledge (PMBOK) focuses on five key processes:

  1. Initiating
  2. Planning
  3. Executing
  4. Monitoring and Controlling
  5. Closing

There are also nine areas of knowledge that are central to managing any type of project:

PMBOK

 

 

 

 

 

 

 

 

 

Not everyone who leads a project will need to be concerned with every aspect of these nine areas of knowledge. However, a basic education in project management will promote the acquisition of a project management mindset that identifies areas of risk, possible derailments, and contingency plans. When employees are taught to anticipate what might happen, whether in customer interactions or technology implementations, communication can help control the process and curtail the need for inefficient crisis management if things go wrong.

The key to managing any project is asking the right questions before the project moves an inch. Here are a few that apply to almost all projects, and should be asked by everyone whether they are managing the project or not.

  1. What, exactly, is changing? What will be different when we’re done?
  2. What might go wrong? What will happen if things go awry? What makes for a good project implementation?
  3. What is my role? Do I need to communicate information down the line?
  4. Do I have critical information or concerns that I need to share with someone in charge?
  5. What assumptions am I making about the project?
  6. Are there others who may be affected by the project who don’t know as much as I do? What might I need to share with them?
  7. What could be done to make the project as smooth as possible?
  8. Would it help to create a FAQ document? A job aid or quick reference guide? What would help me do my job easier – that’s usually important to everyone.
  9. What has been communicated about the project? Is it sufficient? If someone walked in off the street could they make sense of what was happening?
  10. What are my co-workers most likely to ask questions (or grumble) about?

Failure to effectively manage projects results in inefficiency, including re-work or additional work, and causes hours of grumbling among staff. A little pre-planning and an extra communication effort can make a huge difference in the execution of a project. Going back to my original example, if the questions above were given any consideration, a whole week of stress, confusion, and reduced productivity could have been avoided.

The One-Page Project Manager: Communicate and Manage Any Project With a Single Sheet of Paper

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Absolute Beginner's Guide to Project Management (2nd Edition)
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Making the Pieces Fit: Right Person-Right Job-Right Organization

A couple of years ago, when I was managing a group of trainers for a large financial services firm, I needed to backfill a position when a trainer was promoted within the company. We lacked internal bench strength, so following the culture of promotion from within wasn’t a viable option. I would have to hire externally. Personally, I welcomed this opportunity because I felt we needed some “new blood” in our organization.

As I sorted through dozens of resumes and began narrowing down the candidates, there was one individual who stood out to me as unique. What he lacked in industry experience I was confident he could overcome with his ambitious, unconventional perspective. I wanted to shake up the rest of the trainers, and I was committed to hiring a diverse team to broaden the perspectives of the group and encourage them to learn from one another.

So I ignored the concerns of a couple of people I had invited to participate in the interview process and went with my gut. What I learned is that sometimes your gut needs to listen to the guts of others!

Jerry was probably the worst hire I have ever made! Almost from the beginning, when he was a participant in the training class, he began stirring things up, but not in the exciting, positive way I had envisioned. Over the next two years I coached and disciplined him until it was obvious we needed to sever the relationship altogether.

What I now know is that company fit is a two-way street. An article published in 2005 by researchers at the University of Iowa (Kristof-Brown, Zimmerman & Johnson, Personnel Psychology, 2005) addresses Person-Environment fit. Fit can be considered from various angles, such as person-supervisor fit, person-organization fit, person-workgroup fit, and so on.

Recruiters and hiring managers may have some instinctive knowledge, and maybe even some formal training, in screening individuals for organizational fit. There is a desire to find out if someone will be a good fit for the culture as well as provide the necessary skills and experience to do the job. Often, though, organizations do what I did with Jerry – they fail to look at things from multiple perspectives, so they miss things that could become a problem down the road.

The most useful person-environment factors to consider are vocation fit, job fit, organization fit, and workgroup fit.

Vocation Fit

Remember the career interest inventory you took your senior year in high school? Your results showed a laundry list of possibly occupations based on what you selected as most and least desirable in the assessment. I think some of mine included funeral director, teacher, librarian and zookeeper. Often there is little personal counseling that goes along with these assessments so you spend a lot of time trying to figure out what you might want to be when you grow up!

We assume that individuals have figured this out before they start applying for jobs, but I can’t tell you how many times I’ve asked why someone wants a particular job and they respond with “I really like to help people.” That’s great! But why help people through this job? Why does it satisfy you? Why is this career of choice? I ask my college students what they plan to do after graduation and most of them say “get a job.” Minimal effort seems to be put into discovering strengths, passions, interests, and vocational fit.

Job Fit

Assuming the individual has made a thoughtful vocational choice, the next step is to consider job fit. My wife used to laugh at me early in our marriage when I would look through the want ads and circle jobs (yeah – remember the days when you had to get the Sunday paper to find out who was hiring?!) that I didn’t have the credentials for but was convinced I would be a perfect choice for! Or I would apply for jobs at companies that I would not enjoy working in.

As job seekers we get into the desperation trap of “I just need a job – any job – and I’ll keep looking if its not the best one.” With bills piling up we quickly jettison the idea that we need a job where we can thrive – we’re just trying to survive. We become overly optimistic and let the dollars guide us.

The opposite happens with organizations and hiring managers. I’ve made desperate hiring decisions just to fill a position quickly, then regretted it later. In the call center world we called it “butts in seats.” In retail we had a similar approach – the “fog a mirror” test. The assumption is that its better to have someone…anyone…than no-one. Some industries just come to expect a certain amount of turnover.

But have you noticed the difference between the fast-food associate that is a good fit and the one who isn’t? They are in the right vocation – customer service – and in the right job. They smile, interact, and do their work with pride. In some ways its harder to measure this as people climb the ladder. They have the experience, skills, and credentials. But do they fit with your job?

Organization Fit

There are a few ways to look at organization fit. First, is there values alignment? Job seekers have to find out if what they believe about life and work meshes with what the company believes about life and work. Do they produce products and services that we think are harmful in some way? I once worked for a company that provided customer service for companies that sold adult videos, psychic readings, and online gambling sites. I didn’t know that until after I started working for the company, and it gave me some heartburn to be associated with such a company.

My first human resources job was for a century-old food manufacturing company that was hiring their first HR Manager in the company’s history. It took them at least two years to pull the trigger on posting the job. The average tenure of the executive team was about 20 years, so most of them started with the company right out of college and never left. As a young, ambitious, and out-of-the-box HR Manager, I was in for an awakening! I had a blast going in and setting up a new department, having the autonomy to create priorities and projects. But after about three years I had done all I could do because my desire for progressive programs did not fit the culture. They needed someone who would maintain what I had set in place.

As organizations become more active supporters of a variety of causes, from gay rights to immigration reform to global warming, job seekers have to do their homework to decide whether they fit with such an organization. It requires asking specific questions about values, priorities, and practices. Read articles about the company to see what may be below the surface of the company web site.

Workgroup Fit

At the workgroup level both the job seeker and the employer need to evaluate whether there is a good fit with a particular team. I’ve worked in large organizations that are a conglomeration of multiple sub-cultures. If the workgroup is in a location apart from corporate headquarters, how is the culture different? Is there dysfunction, infighting, or an “us vs. them” mentality when it comes to working with other departments?

When I worked for a regional department store chain I was in one of the premier stores in a large mall in a large city. I would visit our stores in smaller cities and the culture within the store was completely different. There is a different talent pool, with smaller towns typically having less turnover. I’ve often found that the less turnover there is, the more likely the workgroup is receptive to change and new ideas. This isn’t always the case, but it’s important to check out.

Over a ten-year career in retail I worked in or managed virtually every department. As a 20-something male, I was assigned to manage a cosmetics department of 30 women for a couple of years. What an experience that was. Talk about a challenging workgroup fit!  Why my boss thought this was a good position for me, I don’t know. And why I accepted it shows that I didn’t give much thought to workgroup fit!

Evaluating Fit is Everyone’s Job

Job seekers and employers both have a responsibility to evaluate fit. At the highest organizational levels processes need to be in place to ensure values and priorities are clearly communicated at every level and location of the organization. Human resource policies and practices need to promote evaluation of fit, with hiring managers receiving training on how to screen at the four levels of fitness.

With high unemployment and fierce competition for jobs it will be difficult for job seekers to honestly evaluate fit, especially at the organization and workgroup levels. Individuals will accept positions out of desperation, blindly hoping that they can push through the discomfort they may have with the workplace. It won’t take long for things to surface and productivity will likely suffer. Co-workers will be affected and HR will be called in to help fix the situation.

We will continue to see tension within our workplaces from a failure to consider fit from employer and employee angles. Misalignment of skills, values, personalities and priorities cause friction and misunderstanding. As an HR Manager I frequently had discussions with hiring managers over whether it was better to keep a position open longer, taking a risk with productivity, or to keep searching for the right person. It’s difficult in the moment, because there are lines of customers waiting to be helped, or projects put on hold, or machines running at less-than-capacity. But in the end, the productivity and positive ripple effects for the workgroup and organization when the right person is in the job typically outweigh the less-than-stellar outcomes of a poor fit.

Suggested Resources

Who: The A Method for Hiring

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Match: A Systematic, Sane Process for Hiring the Right Person Every Time

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What Color Is Your Parachute? 2012: A Practical Manual for Job-Hunters and Career-Changers

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Do What You Are: Discover the Perfect Career for You Through the Secrets of Personality Type

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Assuring Constancy Amidst Constant Change

Ruth Graham writes,

“It is difficult to trust things that change. Trust is built on the assurance of constancy.”

It’s almost cliché to say that we live in times of constant change – we know more change than we do steadiness. Fourth generation (4G) mobile technology is being released and I didn’t even know there was such a thing as generations of technology! The iPod was launched in 2001 and is in its 6th generation, meaning that the technology is waaaayyyy better today than it was in 2001, right?

Besides technology, we see change everywhere around us. Egypt is in the midst of a chaotic change to its political system as individuals take to the streets demanding to be heard. Companies have had to react to economic changes, forcing some to shut their doors for good, others to lay off scores of workers, while others took the opportunity to reinvent themselves to survive and thrive rather than fall victim of the recession.

So what is a leader to do when followers are looking for an anchor when change is swirling around them? The simple answer is character.

The leader who forgets that people are looking for stability will soon find their followers stopped in their tracks, unable to move forward because uncertainty has paralyzed them.

This disengagement occurs when leaders put forward momentum before relationships and miss opportunities to assure stability of character despite uncertainty and shifting priorities within the organization. I worked for a company that had three CEOs in less than five years and a new one was just coming in the door when I was leaving. Each executive had his own agenda, which meant no one knew from one year to the next what was going to happen to their job. It didn’t help that this company has a reputation for regular layoffs, so the level of uncertainty was magnified and pandemonium reigned. People put in their time, but politics and turf wars prevented the organization from thriving.

But there were some managers who did especially well even in this tumultuous climate. Leaders were often in the same boat as their followers however, I witnessed a couple of outliers who managed to maintain the trust of their team even though the future was uncertain. These leaders demonstrated constancy of character in the following ways:

  1. Transparency. The leaders who were best at creating constancy amidst change were honest and open. They shared their own concerns and frustrations in a way that promoted dialogue without promising anything beyond what they could commit to. They didn’t pretend and they didn’t ignore the issues, but faced them plainly and honestly.
  2. Positivity. Those leaders who could keep a proper perspective helped their followers to do the same. Positivity in the middle of uncertainty is challenging, but I saw leaders who could communicate with a long-term vision and foster a sense of “everything is going to be alright” amongst their teams. They remind people that change can be good and that even if we don’t initially like the outcome we will adapt, learn, or find something that fits us better in the long run.
  3. Reliability. Leaders who avoided jumping on the bandwagon of rumor, second-guessing, and chasing scape-goats provide an anchor for followers, a positive example of reliability and duty that strengthens the group. The reliable leader listens well but doesn’t allow finger-pointing or back-stabbing. This sends a message that the leader can be trusted and a calm in the storm.

Assuring constancy amidst constant change is a critical skill for leaders to develop in our fast-paced world.

The first century Greek philosopher Epictetus, in The Art of Living, says, “To live a life of virtue, you have to become consistent, even when it isn’t convenient, comfortable, or easy.”

Virtuous leaders who develop the consistent character traits of transparency, positivity and reliability when it is inconvenient and difficult, find that they are boosted by the support of faithful followers. This mutual partnership can withstand constant change in circumstances because it runs deeper than the external chaos in which it operates.