Operational Excellence Reviews Pay for Themselves

OER logoIf you’ve found yourself asking, “why do we do that?” and no one seems to have an answer, your organization may benefit from an Operational Excellence Review.

An Operational Effectiveness Review (OER) is an intensive audit of processes, systems, and structures that aims to reduce waste, increase productivity, and positively impact the efficiency and effectiveness in an organization. OER’s can be done within a specific function, at the business unit level, or for the entire company.

Through a combination of job shadowing, data analysis, interviews, and focus groups, an OER uncovers roadblocks to performance and unleashes creativity and innovative solutions that don’t get attention during the routine of everyday work. Using lean six sigma methodologies, proven job design models, and systems thinking, an OER pays off big by freeing employees to do their jobs the best possible way.

An OER is an investment in your organization that has a high rate of return. Invariably, an operational audit leads to work simplification through elimination of non-value-adding tasks and activities. Additionally, an OER gives focus to process improvements by the people who perform the work, leading to sustained efficiencies over time.

OER’s done within human resource, training, and OD functions guarantee that business partners are getting what they need without a lot of fluff. The OER process forces functional areas to look in the mirror and ask, “are we doing our best?” Legacy programs, non-value add processes, and misaligned objectives are evaluated and replaced, tweaked, or enhanced through an OER, allowing for lean operation and better alignment with the organization’s strategy.

Because of the savings from streamlined processes, OERs pay for themselves and are a morale boost to your staff as they participate in making sense of the work they do.

Cornerstone Global Training & Performance Solutions provides experience and expertise to conduct an OER at the department, division or enterprise level. Find out more by email us at info@cornerstoneglobaltps.com.

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.

   

Process Excellence Essential to Success

You can have great products and great people in your organization, but without great processes, you may be missing opportunities and squandering resources. Process excellence doesn’t just happen, though, it requires intentional focus on evaluating and building processes throughout the organization; across the supply chain.

How we get things done in our organizations warrants the same level of attention as developing and marketing products and services. We wish that developing methods and procedures was a “one and done” endeavor, but nothing could be further from the truth.

I’ve been working on an operational audit for a global financial services company that has been around for four decades. The pace is fast, change is constant, and competition is fierce.  In this environment, procedures and processes must be agile—there must be a constant review of how things are done, why they’re done, and who is doing them.

An Operational Effectiveness Review, whether conducted by internal or external resources, should be a regularly scheduled event in every organization. Trained experts in process improvement and organizational effectiveness can provide insight into the best way to perform a task, technology that can provide automation (and reduce human error), and organizational design that will ensure information and work flow smoothly up and down the supply chain.

The outcomes of an OER will vary depending on several factors, such as how well processes are currently documented; how many tasks are performed within each function, and what technologies are currently in use. There are, however, some outcomes that are common no matter the size or scope of the effort in your organization:

  1. A short list of process improvements that can be implemented quickly and easily (low hanging fruit).
  2. Significant cost-saving (or revenue-generating) improvements that may take longer to implement or require a budgetary commitment.
  3. Long-term solutions, such as implementing new technology to streamline a process, or adding a position to eliminate a bottle-neck to a process.

One of the greatest aspects of an Operational Effectiveness Review is that subject matter experts—those employees who do the job day-in and day-out—already have ideas for improvements. The OER resources help build on those ideas and provide the expertise to implement them well.

Process excellence leads to better efficiency and effectiveness, key ingredients to overall organizational success. And an OER ensures excellent processes and addresses the need to evolve the way things are done within your company as internal and external circumstances change and new technologies are made available.

   

 

PLEASE MIND THE GAP

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If you’ve ever been to London and traveled on the tube (underground subway) you’ve heard the phrase “please mind the gap between the train and the platform.”  It’s a reminder that there is either some separation or a step up or down that could trip you up and cause harm.

I chose this ubiquitous phrase as the theme for my blog on performance management (www.CreativeGapMinding.com) because it’s a fitting reminder that there is often a gap between what we are currently experiencing and what is possible, and that there are dangers to not minding these gaps.

KNOWING THE GAPS

Minding the gap means not just watching for the dangers, but preparing for them…minding them. Minding a gap means proactively keeping it before us and not haphazardly walking through the terrain of our workplaces.  Mindfulness is a choice to open our eyes to what’s happening around us – to take everything in consciously and with a determination to remove the blinders that so often keep us from the levels of success that are possible.

A gap is anything that could get in the way of achieving goals; missed opportunities, unrecognized threats, inefficiencies that create waste.

TOOLS FOR MINDING THE GAPS

There are countless tools that help identify gaps. Here’s a handful that I like to use…

1.   SWOT Analysis: The SWOT is a tried-and-true tool used around the globe. Even a cursory use of a SWOT can identify things that should be considered. The SWOT’s four quadrants: Strengths, Weaknesses, Opportunities, and Threats, can lead to further exploration of gaps that exist, either in a positive sense (Strengths/Opportunities), or n a cautionary sense (Weaknesses/Threats).

2.   Five Why’s: Another simple tool is Five Why’s, which seeks to get to root causes of issues. Start with the surface symptom that reveals a missed opportunity or shortfall, then keep asking why that behavior or condition exists until you’ve discovered the source(s) of the gap.

3.   Root Cause of Success Analysis: We are used to looking for the root causes of problems, but rarely take time to consider the actions and decisions that lead to success. Take the fishbone (Ishikawa) diagram, and instead of starting with a problem statement, begin with an identified success. Identify all of the systemic factors (people, technology, policies, management, etc) that contributed to the success. You may identify gaps or opportunities that will take things to the next level.

4.   Appreciative Questioning/Future Search. Appreciative Inquiry and Future Search are similar tools that build on organizational strengths and successes and uses positive questions to imagine the desired future together. Getting representation from all stakeholder groups to contribute stories of when they have felt empowered and engaged in the organization unlocks a powerful dialogue that uncovers opportunities and addresses unseen gaps between stakeholder groups.

 

Become a gap-minder by focusing on the difference between today’s reality – those things that you know could be better – and what is possible. Many companies find themselves dinged up from their lack of minding the gaps, but paying attention to the risks and possibilities before you trip can mean higher levels of success and a more engaged and satisfied work culture.

   

Investment-Based Performance Improvement

I am a certified performance technologist (CPT). What in the world does that mean? According to the International Society for Performance Improvement, a CPT has proven the ability to apply the ten competencies of human performance improvement in a way that makes a positive performance difference to an organization. Don’t worry, this post is not going to be a shameless self-promotion. I want to focus on my approach to performance improvement and how I’ve shifted my focus from ambition to investment.

First, an overview of the competencies of human performance improvement (HPI):

The 10 Standards of Performance Technology, which are based on four principles and following a systematic process to improve performance, ensure that the Certified Performance Technologist has conducted his or her work in a manner that includes the following:

  • Focus on results and help clients focus on results.
  • Look at situations systemically taking into consideration the larger context including competing pressures, resource constraints, and anticipated change.
  • Add value in how you do the work and through the work itself.
  • Utilize partnerships or collaborate with clients and other experts as required.
  • Systematic assessment of the need or opportunity.
  • Systematic analysis of the work and workplace to identify the cause or factors that      limit performance.
  • Systematic design of the solution or specification of the requirements of the      solution.
  • Systematic development of all or some of the solution and its elements.
  • Systematic implementation of the solution.
  • Systematic evaluation of the process and the results.

Performance improvement, when done with these standards in mind, can be a powerful tool in any organization.  Any time an individual or work group applies a systematic, intentional process to making things better, the results can be like compounding interest in a savings account, leading to great gains over time. The practice of performance technology is a focused effort to innovate solutions to systemic challenges.

Why Your Approach to Performance Improvement Matters

I want to contrast ambition-based performance improvement and investment-based performance improvement.

The Merriam-Webster online dictionary gives three definitions for Ambition:

  1. an ardent desire for rank, fame, or power b: desire to achieve a particular end
  2. the object of ambition <her ambition is to start her own business>
  3. a desire for activity or exertion <felt sick and had no ambition>

All of these uses of the word ambition center around an individual trying to get his or her way. Ambition is self-promoting. The original usage applied to those going around town to solicit votes for election. So if I initiate a performance improvement effort from an ambitious mindset, I am first looking at my own rank, power, and ability to influence others to my way of thinking.

Investing, on the other hand, focuses on what I can give to another, making them the center of attention rather than myself. Here’s what Merriam-Webster provides as definitions for Invest:

  1. [Medieval Latin investire, from Latin, to clothe] a: to array in the symbols of office or honor b: to furnish with power or authority c: to grant someone control or authority over : vest
  2. to cover completely : envelop
  3. clothe, adorn
  4. [Middle French investir, from Old Italian investire, from Latin, to surround]: to surround with troops or ships so as to prevent escape or entry
  5. to endow with a quality : infuse

I like the picture that we get from the first usage above: to array in the symbols of office or honor. It ties to the idea of empowerment and equipping people with the tools and structures to succeed in their work. I am a strong believer in servant leadership, which fits perfectly with an investment-based performance improvement methodology.

Investment-based performance improvement has four distinct characteristics:

  1. Humility
  2. Humor
  3. Harmony
  4. Honor

These 4 H’s, when used in conjunction with the competencies of performance technology, create an environment where individuals work collectively for the good of the organization while building one another up.

Let’s take a look at each of the characteristics.

Humility.

We don’t talk much about humility in the workplace. Our western culture views humility as a weakness, something that gets in the way of ambition. Many view humility as unrealistic in the cut-throat world of the marketplace where it’s “eat or be eaten.” But humility is making a resurgence in the marketplace. Good guys (and gals) really can finish first.

Humility breaks down barriers of communication, disarms individuals from protecting their territory, and allows us to listen. When we are driven by ambition, we cannot hear what is being said because we are always looking to promote ourselves and our solutions. But with humility I can truly listen, truly desire to hear, and see where the insight emerges, even if it doesn’t originate with me.

Humor.

It may seem odd to make humor a characteristic of investing, but it makes such a big difference that it warrants an honored place as an essential element in working with others toward common goals. When I say humor, I am not talking about sarcasm, jokes, or laughing at the mistakes or shortcomings of others. Instead, humor as an investment gives us perspective. It is the ability to look at a ridiculous situation and see it as it is – a case of human reality at its finest and most sublime.

Many of us have lost our sense of humor in the workplace. We have become cynics or comics, but have no good humor that allows things to slide. We are quickly offended, proud of our fast retorts, and use humor to tear others down to make ourselves look better. But humor as an investment intentionally laughs at challenges, sees the irony and chooses to smile instead of lash out, and promotes light-heartedness over criticism or caustic remarks.

Harmony.

Harmony embraces diversity, especially cognitive diversity where we bring together different perspectives, unique insights, and approaches to situations that may be foreign to our own experience or preference. Harmony as a performance investment looks to blend ideas from multiple sources into one beautiful arrangement that is infinitely more than anyone single individual could accomplish.

To create a harmonious workplace requires that we look at each individual and learn to appreciate what they bring to the party. We have a tendency within our human nature to look for homogeneity – we immediately seek out those who are like us. It makes us feel comfortable, part of the group. But diversity is all around us, and we must promote harmony through building rapport with those who see things differently, looking for areas of agreement, but mostly striving to appreciate their point of view and working to integrate the best from all sources.

Honor.

The final characteristic of investment-based performance improvement is honor. Honor and harmony are kindred spirits, since honoring someone can lead to harmony. But I keep honor as a distinct characteristic because of its importance as a mindset toward other people. Honor has to do with “a showing of usually merited respect.” When we honor someone, we hold them in high regard. We see them as a person of value, worthy of investment.

In another sense of the word, we consider it an honor to work with certain people, or to be recognized by them. When it comes to investing in someone else, to make their ability to perform at their peak level, we should consider it an honor. That person may be on a different level in a corporate hierarchy, but if we choose to see it as a privilege to assist them in their success, our ambition takes a back seat.

Investment-based performance improvement, using the 4 H’s as the philosophical starting point, sparks a positive change in the workplace. Whether a certified performance technologist, a supervisor working with a team of customer service reps, or vice president of national sales, you are making an investment in the lives of others. Ambition has its place, but when our ambition centers on our own power, glory, and advancement we quickly become blind to how investing in the performance of others raises all of us to a higher level. When you raise others up, you go a little higher yourself, but then you realize that isn’t really what it’s all about after all.

For more about Human Performance Technology and the Certified Performance Technologist designation, visit the International Society for Performance Improvement (ISPI). If you decide to join, make sure you list me as the one who referred you!

Fundamentals of Performance Improvement: A Guide to Improving People, Process, and Performance

Bouncing Back (and Beyond): The Emotional Side of Economic Recovery for Employees

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As the economy begins its slow climb out of the pit of recession, workplaces have a lot of messes to clean up, especially the emotional debris caused by the economic tsunami the washed over the global marketplace these past 2-3 years. Companies slashed workforces and raised performance expectations in an attempt to ride out the storm, some barely keeping their heads above water. But what was the emotional toll and what do organizations need to do to help employees bounce back to pre-crisis levels of wellbeing?

Even before the recession was in full swing, when the pundits were still debating what title to put on the economic crisis that was beginning to raise its ugly head, a study by Towers Watson showed that “nearly half of U.S. employers say stress caused by working long hours is affecting business performance.”  Yet only about 5% were trying to do anything about it. And as the economic crisis became a beast of recession, one can only imagine that things didn’t improve!

It’s important for employers to consider what their employees have been through these past three years.  Did they face foreclosure? Did a spouse lose a job? Did they have to take on a second job just to make ends meet? Were there constant threats of layoffs and spending freezes and drastic cost-cutting measures that made it difficult for them to do their jobs? And did you keep giving them more work to do because you were feeling the stress of trying to keep the business afloat as you faced your own financial tsunami?

The good news is that we are resilient.

There are some practical steps employers can take to help employees bounce back, and hopefully go beyond where they were prior to the crisis.

Empathize. Put yourself in their shoes and gain some understanding of the stress they’ve faced. Very few individuals have come through the recession without being impacted in some way. Talk to your employees about what they’ve experienced and what their level of optimism is for the future. Find some common ground and let them see you as “real.”

Re-establish Trust. Employees may distrust employers, especially if they feel they have been treated unfairly. If you had to make drastic cuts and reduce hours, expenditures and support, talk with employees about priorities as you can begin loosening up the purse strings. Ask them for input on what essential resources are needed and how they might be funded. Collaborate with them and empower them to have some control over their work.

Give them Hope. Share with them how they fit into the organization’s future. Consider courses or conferences that may build their skills. Share your dreams for the future of the enterprise and how you see them being a part of the future success of the organization. Give them insight into exciting developments or plans. Don’t give false hope, however, or you’ll erode trust quickly.

Sustain their Wellbeing. Employee engagement grows as employers focus on initiatives that help employees find meaning in their work, balance all aspects of their lives, and minimize their stress. Gallup identifies “Five Essential Elements” of Wellbeing as Career, Social, Financial, Physical, and Community. What can you do as an employer to contribute to these areas of wellbeing so that your staff is energized, engaged and ready to help you succeed?

If you really want to make the most of the economic recovery, the key as an employer is to consider the emotional recovery of your employees. According to professor Fred Luthans & his colleagues (Psychological Capital, 2007),

“Today’s organizational participants need to not only survive, cope, and recover, but also to thrive and flourish through the inevitable difficulties and uncertainties that they face and to do so faster than their competition.”

They describe a process of “proactive resiliency” that helps individuals and organizations “overcome, steer through, bounce back, and reach out to pursue new knowledge and experiences, deeper relationships with others, and finding meaning in life.”

Employers are encouraged to reflect on adversities and setbacks and use them as a springboard for growth and development. Celebrate together that you’ve gotten through the difficulties and are now ready to take on the future together. This process can ultimately improve performance and lead to net gains for your business. Employees will gain job satisfaction and increase engagement as hope, trust and confidence create a positive spiral of increased resiliency.

Employees key to bouncing back after the recession

Few companies have come through the past 2-3 years unscathed by the recession. Leaders should consider the impact the recession has had on those who have survived in your organization. How are your employees doing at riding the wave of the economic crisis?

  • Are they disheartened, barely hanging on?
  • Are they committed to your organization and doing everything they can to maximize revenue?
  • Are they coming to you with innovative solutions to bring new customers?
  • Are they maintaining your reputation or just waiting for an opportunity to jump ship?
  • Have you been so focused on surviving the recession to pay much attention to the needs of your employees?

Most companies cut training and development when times get hard.  At the same time incentives and motivational processes take a hit, leading to a discouraging scenario for employees.  If layoffs or deferred hiring also are used to cut expenses during a downturn, the surviving employees are asked to do more with less. The accumulative effect is a disengaged workforce that puts in minimal effort, feeling that the organization doesn’t do anything to earn their commitment.

Not all of this is fair, of course, since employers have to do something to ride out the storm. It’s important for business leaders to understand the value of learning during challenging economic times. The old adage, “You have to spend money to make money” comes into play here.  According to a 2009 study by The American Society for Training and Development (ASTD) and i4cp (Organizational Learning in Tough Economic Times), 38% of companies plan to place more emphasis on learning during the economic crisis. The remaining 60% are either maintaining pre-recession levels or cutting back, some drastically.

The reality is that there’s never been a better time to focus on talent development within your organization.  It is your employees that will pull your company through and help your regain traction as the economy begins to recover.  Managers and business owners must become astute at managing performance, growing talent, and leveraging strengths to maximize human capital.

Because people are the cornerstone to any business – the foundation upon which the organization either stands strong or falters, the wisest thing for companies to do is become experts in managing human performance.  A strong human capital strategy includes an assessment of desired verses actual performance, analysis of strengths & competencies and selection practices to ensure the right people are in the right job, and a commitment to developing people that doesn’t waver despite market and economic fluctuations.

The good news is that human performance management doesn’t have to be expensive! And the return on investment pays off quickly. The key is having a plan and sticking with it. Once processes are in place they can be maintained through feast or famine.  Keep in mind the toll that the economic crisis has on your employees and consider budget-conscious solutions that will keep them engaged. Your employees want to succeed, but need to know they can trust management to support them.

As businesses make difficult decisions about how to pull through the current economic downturn, they must think beyond the knee-jerk reaction to slash costs to the bone. In ASTD’s Economic Survival Guide, the message is “Survival of the learning function in a down economy is all about leveraging existing best practices, eliminating redundancies, and creating programs or situations where employees can learn from each other.” You may want to invest in the services of an organization development consultant to initiate your human performance analysis, which will ensure you’re focusing on the most valuable efforts that lead to sustainable performance and position your company for success as the economy bounces back.

Big Problems, Small Solutions

Why do we always think a big problem requires big solutions? With this mindset we can easily be overwhelmed by the magnitude of the problem and miss the small solution that can make a big difference. Brothers Dan and Chip Heath, in their book Switch: How to Change Things When Change is Hard, talk about this phenomenon. Their observation is that, “Big problems are rarely solved with commensurately big solutions. Instead, they are most often solved by a sequence of small solutions, sometimes over decades.” Most of our problems in organizations do not require decades to improve, but they do take a strategic approach. We have to resist the temptation to put band-aids on complex issues and take a systems view to explore the multiple sources contributing to the problem. In a recent job I was tasked with solving a performance problem with call center agents. Month after month a group of agents fell below quality expectations. I brought in the experts – Quality Analysts, Team Managers, and Trainers – and asked each of them what they thought the problem was and how to solve it. All of them had a diferent perspective and all of them was right. If I had only listened to one group and not the other, small solutions would have been missed. The solution was not a large-scale training program, but a multi-faceted one that included targeted coaching, group activities, and repositioning the agents nearer the help they needed to succeed. It was a big problem with a lot of attention from senior management, but the solutions were small and organic.