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.

   

 

How to Give (and Receive) Performance Reviews

performance_reviewAll over the world supervisors are gearing up for their least favorite time of the year. Sometime between January and March employers involve their organizations in a time of reflection, evaluation, and planning. Well, that probably sounds too altruistic. In reality, the annual performance review process is painful, unproductive, and a downright waste of time.

Reviewers often fail to keep adequate records to evaluate well and seem to be surprised that reviews have snuck up on them again at the exact same time as last year! How did that happen?! As they continue to put out fires and keep operations moving forward, they have to carve out time to think about the past. It seems like a fruitless effort, but it’s a requirement, one in which the outcome often determines the merit increases of their staff.

Merit increases have their own challenges, since “management” allots a specific dollar amount or percentage to each manager, which they have to figure out how to divvy up to their team. This often means juggling performance scores so that the budget isn’t exceeded. What a mess!

So what can supervisors and managers do to make the most of performance reviews? Here are three things to keep in mind if you’ve once again been surprised by the review cycle and have to get them done in a hurry.

  1. Adjust your mindset about reviews. Know why you are giving them, and consider what the benefits are of performance reviews. If you can modify your attitude toward evaluations and begin seeing them as an opportunity to recognize people for what they’ve done well and coach those who are struggling in certain areas, you will become more objective and solutions-minded as you prepare to write the evaluation.
  2. Focus on the purpose, not the process. When you view the performance evaluation process as a once-a-year pain-in-the neck you will likely approach the process (and your staff) negatively. But if you have made performance management a part of your everyday leadership, the annual review is just one step in the process.
  3. Make it a dialogue, not a monologue. Because supervisors often rush through the process to meet the deadline for annual reviews, they present the performance review as a monologue, checking off the score and a brief explanation as they make their way down the page. This one-way street approach denies the humanity of the employee who has little room to participate in their own performance review until the end when the supervisor says, “any questions?”

These three things will set you on a path to making performance appraisals more positive, productive, and purposeful – and hopefully a lot less painful!

If you’re on the other side of the desk, receiving a performance review that is less than dynamic and obviously rushed, here are some things that you can do to get the most out of the process:

  1. Set YOUR tone. Because you expect this years’ review meeting to be just as meaningless and frustrating as last years’, you are shut off to any other possibility. Whether your manager is taking the process seriously or not, you can set the tone by approaching the meeting with an attitude of discovery and a chance to have some positive face-to-face time with your boss.
  2. Ask questions. Don’t let your manager get away with their typical monologue of essentially reading the review verbatim, hardly making eye contact. If they aren’t coming up for breath, interject a question mid-stream. Don’t waste this opportunity to find out more about why they rated you the way they did. Make your questions positive, not attacking or defensive.
  3. Prepare! Since your boss may not have kept the best records and may be judging you based on your most recent performance or with lots of generalities, bring examples of your work. Take time to prepare a timeline of the past 12 months and what you were able to accomplish in that time. What were your successes? How did you provide value? And when did you drop the ball? Be prepared to talk about lessons learned and renewed focus.

Annual performance reviews are often forced upon the workforce, but individual managers and employees can make them better. Performance evaluation doesn’t have to be a dreadful, migraine-inducing endeavor. Really! It all depends on how you approach it – the mindset you bring with you and the preparation you undertake. Your organization may have a stupid process that seems like a departure from the day-to-day culture, but you can choose to make the most of it whether you are the giver or receiver of performance feedback.

Here’s hoping you exceed expectations!

Illuminate and Eliminate Invisible Performance Barriers

Leaders spend a great deal of time creating strategies, laying out short– and long-term  plans to increase market share, improve net income, or simply retain customers only to have those best-laid plans run into unseen barriers. The types of barriers range from unforeseen expenses to a lack of motivation from employees.

To uncover these hindrances to performance and deal with them effectively takes an ability to analyze factors within the organizational system. This is no easy task in the rapid-fire corporate environment most of us live in.  The barriers remain hidden to us because we can’t slow down enough to reflect and consider what is getting in the way of the plans we were sure would work.

Exposing performance gaps requires a systematic approach that looks beyond the surface assumptions, such as training, pay and incentives. It is a common solution to retrain or reprimand employees who are not meeting performance expectations, but we fail to get to the real issue, which could be anything from an ineffective software program, a poor system of accountability, or a workflow that creates a bottleneck outside the control of the employee you’ve determined is a poor performer.

The fact is, identifying gaps in human performance is not simple. It takes skill and a reliable process to evaluate the multiple factors that contribute to performance gaps.  A useful model is the Human Performance Technology model promoted by the International Society for Performance Improvement, which espouses ten competencies that, properly applied, identify the unseen barriers and provide a framework for performance improvement.

 Illuminating and eliminating invisible performance barriers takes practice, but the benefits of following the HPI model leads to net gains, increased engagement/satisfaction, and an increasing ability to see the unseen as the organization builds a culture of evaluating the system and making smart, strategic decisions.

*To find out more about Human Performance Improvement & Technology, visit www.ispi.org

Visit www.cornerstoneglobaltps.com for more information about HPT-based consulting.