Continuous Improvement

Change happens. Every business environment requires continuously changing strategies, processes, tools, and skills. Earlier, we talked about the MIG, clearly defined business strategies, project charters, and cascading objectives. Companies need to consider all the tools at their disposal to be successful and in this section, we will talk about continuous improvement tools that can be used to successfully implement strategy. Just like implementing strategy, continuous improvement is primarily evolutionary but, in some cases, it can be revolutionary. As a backdrop, consider the following four elements leading to successful and sustainable continuous improvement efforts.

1. Align continuous improvement with strategic objectives and the MIG: Continuous improvement should not be considered a standalone initiative or a self-contained goal; it must align with strategic objectives and impact them. When using a continuous improvement methodology, aim to make an impact quickly for credibility and momentum. Pick your battles and do not try to tackle all objectives at once. Always use strategic objectives and the Business Hierarchy of Needs? as the litmus test for deciding if something should be done, how it should be done, and then define the expected results.

2. Do not overdo process excellence at the outset: This is an evolutionary process, and you need to understand the base from which you are operating. Most organizations do not have the skills or resources to launch a major continuous improvement program, so we focus on the most promising opportunities aka “low hanging fruit”. There will be plenty of time in the future to implement a full-blown continuous improvement program.

After aligning your continuous improvement effort to your strategy, you need to start small and gain some momentum by working on projects that deal with strategic and operating gaps. Projects addressing gaps will have high visibility and high impact. High visibility and impact generate enough excitement to continue using the continuous improvement methodology. Try completing projects in every functional area, engaging the process owners and key influencers so people know what to expect and how to deal with continuous improvement. Remember Plan-Do-Check-Adjust (PDCA) in your continuous improvement roadmap. PDCA is a model created by Dr. William Edwards Deming many years ago and is a staple in the continuous improvement toolkit. Another staple that routinely has the biggest impact is Value Stream Mapping. In our consulting work, we have provided clients with tens of millions of dollars in business process improvements utilizing this tool.

3. Integrate continuous improvement into your Culture of Strategic Execution?: Continuous improvement and change management go hand in hand. The engagement of all stakeholders in continuous improvement projects that are tied to the company’s MIG, and strategic objectives will create the basis for a sustainable program that will support the long-term needs of the company. Your teams need to have the right direction, the right tools, and the right support. Continuous improvement projects are a significant part of improving employee engagement, leveraging their skills, and realizing the performance numbers previously summarized in the Gallup data.

4. Blend the best practices from the different methodologies: Focusing on one methodology for continuous improvement can limit progress, diminish innovation, and restrain the organization’s ability to realize its full continuous improvement potential. Use the best tool for the activity picking from the Six Sigma tool kit as shown in the next figure.

Figure 30 Six Sigma Tools Used to Implement Strategy

All of these tools, when properly utlized, deliver results. It is important to understand the tools that are required for each type of project. Often, Kaizen or Value Stream Mapping will be the very first tool you use to implement your quick successes in bigger projects. They are the simplest tools to implement, and you will be able to determine other CI tools that are required to continue. But whatever you do, deliver training on tools that are required for your project just-in-time, so the training immediately delivers value and is not wasted. This is about getting things done in a timely fashion.

Focus on data and best practices, and not emotions: no more, “We have always done it that way.” Embrace the discipline of the process and the rigor of data-driven decisions. Emphasize measures and metrics. Hold people accountable. This will become your new culture. Remember that the company’s MIG, strategies, and data should be the only things used to justify projects and measure their success.

While you may choose to focus on a companywide continuous improvement program, it is important to remember that all of us have seen initiatives come and go. That result is usually caused by a lack of continuous improvement discipline throughout the organization, which causes senior management to lose interest because the continuous improvement program’s activities do not move the strategic needle toward accomplishment of the MIG. Everyone in the organization needs to see how much of an impact a continuous improvement project has made on the business.

I recently received a call from the head of Continuous Improvement at a large corporation. He spoke at length about how frustrated he was about the lack of traction and was worried about continued funding for himself and his team of six people in the upcoming budget. I asked him what he had done so far. He told me that he had held dozens of courses introducing continuous improvement, had done 5S throughout the offices and had taught more than 100 people some of the basic skills. I thought about this for a moment and asked him to summarize how much money these efforts had delivered to the bottom line. He said he could not do that because he did not know. I suggested to him that his answer would guarantee no funding for the next year. I also suggested that he approach senior leadership with the following question: What is the thorniest problem in the business that needs to be fixed? After getting that answer, I told him to go back to senior leadership with a plan for applying continuous improvement tools and projects to fixing it. He did. It got done. The result delivered dollars to the bottom line and his team was funded with new enthusiasm the next year. This is an example of tying an activity to a need and everything we do should have that tie.

When applying continuous improvement tools to business processes, do not forget to focus on the intersection of People, Process, Information Technology, and Cobotics and do not start a program if you are not willing to do the upfront planning and make it part of creating a “Culture of Strategic Execution?” by sticking with it.

After reading this section, you should be thinking about:

1. How does continuous improvement fit into the implementation of our strategy?

2. What do we really know about continuous improvement?

3. What continuous improvement tools are required for our strategic needs?

4. Do we deliver training just in time?