We need to improve, but just how should we go about it?

Failure is only the opportunity to begin again more intelligently.” – Henry Ford

How do we go about improving?

Lean, Six Sigma, Kepner Tregoe and Theory of Constraints are some of the most popular improvement methodologies used by businesses across industries. Of course there’s another, ad hoc.

So, if the management team has decided that the time has come to instil a continuous improvement mindset in the business which way is the best?

More and more, organisations are trying to determine what improvement method will work and fit best with their culture, (giving the best chance of long term success).

Leaders often mostly look at the primary benefit of these commonly used methods:

Lean : get rid of waste, anything that does not add value in the eyes of the customer. Repeat

Six Sigma : reduce variation in processes, because they are often the major cause of defects. Repeat

Theory of Constraints : find the bottleneck of a process and implement ideas to increase throughput so as to improve overall capacity. Repeat

Kepner Tregoe : structured method for solving problems and making decisions by truly using data well. A methodology that came from research on how the best managers do it. Repeat.

Ad hoc : find things / processes that are broken or don’t work well. Fix them. Repeat. The trouble here is it’s hard to replicate this through a business.

Dave Nave, in the American Quality Journal of 2002, points out that if you look at the secondary benefit of each method, then the overall benefits between the methods become more similar.

For Six Sigma: “If we focus on reducing variation, then we will have more uniform process output.”

For Lean: “If we focus on waste removal, then flow time will improve.”

For Theory Of Constraints: “If we focus on constraints, then through-put volume will improve”

In more recent years companies have gone “Lean Six Sigma” utilising a combination of these methods.

Adopting a different mindset throughout the organisation, not just with a select few, is a major cultural shift for many companies. For companies that have had one, two or even more unsuccessful attempts at adopting a methodology or approach, the stakes can be higher as people in the business will invariably think “…here go again..” So, it’s vital to look at what the organisation values to decide what approach is best.

Nave goes further: If your organisation values analytical studies and the relationships of data, charts and analysis, Six Sigma is a perfect program for you to start with.

If your organisation values visual change and right now time, then Lean thinking might be the way to go.

If your organisation values a systems approach, where total participation is not desired and if it values the separation between worker and management, then Theory Of Constraints might be a good way to start.

Any major change initiative needs support from senior management. Just as important, however, is the gaining of that support from middle management.

Key questions :

What methods for improvement suit our situation and business culture, or critically the direction in which we want to take the business and its culture ?

Do we have the right people to drive improvement, or can we train them quickly enough ?

If we don’t have the skill sets internally, what type of external companies do we need to partner with to give the best chance of long term success?

Whatever the key drivers are for starting the journey, spend time thinking about what approach will work best to take your culture in the direction you want it to go and at the pace you need it to happen.
 

If you would like help on any of these key questions reach out for a chat  team@stokeconsulting.com.au

Stoke Consulting