Continuous improvement is, as the
name suggests, a practice of constantly re-examining and improving processes.
At a glance, the whole concept might seem a bit of a buzzword. You keep hearing
the word thrown around, but no one really mentions what it involves
doing. And as we all know; the theory does not get you too far in the
business world.
All the
confusion with continuous improvement is because it is not something that you
'do'. Rather, it is a way a company operates. Adopting continuous improvement
in a company means two things…
·
Focus on Growth - The company should have an ongoing
focus on incrementally improving
their processes, services or products. Meaning, perfecting the way you do
things on-the-go instead of carrying out one-off change initiatives.
·
Creating a Culture of Improvement - More often than not, it is the
employee on the shop floor who is an expert on company processes, not the
management. Continuous improvement should be the responsibility of everyone in
the company (not just for the process improvement team).
·
PRINCIPLES OF CONTINUOUS
IMPROVEMENTS.
Improvements are based on
small changes, not only on major paradigm shifts or new inventions
This concept is important, because large changes often feel
frightening and destabilizing to organizations. By approaching change in small,
incremental steps, the continuous improvement model reduces the fear factor and
increases speed to improvement. When following this principle, the organization
does not need to wait for a strategic shift or a new product release to begin
to advance.
Employee ideas are
valuable
The continuous improvement model relies greatly on employees, not only top management, to identify
opportunities for improvement. This
bottom-up improvement is effective because employees are closest to the
problems, and thus better equipped to solve them.
When thinking of these two principles, consider the value of
engaging your staff. If you were to ask everyone in the organization for ideas
to create a new product line or revolutionize the way they care for their
patients, you are not going to get anything; staff are focused on their own
day-to-day work. They understandably cannot come up with monumental ideas at
the drop of a hat!
Instead, ask people what improvement they could make that would
save them 5 minutes a day. Then empower them to implement that improvement, and
spread it to everyone else in the organization doing the same process. In this
way, you can take a small idea that anyone could come up with and drive a big
impact. For example, say get one idea from ten employees, each of which saves
them five minutes per day. That is ten ideas. Share all ten of those
improvements with one hundred other employees, so that every one of them is now
saving fifty minutes per day (10 ideas x 5 minutes each).
By asking people for a small idea that shaves 5 minutes off their
day and propagating their ideas around the organization, you are about to
save 83 man-hours per working day with the ideas of just 10 people.
Imagine how much you would save if you extended the 'ask' of a five-minute idea
to your entire organization!
Another way
to encourage employees to spot opportunities and implement improvements is to
ask 'what bugs them?'.
Most
complaints involve a delta between the current state and the employee's idea of how things should be. Sometimes
the gripe includes a specific recommendation. It might go something like, 'If
they would just do X, Y, and Z, the problem would be solved'. Sometimes there
is no solution included. You might hear, 'There is got to be something they
could do to fix this!'
Did you notice the operative word in each of these examples? 'They!' When employees are dis-empowered and disconnected from the improvement process, all they can do is wait for 'They' (management) to recognize and correct problems. When that does not happen, it is natural (and probably healthy) for people to express their frustration.
Did you notice the operative word in each of these examples? 'They!' When employees are dis-empowered and disconnected from the improvement process, all they can do is wait for 'They' (management) to recognize and correct problems. When that does not happen, it is natural (and probably healthy) for people to express their frustration.
Leaders who
adopt the continuous improvement model do not shy away from employee
complaints. Quite the contrary, they embrace them as opportunities for
improvement. If a team member notices something amiss and says something about
it, that is a good thing. That is the beginning of the improvement cycle.
Companies with a culture of improvement take it even further. They give
employees a process for reporting and acting upon ideas to save money, improve
processes, satisfy clients, and improve quality. What is more, they provide
systems and structure for doing so and they recognize those who contribute to
making the organization better one small initiative at a time.
People are often told not to
complain about something unless they are willing to do something about it. That
is only fair when there is something they can do.
Good leaders give people that opportunity.
Incremental improvements are typically inexpensive to
implement
Employees tend to focus on small changes that can
be accomplished without a lot of expense. In fact, many ideas from employees
involve eliminating processes, rather than adding them, which is an excellent
way to be sure that every activity adds some value to the customer and reduces
wasted effort.
A close look at the detailed improvement data of
thousands of organizations at every stage of their improvement journey around
the world, in nearly every industry showed that 1.4% of improvement ideas have
an impact of over $100,000 - and each employee has an average annual impact of
$25,000. So, not only are these ideas inexpensive to implement - they can also
have a huge impact on the bottom line.
Employees take ownership and are involved in
improvement
Getting people to change the way they have always done things is hard. Do you know what makes it easier? Rolling
out changes that originated from the front lines. When people come up with the
ideas to improve their own work, they intrinsically see the value of the
changes. Knowing that improvements come from their peers inspires faith in the
necessity of the changes much more so than does a decree from senior
leadership who has never actually done the process in question.
By engaging your staff in the continuous
improvement model, you empower them to take charge of their own work (but you
help them as leaders). They are able to identify problems or opportunities for
improvement, follow through on implementing their ideas, take credit for
the work, and see a measurable impact from their efforts. In this way, the sole
burden of improvement is lifted from managers, who
can spend their time more effectively coaching staff on improvement techniques
and removing barriers to implementing changes.
Because the continuous improvement model relies
on employees for ideas for improvement, they become more invested in the
outcome of the change, and employee engagement increases. This increases the chance of
successful, sustainable improvement.
Improvement
is reflective
Constant feedback is an important aspect of the continuous
improvement model. Open communication during every phase of executing an
improvement is critical to both the final results of the improvement and to the
maintenance of employee engagement.
Admittedly, this is tough to pull off in a traditional improvement
culture. Coaches do not have the visibility they need to keep up with everyone
doing the improvement work, senior leaders cannot engage without a major time
commitment, meetings are tough to schedule, and communication gets buried in
inboxes.
Organizations
with a more modern approach to improvement use continuous improvement software
to improve visibility and team collaboration, giving coaches access to the
reports they need to evaluate performance and target coaching. Senior leaders
can follow the improvements that matter to them and engage quickly and easily.
Staff can get the help they need from their managers without having to wait for
a meeting or an email. Essentially, continuous improvement software gets
everyone on the same page by improving visibility and streamlining
communication.
Improvement is measurable and potentially repeatable
It is not
enough to simply make a change and call it improvement. To achieve real
improvement, the impact of change must be measured. This makes it
possible to determine if the change can be applied successfully to other
problems. Proving positive
return on investment also helps
keep the organization aligned around improvement.
Making continuous improvement part of company culture is an
excellent and cost-effective approach to tackling an organization’s most
difficult challenges. When supported by improvement technology, results
can be achieved quickly and success can be sustained over time.
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