Strategic Planning

Want Continuous Process Improvement but frustrated with the results?

These Techniques Work.

There are excellent isolated examples where Continuous Process Improvements (CPI) exceeded expectations, but how did these improvements really affect the bottom line or drive the enterprise closer to its strategic goals?

Fingers can point to lack of management support or even a failure to link the initiative to the Enterprise Strategic Plan. The results are the same: it did not work. Management members scratch their heads and ask the tough questions: Why do we need CPI? Is it just another recycled fad in a different package?

The following techniques will improve the CPI potential in any organization.

Remove CPI Roadblocks

First, any initiative involving organizational resources (people and capital) cannot be delegated. Upper management must be as committed as the hog is to breakfast (versus the egg-contributing chicken). Active management involvement will demonstrate serious commitment and dedication to improve and move the organization a step closer to its vision.

Second, there must be a strong business case linking the CPI initiative to the origination’s business strategy. This provides the rational for a specific improvement with purpose rather than a “random isolated project” (RIP). Only management can make this linkage in easily understood words that can be just as easily communicated to the entire organization.

Third, the enterprise's structure and environment must allow for a “bottom-up-implementation." This may involve something as simple as aligning systems or as complicated as a critical analysis of the organizational culture. At the very least, management must perform a risk analysis of "show stoppers" (people, processes, or restrictions that will halt CPI success), and take necessary steps to mitigate them.

Tools to Make it Happen

Develop an organizational culture where CPI is enterprise wide. This starts with a shared vision of the future where every department and every individual can clearly see their role in achieving the vision. Developing a CPI culture is easy when you break big statements (vision) into smaller individual actions. The best tool to break the vision into manageable actions is an Enterprise Value Stream Analysis (EVSA).

Appling the implementation model starts with creation or commitment to the enterprise vision. A vision that is understandable and easily communicated is paramount to success. This is typically accomplished by an Executive Leadership Team comprised of representatives from each area or department.

Working from the top down, a modified open systems model can be used to identify enabling critical processes to achieve the organization's vision. This step of the process asks "what processes will enable you to achieve your vision?" Specifically, consider processes that:

• Are big $ consumers.

• Are broken.

• Could be enhanced.

• Are non-existent.

• Could be eliminated.

• Are non-value added.

Brainstorm all the process that will positively affect reaching the vision, placing each thought on a separate sheet (Fig 1). Organize opportunities/processes into logical order using either an Affinity Diagram or Fish Bone Diagram. Once the data has been categorized, narrow the opportunities/processes using Multi-Voting techniques, nominal group techniques, or some similar technique to determine targets of opportunity.

Organize opportunities/processes into logical order using either an Affinity Diagram or Fish Bone Diagram. Once the data has been categorized, narrow the opportunities/processes using Multi-Voting techniques, nominal group techniques, or some similar technique to determine targets of opportunity.

Allow each Team member to rank their top choice opportunities/processes for selection using the criteria of “What will have the biggest impact toward:”

— Achieving the vision?

— Reducing cost?

— Reducing or abolishing workplace redundancies?

— Improving delivery?

— Improving quality?

Select the top five to seven opportunities/processes as priority projects that will move the enterprise closer to the vision. For each opportunity/process develop expected outcomes (objectives) and completion date. These are turned into Strategic Continuous Process Improvement (SCPI) projects that are directly linked to the vision with specific goals and objectives.

Continuous Improvement Tools

Utilizing CPI tools, select the tool(s) that will enable successful execution of the Improvement Plan. Examples of tools that can be utilized include Lean, Six Sigma, Five S, Team Building, and Data Analysis.

Included below are widely used data based problem solving models that have become an integral element of process improvement.

Figure 1

Results and Conclusions

This process assures that SCPI initiatives link to the enterprise vision, have top leadership involvement, and have measurable results. Many leaders recognize that every organization has limited resources and that the traditional "improve everything" approach ends up spreading those resources too thin. That is one of the major pitfalls of traditional strategic planning. Organizations with too many priorities tend to only partially achieve each of their objectives.

Successful organizations work on only five to seven SCPI projects each year, focusing their resources on initiatives that have the greatest opportunity for achieving the enterprise vision. This approach maximizes the ROI but more importantly keeps all eyes on target, eliminating conflicting priorities by working on the “right” projects at the “right” time.

When improvement teams know that they are improving what matters most to the enterprise, they have a greater sense of purpose and contribution. Leadership can focus their efforts on (1) providing guidance and direction, (2) providing tools and training, and (3) removing obstacles. It becomes a win-win situation.

Like This Process?

You can apply this process within your organization to strategically identify key CPI initiatives that are aligned with your enterprise vision. Typically on site facilitation is completed in three half day sessions with senior management.

To complete the process we offer three choices to accommodate and expedite the busy schedules of senior level executives. We can 1) train your facilitators, 2) provide a facilitator, or 3) supply Facilitator Guides that can be used to expedite the process. This is a no nonsense approach that is fast paced to align improvement initiatives. The goal is to get all eyes pointed in the right direction to move the enterprise closer to its vision.

This process has proven to be highly effective, results oriented, and all inclusive with its top-down-driven planning and bottom-up implementation. Through experience, the process works best on-site to minimize time impact on senior management.

A bout the authors

Douglas Ferguson PhD, President Ferguson and Associates LLC, has over 40 years of experience helping organizations improve performance through people and technology. This included helping organizations change through the implementation of modern improvement methodologies such as Lean, Six Sigma, and workforce development. You can contact Doug at 912.507.7931 or fergd6843@gmail.com.

Scott D Larkin, President Mantua Consulting, is a Lean Sigma Master Black Belt and executive coach; excelling at leading and facilitating numerous international and national lean projects. Scott has extensive experience leading large transformational projects and programs to enhance business capabilities in both the private and public sectors. Coupled with his business acumen, Scott has continually helped organizations accept a bias for action and accountability to improve performance, quality, and customer satisfaction. You can contact Scott 435.723.6987 or mantuaconsulting@gmail.com.