Sunday, November 19, 2006

Risky But Sexy

I have long been aware that Lean (and Six Sigma) has the potential to reduce risks, but it lacks the rigour of a proper compliance based approach - something like traditional Health & Safety practices.

Working with my close colleague, Malcolm Tullett, we have developed a methodology that combines the organisational benefits of Lean with a structured approach to reducing risk which we have called PROPA™.

PROPA (or PROfit from Positive Action) uses the Amnis PRISM approach to the structured implementation of Lean combined with effective Integrated Risk Management techniques.

For example, we approach Value Stream Analysis not only analysing non-value adding activities but also the risk at key stages. Our Rapid Improvement Events also combine compliance checks.

The approach has proven so novel as to draw some very exciting comments and was recently Commended in the IET's Innovation Awards.

If you want to find out more, contact us for more information!

Thursday, November 16, 2006

Sustaining Improvement: Is it a pipe dream?

I have prepared this piece jointly with Simon Phillips.

There are two questions that seem to be most commonly asked by organisations who are looking to change the direction of there business; namely:

Where do I start?
and
Why is it so hard?

Research quoted by Henley Management College stated that the UK wastes around £25Bn per year on improvement programmes which go wrong and our own research, collated from a number of sources, suggests that upwards of 80% of all improvement activities will fail.

With ‘Lean’ becoming the improvement tool of choice within a wide range of sectors, including Financial Services, Armed Forces, NHS, Public Services and the Service Sector, it is already becoming apparent that these sectors are suffering from the same problems with implementation that were first seen in ‘Lean’s’ home, manufacturing.

Whilst organisations have focused on the tools of Lean, everything from adapting 5S and SMED for office and service environments, there has been little thought applied to the methodology of implementation – namely, ‘Where do I start?’

Further analysis shows that many of the reasons why Lean Improvement Programmes fail can be traced back to decisions and actions either taken or omitted prior to the start of the change process – broadly these decisions can be classed as:

§ Issues surrounding the planning and application of the tools
§ Issues around the engagement of people and the communication of change
§ Issues around the development of managers to drive the change
§ Issues around the leadership and management systems and behaviours to support the change

Therefore, perhaps the secret solution to making Lean improvements work lies in having a defined methodology to enable people to be able to understand the Lean Journey (answering the ‘Where do I start?’ question) and a plan of attack to create the right organisational environment to enable the improvements to take hold (answering the ‘Why is it so hard?’ question)?

Well, the answer to the questions above is ‘possibly’ because it all relies on having the expertise to answer the questions that arise – such as ‘What is the right methodology for my business?’, ‘What is the best management structure for my business to support the improvement?’ and ‘How do I overcome organisational inertia?’

Sadly, most people who look to implement Lean (or Six Sigma for that matter) come from an engineering or ‘tools’ background, meaning they fully understand the logic of the improvement tools but often do not have the expertise to address the cultural change and organisational development aspect or impact of what they are proposing. Alternatively, the facilitators come from HR/People/Change Management backgrounds and provide expert facilitation for the teams but little in the way of actual direction. Either approach is normally doomed to failure, either dramatic or gradual.

Therefore, the real secret to success is to combine a strong methodology with supporting activities designed to align the organisation behind the change and back it up with an approach based on a strong understanding of the tools of improvement and the ability to inspire and coordinate individuals and teams.

Sunday, November 05, 2006

Mutual Support Brings Collective Success

I noticed when I was working with a team earlier this week that they were all very supportive of each other, both in terms of work and in social terms. One of the team had suffered a bereavement recently and was still coming to terms with it and there were lots of supportive comments and gestures from the group.

In assessing what makes a group successful, I was reflecting that the most successful groups I have worked with have had that sense of mutual support - it helps to get them through the difficult times.

However, it can also work against you if the teams support each other to resist improvement or change and that is why careful preparation of the organisation is essential if you want to get the most of your improvement programme.

Thursday, October 19, 2006

Beyond Lean

It is interesting that even though so few companies are truly 'Lean', many are now starting to talk about 'Beyond Lean'. Perhaps it is to do with the fact that so many have tried it and failed and therefore think that the only way forward is to go 'beyond lean', or is it because people have become Lean and have realised that by itself it is not everything is it promised and feel that to get the real benefit they must go beyond what they have?

I believe the real reason people want to go 'beyond lean' is because, like so many things, it has had its time in some areas and needs a refresh - it is no less effective than it was before, people are not being more successful with it and it is still not widely implemented properly, but it has been around for 10 years and I suppose it needs to be rebadged - perhaps as 'High Performance Lean' or something less connected to the original term?

Any suggestions?

Thursday, October 12, 2006

TPS Isn't Enough!

Attending the Manufuture Conference in Finland this week, there was a lot of discussion about whether or not TPS was robust enough for both a European Culture or for the types of organisations that will be the most successful in the future.

During a discussion with Professor Westkamper from Stuttgart and several others, I crystalised my thoughts and realised that for organisations that need to focus on customised products, which are growing, have highly variable demand patterns or which are rapidly (and continually) changing, that TPS is not the best vehicle for change.

I am currently working on a new model for change that builds on the best things about TPS and brings in new thinking to meet the needs of public and private organisations in the future.

Saturday, October 07, 2006

Taking it on the chin.....

Being wrong is not a sin......

It took me a long time to realise that was the case. Before I accepted that I did not have to be right on every point, I used to close my eyes and my mind to new possibilities and ideas presented by others when they conflicted with my own ideas - it also caused lots of stress when working with other people.

Accepting that other people can have better ideas is a fundamental concept in achieving the best result from your improvement programme.

Sunday, October 01, 2006

Sustain is a Pain

Having run numerous businesses, I always remember the pressure to get some improvement implemented and then get on with the real issue of 'running the company'. This is particularly true of organisations which are a part of a group where there is additional pressure when it is time to make some form of improvement, yet maintain the numbers today and tomorrow as well!

This pressure to return to the norm is one of the biggest single reason why change programmes (and particularly Lean) fail to embed themselves in the organisation.

Over the next few blog entries I will provide some details of the nine key areas which when not addressed will lead to your improvement programme failing. If you can't wait, email me!

Read my article about Lean successes and failures here.