| The Number One Blunder in Process Improvement and What
to Do About It
The truth is, the main reasons a business can't design and
implement responsible and effective improvement programs aren't
that mysterious. In fact, a review of current literature shows
that, in the aggregate, there are probably three characteristics
to improvement programs that have fallen short of the mark.
If Paul Nutt is right in his assertion that two-thirds
of all business decisions are based on failure prone tactics1,
think of your last four decisions. If even two of them
made a positive difference, then, you’ve beaten
the odds! |
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They are:
- A failure to obtain not only top management's support
but its involvement2,
- A failure to identify and concentrate on those processes
that matter3 and
- A failure to accurately define a Business's desired State
before beginning a program that alters its current state.4
Okay, so what's the value of knowing the origin of a problem
if solutions are so plentiful? Just this; If a common
thread can be identified that clarifies or otherwise mitigates
the source of a problem, then a reasonable and effective solution
to the problem can usually be identified as well.
Let's investigate that idea for a moment.
Senior Management Support
The involvement of senior management and the cooperation
of an organization's culture is generally achieved through
the specific exchange of information. For the greatest effect,
management must repeatedly and forcefully explain, endorse,
and encourage improvement efforts. At the same time, to garner
and insure their cooperation, members of the organization
must be informed by management of the specific benefits of
process improvement activities as well as the negative outcomes
resulting from failure. But, how can the right information
be identified? And, how can both factions be convinced of
the validity of their claims? We'll get back to that in a
minute.
Concentrate on Processes that Matter Most
The second source of error stems from a business's failure
to identify which processes matter the most and therefore
where the greatest effort toward improvement should be exerted.
Research has shown that improving just any process isn't sufficient,
rather, that for the biggest gains in effectiveness, efficiency
and contribution, only those processes that have a prominent
place in the value chain should be considered. But, how do
you know which processes those are, what their contribution
is and what effect a change in each might produce? We'll get
back to that question in a minute, too.
Knowing the End from the Beginning
The results have been outstanding... cycle times and costs
have both decreased dramatically. ProcessModel has allowed
lenders across the country to create a business case that
is so compelling, that even in the face of organizational
resistance senior management is motivated to transition their
organizations from the old to the new.
– Tony Cato, Fannie Mae |
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Finally, the third source of error lies in the inability,
reluctance or unwillingness of a business to pinpoint just
where it wants to go before it leaves where it is. As an old
sage once quipped, "If you don't know where you want
to go, any road will do!" Unfortunately, that's usually
the pattern that develops when no destination is specified
in advance. So, how can a business determine where the best
destination might be, or if that destination is even obtainable
with the resources at hand? Good question.
So, what do all of these questions have in common? One thing.
In every case, the answer lies in the collection,
evaluation, and dissemination of specific information regarding
the business, its processes and the impact of change.
But, it's not that simple either. A business embarking on
Process Improvement has to be able to determine the answer
to each question in a manner that is consistent with its aims
while simultaneously considering a wealth of alternatives
any one of which could spell the difference between success
and failure.
So, is there a tool or technique that could accomplish this
goal? Yes, there is! You may even qualify to receive a free
copy of this valuable software used by GE, Motorola, Honeywell,
Bank of America and hundreds of other great companies.
 Click
the banner to request your own free
trial copy of ProcessModel. This trial copy is not a stripped
down version. You will be able to use the full power and capabilities
of ProcessModel, and it comes with free technical support.
You will be able to avoid the Number One Blunder!
- "Why Decisions Fail," Nutt, Paul, Berrett-Koeler, 2002
- "Achieve Lasting Process Improvement - Reach Six Sigma Goals without the Pain," Bennet, L & Rea, K., Sutton Books, 2003.
- "2001 Professional's Guide to Process Improvement: Maximizing Profit, Efficiency and Growth," Lientz, B. & Rea, K., Harcourt Brace Professional Pub., 2000.
- "Five Critical Questions in Process Improvement," Waina, R. CHIPS, Summer 2001 - Spring 2002.
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