Businesses typically care about only three things: 1) Increasing Revenue, 2) Reducing Cost, and 3) Cost Avoidance. But it isn’t always easy to connect the work to one of these three outcomes.
Reducing scrap. Reducing lead time. Decreasing accidents. Making quicker decisions. These are things it is easier to connect to our work. These are outputs.
So how do the outputs tie to the outcomes? That is where a benefits map can help.
The benefits map takes the deliverables of the work (on the left) and ties them to the outcomes (on the right) by way of the outputs (in the middle).
Properly designed work has known deliverables. Getting to how theses deliverables are going to change known metrics connects them to the outputs. Then it is working with the customer to think about how changing those outputs will create a better outcome for the business.
The last step is to quantify the benefit to the outcome.
There are two positives to this method. The first is the team has to stop and think about how the work will benefit the business. Just the awareness alone creates teams that more in touch with how they are affecting the business.
The second is the people doing the work become more engaged int he work. They can see a visual of how they are making an impact.
Understanding how your work is helping the business is a key component in employee engagement. The Benefits Map is a simple but effective tool to help engage people.
Lean is focuses on adding value for the customer. But, who is your real customer?
Many groups will talk about supporting another group within the organization. The focus is on making the internal customer happy. Delivering what they need and want.
Internal customers are important. As a supplier, the focus should be on delivering what the internal customer wants. But, they are not your real customer. The real customer is still the end user or the consumer of the organizations product or service. That never changes.
Even if a group never touches the value added processes making the product or service, the group should be focused on the end customer. As the group works with the internal customer, questions should be asked if what the internal customer needs/wants lines up with adding value for the end customer.
Common thought is it’s not the support group’s job or position to ask because the internal customer group is assumed to already know what is being asked for is adding value.
Amazon. Zappos. Danaher. Safelite. Organizations that have figured out it is EVERYBODY’s job to focus and ask questions about what adds value to the end customer have a significant competitive advantage.
Not adding value is the same as taking it away.
This is a driving point to the lean methodology. You can’t stand still or you will get passed by someone who is improving and adding value for the customers.
Leaders and managers may not be directly involved in adding value to the product or service, but that does not mean they aren’t responsible for driving value creation. Leaders add value by engaging employees in ways that will help them continue to add value for the customer.
People and companies can’t afford to be stuck in neutral.
Defining the problem well is a very important step in solving any problem. Yet, in coaching problem solving, problem statements are very rarely written well or even understood.
There are five components to a well written problem statement:
- What is under performing?
- What is the actual performance?
- What is the needed performance?
- Why does this need to be addressed?
- What will be affected by solving this? (Safety, Quality, Delivery, Cost, Morale)
Example: Number of critical software issues in testing was 13 and needs to be at 0 because the software can not be released until the critical issues are resolved which delays the cost savings and increased revenue of using the new software.
(Color coded to show the components of the problem statement).
There is a clear understanding of what is wrong, where the performance needs to be and why it is important.
As a team works on solving this problem, they can always bounce their root cause and potential countermeasure against this statement to see if they are delivering on what is important. The team always knows how they are affecting the business (reducing cost and increasing revenue).
“The software has too many issues to release,” is not a good problem statement. What kind of issues? How many? What are the repercussions of the issues?
This is the type of statement that I see way too often. As you can see, there are too many questions to get a clear understanding of the problem.
A well written problem statement will get a solid problem solving process started on the right foot.
With any improvement philosophy, people always want the BIG improvement. When there are none to be had a re-organization or a shift in direction is implemented. This may work for a short period of time, but eventually the results normalize back to their old levels.
A uniqueness with lean is creating a focus on getting better each day. Even it if is just a second or two better. Saving 1 second each day while maintaining the savings from the previous day will yield 8.7 hrs of savings after a work year. What would you do with a full extra day of capacity?
Paul Akers has called this 2 second lean. It is extremely powerful.
Focusing on small improvements means focusing on what bothers you and your customer and fixing it. It could be as simple as always having to search for a stapler when doing paperwork. Or moving the placement location of a label. This saved a group I worked with 1 second per label…we timed it. Over the course of the year, that was a savings of over 30 hours for the team!
People don’t like to focus on small changes because it isn’t “sexy”. Guess what? Sexy falls apart quickly and usually has no substance.
Build lasting change a little at a time. It takes patience and understanding but two years from now you will have better actual results than people chasing only the “big” improvements that never get completed.
A project is proposed. Most projects have an return-on-investment (ROI) associated with them to help sell the idea. The ROI lists out the benefits of completing the project. The project gets approved. People work on it until it is completed…hopefully. Congratulations are given on good work. People move on to the next project. The End.
Notice anything missing? Arguably the most important part?
No one goes back to verify if the project produced the benefits that were stated in the ROI.
How does the organization know if the investment was a good one? A bad one? Or a great one?
Checking the benefits isn’t the “sexy” part of the project, but it is the rewarding part of the project.
Why don’t people go back and check the benefits? Is it because it is a month to a year after the project is complete before they are seen and people forget? Is it because people put inflated benefits on the ROI statement and they don’t want to get called out on it? Is it because putting a value to some of the benefits is extremely difficult?
Whatever the reason, it can’t stop you from checking the actual value realized from a project. What if you didn’t reach the realized value stated? Can something be done to increase the realized value. What if you exceeded it? Don’t you want to celebrate it? Use the learnings to sustain the extra value realized. The learning from verifying the realized value is immense.
In January, I posted a blog titled “Create Inspiration“. In that post I stated a goal for myself.
I want to post 51 blogs in 2016, so I am going to use Seth’s example and every day until the end of February I am writing a topic in my notebook. Some may never get written about. Others will end up here on Beyond Lean.
The experiment has worked. Here are the results:
- I wrote an idea down on 17 of the 21 working days in February.
- I documented 25 topic ideas
- Every post since the start of February has come from that inspiration list
I still have room for improvement. I didn’t get an idea added everyday, which was my goal. I could also increase the average ideas/day.
There is a well wish people give to others sometimes, “I hope inspiration finds you.”
Don’t wish for inspiration to find you. Go find inspiration!
Have you ever been stuck on a project? Don’t know where to go? Looking for ideas?
A common tool people will use in groups to help with get things moving will be to brainstorm. The problem with brainstorming is it helps people converge on a particular answer.
People will put up any and all ideas they have already thought about. Then ideas are voted on to narrow the field. When finished the group ends up with a handful or less of ideas from the person with the strongest voice in the room. Typically, these ideas are along the lines of the current direction of the work.
What if you don’t want to limit yourself in your thinking? Come up with idea(s) that haven’t been thought of yet.
Have you tried Q-storming? Instead of ideas, think of as many questions as the group come up with. In a recent exercise, the group came up with over 30 questions about the work to be done.
It caused the group to dig in more and find answers to some very good questions. The door was opened to several different ways to attach the problem. Some of which were not even on the radar before the q-storming. The team was able to shatter some assumptions. Allowing them to work in a new way. It was very freeing.
If you want your thinking to diverge from norm then try Q-storming. Or if you have a need to converge your thinking use brainstorming.
Two words that seemed to get interchanged in business are consensus and collaboration. These words are not the same. Definitions pulled from the Merriam-Webster dictionary.
Consensus: a general agreement about something : an idea or opinion that is shared by all the people in a group
Collaboration: to work with another person or group in order to achieve or do something
Consensus means getting everyone to agree. This is what happens when a jury goes to deliberate on a case. They must come to a consensus or it is a hung jury.
Collaboration is working together towards a common goal.
People can work together towards a common goal without agreeing on the method.
In today’s world, collaboration is a must for much of what people do. People must work together to understand a customer’s needs and then develop and manufacture that product. If consensus had to happen before any work was started, work would never get completed.
Have you ever worked on a team where someone tried to get consensus before moving on? It can be painstaking. Especially, when there are varying opinions. This is where a leader steps in and makes decisions that sometimes are very tough.
Good leaders know the difference between collaboration and consensus. They know when consensus is important and when it is not needed.
Do you interchange the two?
People behave based on their experiences at work and in life. If a person has been mistreated by someone close to them, it may be hard for them to trust others. If a person is being told how valuable they are to the company, then people may have a positive attitude when going to work.
I worked with a group a few years ago during an improvement event that had bad experiences with past managers on trying new things. The team had no problem identifying a lot of great improvement ideas. When I said it was time to start working on implementing them, they sat and stared at me with confused looks.
The team refused. Thy said it was not their place. The manager would not allow it. After five minutes of discussion and no progress, I called the manager into the improvement event.
I asked him, in front of the team, if it was alright if the team tried the suggested improvements. The manager said, “Absolutely. We can test anything the team believed would help.”
It still took a few minutes to convince the team, but in the end they made the improvements and started becoming more engaged.
The team had so many bad experiences they were guarded and didn’t trust the new manager. The team finally got a new, positive experience and mindsets slowly began to change.
What experiences are you giving your employees? Are they experiences to exhibit the behavior you want to see out of them?