Tuesday, December 2, 2014

Building a strong organization through continual improvement...

So... for today I'd like to write a small post about the importance of continual improvement. There are a few topics to discuss about (such as the scale of change, the frequency, etc.) but I'll start with "the source".


The source: where to find good insights about what needs to be changed


We tend to see ourselves as source of information. "What do I think is necessary? What do I think we should improve?" This happens more if you are the owner of the company. But... Why do you spend time and effort doing this? I mean... You can outsource it! To a... consulting company? No! How about... your clients and employees? Yes! They give continuous signals of what you should improve. You just have to be careful about how you collect this information. Let's say you create a survey to all employees of your company (or to your customers, doesn't matter). Is it a good way? Not really... the problem with surveys is that they usually don't foresee all the possibilities. They can also have unintended biases if the questions are not well and clearly written. Basically, surveys are good to check the current status of something, but they are not good to generate insights for change.

"So... What now? I've invested a good amount of time in surveys and etc... and the results might be wrong?" Unfortunately, yes. The thing is... Insights from your employees and customers happen every single moment. A comment, a complain, a phone call to customer service. All these things... They are "the source".

The way: close to small changes and away from big ones


Sounds like a religious book, right? "The way"... Anyway, let's focus on what matters. Small can be also interpreted as simple. Simple and small changes. You don't want to invest tons of money in a revolutionary change: you don't know (and can't predict) the outcomes. Take yourself as an example: you don't stay like a child until your 20s and, suddenly, "puf!"... an adult. It's a gradual process made of small and simple transformations that generate a complex outcome.

The same with your business: planning and executing massive transformations is too exhausting and expensive. Here is what I advice: plan simple and small changes and... execute them in a sustainable way! Maybe this is the reason why small changes are underestimated. The excitement of implementing a new idea leads to a very good start, but as the time passes by, the passion and the commitment go away. In addition to simple and small changes, here is the third pillar of continual improvement: discipline and commitment.

This also brings the topic of... With which frequency should I change? Not too much, not too less. A balance, of course. But what is a balance? The answer is the most helpful ever: it depends. "Uau, thanks." ... You're welcome! But it's true! Let's, at least, try to define some guidelines... It depends on two things, basically:
  • The type of organization: if you are an online company, the changes may be daily; if you are a steel industry, it's harder to change with such a frequency, right?
  • The scale: ok, I said small changes... But this is not always possible. Sometimes you have to change machinery, or you have to find a bigger office. Sometimes you just have to find a new place for a banner in your website.

The end: going back to the source


And after we implemented all the small changes, we come back to the beginning. Maybe your problems are over (sorry to say, but they never are), so you don't think is necessary to come back and start everything again. The thing is... Even if you don't have any problem (sorry to say, but you will always have), all the changes you implemented created a new environment and a new organizational configuration. And this, by itself, creates lots of new opportunities and is more than enough to restart the path.

You never stop. But it's a good thing, isn't it?

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