Showing posts with label continuous improvement. Show all posts
Showing posts with label continuous improvement. Show all posts

Tuesday, March 13, 2018

Lean by Playing One Point At-a-Time



"One thing that makes Chris [Evert] such a great champion, is that she doesn't play games or sets, she plays points."Billie Jean King

I've played tennis most of my life and learned many years ago about the importance of the mental aspect of the game. One thing that particularly impressed me early on was the ability of Chris Evert to maintain an intense level of focus regardless of the score. Whether she was winning handily or losing badly, her expression and focus did not seem to waver. This ability helped her come from behind on many occasions and beat her opponent, even when it appeared that she had no chance of winning. Her focus was never the match, set or game, but the point. Her strategy was based on the idea that points mattered, not the score, and by focusing on winning each point, the matches would take care of themselves.

I didn't know it at the time but this greatly helped me to understand lean thinking. Keeping the focus on what's happening right now, whether a machined part, assembly, customer interaction, or drill bit location, helps drive improvement by immediately seeing when something goes wrong. When we become distracted by the overall score – the monthly or annual budget – we miss the little things that happen every day and every hour that add up to poor long-term performance.

At its most basic level, lean involves setting standards and addressing the problems that interfere with meeting the standards. This means that, to make lean work, we must: (1) have standards; and (2) provide an easy way to know when the standards are not met. It is a simple concept but is very difficult to put into practice. Company culture, leadership systems, and human behavior often force people to worry about the big picture and forget that the results consist of many small processes and interactions. As a consequence, people ignore the small problems and fail to see that spending 5 minutes looking for a tool, for example, has an impact on missing a monthly or annual production target.

It Starts with Leaders

For a variety of reasons, leaders tend to focus on the big picture and ignore the small problems. What is often forgotten, however, is that the big picture includes creating an environment where everybody identifies and addresses problems every day. By showing concern only about the big gaps in performance, leaders are telling people that the small things don't matter. As an example, although missing a bolt to complete a job can be a headache for a person in the factory, a leader may decide that it is not significant enough to spend time helping the person understand the cause and develop a countermeasure for the next job. The message that some problems are important to fix while others are not sends mixed messages about the importance of problem-solving. In effect, the leader is losing points while thinking about the match.

Changing the culture requires helping people understand that every instance where a standard is not met is a problem and needs to be resolved. Doing this requires spending time at gemba to see when it happens, helping people recognize the small problems that happen (or validating that the problems are important enough to address), and coaching people to effectively solve problems. The objective is to get people solving the problems they face every day.

Changing the Daily or Weekly Standup

Another way to help change the way people think about problems is through the daily or weekly standup meetings. A traditional standup meeting reviews how the team performed since the last meeting, e.g., what problems interfered with achieving the plan discussed in the previous day's meeting. When the discussion is distracted by the annual or monthly budget rather than what happened yesterday, important information is missed. Achieving the budget is obviously important but since meeting standards is the way to achieve the budget, the focus needs to be on what got in the way of meeting standards. When the focus is the budget, the team misses a critical objective of lean: solving problems and performing better every day. In tennis, the standards include things like the stroke, footwork, and ball placement. It is these things that enable a player to win points through an intense focus on doing them correctly and making adjustments when problems happen rather than looking at the score. In work, the standards and associated instructions are the stroke, footwork, and ball placement.

When a company's culture suffers from an attention deficit disorder (a common condition in many organizations) its inability to see the small problems interferes with the daily problem-solving required to continually improve and create a system capable of meeting the budget. By allowing this to continue – i.e., worrying more about the score than the point or the shot – the gap to the budget will continue to grow because the problems are not being addressed. It is also far easier to address the small problems every day than to attempt to take on the entire gap between actual performance and the annual budget.

Focus on the Points

University of Alabama football coach Nick Saban once said, "the process is really what you have to do day in and day out to be successful." In lean terms, he's referring to understanding and continually focusing on the standards. When the focus is results rather than the work that produces the results, standards become meaningless, problems become too big to address, and the gap continues to grow. Besides the fact that it is far easier to identify and correct gaps to meeting a standard than missing a monthly production target, the more people address problems – regardless of how small – the better they get at problem-solving. I've learned the hard way many years ago that my chances of coming back from a 5-1 deficit are much better when I focus on the next point than worrying about winning the next six games.

Sunday, April 30, 2017

Short-Term vs Long-Term: They Both Matter

Over the years, I have found many organizations the lack the ability to effectively balance short-term pressures with long-term improvement.  The situation causes frustration in people because, in the end, the short-term virtually always wins while the focus on the long-term suffers. 

There are a number of reasons for tendency toward short-term thinking.  First of all, people tend to be measured and rewarded based on achieving current year targets much more than long-term improvements.  Another factor driving a short-term focus is the targets are right in front of people.  The gaps are easy to see and it's clear that, if the problems are not addressed immediately, meeting the targets may not be possible.  Long-term gaps are also more difficult to measure and it's easy to justify dealing with them later. 

Which is More Important? 

So how should people deal with this type of situation?  We can't ignore the short-term targets because they are often necessary to assure we will be around for the long-term.  On the other hand, the more we ignore the long-term, the more we jeopardize our survival.  Regarding the question of which is more important, the answer is actually they're both important.  Customers, as well as investors and fellow team members, rely on our ability to deliver what we promise. 

Assuming that annual targets were set based on current capabilities, we should be able to meet them with enough focus and daily problem-solving.  After all, we made a commitment, so we should feel compelled to meet it.  On the other hand, if the targets do not have some semblance of reality, the company has much bigger problems, and meeting them most likely won't happen with or without a heavy focus and effort. 

When a problem arises today that will affect meeting short-term targets, it is difficult for most people to ignore it.  People will naturally jump in to address the problem and get performance back on track, especially if nobody else is available or a particular type of expertise is needed. 

The real problem for the organization occurs when people get so consumed with short-term problems that the long-term becomes an afterthought.  In reality, it seems that the poorer we are at taking care of the long-term, the more short-term problems we battle year-after-year. 

Implementing the 80/20 Rule 

I have found that the best way to assure we take care of both short- and long-term objectives is to consciously split time between the two, and in the most general terms, the split to be 80/20 (80% on the short-term and 20% on the long-term).  This is a general rule because the closer one is to where direct value is created (e.g., the factory floor in manufacturing, the sales counter in retail, or the wellhead in oil and gas production), the more time is focused on short-term objectives.  For example, a team member working on an assembly line has to focus most of his or her day on performing work within takt time that meets standards.  Although problems will regularly arise that the person will need to address, they are generally related to short-term safety, production, quality, and cost targets.  For this person, the split may be 95/5. 

Long-term projects, whether new or carried over from previous periods, should be apparent at the start of year when annual plans are being developed.  Making sure that these projects make their way into the 20% is important at this point, as is assuring that they require no more than 20% of the person’s effort.  Catchball and careful planning is critical to align expectations in the split between short-term and long-term focus, as well as the specific projects that fall into the 20%. 

As with any project, whether related to the short-term or long-term, clear objectives are needed along with a detailed and measurable plan.  The better and more measurable the plan, the easier it is to ensure progress.  Implementing a rhythm for regular reviews is necessary to assure the project is progressing according to the plan, and to determine whether changes in the plan, priorities, or resources assigned are needed to get it back on track.  We all know how to measure the short-term targets – it's the longer-term projects that require serious thought to determine the right measures.  Measuring progress to a project schedule will help but measuring quality of deliverables along the way is even better. 

Applying the 80/20 rule and ensuring that short-term and long-term objectives are met requires that managers be close to team members and truly understand what is going on in the workplace.  Rather than hearing about delays when it is too late to help make adjustments, managers must have enough awareness to provide help to get the project back on track before targets need to be changed. 

Intention is Everything 

It should be noted that none of this applies to an organization where meeting short-term targets is everything and commitment to the long-term consists of nothing more than words.  If the environment is so toxic that shipping defective products or cutting corners just to meet short-term targets is the norm, it has much deeper problems and attempting to manage through an 80/20 split will do little to help.  Like most things in business, long-term success begins with an obsession around understanding and meeting the needs of customers. 

Just like short-term objectives, long-term projects need to have targets based on successfully progressing plans, and these targets must be reviewed regularly – at least monthly – to ensure they are on-track and understand if help is needed.  If the split generally follows the 80/20 rule, and long-term commitments are taken as seriously as short-term targets, the chances of success will increase.  Discipline is needed to fight the tendency to put off developing or maintaining the measures and to skip the reviews now and then.  Like much of lean thinking, the concept is simple, while making it work effectively requires a lot of focus, effort, and consistency in behavior.