Tuesday, October 1, 2013

Five Things You Need To Do To Drive Successful Continuous Improvement

By: Bernard Borowski

Change is inevitable. New business paradigms require new tools to embrace the ever changing environment. Implementing a continuous improvement program is one of the critical initiatives that enable a company to adapt to change and create a competitive advantage. As many companies embark on launching continuous improvement programs or reviving past programs that stalled, they must take into account the following five elements leading to successful and sustainable continuous improvement.
  1. Align continuous improvement with the strategic objectives of the organization.
    Continuous improvement should not be considered as a standalone initiative or a goal in itself. The continuous improvement program and its resources should be totally aligned to deliver the strategic objectives of the organization. When launching a continuous improvement program you need to make an impact quickly to build credibility. Therefore you may need to pick your battles and not try to tackle all of the objectives at once – but the focus should be on a strategic objective.
  2. Don’t try to go all the way on process excellence: Balance product leadership and customer intimacy.
    Your organization needs to position itself at a level of operational excellence that meets the strategic objectives and does not compromise product leadership and customer intimacy. Treacy and Wiersema, highlighted clearly that balance in The Discipline of Market Leaders. Therefore, conduct a continuous Improvement assessment to determine where your organization is and where it should be in terms of process excellence.
  3. Make continuous improvement part of creating a high performance culture.
    To create a high performance culture you need a strategy. Create a vision, a mission and values and set objectives throughout the organization accordingly; providing routine feedback on how to improve. Next, develop the organization’s winning behaviors and critical skills; rewarding those who made improvements. Then, set up the continuous improvement program that delivers process excellence.
  4. Blend the best practices from the different methodologies.
    Focusing on one methodology for continuous improvement can hold back the possibilities. The old model that focuses only on one unique methodology limits the ability of the organization to realize its full continuous improvement potential. We find that utilizing a blend of best practices from Six Sigma, Lean, Goldratt’s TOC and GE’s CAP (Change Acceleration Process) provide the optimal result when you have a plan and execute it.
  5. Focus on data, not emotions.
    We are often told that continuous improvement is a mindset, a culture. This is true. Nevertheless, it does not exonerate us from going through the process discipline and the rigor of data driven decisions. Such a mindset is actually achieved by a set of actions that are measurable and specific, as part of a continuous improvement program. Continuous improvement must be measurable.
Continuous improvement goes hand in hand with creating a high performance culture. Attaining and sustaining such an achievement requires the implementation of a rigorous program, with measurable targets and milestones. As any corporate initiative, it should rally the organization around its strategic objectives and offer a flexible set of methodologies to execute. To commence or jump start a continuous improvement program it is highly recommended that an organization knows where it stands in terms of strategy, tactics and capability. It is highly recommended that the company perform a Continuous Improvement Assessment for that purpose. The ROI for this type of process is very compelling.

See this and other newsletter articles at http://amt-mep.org/files/7313/8055/8312/2013-10.pdf

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