Executives may think that “implementing Lean Six Sigma” or other business efficiency initiative will drive business results (cost reduction, revenue increase, risk reduction), when in reality what they should be seeking to do is to create a culture and practice of Continuous Improvement. The reason for the confusion may lie in the fact that doing this is very, very, hard. In fact, success or failure here will make the difference between success and failure of the firm.
BACKGROUND
I recently saw a LinkedIn post from presumably an executive, who sent all his people to get Lean Six Sigma certified. He didn’t see the benefits from “all the tools” and then said he wished he had them learn “Kana” instead, with a photo of some iceberg with terms under the water line that represented what he really wanted from his efforts. Frankly I can’t remember because they were some pretty core principles behind Lean Six Sigma in the first place (customer focus was one of them). So, I’m pretty sure this post is one of those troll efforts to elicit engagement, but since I didn’t take the bait, I can’t refer to it directly. But what I can do is answer the question: why do you even want Lean Six Sigma, and what is it that you really should want. Short answer is that every organization needs to have a culture and practice of Continuous Improvement.
THE CONTENT: DEFINE THE OBJECTIVE
A culture of Continuous Improvement means that all employees in their heart believe that they are owners of their work and that they are empowered to change it.
A practice of Continuous Improvement means that there are routines, resources, and practices that support the culture and facilitate employees’ Continuous Improvement work.
WHY BOTHER WITH CONTINUOUS IMPROVEMENT?
Why do you want a culture AND practice of Continuous Improvement? Because that is the goal that you’re after that will drive business results – the What! Lean Six Sigma, Toyota Production System, and likely many others are the tools – the How. But executives probably have an easier time throwing dollars at a How than a What. If you ever get into podcasting, one of the first things you’re told is to not go out and spend $2000 on equipment, because that isn’t what you need to do when starting out. Those are tools, and tools in the hands of a poor craftsman represents poor work done better. You need to find what value you have to offer, and then craft your offering. For executives, no doubt there are easier Harvey Ball charts that can be created to capture the progress towards the How of a Lean Six Sigma deployment, but it’s harder to show a Harvey Ball that tells us whether your employees have taken Continuous Improvement truly to heart – beyond the inevitable lip service, head nods, and platitudes.
Just like every employee has some baseline skills in communication and work ethic, every employee needs to have some baseline skills in Continuous Improvement (CI). Unlike communication and work ethic, not having CI skills won’t hurt you for most of the lifespan of the firm, which is why they are likely not there! If you think about the end-to-end journey of a skydiving trip, you don’t ever need to know how to operate your parachute until the very end.
If your organization is talking about CI, it may mean that you’ve enjoyed a meteoric rise to greatness, your products sold themselves, and you’re fat with cash and lazy processes. But something’s changed that refocuses attention on your business results. Maybe you sold your company to new owners who see untapped potential. Perhaps market share is slipping, products are underwhelming, revenues are down, and costs are up. You need a renewal. Or else. CI is the renewal you need to rebuild your organization the way it should have been built during that time when you were in growth mode.
CONCLUSION
Don’t get confused on what you’re trying to do. If you’re thinking about some package of business tools, as the solution, first think about what your problem is. Then think about what you need to do to get there. THEN consider what tools might could SUPPORT your real objectives. Don’t try to change your oil by leaving the oil filter wrench on the passenger seat. Go learn how to change the oil, and make everyone believe in their heart the oil must be changed.