Resources, especially people’s
available hours, are always scarce, and businesses can think up things
they want to do far in excess of available resources. Excellent companies
spend a lot of effort in analysis and discussion up, down, and sideways
in the organization to come to a consensus on what two to four key breakthroughs
must be achieved in the next three to five years. Becoming Lean may be
one; another may be exploiting E-commerce, for example.
To achieve just these, so
that the positive impact in the bottom line is significant will soak up
a lot of resources, and hard decisions will have to be made about projects
to cancel or not start at all.
Having made the hard, or
sad, decisions, the organization must do a thorough job of project planning,
verify the availability of resources, and iterate the process until the
plan is feasible. Rigorous project
management is critical. Then there must be regular reviews in which
any deviation from the plan is considered a major problem worthy of top
management attention which must be solved to get the breakthrough back
on track.
This discipline has several
names: the original Japanese Hoshin Kanri, the English translation, Management
by Policy, Policy Deployment, or the hybrid, Hoshin Planning.
One of the greatest difficulties
in successfully implementing orchestrated breakthrough is to get different
functional departments to work together. Departments tend to have their
own views of what is important and, left to themselves, would pursue their
own initiatives regardless of the impact on the organization as a whole.
Any selected breakthrough, or “Hoshin”, will require the commitment, support,
and participation of all functional departments. Mechanisms must be devised
for consultation and action that cut horizontally across the vertical departmental
organization. Cross-functional project teams become prominent, while the
functional department hierarchies play a low-key supportive role.
As departments learn to
coordinate and communicate at many different levels, the quality of breakthrough
planning and implementation will improve.
In the literature, this
subject is referred to as “Cross-Functional Management”
World-class companies have
daily disciplines in place to ensure that performance does not backslide,
but instead continuously improves.
A prerequisite is a system
for measuring the right performance indicators and taking action on the
results. There need to be appropriate measures in place relating to Lean,
Employee Involvement, and Quality and Customer Satisfaction. Negative trends
must be reversed, and improvements must be maintained.
Locking in improvements
and maintaining performance takes a lot of discipline in defining the standard,
or current best method for doing things, and making sure everyone learns
the standard way.
Continuous improvement means
viewing that standard and the performance measures associated with it as
a starting point for further improvement, either incrementally through
a lot of little ideas, or in a big jump as the result of a breakthrough.
Following any improvement, the standard is updated and communicated.
The data from performance
tracking represent an important part of the input to deliberations about
which areas to target for breakthrough, especially when compared with benchmark
data from world-class companies.
Rowney
Consulting
10910
S. Bremer Road
Canby,
OR 97013-6705
Phone:
503-266-5492
Fax:
503-266-3610
Cell:
503-989-1897
Email:
mike@rowneyconsulting.com |
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