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Resource Library - Knowledge in action

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This page is constantly under development with new items being added frequently. Please keep checking and contact us if there is a specific article you're interested in.

The knowledge base below contains three types of resource
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  1. Snippets are short insights into a particular area and aim to challenge you to think about these issues in your own business
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  1. Articles are in-depth narratives in specific areas, which aim to set out the most important issues for these topic and begin to describe what a business needs to aspire to
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  1. Tools are worksheets, checklists and guides for application within the business

Each panel on this page expands to provide more detail and the knowledge base can be filtered by resource type. Each panel can also be printed separately.

Further articles, tools and worked examples are available to subscribers or by getting in contact with us.
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Leadership



Great leadership is the single most important determinant of business success. Without it few businesses can prosper and while it’s not a guarantee that you’ll overcome all the external factors pushing against your business, it is the surest way to give you the best chance. The best thing about it is that it is one of the easiest things to affect, because it’s down to you.

The ten things that mark out a great leader are:

  • Consistency

Having a direction and being clear about it is actually much more important than fussing over getting precisely the right direction or to keep changing your mind as you try to find the perfect solution.

  • Communications

It's sometimes surprising how many people in leadership positions aren't natural communicators, but whether it comes to you naturally or it's something you have to work at, you MUST do it - frequently; ideally in small groups in regular short bursts. If you don't tell people things the gap will be filled with rumour and speculation. Use clear, simple messages, frequently.

  • Customers, customers, customers

No matter how bad it gets, never forget the customer. You can control and cut costs all you like (and that is important) but you need to sell stuff. Delighting customers takes very little incremental additional effort so do it. Never let your standards of customer service slip.

  • Fairness

Every small child learns that life isn't fair and the situation you find yourself in may also feel like it's not fair. This doesn't mean your shouldn't be. In troubled times people need to know that they'll be treated fairly, that decisions you make are based on logic and analysis. This doesn't imply weakness. Be tough, as tough as you need to be, just be fair with it.

  • Plan, Do, Check, Act

Deming's 'Plan Do Check Act' cycle was never more appropriate than when times are tough. Think things through, do them, check that they've worked and take corrective actions if it hasn't worked as planned or cement it in place if it has. Find out more about PDCA in the Operations Resources section.

  • Concern for Impact

It's not about what you think, what you say and what you do - it's about what people hear, see and understand. It's essential that you know if the message is getting across to the audiences that need to hear it. If they don't understand then you have to do something different.

  • Flexibility

Just as the Plan Do Check Act cycle implies, not everything works out the way you intended and anyway the external world is continually changing. The most important thing is to remain focussed on the objective - if the plan's not getting you there, change the plan.

  • Learning not blaming

While it's true in any environment, that every situation provides an opportunity to learn something, this is especially true in difficult times. It's likely to be a set of circumstances that most if not all of your managers are unfamiliar with. Don't be tempted to blame people if they get things wrong; learn, move on and focus on acting as a team.

  • Delegation

You can't do it all yourself. No really, you can't. Break tasks in to manageable pieces and then allocate them fairly amongst the team. When times are tough this will almost certainly require asking people to step out of their comfort zone and to complete tasks outside their functional area. This mains you need to check on action regularly and communicate often.

  • Listening

Even if you've been through this cycle many times before you don't have a monopoly on all the good ideas. Listen. Listen to your management team, your employees and your customers and don't be afraid to take external advice. You still have to make the decisions; by listening to others and adopting new ideas where appropriate you increase the chances that your decisions will be good ones.

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The Continuous Improvement Fallacy



When I grew up kids were encouraged to play a musical instrument and play a sport out side of school – not just for the educational, spiritual and health values but because it would look good on their CV. Today almost every kid does these things so it creates no differentiation at all; the only reality is that now if you don’t do these things you're definitely 'out'. To get ‘in’ you have to find something else remarkable to differentiate you.

Business is the same. Organisations, the world over, have spent millions on Continuous Improvement programs believing that they offered a winning strategy. While this money has not been completely wasted it will not have created the differentiation many of the business cases for the investment will have claimed.
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If your competitors are already better than you, then why can you assume anything other than that they are improving faster than you as well? Most conventional Continuous Improvement programs are based on incremental evolutionary change and will only help to slow the rate at which the competitors are pulling in front of you.

The real danger in such programs is that they can take huge energy to keep going and at the same time create a sense of complacency in management, who feel that they're doing enough.
An organisation needs to drive twin ‘turbo chargers’ to accelerate their performance. They need to seek mechanisms to drive step change; not to create the best imaginable performance but just to jump ahead of the competition. There is always the possibility of driving a game changing step, though this is not always possible and the subject an article all of its own.

The second challenge is the need to use the initial step change process to change fundamentally how the business undertakes change itself, so that they get better at getting better. This is essential to ensure that all of the effort put into step change is not lost in the decay and malaise that becomes inevitable unless you take management action to stop it.

This performance fall back usually occurs because the initial step is seen as the goal, the end of the journey and something that after achieving the business can rest a while. To ensure that this does not happen there needs to be a focus, right from the start, on what comes after the initial step and actions need to be put in place immediately to begin the process of further improvement.

While this seems daunting it is also a great way of getting involvement levels up.
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Step and then Step Up – don’t just fall back on your original Continuous Improvement processes.


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From Innocence to Excellence

In today’s business world everything is changing all of the time. One of the greatest challenges for most management teams is that they must improve everything all of the time.

We’ve found it helpful to break these development journeys into phases, so that businesses can better understand where they are today and describe clearly where they need to get to.
Innocence to Excellence
We call this the ‘Innocence to Excellence’ journey, consisting of five steps. No business is at one step of the journey in all aspects of what they do; they’ll be good or perhaps even excel in some areas while their capabilities will be far less developed in other areas. What is more, most organisations do not actually need to excel in everything in order to delight their customer and beat their competition.The first is the state of innocence where people are not even aware there is a different or better way of doing things. Most organisations have very few areas in this state, but it is a cautionary point.

The next phase is that of awareness, when people understand the need for change but have either not started to change things or perhaps don’t know how to. Lots of businesses have areas like this.

Progressing further people begin to establish an understanding of what needs to change and perhaps even how it needs to be achieved.

Competence is the next stage, where people have established a new level of performance and this has become the routine rather than a one off. Many organisations spend a fortune on external benchmarking – our advice would be to save this money initially and focus on the challenge of ‘making every day a best ever day’; deliver your best historic departmental performance as a matter of routine. Most organisations get far more from this, more quickly, than they do from an elaborate external benchmarking exercise.

Beyond competence there is excellence. Few organisations can or need to achieve this in everything and to reach this level of truly world-class performance you need a detailed knowledge of what the competition are doing and what the market is seeking. At this point external analysis is essential. Excellence comes at a price, so a business need to understand clearly exactly what is needed. The good news is that the need to take this step comes after a series of performance gains from the earlier steps which will have made the business more confident in its abilities and will almost certainly have delivered a level of profitability where the expense of these final steps is more affordable.

In the tools section of our resources library there is an ‘Innocence to Excellence’ template. Further descriptive versions, which describe achievement in these phases for specific business areas, are available on request.

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Leadership



History is littered with tales of brave soldiers being let down by poor generals and of great leaders triumphing against seemingly impossible odds to win through in even the most desperate of situations.

Business is no different. Great leaders make a real difference. There are very few examples of great businesses flourishing under poor leadership yet there are many tales of a great leader delivering extraordinary performance out of what had previously been a relatively modest business.

Extensive surveys of successful businesses and especially of businesses undergoing successful change repeatedly discover that leadership is the number one determinant of success. The great news is that it is also one of the easiest things to affect, because it’s down to you.

Leadership isn’t needed throughout the organisation but must shine like a beacon from the most senior management.

At the most junior levels in an organisation, workers need to master a range of tasks that need to be repeated to a consistently high level to produce a high quality output. These tasks may or may not require high levels of skill to perform but whatever they are and whatever skills are needed the life blood of the business depends on them being performed consistently and on a timely basis. It’s the actions of these people within the organisation that pays the bills.

The supervisors of these workers coordinate and orchestrate a series of these tasks to ensure flow through the business is maintained, from the raw materials coming into the warehouse through to the final goods being despatched to the customer. In a well-organised business, with well-defined processes, this supervisory task should be about flow, pace and momentum and not the organisation of chaos!

Managers balance these flows in response to changing needs and ensure that resources are at the appropriate levels to meet these demands.

The executive oversee this hive of activity and have the added responsibility of predicting what will be required from the business in the future, setting goals, targets and objectives. This in turn provides the framework for the rest of the organisation to function. There’s more detail on this in another article.

Consistency of purpose



So at its heart, leadership is about direction, objectives and the pace of the journey. Most great leaders have discovered that it is more important to be clear about these objectives and the path to achieving them than it is to fret about choosing the perfect objective for their given situation.

Choose the direction, articulate it clearly and often and then stick to your guns. This clarity and consistency of purpose is the single most helpful thing a leader can do. If people are continually reminded of the objective then it is easier for them to judge if their actions are being effective.

Communication



Embedded in the challenge above is the need for great leaders to be great communicators. It continues to be a surprise to find that many people in leadership positions really struggle with this aspect of their responsibilities. It’s difficult to see how a leader can provide effective leadership if they can’t articulate clear messages. If communications come naturally to you or if it is something you need to work on you must do it. There’s no point in having an objective if no one knows what it is and the journey will be frustrating if no one knows how their doing. Communication mustn’t be seen as occasional big events or fancy newsletters. While these have their place what’s really needed is intimate, frequent and straightforward communication. The often cited numbers that people remember 20% of what they hear, 30% of what they see and 50% of what they hear & see are not actually backed by any credible scientific study but this should not detract from the principle that the more people get involved in something the more likely they are to understand and absorb it. Without doubt, communication by email is the very worst form of communication. Communication is also the subject of an article of its own.

Face the Front



If communication is the most important discipline during a change program, the most important thing to communicate is the objective. Many leaders get hung up about the details of the journey, but your perspective of these elements will be very different to that of many of your stakeholder groups, most particularly your employees. Equally, you may not be the right person to determine the details of the journey (actually your certainly not the right person). Your task is to Face the Front, and to focus the organisation on where it is going and why. You, more than anyone else, must balance the need for performance today with the objective for tomorrow. The challenge of raising a standard, creating a beacon, which becomes a touchstone for the whole business, is the subject of an article in its own right.

Fairness



Once the journey begins, while I hope your not defining every step of the way, it is your responsibility to ensure certain immutable values are adhered to. N the most case the value system for an organisation cannot be wholly prescribed by the senior management. An organisation’s culture is the ‘way things get done around here’ and not necessarily the way management would like them done. That being said it is the responsibility of management to insist on certain values. While certain ones, such as keeping it legal and ethical I would hope go without saying, one, which I see being lost too often, is the value of fairness.

Change affects different populations differently. I’ve found for example that it’s helpful to divide the workforce into four groups. At one extreme there are the worst performers, who know that they are and possibly don’t even care. They’ll remain sceptical and critical, but in my experience don’t usually disrupt things too actively. Hopefully it’s not too big a group, however one other truth is that if you find you need to downsize you’ll be extremely unlikely to be able to achieve this simply by losing this bottom group.

At the other end of the scale are your highest performers, who are confident in their value to the organisation. As long as communication is good, they’ll usually remain positive, but you shouldn’t take them for granted! Unfortunately, in most businesses, this is a disconcertingly small group – perhaps less than 10% of the total workforce.

It’s the middle two groups who need to be managed effectively. Towards the first extreme are a group of average performers, but upon whom the business is not critically dependent. They will often react with cynicism and can become highly disruptive as they rarely see the positive in a change program and usually see it as attacking their way of life. Communicate to them veraciously but don’t become too distracted by their negativity.

It’s the final group that provide the greatest challenge. These are medium and high performers upon whom the business is critically dependent, but they lack the personal confidence that they are vital to the future or even a part of that future. While communication will help, alone it is not enough. You need to get and keep this cadre onside of the change program is bound to fail. This group, above all the others, need to know that decisions are being made fairly and on the basis of solid process and sound analysis. This group needs to see transparent processes, which are not ‘made up as you go along’ and be allowed to understand the attributes that you value during the change and in to the future. This will help them judge for themselves that they ‘fit’ and they’ll want to stay and help.

Plan Do Check Act



Having said your shouldn’t make it up as you go along, things will change and unforeseen circumstances will arise. Dr Edward Deming made famous the Plan-Do-Check-Act cycle, which was initially applied to product quality. I’m sure he’d be the first to acknowledge that it is based on the ‘scientific method’ which every school child learns, and which has been around since the 17th Century. Its simplicity has far greater appeal than just for the control of product quality and it is particularly helpful as a ‘conscience’ during a change program.

Plan what you’re going to do (don’t just make it up as you go!) but don’t spend all of your time ‘getting ready to get ready’ as one of my old bosses used to say. Plan and then Do what you said your were going to do. However don’t just do it blindly, check it’s having the desired effect. Business is complex and we have to make decisions on the basis of imperfect information. Check things are working as you intended and if not have the courage to take swift corrective action. If it has worked, then ensure it will stay working that way – as the Americans say ‘put it down so it stays down’!

My favourite progress reviews go along the lines: ‘In this period we did everything we said we would at the last review. The actions had the effect we anticipated and this is what we intend to do in the next period’, or sometimes ‘ We did everything we said we would but found that XYZ didn’t work as intended, so this is what we intend to do now’.

Concern for Impact



A really important component of the check element of this cycle is for you to check if you’re ‘working’. I’ve seen lots of leaders read the beginning of articles like this – define fantastic strategies, create impressive communication collateral and the most elegant of plans and measurement systems. Unfortunately that fail to check if anyone is actually listening to what they have to say and if they are if they’re hearing the right message. English is a complex language, just look how much trouble the British have understanding the Americans and vice versa! At a time of change the smallest word can conjure the most enormous of spectres, which completely colour, distort or even block how everything else is heard or perceived.

I first came across the term ‘concern for impact’ when working with ICI in the 1980s. They defined it as an essential core competence for all senior management. I must confess that at the time I thought it was just so much management ‘mumbo jumbo’, but over the years I’ve come to acknowledge that it is one of the critical things that differentiates truly great leaders from the rest of us. These peerless champions of excellence really do care if what they do personally is having the effect they intended and continually adapt and develop their behaviour and actions to ensure that the target audiences get what they the audience need, which in turn delivers what the business needs.

Flexibility



So change is really all about change – it’s the only constant in a change program! Great change programs are not about getting it perfectly right on day one. It’s about clear objectives, clear pathways and responsibilities, with sufficient checkpoints to illuminate how things are going.

The best programs are not the ones that have the best plan to start with; they’re the ones where the management team have had the courage and skills to spot issues and then adapt flexibly to unforeseen and changing circumstances. After all, if this is going as we hope then at the very least customers will want to start buying more from you – no one has the luxury of making change happen in a hermetically sealed bubble.

Learning not blaming



It also goes without saying that you’re not going to get everything right all of the time. Even in the best of times this is beyond most of use. In the circumstances of rapid change, first you’ve created a dynamic environment so you and your team need to react. Secondly this is a situation many of your management team have not faced before and perhaps even you’ve not. It is easy however to start looking for scapegoats to blame when things start to drift of course.

While this can be cathartic, it is a waste of energy and if things are off course the most important priority is to get things back on course and the next priority is to make sure whatever conspired to cause the initial issue does not happen again.

That’s called learning – even if it is learning from your mistakes. Every great organisation, and I mean EVERY great organisation is great at doing this.

Over the years I’ve both supplied to and worked for the Nissan organisation in the North East of England. While they offer a fantastic exemplar of a transplanted Japanese manufacturing facility, for me the most fascinating aspect of their success and one they speak of, in my opinion far too infrequently, is how they react when things go wrong. That’s also the subject of another article.

Delegation



I said earlier on in this article that the leader is unlikely to be the right person to determine every last detail of the journey. You set the objectives, provide a beacon for both the journey and the value system and then you need to create the culture of trust that empowers others to take on the detailed tasks that move this business forward.

I’ve deliberately put delegation almost at the bottom of this article, not because it’s unimportant, almost the exact opposite. All of the things above need to be in place otherwise your attempts to delegate are very likely to come crashing down.

While I’ve always had the personal ethic that I don’t expect anyone in an organisation to work harder than me, I do also expect many of the workforce, and particularly my senior management team, to work as hard as me. One of the tasks that will probably ensure you continue to work the hardest of all is that you are one of the key individuals in dividing up the responsibilities and the tasks to ensure that delegation can cascade throughout the organisation.

It is one of the most difficult of the leadership challenges and it also offers one of the greatest rewards. Achievements accomplished by a team are always sweeter than the solo accomplishments of an individual. For a start there are a group of people to go out and have that celebration dinner with and believe me celebrating success is an essential part of cementing the achievements you make during the change program.

Listening



During that dinner, you can continue to practice one other really difficult leadership challenges – the skill of listening. I don’t just mean not speaking, I mean taking an interest in what others have to say.

By actively listening you can absorb the experience of those around you and share their learning as well as that which you’ve undertaken directly. By doing this you become more than just the sum of your own actions.

One of my clients once said to me, as I was relating yet another past situation that I felt shed light on their current challenge, “You can’t possibly have done all these things”? Yet the reality is that I have because I constantly absorb as much as I can from every possible environment and you can only do that with the ‘input’ senses and in business listening is the critical one of these.

Listen and learn, oh and don’t forget to celebrate your successes!

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Innocence to Excellence tools



The classification of performance in the Innocence to Excellence grid can be a really helpful way of defining where you are and where you need to get to. Contained here are a blank template and one filled in for assessing progress in a 5S implementation. For more information on 5S, see the resource library article and for other complete examples of the I E Grid, for other parts of the business, please contact us.
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Efficiency and Effectiveness tool



If a business is to be improved it must be measured. If it is to be measured then it is essential to agree the definitions of the measures. The chart shows the typical categories of time making up the overall time available for an asset. Fundamentally the total time available is 24 / 365, i.e. 24 hours every day of the year. This can produce very harsh ratios so some businesses validly define total available time as the total planned availability; perhaps for example 16 hours per day, 5 days per week and closed at Christmas and Boxing day. Overall Equipment Effectiveness (OEE) is the most informative measure of total performance.
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