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Knowing is not enough - Massive Action is critical

13/6/2023

 
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Success,  whether personal or corporate, is based upon expending massive amounts of energy to create change. We need to adopt a bias for action and assess progress at regular intervals, and this means talking about what didn't work and rethinking and redesigning to ensure it does in the future.

Analogy of learning to walk and mastering change

Think of a child first learning to walk. They may stand up clutching the side of a chair, attempt to walk, and then fall. Again, they may stand, take another step, and then falter. Interestingly, they keep trying - knowing that they will walk. But as you watch the child take their first few steps, do you think, "well, they have fallen over twice; it looks like they are not going to walk then?"  Of course not, because that is a negative belief - you believe the child will walk when he has practised enough.  

If this were  the case none of us would walk, swim or do the incredible things humans do. What we require to do is persevere, time and time again. This is equally true within organisations.

This analogy is precisely the same in business when experimenting and taking risks. It is not confined to personal skills but relates well to persistence in organisational change. Similarly, the following anecdote illustrates the outcome of a fantastic investment in self-belief and time, and I wonder how true this could be in an organisational context.

Colonel Sanders & Success

The well-known story behind Colonel Sanders Kentucky Fried Chicken's road to fame started after he retired from work at 65. At this time, he recognised that he only had a simple recipe to sell to restaurant owners. He believed that he would receive a small commission in return, eventually making him a wealthy man. The recipe was his only resource. 
He failed to sell his fried chicken recipe to the first ten Restaurant owners he met. After all, all Restaurant owners have a recipe for fried chicken. The number of times he failed to sell his recipe before he was successful was 1,008 times. He eventually developed a vast worldwide franchise from his success - but this would never have worked if the Law of Familiarity had not been turned on its head. Now, relate this to organisational change. How often have you heard that X will never work here, that idea would never be implemented, etc., etc..  What we need is persistence to implement and look for a better way.

If you don't make time to plan, you plan to fail 

Ideas are sometimes poorly implemented in organisations - usually because of failure to think through the key issues and consider the scope and impact of implementation. In reality, most ideas could be implemented successfully if several hours of planning were invested to prevent the chaos of failing to plan. When we take action, we learn, and if we plan thoroughly, we prevent problems from arising. 
There is no law of certainty that the same idea will work to the same degree in different organisations. The same strategy applied in two companies providing the same service and working in the same commercial sector may have different results - simply because of the failure to plan in context. Behaviour and how people react can be accurately predicted if time is devoted to this purpose.  

Hands-On Change

The approach to change has to be hands-on. If we want to create change, we have to be part of the process. We cannot distance ourselves from it. This is why so many change initiatives fail. Those driving the change pass the parcel to others to lead. This cascading process of downgrading the responsibility for implementation to the lowest level sends a significant signal to everyone in the business: ' This change initiative isn't important'.

Contact Philip if you need support planning your change campaign.

40% of Company cost are s[pent on fixing things after they have gone wrong

12/6/2023

 
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Measuring Improvement and Failure Costs
 
Generally, it is accepted that you need to measure current performance to promote improvement. Because poor performance is often difficult to measure and exists between internal silos of the business, it is necessary to focus attention on performance failures. This is relatively easy in a manufacturing business where defects stick out like a sore thumb - but as you move into the service sector, failure becomes less easy to identify and acknowledge.
 
We believe it is essential to measure wasted effort because it is a lost opportunity which has been resourced at some time in the business. We refer to this as having to rework a  job and call this the 'cost of errors.'  In the service industry, over 40% of salary can be wasted in fixing things after they have gone wrong. 
 
A major theme in a customer-focused business is measuring problems that arise and equating a cost to these. Some people refer to this as the Cost of Quality, a central theme in most improvement programmes. Here are some of the problems associated with poor implementation.
 
Pre-occupation with measuring only the tangible activities leading to customer service failure
 
The only measures generated are often in the challenging, tangible manufacturing areas. Rework and failure costs must also be measured in the frequently neglected service and administrative areas. In one insurance business, we helped managers identify over 300 work activities that were classed as rework. These activities consumed time but added little value to the company because they should have been performed right the first time.
 
Communicating the impact of failure on the performance of the business
 
If staff are having trouble recording figures reflecting failure, it makes sense to display these to let others know 'how you are doing.'  All too often, information on rework is hidden away in filing cabinets and computer discs. The phrase, 'what gets measured and is communicated, gets done' is a vital guide here.
 
Expect instant results
 
In work, we expend time on four key activities:
  1. We add value
  2. Rework things when they go wrong
  3. Inspect for accuracy, and
  4. Prevent problems from arising
 
Firefighting

The firefighting culture completely distorts the ratio of costs in the poor quality business with a heavy emphasis on rework.

When changing the culture, we focus on devoting substantial resources to prevention. This investment in prevention will reduce the need to check things and thus will reduce rework costs. But change does not always happen overnight.

Investing in Prevention to reduce Rework Costs

Initially, the organisation has to over-invest in prevention to eliminate the Rework culture. This is best represented by the formula 10P = 1R,  meaning initially, to kick in real change requires ten units of prevention to eliminate 1 unit of rework.    We demand such an investment because the power of the firefighting culture is so strong that there is a need for initial momentum and a solid drive to launch the change in culture.

If you would like to find out more about this approach to reduce Rework with Prevention contact Philip

 

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    Philip Atkinson is a strategic advisor, trainer, mentor and author of books and articles on organizational change and leadership

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