The real value of practising what you preach

Sometimes you need to ‘practise what you preach’ in order to fully understand the benefits of your product.

Everybody 'knows' what the benefits of their products are. For instance, I could tell you how simple, practical and effective our KPI management System is and why it is more powerful than alternatives on the market. But that does not necessarily mean you fully understand its true value. This is something that certainly applied to me and why I now understand the importance of practicing what you preach.

At Experian UK, I was the system administrator for 600 system users across our business units. It was my duty to support all the KPI Managers with the system; explaining how to use it and why.

The trouble was though, I was only supporting the process and not part of the process. I was on the outside and therefore not embracing what ICG was really about.

Clearly I always liked the product. So much so that I even ended up joining Qualitin! But it was the day of our Partners event where I understood ICG's value. This is the day where I knew I would be required to present my KPIs, results and proposed actions.

Having all your data on display for everyone to see meant there was no hiding away. Everybody could clearly see what my targets were for the month and what I had actually achieved. Everybody could see my red KPIs (unfortunately there were a few that day I recall) and so I explained what I intended to do about improving the situation for next month.

It was at that moment though where it all made sense. Firstly having my data on display had provided me with the necessary self-discipline to be appropriately prepared for the meeting. I did not want to be shown up after all. Secondly, everybody was less interested in the fact a couple of my KPIs were red. The focus was far more on my analysis of the situation and what I intended to do about improving it.

Therefore now when I describe ICG to someone I would no longer just use the words ‘simple, effective and practical’. These just describe ICG as just a tool and certainly do not provide ICG justice. Instead the words ‘ritual’, ‘forward-thinking’ and ‘self-discipline’ are a better match because these words describe what ICG does, not what it is.

Now, and only now I can now honestly say I understand the true value of my product.

Maslow's pyramid

This is an excellent case to illustrate a fact I had problems to understand: the accuracy of the information that brings us knowledge is much less important than the emotion it fixates in our brain, and which begins to influence our decisions.

I've learned from Falconi the importance of philosopher Maslow's work, which in the last century brought an important human focus to Deming's statistical theories. It played with the brain's right side, rounding the edges of the TQC's logical-mathematical approach.

Of Maslow's lessons I have permanent memories regarding human motivation:

1 - Our natural state is that of dissatisfaction (or neutrality); we have satisfaction impulses. Motivation is the product of the frequency and range of these peaks.

2 - These satisfaction peaks happen when we solve problems related to the 5 layers of basic necessity, characterized by Maslow as:

a. Physiological - such as hunger, sleep...

b. Security - maintaining job, patrimony...

c. Social - being accepted by family, friends...

d. Self-esteem – being free, independent, recognized

e. Self-actualization – achieving your own potential, working on what is your vocation, self-development.

3 - There is a hierarchy: the most basic needs must have been satisfied so that the superior layers may become important. If we are thirsty, as long as we don’t have anything to drink we'll have few social concerns, for instance;

4 - Later, I read in another book by the same author that above self-actualization there is donation, donating what we have for the benefit of others (a Maecenas is a good example).

Because it is a hierarchy, with more or less basic needs, almost every author refers to as a pyramid and represents it as such.

It is a very good representation, but Maslow' books don't have any images.

We can go into further detail as there are other more advanced needs said author presents and discuses.

To me these 5 suffice, added of a sixth layer representing many needs. They've helped me a lot in understanding and explaining routine motivational problems. If we hold a meeting to discuss Maslow, everybody will quote his pyramid and the five basic necessities. What others have for extra content is of very little importance for the (meaningful and representative) 80%... 

Written by: Claus Süffert

Ministers - 12 or 40?

This is a little story we used to tell when, in the early days of quality learning, we began to understand what to lead means.

The question was asked: which is the ideal number of team members we must have in our organization?

Which number would you say, without thinking much about it? Answers used to vary from 3 up to 20.

The correct answer, however, was:

IT DEPENDS!

If the team is well trained, completely aware of what they have to do, and the leader only does that which he alone can do... a conductor commands up to 180 musicians in a philharmonic orchestra!

Each of the musicians is thoroughly trained, has a sheet music that tells him in detail what has to be done... and the conductor only sets the rhythm!

Imagine if he tried to jump from one musician to the next, correcting the violinist's strings tension, replacing the drummer at some crucial point, or singing at such a high note as the soprano was not being able to reach...

In other words: the number varies, depending on the clarity of the instructions given, people’s training and... a leader who doesn't get in the way!

You can apply this reasoning to your company...

Written by: Claus Süffert

The big stones

I learned it while reading Stephen Covey – the 7 habits of highly effective people – the huge meaning of IMPORTANT, NOT URGENT.

He classified our tasks (and thoughts) into four quarters, according to importance and urgency.

The world makes us do what is urgent. Only discipline and a clear vision of priorities can make us productive in those things that are not urgent – even while they are very important.

To stop smoking, losing weight, scheduling check-ups - are examples of very important things which can always be left to be done later. And then we don't do them at all.

The concept is made very clear through a story told by Covey.

A speaker talking about TIME USE puts a bucket on the table, with big stones next to it, and asks the audience how many stones fit inside the bucket.

After hearing some guesses, he puts the stones inside the bucket and everybody sees that 22 stones fit in the bucket.

He asks if it is possible to put one more and the audience answers that it's not. He picks up a box of gravel, that was under the table, hidden from the audience, and fills the bucket with gravel up to the top. 

And then asks the audience: Can I put something else inside? Now, everybody says yes;

The speaker fills the bucket with sand and asks again, and then fills the bucket with water, asks again if it is possible to put something else inside it. Everybody agrees that it is not possible.

And then comes the main question: which lesson do you take from this experience, considering that we're talking about TIME USE?

Many participants say things like “you can always add something”.

The correct, impactful answer is... if we hadn't put the big stones first, they would not fit inside the bucket.

In conclusion, if we really want to fill part of our time with what is important, not urgent, it's necessary to place it first in our planning.

Before we add the gravel and sand that fill up all our available moments... 

Written by: Claus Süffert
Action Plan, KPI Management, Strategy Execution

Using KPI’s to Coach for Performance Improvement

Several years ago, I led a culture change in a manufacturing organisation. We removed a top down, high dominance structure and replaced it with customer focussed cells. During the reorganisation, we moved relatively inexperienced people into new leadership roles. Why did we do this? Because the company had realised that a top down, “tell them what to do” culture wouldn’t provide the speed of change needed to complete successfully. They needed empowered, autonomous teams with the potential to deliver results. 

So how do you manage empowered, autonomous teams, given that they must be autonomous and not managed? 

 How do you ensure that they understand the company goals and all their actions are geared to achieving them? The answer is to use the overall company goals and objectives to define team goals and objectives. 

A system of performance measurement (KPI’s) and regular review meetings can then be used to deliver the goals, but allow the leaders autonomy with their teams. 

If managers hold regular KPI review meetings, they clearly define what they expect from their teams and action plans can be developed to meet the company goals. Thus, the company has systems to manage the delivery of company goals. 

The impact on individual employees is that their goals and objectives are very clearly defined. They and their peers can clearly see who is delivering against expectations and who is not. 

For managers, performance coaching then becomes more objective. High performers are easily distinguished and can be rewarded accordingly and poor performers can be identified and then managed objectively, with performance reviews focussing on results and how to achieve them. This avoids personal criticism, which makes the review easier for the employee. They become more receptive and less threatened by the discussion. Focussing on achieving objectives and the steps they must take enables the poorer performers to achieve more than they would without this focussed coaching. If the poor performer is repeatedly unable to meet goals, then the management of their exit from the organisation is easier for both the manager and the employee. 

Using KPI’s with regular, action based reviews, gives teams and their leaders a clear view of what is expected from them and gives the responsibility and autonomy for the delivery of results to the team. With clear direction, the teams are then empowered to deliver high performance against company goals.

Written by Jane Burns - Manufacturing Coach

Sugestion: a ballot box that will work!

Every company that claims to be innovative must surely have an excellent suggestion system to receive the dozens of ideas its employees come up with everyday when dealing with the company's real problems.

Is it worth having a formal system, or is it enough for those who rule to be with their ears open to the suggestions by those who obey?

The almost-impossible-perfection would be to set a system that would work without any type of control, only based on people's interests/motivation.

I can't imagine how to keep such a think functional and operational, especially in companies with many employees. It would be a lot easier to organize a practical system with non-sophisticated controls, which motivates employees, not too toilsome to employers, and which delivers results!

The natural tendency of every person who enters an organization is to call the attention of colleagues and bosses to something the person considers to be wrong or could be improved. However, the tendency is that their idea is unfortunately almost never considered, it simply dies in one of the steps it goes through from the moment it comes to be to when it is implemented. And its creator, after some time, realizes it's not worth bothering others with suggestions - and stops.

At this moment the innovative company takes a step backwards...

The first and vital attribute of a suggestion system is to keep people motivated to contribute and challenge things as they are, considering alternatives; a company shouldn't waste this vast source of creativity.

Before thinking of shows, colorful pin boards, ballot boxes scattered all over the company and prizes in cash for the best suggestions... try to make one ballot box available and spread the news that the ideas put there are all considered with seriousness and quickly dealt with.

Suggestions will appear consistent, over time, and you'll say the ballot box works!

It is a small miracle, which appears naturally via the use of a precious control item, connected to the intended result - and effective for its management.

Don't worry about measuring the number of suggestions per month.

Measure only those many suggestions which are:

- either with a longer than 15 days response delay from the moment it was created; (responses in this situations are: approved and scheduled to be carried out; still under assessment, but with a scheduled date for an answer; not approved and justified as such;)

- or with a longer than 15 days response delay after one of the promised dates.

Keeping this indicator under control will make the number of suggestions per month be a mere natural and stable consequence of this measure.

Action Plan, KPI Management, Strategy Execution

Do you think strategically?

Two examples that show very clearly what strategic thinking is. 

Do the test, asking two questions to an audience, whoever answers them both faster and correctly will win: 

 

-1- There are two equal bottles with an equal amount of different types of liquid (200 mL), but having the same color and no odor. If I take two spoons of 15mL from bottle A, and put it in bottle B, mix it well and then take two spoons of 6mL from bottle B, and put it in bottle A... Which of the two bottles will get more polluted? 

-2- In a tennis competition with 80 participants, we organize the groups so as to have the minimum possible number of elimination games. How many games will we need to have a champion?

In the first case, those who know a little algebra and logic can quickly formulate an equation with the milliliters informed...

In the second case, those who are used to matching groups of teams will quickly arrive at the groups and count the number of games to get to the champion.

Those who think strategically will be even faster.

In the first case, the amount of pollution is the same, because the quantity of polluting content in a bottle is exactly the one that has been taken from the other and vice-versa. There is no way it can be different.

In the second case, the strategic thinker will promptly say that are 79 games. To have a champion 79 competitors must be eliminated, with each elimination happening with one game, so...

Strategic thinking is to think hither, not thither - which would be incremental thinking, deadly poison to those who want to walk new paths...

Author: Claus Jorge Süffert 

Does the client know what he or she wants?

Many years ago I came across an image that defined marketing in a way I considered at the same time innovative, enlightening and simple. It was practical.

It showed that there are several gaps when a question is examined:

gap 1 – the difference between the perception and the expectation a client has about a product (good or service). This is what we call customer satisfaction. and it should not be confused ( so I used) with

gap 3 – difference between what I want to produce and what I deliver - product compliance. Note that these small boxes are separate from each other. The one on the bottom is controlled by production technology. The one on the top is controlled by customer process mastery. The main connection between the two is

gap 4 – the difference between what I produce and deliver, and what my client perceives of it. I may be delivering a big box, which can be stacked, but my client needs an easily disposable package - this is an example of such a gap. Through client communication (advertising is included here) I can manage their expectations. The client's satisfaction will vary via improvements in my product only if he or she expects less - or perceives more of it. If the client is not satisfied, our first measure will be to eliminate the

gap 2 – by correcting my (project) specifications or eliminating production failures (product compliance).

So far went the article I read. But I realized that the client doesn't always want what he or she needs. A student wants easy tests, long breaks, but they needs to acquire knowledge. Someone applying for a loan at the bank wants a quick approval for their request - but a judicious review of their project is required to keep them from getting into trouble...

It is only an understanding of our client’s process that will allow us to approach

gap 0 – the difference between what the client needs, and what I am willing to offer!

In short, it is possible that your client is not sure of what he wants - but he is willing to pay someone to solve his needs...

Written by Claus Jorge Süffert.

WHAT MAKES A CLIENT LOYAL: A COMPETENT TEST!

It is called the Z test - but its name's origin can only be explained in an informal conversation...

I do not know of a more effective way for making a group of people understand the basic principles of customer's satisfaction.

Ask people to fill in boxes 1 to 4 successively, answering the questions shown in the image below.

Click in the image to view amplified.

Do this exercise with colleagues or friends. You are sure confirm what we have discovered after repeating it with hundreds of people:

- the causes for loyalty are mainly customer service and quality of products and services;

- the causes for rejection are bad customer service and low quality of products and services;

- price is hardly mentioned in this exercise.

Conclusion: What makes a client loyal are quality and service, not price. Once disappointed they don't tell you, they just go away!

Written by Claus Jorge Süffert

PERFORMANCE INDICATORS: THE FEW VITAL ONES

As soon as we learned the importance of measuring results in the early nineties, we fell into a trap from which few were able to escape: we started to measure in excess.

Information technology, which allowed us to have increasingly detailed and up-to-date data, contributed a lot to this tendency.

In a hospital, in an IT area, in a restaurant chain and in many other organizations we'd find books with monthly updated figures, and we learnt to challenge people to present that which made a difference on a single A4 page.

The trick is to consistently measure that which is important and is (or may become) a problem.

In a factory, only single indicator: machine yield, caused an almost unbelievable revolution. In a dispatching area, the focus was on counting the number of cargo units alone that wouldn’t be dispatched within 48 hours. In a steel mill, it went for the number of batches that went back to oven during one month.

It is necessary to know the process and its local characteristics to find such precious measures.

At times we need to have a mirror-indicator to avoid an adverse side-effect a KPI could generate. Recently, concerning a technical service provider, they have been better controlled while measuring their schedule fulfillment when they arrive at a client's house (window), re-occurrence of calls (problem not solved) and, finally, productivity: number of weekly calls.

People are free to measure what they want, but if we focus on fewer vital indicators - well, there is no easier and more effective way of getting into a quality journey...

Written by Claus Jorge Süffert