In World-Class companies, 80% of employees are engaged in solving problems. This allows for early detection of problems, which in return leads to quick responses and mitigating the impact of these issues. It creates the environment for management to focus more on improvements and enhancements instead of spending time and energy on solving problems that could have been avoided.
According to business management guru, Dr. Eliyahu Goldratt, there are three necessary conditions for a successful organisation:
- Make money now as well as in the future
- Provide a secure and satisfying environment to employees now as well as in the future
- Provide satisfaction to the market now as well as in the future
“Thinking people” have the ability to detect problems quickly and address it before it snowballs into an issue where the manager has to get involved. Thinking people ensure that transition from the “fighting fires” – culture to the “building for tomorrow” – culture takes place. “Thinking people” creates capacity for the management team to focus on the most important things that might not seem that urgent but will have an impact and returns in future.
Obtaining the objective of “thinking people” on all levels of the organisation requires a process of creating layers of understanding. It is achieved through
- structured, daily communication (Key 2: Mini-Business meetings) as well as
- participation in problem-solving groups (Key 3: Small Group Activities).
The image below aims to explain how the different layers of understanding are constructed in an organisation.
The foundational layer of understanding is constructed through the sharing of information. But how do we know what information to share?
Every team in the organisation represents a small part of the bigger organisation. The first line manager of every team is responsible for the achievement of goals within their specific small business – also referred to as Mini-Businesses. For every Mini-Business there should be specific measurements for Quality, Cost, Delivery, Safety and Motivation (QCDSM). From an operations perspective, the first-line teams have a direct impact on these indicators and therefore it is of utmost importance that they are equipped with information about their team’s QCDSM performance.
Once the operational objectives or QCDSM indicators have been defined for every team. These indicators have to be monitored and discussed on a daily basis through a structured meeting which is held preferably at the start of the day/shift. Monitoring and discussing the same information in a structured way, repetitively, over a period of time, creates a rhythm of constructive communication which ultimately leads to the understanding of information.
Understanding of information is reinforced by applying simple techniques like involving team members in the collection, manual updating and visually tracking of information about these operational indicators. Another way of reinforcing understanding is having different members of the team facilitate the morning meeting and give feedback.
If the layer of understanding is well-constructed for the team, they will be able to start recognising patterns and understand drivers which influences the results. Brainstorming and idea generation will flow naturally with everyone on the look-out for improvement opportunities and reducing waste.
If an idea or a problem that has been identified requires some analysis before it can be implemented, the next step is to formulate a small problem-solving group, referred to as a Small Group Activity (SGA) which operates independently from the Mini-Business meeting.
The first principle to remember when commencing with a Small Group Activity is to NEVER SOLVE PROBLEMS ALONE. Apart from the obvious benefits of viewing the problem from multiple perspectives, there is a significant amount of learning and cross-skilling that takes place during problem-solving activities. Knowledge is often only transferred when we are prompted to share it. Solving problems together allows for the transfer of implicit knowledge and equips individuals to develop their intuitive responses when faced with similar problems.
Another important principle of problem-solving is following the disciplined approach outlined in the CAPDo cycle.
CHECK – The ability to “see” a problem is a victory in itself. If the environment is not safe, employees tend to hide problems and mistakes, or they simply do not realise that something is wrong. Employees have to be encouraged to see and highlight potential problems.
ANALYSE – This is the most important step in the cycle where most of the time and energy should be spent, especially when you are faced with more complex problems. The Analysis phase requires a thorough and detailed RCA (Root Cause Analysis) process. The quality and sustainability of the solution depends on the depth of the analysis.
PLAN – The possible solutions are then translated into a SMART Action plan. All actions should be documented meeting the conditions of being specific, measurable, achievable, realistic and timely. The objective of the action plan is progress and accountability.
DO – Ensure that the plan is implemented by following up on specific tasks executed by specific people within a pre-determined timeframe.
CHECK – After implementingthe plan we have to “check” whether the plan/solution had an impact on the results. If the impact can be seen, CELEBRATE SUCCESS and standardise. If not, we continue to run through the CAPDo cycle until we have achieved the desired result.
The result of “Thinking People” on all levels of the organisation is an energised workplace where every individual understands their role and contribution towards the ultimate long-term success of the organisation. In this way, the individuals in the business can pull together to achieve the same goals. As former CEO of General Electric, Jack Welch stated:” The companies that find a way to engage every mind – harness every volt of passionate energy, bring excitement to the lives of people to come to work in search of a better way – every day – will be the companies that will win”
Author: Esbe’ du Toit: Senior Consultant