Is it time to change the culture of blame in your organization? If you think so, then understand that change only comes when accountabilities change. That means there has to be accountability, from the top to the bottom. Everyone must not only accept being accountable, but be willing to hold people accountable. This is not a culture of blame or hostility. It is simple based on clear cut facts and metrics, that you are either making the numbers or you are not. It’s simple! The change comes when you no long offer excuses or accept excuses, for periods of sub-standard performance.

Jocko Willink is a decorated retired Navy SEAL officer, author of the #1 New York Times bestselling book Extreme Ownership: How U.S. Navy SEALs Lead and Win, host of the top-rated Jocko Podcast, and co-founder of Echelon Front, where he is a leadership instructor, speaker, and executive coach. Jocko spent 20 years on the U.S. Navy SEAL teams, starting as an enlisted SEAL and rising through the ranks to become a SEAL officer.

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It is not the strongest or the most intelligent who will survive but those who can best manage change.

• Leon C. Megginson

The modern global economy is fast and dynamic. It is in a constant state of change. The greatest challenge facing leaders and their organizations today is to be able to quickly respond to market change. They must be the catalyst of organizational change that will guide their businesses to market leadership. An organization that is agile and resilient will be equipped to experience sustained success. Sustainable innovation and growth involves solutions to problems that reflect a commitment to economically, environmentally, and socially sound business practices.

In this TED Talk, organizational change expert Jim Hemerling of BCG inspires leaders with smart ways to deal with dynamic change in today’s global business climate.

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Breaking Old Habits

Organizing for success with Lean is a interesting proposition. The fact is, most organizational designs are poorly thought out and disappointedly implemented. Lean practices and tools lead us down the path of organization through process design vs. reorganization. Our focus tends to be affecting change through existing processes and refining those to the most efficient point possible. When your Lean tools lead you down a path, we tend to follow faithfully. It cannot be debated that organizational design matters. The question remains … can we organize with Lean practices?

Change Comes Through Organizing

Unfortunately, most organizational redesigns are not defined or outlined by a problem statement. Organizations jump into these endeavors because they can ‘claim’ they are making a change, but in reality, it is being done for the sake of being done. When starting an reorganizational change, be very clear on the purpose and value of making that change. Ensure that everyone in the organization clearly understands the need and purpose for the reorganization. Clarity is the key to success. This leads us to the next challenge, which is considering the people factor. Much discussion can center around whether an organization should focus first on the good of the business or the good of the people. Making a case in every situation will remain fluid, but generally, the organization should be the priority in large organizations, and small organizations should clearly keep their people first and foremost.

Reorganization With Confidence

Be willing to take risks and be creative when exploring the process or reorganization. Some believe that when experimenting with organization, that process becomes disruptive to the organization. The fact is, experimentation can be disruptive, but only for the short term. Determine how to measure the success, define design options and then perform your experiments, as there is no single right answer. Lean practice and tools are perfect for navigating the challenges of organizational change.

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Setting the Quality Standard

Are you modeling quality in your profession? When we look at successful leaders, they are the ones who are consistently modeling the behavior they expect. You won’t find a task on their daily to-do list reminding them to model their behavior at all times. It is a deeply engrained habit that is driven from deep inside them. It is a focus on success and the steps to being successful come to them very naturally. No matter what they are doing or where they are, they are modeling success and hold people accountable. You have to dearly love what you do and profess that love to others every day.

Consistent and Continuous Improvement

One of the most successful contemporary leaders of our time is Steve Jobs. His vision, passion and commitment to quality were not only inspired but extremely intense. On a daily basis, he woke up with a burning passion for his work. He eliminated clutter and mindless distraction from his world to enable him to keep and maintain a laser focus on what was important. These qualities allowed him to develop and produce some of the most innovative products that changed the face of culture in the world. Steve Jobs never accepted work that he considered to be trivial, unfocused or mindless. He consistently held people accountable with a passion and drove them to reach their highest potential. His efforts pushed his innovation forward at a pace unmatched by others. He never lost sight of the most important reason ‘why’ he did his work … which was the customer. Everything that Steve Jobs developed was strictly with the customer in mind and it hinged completely on their total satisfaction with the product.

Moving Forward with Passion

It is said that success leaves clues. For professionals practicing Lean and Six Sigma methodologies, Steve Jobs habits cannot be ignored. Our professionals demand the same standards as what Steve Jobs promoted. We expect continous and consistent improvement in everything we do. Lean and Six Sigma professionals are harmoniously aligned with the leadership inspirations of Steve Jobs. At the end of the day, we strive to create an environment that is solely driven by the customer. We all share the same passion for success.

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The Boeing Challenge

Lean Production ‘Toyota’ style is going full throttle at Boeing. As competition heats up between two aerospace giants, Boeing and Airbus, Boeing is looking at every opportunity to produce their new 777X as the most cost effective and highest quality aircraft in production. As with any other highly technical and competitive industry, success in the industry is a “game of inches.” Every improvement can equate to significant savings and quality advancement. To bring this point home, Boeing hired Walter Adisho as VP of Manufacturing and Safety. Adisho was previously with Toyota, where he oversaw manufacturing at their plant in Kentucky.  Boeing’s commitment to change couldn’t be more serious.

The Boeing Plan for Lean Production

The Boeing plan is to use newer and more standardized manufacturing techniques for its new 777X jetliner, paving the way for more significant savings as it gradually feeds the changes back into existing assembly lines. This approach will draw significantly on lean production lessons learned from outside the aerospace industry. It will also provide Boeing the opportunity to significantly impact other production lines. Standardization and efficiency will be the mantra of Boeing moving forward.

Climbing Higher at Boeing

With standardization in the aerospace industry being limited, this is the perfect opportunity for Boeing to take advantage of lean production. Typically aerospace production is at a lower rate and requires significantly more technical and custom production. Boeing’s plane making chief has challenged engineers to think about build quality when designing aircraft so they can be produced more affordably. Boeing says a clean-sheet design for a 21st-century aircraft plant would weave a single thread from the drawing board to the parts cart on the factory floor. If you look at aerospace with market demand rising, Boeing needs to start thinking differently and move efficiencies from the auto industry into this arena.

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You know it’s going to be a tough meeting. Lean is a mindset and comes from the heart, based on desires to change to improve outcomes. As simple as that may be, your boss just doesn’t get it. You have been spending weeks prior to this meeting rehearsing the concepts, practicing every conceivable objection and compiling reams of data. All your work clearly indicates that adopting Lean is the way to go. However, your boss has clearly indicated that they are skeptical and tells you it’s going to be a hard sell to win the day. Well, just relax! The conversation is going to be easier than you think, when you keep things in the proper perspective.

Going into the meeting, understand that selling Lean principles will be too tough. The concepts generally are because they are variable and can be easily argued. Start the meeting by getting an understanding of exactly what outcomes in the organization they would like to see changed and improved. Use Lean thinking to determine what predictor will provide the desired outcomes. Managers will always be interested in outcomes that revolve around the following points:

• Efficiency – Producing more with less.
• Speed Increases frequency of delivery, or completing projects quicker.
• Quality – Of the product delivered.
• Innovation Both internal innovation and product innovation.
• Morale – Of staff
• Reliability – Of delivery / predictability of release cycles / doing what we say

Conversations that occur around improvement of outcomes are always better than conversations centered around Lean principles.

The next logical step once outcomes are identified is to quantify those outcomes in terms that managers understand…money! Demonstrate clearly the cost savings of each individual outcome. Your manager may want to argue Lean principles, but they are woefully hesitant to argue against saving money, especially when those costs savings could significantly boost the bottom line. Be factual, calm and let the numbers speak for themselves.

Once you have identified outcomes, quantified each outcome with potential cost savings, now it’s time to go to work. Agree upon one outcome that can be addressed with Lean thinking and principles of the practice. Again, don’t sell or debate Lean principles, stay focused on outcomes. Use your Lean practice and thinking to get demonstrated results and quantify those results financially. When you can demonstrate the value of improving one agreed upon outcome, take on another. Let your results speak for themselves. Before you know it, successful outcomes will transform themselves into Lean successes without a heated debate of principles. Be silent and let your results speak volumes.

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When you gather a room full of Lean Six Sigma practitioners discussing projects, the one word that always creeps into the conversation is culture. If you discuss the reasons why projects succeed or fail, culture seems to be the point that makes a difference. Without much debate, it can be agreed that an organization’s culture has a major impact on Lean Six Sigma projects and is crucial to quality. The problem comes to mind that we cannot really accurate measure or even define what exactly culture is. Without being able to put our hands on it or scientifically define it, it becomes an elusive factor, which has significant impact.

Corporate culture is defined as the pervasive values, beliefs and attitudes that characterize a company and guide its practices. To some extent, a company’s internal culture may be articulated in its mission statement or vision statement. Whether we align our strategy with our existing culture or seek to change our culture to fit our agreed strategic plans will depend on what view we take of culture. Trying to measure culture, we can look at it from two different perspectives:

1. External – The culture is derived from a variety of roots and is largely unchangeable. It is influenced by factors brought into the workplace, such as religious beliefs, family beliefs and company lore embedded in the values.
2. Internal – Based on the behavior of the people in the organization, who can be led and changed as often as possible to achieve the desired results when there is a need for major change.

Understanding people’s behavior is a necessary prerequisite therefore whichever view we take of culture.

For a Lean Six Sigma practitioner, understanding the culture of a corporation and what influences it is crucial to success. Our practice is based upon facts and scientific outcomes, but understanding the intangible is just as important. There will continue to be lengthy debates about the impact of culture in our practice, but it can be agreed that culture impacts outcomes greater than any other factor we face.

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Making organization-wide change is not an easy feat. It is an involving process that requires many individual components within the organization to band together and function as a cohesive unit. That is why change management is often implemented to ensure that organization-wide cooperation is structured. Doing it this way minimizes the chance of failure.

The Biggest Reason Why Change Fails

Change is often disruptive. This means that if leadership does not have a way of handling people’s reactions, change will fail. After all, humans are the biggest reason why change efforts at organizational change fail.

A good way to avoid this is if communication and transparency are prioritized, ensuring that individuals and teams are aware of what is expected of them and how to achieve it. They should also be able to see the results of the change as it is being implemented bit by bit.

How to Implement Change Management

Change management has been proven to be a game-changer for organizations. However, it needs to be implemented the right way. Here is a brief overview of the steps organizations can take to successfully implement change management:

• Define change clearly and concisely
• Determine how the change will impact individuals and teams within the organization
• Develop a strategy for communicating the change
• Teach the necessary skills and knowledge required to implement the change
• Establish a support structure
• Monitor the change process

Importance of Change Management

When an organization recognizes the need to change, it means it wants to be more responsive to its external environment. If change management is implemented successfully, organizations can experience several benefits. With change management, organizations can:

• Increase their chances of implementing successful change
• Allocate the necessary resources required to implement the change
• Reduce the time and money required when implementing change
• Align the change with business strategy and values
• Help and support employees to ensure that they adapt to the change
• Increase morale and productivity
• Minimize any anxiety and stress employees may be experiencing because of the change
• Minimize any disruptions and risks the change might cause to business operations
• Become adept at handling the amount and frequency of change happening within
• Offset the negative impact of poorly managed change in the past
• Handle challenges in an efficient manner
• Implement changes that can make them successful and competitive
• Improve the way employees corporate and collaborate

Conclusion

Any organization that is serious about implementing change should consider change management. Many organizations have tried to handle change without it, only to waste resources and make employees adverse to change. With change management, all this can be avoided and change can be implemented that will put the organization in a stronger position than it was before.

Contact us if you have additional questions.

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Since change is inevitable and we have established that everything changes or must change in order to stay current, we have come up with the most important Six Sigma tools to drive change for the better.

Cause and Effect Diagram: An important reason to drive change is to fix a problem, so this tool will help in brainstorming various causes of problems or issues you might be having. This diagram is some times called the Fishbone diagram because it does resemble a fish skeleton. With this tool, state the problem or issue you want to fix in detail and write down possible causes of why, when and how often it happens. This Cause and Effect diagram can be used in conjunction with brainstorming for prioritizing best possible solutions.

5 Whys: A great tool for fixing a recurring problem or issue. This creative tool combines simplicity along with the innate genius we are given. We simply ask a question about a specific issue that keeps recurring. Ask ‘why’ until a satisfactory reason is achieved. 

Value Stream Process Map: This map gives you a visual of the entire process that is involved in creating your product or service. This is great way to find a glitch or waste in the entire process. The VSM must include the process map, the timeline, and the process flow. 

Plato Chart: A great tool for seeing which part of the business process influences the most output. The Plato chart is a vertical bar graph and very easy to use.

For more information on our Six Sigma training courses and services, please visit 6sigma.com. 

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In It for the Long Haul: Long-Term Benefits

• Greater Customer Satisfaction

• Black Belt training will enable you to increase customer satisfaction drastically. Using your analytical and practical knowledge, you can make changes that benefit the customer. Customers love to be understood, and your Black Belt training will allow you to demonstrate this understanding. Remember, the customer is always on the receiving end of your processes. Understanding precisely what the customer wants is the key to successful process improvement. As a Black Belt, you will know which processes to eliminate and which to improve to make your business a successful one.

• Lasting Change

• Black Belts are more than just leaders and project managers. They are change agents. Through occupying this role, you will learn how to overturn the status quo for the better. For effective change, walls need to be torn down and bridges built. Black Belts bolster their improvement work with their vast Six Sigma knowledge and practical experience. Similarly, without change, you can’t move forward. While it may be difficult for some, Black Belts are the ones to do it.

• Manage Projects with Flair

• Six Sigma Black Belts will acquire unbelievable project management skills throughout training. You can expect your training to transform you into a first-class project manager. Black Belts must manage everything from scope and requirements to resources and timeline, plus variance perspectives. Furthermore, without their fundamental project and management skills, Black Belts could not handle their workload.

Close at Hand: Short-Term Benefits

• Strong Leadership Capabilities

• Black Belts are great leaders. This is an essential aspect of Black Belt work, underpinning all your duties and responsibilities. Black Belt training will help to bring out your inner leader, pushing you to hone your teamwork and communication skills. The benefits of a good leader are abundant, but Black Belts are also great motivators and influencers, as well as leaders.

• Expert Communication Skills

• Black Belts must communicate effectively to manage projects successfully. As trainers, coaches, and mentors, communication is key. You will develop this essential skill throughout training, allowing you to speak to audiences, allocate responsibilities, and direct teams. Moreover, the best communicators can tailor what they say to suit the needs of the audience, and Black Belts are the best in the business.

• Powerful Business Acumen

  As business leaders and quality managers, Black Belts must develop world-class business acumen to support their role. With a vast array of business and Six Sigma knowledge to draw on, you can rely on Black Belts as an invaluable source of information. Black Belts are also skilled data analysts, which comes in handy when dealing with finances. Use your skills effectively to assure your Six Sigma success.

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Evolving to meet new demands is important to Six Sigma too. Corporations and enterprises all over the world use Six Sigma methodology to effect change and improve their processes. We dedicate ourselves to delivering the best Six Sigma advice available, and to unifying the disparate bodies of Six Sigma knowledge. Six Sigma can help your company change too. In this article, we examine the question: How do companies keep up with evolving requirements?

Why is Change Necessary?

When thinking about changing anything, it’s necessary to analyze the need itself. There are many factors that influence change, such as the core reasoning behind it. What is prompting the change? Similarly, what are the effects of the proposed changes? Also, how will they be implemented in your specific business environment? These three ideas are the bedrocks of understanding why the need for change arises. The need will differ for each organization, but some of the driving factors behind change include increased profits, corporate expansion and competition, new technologies, and process improvement.

New Technologies

New and more innovative technologies are produced every day. You’ll get left behind if you can’t keep up. When you install a new computer system, ensure your employee training covers how to operate it. Similarly, any new manufacturing equipment is as good as useless if your employees don’t know how to use it. On the other hand, your business has much to benefit from changing technologies, including greater efficiency, better customer service, and minimal customer resistance. Six Sigma and Kaizen are all about continuous improvement, and incorporating new technologies into your company is a great way to achieve such a culture. Technology can be a great advantage to your company, which is why embracing any changes to the market will set you up for success.

Process Improvement

Anyone who knows anything about Six Sigma will know something about process improvement. One of the primary driving factors behind changes to your organization, process improvement can be undertaken for a plethora of reasons. You might be falling behind in the market or suffering from defective products. As such, you might wish to implement new production processes altogether with Six Sigma. Doing so will help to increase efficiency and eliminate none-value-adding process stages. Similarly, process improvement can help identify where waste has accumulated so that you can expunge it.

Corporate Expansion and Competition

Eventually, every organization has to grow to meet evolving requirements from its customers and the market. But expansion is also a tactical change with which to outdo your opponents, so you can take control of the market. As your business increases in size, your operations will have to adapt if you want to succeed. Your interests might also change, branching out into completely disparate areas to gain a foothold in different markets. Moreover, your marketing strategy and company images are essential to your success. If you want to drum up business, your company needs to compete not just with the cost of services but on an aesthetic level too.

Just look at the world’s most famous company McDonald’s. Originally a small, single-restaurant business, they weren’t likely to succeed that way. But ever since they started franchising back in the 50s, their interests and image have expanded, along with their profits, and McDonald’s has taken over the world. A little-known fact: while they’re known for their restaurants, McDonald’s is additionally one of the largest real estate companies in the world.

However, casting your net too wide will also leave your deliverables spread too thin. Focusing on your core competencies, that is your most successful products and services, will see you don’t lose direction. Every company wants to grow so they can reap the benefits that come with expansion. But straying from the heart of what you do will bring you problems rather than gains.

How to Deal with and Manage Change

Talking about change is one thing, but putting ideas into action is another. We’ve already spoken about the reasons for proposed changes, but now let’s look at the effects of and environment for change in greater detail. Understanding organization and process are important if you’re going to keep up with changing demands and evolving requirements. As we know, businesses are constantly overhauling every aspect of their organization. Employee attitudes should be cultivated to view the changes as positive ones. That way, you will minimize employee resistance as you move further along.

Equally, management might propose changes that appear unrelated to the company’s overall aims. This can be confusing for employees, which leads to sluggish production, if not complete paralysis. As such, you should cultivate a positive, compliant work ethic that educates your employees about the benefits of any proposed changes. That way, there’ll be no doubts about the organization’s strategic vision.

Processes

Similarly, your processes also factor into maintaining and driving change. What are your current process stages? How will any changes affect your processes? Remember, your leadership’s decision-making, business strategies and responsiveness all affect the success of change implementation. We recommend looking closely at the proposed change to see if it is consistent with your priorities. Does your management have those priorities in mind? Six Sigma and Lean are powerful agents with which to change your processes for the better. They are far more effective than typical development processes. Instead of being designed for repeatability and standardized flow, change, of course, goes against these ideas. If you want to make strides in your company, if you want to maximize your chances of success, adaptability is important. But responsiveness and openness to change are imperative.

Environment and Resources

Are your company environment and culture compliable? Open and closed environments will affect change differently. Open environments tend to have higher turnovers for employees while striving for continual improvement and knowledge acquisition. Close environments will be more stable with decreased competition, but slower to embrace change. Management styles can have equally great effects on change, as hands-on leadership succeeds in implementing change more often than more passive management. Equally, the team approach to change, as in Six Sigma and Lean, is highly effective. Management, again, is essential to overseeing team-based change implementation as the results will be less than groundbreaking if only a few of you are pulling your weight.

As for resources, it’s important to have more than enough at your disposal. Running a good business demands preparation for any eventuality. If you aren’t ready to act on opportunities or to keep yourself afloat when things get hard, you’re likely to fail. Scalable resources ensure you can keep up with customer demand when things get busy. They can also help keep costs down when demand is low.

Contact us if you have additional questions.

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