Thursday, November 20, 2014

Closing the Gap in Your Management System

Basic Business Cents

Our last column presented an overview of a management system for performance improvement to close the gap from where you are today to where you want to be, or need to be. This system ,called ADAMS, is an acronym for Assess, Discover, Act, Manage, and Sustain.
Phase 1. Assess
·      Complete an assessment of performance and perceptions. A complete disciplined determination of your organization’s performance is important to document your starting point; and since perception is reality, check on how you are viewed by customers and by the marketplace. The MN State Quality Award or the Malcolm Baldrige Award criteria have excellent ways to assess any organization.
·      Verify strategic alignment. Determine if your current position and where you desire to go are properly aligned with your strategy. Misalignment is often a major cause of problems.

The output of this phase is a clear and well-documented picture of your organization’s current performance, where it needs to be, confirmation of alignment between strategy and current direction, and a baseline for measuring future progress.
Phase 2. Discover
·      Establish Discovery Teams. Establish individuals or teams to investigate barriers preventing the organization from achieving breakthrough results.
·      Select Projects and Formalize Portfolios. Define the most prominent problems and issues and establish projects to address.
·      Determine Appropriate Initiatives. Determine the approach, tools, and methods to improve the processes or systems of complex problems.

Based on a disciplined review of the underlying problems facing your organization, define and prioritize specific projects to be completed and establish broad portfolios to manage.
Phase 3. Act
·      Do it! Establish a culture and approach where obvious problems are solved without undo management review and analysis.
·      Deploy Initiatives of Complex Problems. Select teams to address major problems, provide them with tools, authority to make process change, and manage progress.
Because of a focus on quick-hits and deployment of long-term initiatives, you are able to see immediate results and the efficient use of everyone; everyone gets involved and committed.
Phase 4. Manage. Once the assessment has been completed, the direction and action determined, and initiatives deployed, the most important function is to successful manage all of these activities. This is an iterative process where you will need to often return to review your assessment and verify your results. The deep involvement of senior management and the constant commitment of employees at all levels is required to continue to drive positive results.
This phase ensures an effective coordination of short-term projects with long-term initiatives. Best practices must be shared and driven across all functional elements.
Phase 5. Sustain. Success in assessment, discovery, action, and management can still run the risk of seeing initial success deteriorate into long-term failure. If you want long-term success, you must master the last phase-Sustain.
·      Institutionalize. Move beyond changing behavior to changing culture. This is a difficult task, yet it has the greatest benefit. If you focus only on the improvement techniques and not address the culture of how you work, manage, and treat others, then the lasting effect desired will be eluded. An atmosphere of mutual trust and respect must become pervasive throughout the organization.
ADAMS is an iterative system where you will need to constantly work through all of the phases enabling you to drive to higher levels of performance. If you don’t, your competitors surely will.



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