Turning Knowledge Into Action

Basic Business Cents

“Don’t look back. Something might be gaining on you.”

Satchel Paige, Hall of Fame Baseball Pitcher

Paige knew that you cannot stand still, you have to keep moving forward. In business, if you are content to rest on your laurels, the world will pass you by. It is not always easy to know what to do to improve but a method of assimilate, cogitate, and activate is helpful.

Knowledge is available everywhere and it is up to us to gather ideas and information from various sources and assimilate it into our body of understanding. Sources of information can be found on the Internet, in books, trade journals, customers’ experiences, returns, results, consultants, and even newspapers columns. You are reading the Basic Business Cents column where thoughts are presented that might trigger useful ideas for you in the areas of leadership, strategy, process improvement, marketing, and culture. It is easy to get an overload of information so it is up to you to select what is useful and relevant.

It is undesirable to copy what others are doing as situations, talent, conditions, and timing is different so the knowledge must be studied and carefully thought about with the intention of how it can be applied to your organization. This cogitation of knowledge inputs meshed with your knowledge of your business can be meshed into a plan for implementation. Reflection of how this new information compares with your experience should fine-tune your plan.

Knowledge without action is useless. Armed with your deep study and observation, you can implement the plan developed. Challenge your beliefs and way of doing things. Be willing to try new ways. Ensure that any changes are documented and followed up upon to see that the implementation is correct and to understand the results of the change.

It is preferable to try new ideas on a pilot basis and compare results with previous action. If the results are positive, then do more of it and document the new method to share with other parts of the organization. If the results are negative or do not show measureable results, then forego that plan and try another improvement idea. Make something happen.

Satchel Paige was right. Don’t look back at what might have been; look forward at what might be.  Continually, relentlessly strive to improve work processes. It is not necessary to make giant strides forward; baby steps, little by little, are the most important in making progress, which will lead to success. Assimilate, cogitate, and activate over and over continually.

A Process is a Process is a Process is a Process

Basic Business Cents

We have previously discussed that all work is a series of processes. I suppose we can say all activity is composed of a series of processes. It is how we do things. No process is perfect; all processes can be improved. The worker strives to perform the best they can within the processes they are given and the manager’s job is to improve the processes. When viewed in this manner, it does not matter if the processes are in a manufacturing company, service, or government. It does not matter if the processes are in a large conglomerate or a small mom-and-pop business. A process is a process is a process is a process.

The first task in performance improvement is to understand the work processes. Start with the material coming in the back door and draw a sketch of all of the processes leading up to the product going out the front door with the customer. The more processes you can identify, the better.

Then take a look at your flow diagram and identify any waste, rework, and redundancy. Does the flow make sense or should processes be rearranged. In other words, simplify where you can. When you are satisfied with the diagram, show it to others, especially those involved in each process. They may be doing something different than what you think is happening. Make corrections with their input always seeking to streamline and simplify the system of processes.

When a problem is identified or a process is selected to improve, a simple system to follow is P-D-C-A, plan, do, check, and act. First, plan a solution or change, then do it on a trial basis if possible to check if the process is improved. Does the data confirm your theory of a better way. If the results are positive, then document the change so it becomes the standard way of acting or doing the process across the organization. If the results do not show improvement, then plan another change. You can continue rolling through P-D-C-A, continuing to improve. Remember no process is perfect and all can be improved.

When checking for improvement, be sure to check on the impact of the change on other processes and especially the total system. Remember, for every action there is a reaction from other processes and you want to be sure you achieve the result you desire on the total system.

Process thinking may be the most important breakthrough in your management style. No matter what size or type of organization you are in, a process is a process is a process and it can be improved.

Know Your Market

Basic Business Cents

It goes without saying that you need to focus your marketing efforts where you can succeed but it is easier said than done to define that focal point.

First, you need to define your niche or area where you are a dominant force. This can include geographic boundaries, product/service offerings, price range, etc. In order to dominate you need to be better than anyone else in product, service, delivery, and timeliness. This niche needs to be something that you enjoy in order for you to put forth your best effort. And, it needs to satisfy your financial needs.

With the niche identified, the next step is to understand the wants and needs, not necessarily the same, of the customers and prospects.  The best way is to talk to a sample of them in person so that you can read their body language as well as what they are saying. When an interesting point is brought up, you can delve further into their thoughts and dreams. A good question to open a conversation is what is not now available, but you would be enticed to purchase if available? With on-line sales, ever-increasing technology, and mobility, market niches change rapidly. Existing organizations may have to reinvent themselves to cope with the changing market.

Armed with your thoughts on your desired niche and needs/wants of buyers and yourself, it is time to gather data to support your theories. You want to get facts on the size of your market niche, buying habits, and preferred approach to promotions. Many sources are available and you will want to be familiar with several. I can give an example. These columns are targeted for small businesses. Last month I contacted Dun & Bradstreet and requested the number of businesses under 100 employees in the United States. Immediately, I received an email that said that as of that moment there are 17, 297, 156 US businesses under 100 employees. I know that this article does not reach that wide of an audience, but it was interesting to find out how large the population is of typical small companies.

Other sources of demographics are University/College Marketing Professors who can direct you to available help. Your local library can possibly help or direct you to available sources such as on-line services at large city libraries. Examples are Hennipen County Library, www.hclib.org and St. Paul Public Library at www.wppl.org. You may want to register your local library card with St. Paul Public Library at www.sppl.org/services/library-cards and Hennepin County Library at www.hclib.org/about/library-cards to use their services.

Other good resources are Economic Development Centers, Chambers of Commerce, Small Business Development Centers (SBDC), and SCORE, www.SCORE@hubbardcountyedc.com.  And, of course, you can surf the web.

Armed with data to support your research, you can focus your efforts to where you can be successful, enjoy your work, and be rewarded appropriately.

Mutual Trust and Respect

Basic Business Cents

Every organization should strive for mutual trust and respect between their employees in equal amounts, each to the other, up, down, and across the organization.

This is a favorite saying of mine because it is so important to the success of the organization and to the pleasant environment in which to work. But what does it entail and how do we make it happen?

Webster defines trust as a firm belief in the honesty, integrity, reliability, justice, etc. of another person or thing. Respect is defined as to feel honor or esteem for; to hold in high regard. Thus, the saying states that everyone in the organization can be trusted to be honest and reliable, and everyone can expect justice and to be esteemed by others.

If this ideal is reached, we can expect maximum teamwork, less stress, and optimized performance of both individuals and the organization. The employees are supportive of each other and collaborate to maximize results. Okay that is easy to understand, but how do we achieve it in the real world of the workforce? That is not so easy to understand.

There is something in the workplace that can be likened to an echo effect. Our behavior is reflected back to us. If we are supportive and helpful to others, they are more inclined to treat us in the same way. On the other hand, if we are selfish, play politics, and hard to get along with, we are likely to get that thrown back to us. The Golden Rule is a good guide to our behavior.

Someone needs to start the ball rolling and anyone in the organization can be the catalyst, but normally it needs to start at the top. Leaders need to model the way as people, consciously or sub-consciously, emulate the leaders in the organization. The onus for starting the culture change of mutual trust and respect must be on leadership. Management must clearly state the aim and objectives of the organization, provide proper training and directions, and then trust the employees to do the best job they can. Avoiding micro-management, excessively looking over the shoulders of others inspecting their work, is a must to demonstrate that they trust the employees.

However, individuals can make their work place more enjoyable by setting their own examples of trust and respect. They don’t have to wait for someone else to start. Behavior is infectious.

Examples of trust and respect behavior can spread and start to snowball. We all want to eliminate stress due to political infighting; to make our work more enjoyable and satisfying. This dynamic culture of trust and respect results in enthusiastic, positive attitudes, which we all desire.

The Job Interview

Basic Business Cents

The purpose of a job interview is to see if there is a fit between the job applicant and the open position, plain and simple. The applicant wants a job and the employer wants to fill an opening. Both parties share the responsibility to make this determination. Both parties should avoid putting the other in a corner, intimidating them, or monopolizing the conversation. A good interview will result in a mutual decision to the satisfaction of both.

It goes without saying that both parties need to do their homework. The applicant can go to the employer’s website and learn about them. They can query their network for both tangible and intangible information. This will help them develop their set of clarifying questions like:

·      What are the key traits desired for someone in this position

·      What would a typical day look like

·      How much responsibility does this position have

·      What are the objectives that management has for someone in this position

·      What are the challenges to be expected

·      What training will be provided

·      What are the growth opportunities

o   For the company

o   For the person in the position

The employer also needs to do homework by preparing a script of questions and ask the same questions of all applicants. In this way, the applicants can be compared objectively. A typical set of questions includes:

·      What type of work do you enjoy doing

·      What provides satisfaction from your work

·      What is the ideal position for you

·      What have you accomplished that you are most proud of

o   As part of a team

o   As a leader

o   As an individual contributor

·      What would you like to be doing at the peak of your career

o   Will this position be a step in getting there

o   What training or experience will help you achieve your goal

There should be an equal number of questions from both parties and an equal amount of time spent talking by each.

There are some questions the employer is NOT allowed to ask as determined by the federal and state Departments of Labor such as:

·      Do you have an arrest record

·      What does your spouse do

·      Tell me about your personal attributes like height and weight

·      What is your ethnic background, race, or religion

·      What is your health history or do you have any physical impairments

·      Have you had any addiction habits with drugs or alcohol

·      Have you had any mental health problems

Both parties need to remember that the interview is a collaborative effort to see if there is a fit. The decision to hire should mean that the position is a fit for the applicant to advance toward his/her long-term goal and to provide pride, satisfaction, and happiness along the way. The fit for the company is that the applicant will more than fulfill the present needs and add to the talent and capability in the company for the future.

If both parties reach the decision that they have a fit, then a good decision can be made to the mutual satisfaction of everyone.

Making Change Happen

Basic Business Cents

Leadership likes to believe it can effect change in its organization at its will but it is easier said than done. Inertia and culture can be tremendous obstacles to change. Lip service may be paid to edicts to change but the work keeps on being done the same way with the same results. People are comfortable doing it the same way it has always been done.

A useful formula to remember in making change happen is D x V x F > R, meaning Dissatisfaction times Vision times First steps is greater than Resistance.

Nothing much will happen in the operation to change if the people are not satisfied with the present results (Dissatisfaction). It may be a simple process, it may be a larger system, or it may be the entire organization that is sub-optimizing the operation. When consensus is reached that status quo is not good enough and something needs to be done to improve, then the stage is set for change. You may want to take advantage of new technology, new method, or increased training.

The Vision is the view of the future that portrays what the organization will be like if the changes are made. It has to be communicated and explained to the satisfaction of all involved so that they become aligned with the direction and buy in to the concept. Employees need to understand the value to the organization and to them and become enthusiastic supporters.

First steps are important because everyone is watching to see if this change will work. False steps can stop or delay the new way.  Lorne Ames, President of International Nickel Company/Manitoba said, “What is important is baby steps, not giant strides.”

A good idea is to follow the PDSA cycle. First, Plan what action is to be taken.  Then, Do it on a small or trial basis. Next, Study, observe, and check results to see if the trial effort provides desired results. If so, Act and roll it out full scale. Then continue around the cycle and Plan further change, Do it, Study results, and Act accordingly. Continual improvement is obtained by continuing to roll around this cycle.

Resistance is met at every step along the way. As mentioned earlier, “We have always done it this way”, comfort in the old way, inertia, lip service, and some not convinced of the value of the new way are forms of resistance. Communication is key; people are not opposed to change, they are opposed to being changed. Communication has two parts, sending and receiving. It is not enough to tell people, they must understand. It is helpful to understanding if more than one of the senses is employed. Management can provide written documents so the employees have time to study the message (seeing), tell them orally (hearing), and discussing with others (getting a sense of feeling). Different people learn in different ways.

With acceptance of Dissatisfaction, buy-in to Vision, desired results are obtained with First steps, Resistance will be overcome. The change becomes “our change” and not “their change”.

What is Organizational Culture?

Basic Business Cents

"Culture eats strategic plans for lunch every time!"å Bill Rupp, MD & CEO, Luther Midelfort, Mayo Health System

What is this thing called organizational cultural and why is it important to you? Good question; one that we all know is critical to success of an organization but is difficult to describe and influence.

Webster describes culture as, “(a) development, improvement or refinement of the intellect, emotions, interests, manners, and taste, (b) the result of this: refined ways of thinking, talking, and acting.” Organization is defined as “a body of persons organized for some specific purpose”. Not a lot of help so far but let us explore further.

We want a group of dedicated employees working together for the common good of the system or organization. Sounds good but can it be created or modified?

Like it or not, all organizations have an organizational culture. It may be as desired but it may not. Some organizations are a collection of fiefdoms with departments competing with each other for recognition, funds, and assignments. Individuals may be competing with each other for promotions, salary increases, bonuses, recognition, offices, and assignments. Even top executives may be competing with the record of the previous top executive.

This competition and jockeying for position can lead to hoarding of information, which prevents others from doing their job as needed. It can lead to back-biting, sub-optimizing of the processes and systems, and demoralization.

What we want and need is a team working together to achieve the best possible result. We want the workforce to have pride in their work, enjoy their workdays, always strive to learn and improve, pleasant with each other, customers and suppliers, and focused on achieving the Aim of the organization.

Experience has shown the teaching of tools and methods will not endure unless there is a sustaining improvement culture of the organization that is developed and nurtured. To do this, we:

1. Align employees to the Aim and Strategy of the organization. It needs to be communicated to all employees, teams identified to lead efforts on the strategic initiatives, measured, and progress communicated monthly.
2. Guide behavior within the organization. Develop a standard of desired behavioral guidelines and communicate to all employees, and again monitor progress on a regular basis. Semi-annual surveys of employees can be conducted to provide an opportunity to report on observations on behavior consistent with the guidelines.
3. Build continuous improvement competency in all employees. Providing training on process improvement, employ data based analysis and decision making, and lead by example. Emphasize process and not people; in other words, fix the problems and not the blame.
4. Provide opportunities for intrinsic motivation. Effective motivation has to come from within the individual; extrinsic motivation attempts are rarely helpful and may even backfire. Especially beware of financial rewards. Enable the employees by providing education and training to allow them to learn and grow. Empower the employees by delegating authority to improve work processes. Allow the workers more of a sense of satisfaction in their work by knowing they are improving the way they do things. And, don’t forget to communicate and celebrate success.
5. Manage must model the way! The above will accomplish nothing if employees observe management with contrary behavior.

Dr. Rupp was right, culture can be a powerful negative force but it can also be a tremendous force for the success of the organization. As with anything else in the organization, it must be developed, improved, and nurtured.