In the last year, there are few companies who’ve not had to react in some way to the recent turbulent economic events.  In fact, many still are operating from their heels.  Perhaps your organization is still in a reactionary mode.

At what point do you and your employees realize it’s time to look for different ways of doing the work — and getting back into a proactive stance?  Maybe the time is now to start implementing a Continuous Improvement (CI) initiative to help your people get back on their toes again.

Other than the obvious financial reasons to implement such a program (e.g., cost savings — by doing more with less) there are a few other factors to consider.  1st – awareness will never be higher among your employees for why change is needed.  Today employees are thankful to still have a job; they’re also looking for new ideas and resources to do their jobs more effectively and efficiently.

2nd – the economic crisis is providing the prefect motivation for all parts of the company to work together towards a common goal.

3rd – everyone in the organization is aware of the need to add value to your customer to ensure that the customer continues to do business with your company.   Whatever the reason, based on my experience implementing improvement initiatives (both as a business owner and as a consultant) — there is no better time than right now.

So, where do you start?

Assess – you must start to see how your organization adds value to the customer and where the waste exists.  We’re not used to thinking this way – we do our jobs everyday and don’t always think about the little things that can add up quickly.  Assess which functional areas are most critical at the moment – those that can add the most value to the customer or that are your biggest risks.

Train — provide tools, resources and training to all your employees.  That may simply be accomplished by providing articles and blogs like this.  Or you may choose to utilize outside resources such as consultants or facilitators.  Whichever way you go – your employees will need to gain knowledge that effectively implements changes in your company.

Plan – Next, plan out your CI initiative.  Start with small improvements that will help to get your people up to speed.  If the improvement seems too big to bite off at one time, then break it down into smaller pieces.  Also, start with a smaller group of talented people who come from diverse parts of the business rather than with bigger groups.  In my experience, trying to implement CI programs company-wide is a recipe for disaster.  Once the initial group gains experience and confidence, then expand the size and number of CI teams.

Implement – This is where you try a lot of different things.  Just like anything else – it takes failing to find success.  As someone once told me — fail fast because that means you’re close to success.  Also, be sure to to identify the specific targeted improvement metrics (e.g., 30% reduction/improvement) you would like to get.  If you don’t put a number down, then it’ll be difficult to gauge your success level with the improvement initiative once it’s completed.

Validate – Verify your results.  Did you gain the improvement you expected?  If not, why?  Don’t give up on the work even if you’ve gained some benefit but not your target.   There’s always room for more – so don’t stop until you find the additional corrective measures that get you to your goal.

Standardize – Once you’re satisfied with your improvements, then memorialize them and make them your new standard.  This includes building in systems to verify that all employees are trained on the new standard and that you take the time to spot check each other’s work.  Improvements are difficult means to create new habits, so building systems into your CI program will help new improvements stick over time.  Don’t let the old ways of doing the work creep back into your organization.

The bottom line is this: there is no end point.  CI programs are iterative processes of assessing, training, planning, implementing, validating, standardizing your activities.   Now is the perfect time.  Start making improvements now – you’ll be impressed with how much opportunity exists inside your businesses today.

Over the years, I’ve discovered that what makes LEAN so illusive isn’t that it’s a complex idea, but that it’s a simple idea that happens to be hard to implement.

LEAN – the name commonly used to describe the Toyota Production System -  is the systematic removal of waste from any system on a constant and never ending basis.   When I first started to study the Toyota philosophy, I struggled to see where I could find the kind of improvements that would generate the kinds of results I had read about.  That’s where I went wrong.  LEAN is about creating a rhythm where everyone in the organization is trained to see the small things.  Small things, when observed alone, seem insignificant – but when compounded over time and across many people — small things add up fast.

Here’s a a perfect “real world” example:

In my last company, we operated call centers where we conducted primary research studies for organizations.  On any given shift, an agent would work on an average of 3 different projects.  Because of how the software was originally developed, in order to change to another project, an agent would need to alert a floor supervisor to be “moved” to the next program.   This required the agent to get up and walk to the end of the floor to alert the supervisor.   For 12 years this was “standard procedure.”  No one ever stopped to think about what the cumulative “cost” of having the agent get up and request a change actually was.

When we started our LEAN journey, we began to look for small things that were simple to correct.  We started to measure everything we could.  Eventually someone decided to measure the average time it took an agent to “change” projects.   It was an average of 1.2 minutes.  Not all that significant, right?  But when seen in the context of the entire organization and over the entire year, the numbers began to add up very fast.

Average # of Agents per Day – 250

Average # of Study Changes – 3

Number of Working Days per Year – 350

Average Time per Study Change – 1.2 min

Average Cost per Agent ($11.20 loaded) – $0.1867/min

Total Cost to Change Studies each Year = 250 X 3 X 350 X 1.2 X $0.1867 = $58,810.50

The solution was simple.  We made cardboard “signals” that agents would raise when ready to change studies.  These “signals” alerted the floor supervisor, who then changed them over on the system.   In 24 hours, we were able to reduce the average change over time from 1.2 minutes to just .23 minutes.   That simple solution resulted in a net savings of $47,538 a year.  It only cost us a few dollars in card stock and a 15 minute training for every employee.

LEAN is not about BIG improvements.  LEAN is about seeing the business in a different way and constantly making small changes that overtime create significant savings for the business.   Now more than ever, we all should be thinking LEAN.

Perhaps the best book I’ve read for anyone who uninspired in their work or is looking for work.  Innovative, on point, and best of all you can read it in less than an hour.  I’m buying extra copies so I can give them to people I know who are lost.

At least watch the trailer…brilliant a trailer for a book.

a) what I’m uniquely gifted at

b) what I’m passionate about

c) what my definite purpose is

This formula comes from a book I recently read - Finding the Sweet Spot by Dave Pollard.  I recommend the book to anyone who finds themselves struggling with their job or who feels uninspired with their work.  This is the perfect step-by-step guide for discovering responsible, sustainable, joyful work.

For the millions of Americans who find themselves unexpectedly unemployed, you are now in a unique position - you are now able to make choices about what you do next, and about what you put your time and energy towards.  I understand that it’s easy to think of this as something awful, but you can also just as easily consider your recent misfortune as an opportunity to make changes in your life that will lead you to satisfaction and happiness.   If anything else, think about what it is you would do if you could do anything.  Think about what your gifts are, what you’re passionate about, and what your purpose is in this world.

This is the location of the “sweet spot.”