The Five Keys to Continuous Improvement E-Book

David McNeil

• Herausgeber: WS
• Kategorie: Fachliteratur
• Sprache: Englisch
• Veröffentlichungsjahr: 2024

Seitenzahl: 287

Beschreibung

This book is tailored for the countless individuals entrusted with driving improvement initiatives within their businesses or organizations. This diverse group includes leaders spanning from CEOs to front-line employees. Their responsibilities include a wide spectrum, from formulating and executing strategic plans to seizing incremental improvement opportunities.

Within these pages, you will uncover the essential elements necessary for effectively implementing and sustaining improvement efforts across any organizational context. The authors distill years of experience, research, and analysis into five key concepts. These Five Keys empower practitioners to lead with confidence, bridging the gap between common sense and practical application.

Leseprobe

Contents

Cover

What Others Think

Copyright

Acknowledgments

Foreword

Dedication

About the Authors

Introduction

Section 1

Continuous Improvement

Business Systems

Formula for Change

Diffusion of Innovations

Culture

Section 2

Leadership

Engagement

Goal Alignment

Accountability

Resources

Section 3

Confronting Resistant Leaders

Choosing Metrics that Matter

Dealing with a Lack of Trust

Ineffective and Unnecessary Meetings

Training Colleagues

Nine More Fixes and Tips

Section 4

Sustainability

The Four Gremlins

Leveraging the Power of Visual Management

Inside the Farm Gate

Focus on Vision and Goals

Section 5

Continuous Learning for Continuous Improvement Leaders

Final Thoughts

Bibliography

What Others Think About The Five Keys

“Having been involved in Continuous Improvement/Process Improvement for more than 30 years both “in the trenches” and as a senior management consultant around the world I’m often cautious when I see new books in this field.  Typically, I expect the same-old-same-old restated in new terms or words.  This book is just the opposite.  Dave and Jim have taken years of experience, research and analysis and pared it down into five concepts (the Five Keys) that makes it easier to take common sense and put it into common practice.  

Written for the practitioner, the curious and the novice The Five Keys is a well-crafted book that flows extremely well.  The authors use real world experience to bridge the gap between theory and implementation. If you’re new to the field, just getting caught up, or thinking about taking the plunge with your organization I’d strongly suggest that you take the time to read this book.  Absorb what it says and then put it to work.  Your chances for success will definitely be enhanced.”

George ByrneManaging Partner - Nictom Consulting GroupExecutive Director of Operations Excellence (United States & India) - Deloitte Services, LLP

“Real world strategies for organizational change. This book is a must read for every leader committed to sustainable improvements.”

Brian DeWyngaert, Chief of Staff,American Federation of Government Employees

“This book is a fun read. It explores a little history, and then develops the elements, of continuous improvement, bringing it down to five basic keys. It includes a pair of case examples which help highlight and explain the five keys. I encourage individuals who are interested in establishing a sustainable basis of continuous improvement within their enterprise, to read through this book and be enlightened by it. You’re bound to get a perspective which will stretch you and which is new and interesting. Enjoy the read.”

Dr. Gerhard Plenert, PhDFormer Missionary, Philippines San Pablo Mission,Former Director of Executive Education, The Shingo Prize Institute, Utah State University

“Jim and David get to the core of Improvement with this book! They have taken their many years of experience and really hit the mark on what it takes to succeed with Improvement efforts in any organization. Through their use of examples and clear to understand principles, you too can achieve real sustainable improvements by applying this book to your Improvement journey! I would highly recommend the Five Keys for all leaders at any level in an organization to read this treasure and apply its many gems to your own Improvement efforts!”

Jeff Watson, Sr. Engineer and Improvement/ISO 9001 Leader

“Hats off to Jim and David McNeil for this practical and engaging contribution to the body of literature on process improvement. Having partnered with Jim for over two decades on a variety of strategic planning, visioning and leadership development initiatives, I know firsthand that the lessons shared in The Five Keys can support any organization committed to sustainable process improvement. In an era where “disruption” has become a constant consideration, this book is a welcome resource for any leader looking to gain a competitive edge.”

Sukari Pinnock-Fitts, MSOD, PCCShiftwork, LLCProfessor, Human Resources Masters Program, Georgetown University, School of Continuing Studies

“Throughout my career I have been involved with numerous continuous improvement initiatives. I have had the opportunity to work with both Jim and David McNeil and experienced their passion for Improvement and their understanding of techniques to unleash it within others. While many programs focus on lean principals, those technical skills are only a start. Jim and David have a way of teaching that sustainment only happens when you address the human element, “the culture”. This book covers the many facets which need to be understood to achieve transformation and be successful long term.”

“I would consider it a “must read for leaders looking to start a continuous improvement initiative or for those asking: are we getting the results we expect?”

Joseph W. Simkulak, CPA, CPIMChief Financial Officer, Intermetro Industries

The Five Keys to Continuous Improvement: Unlock the Potential in Your Organization

Copyright © 2024 by STRATEM Associates. All rights reserved.

Published by STRATEM Associates.

Unless otherwise indicated, the information and materials available in this book are the property of STRATEM Associates and are protected under U.S. and foreign copyright, trademark, and other intellectual property laws. You may not reproduce or distribute copies of materials found in this book in any form (including by e-mail or other electronic means) without prior written permission from STRATEM Associates. Requests for permission to reproduce or distribute materials found in book should be sent to David McNeil or Jim McNeil at www.thefivekeys.org

Limit of Liability/Disclaimer of Warranties

The information provided and commented upon in these materials is designed to provide guidance only. Such information, comments, and materials are not to be used as a substitute for professional judgment. The information, comments, and materials are to be used for informational purposes only. Any person consulting these materials is solely responsible for implementation of this guidance as it relates to the particular matter for which the end user refers to these materials. Implied warranties of merchantability and fitness of purpose, if any exist, and all other warranties, expressed or implied, are expressly waived by any user of these materials. The coauthors, developers, and reviewers shall not be liable for any direct, indirect, special, or consequential damages, including, without limitation, attorneys’ fees or costs arising from any use of these guides or the information or material contained herein.

ISBN: 978-1-7364053-5-2

Acknowledgments

We acknowledge with enormous gratitude those who have shared with us their knowledge, expertise, and passion for bringing change to organizations and individuals around the world. It is in their spirit that we share what we have learned with you. We thank:

Our many clients, who, over the past 30 years, trusted us to work with them in creating organizations of “world-class” stature.

Our colleagues and partners at Competitive Dynamics International who encouraged us to persevere in writing this book and for over a decade generously shared their experiences and expertise with us.

Allen Sievertsen, Jack Mihalko, Jillian Kriger, George Byrne, Thom McNeil, and Dan McNeil read early drafts of this work and provided honest and thoughtful advice. Their contributions are noteworthy and truly appreciated.

Doug Williams is our editor and his counsel, critiques and attention to details have guided us in writing and re-writing this book. His contributions cannot be overstated.

David Zeolla has assumed the role of editor for this Second Edition. His experience and knowledge guided us successfully throughout the process.

Bobbie R. Deen, Graphic Designer, provided terrific graphics that are posted throughout.

Cheryl Jones has continually supported our efforts by updating our work, correcting our errors and keeping the writing process moving.  

Finally, we especially wish to thank our family members who were supportive and encouraged us to stick to it. Family tended to the many obligations and chores of daily life while we typed away in seclusion. We could not have completed our work without them. Extra-Special thanks to Pauline and Beth.

Foreword

By Drew Mark Butler

I have spent my entire life in manufacturing and operations, starting as machine operator and advancing to my current role as Vice President of Operations. The one common theme during my entire career was a drive to make things better and not being satisfied with the status quo. There are a few instances in my life where I can think back to moments that changed the direction of my career, graduating from college while working full time, working with Mr. Shimbo from Shingijutsu, becoming a Shingo Examiner and meeting Jim and David McNeil.

There are not many people you come across in your life who truly make a difference in the world. I can honestly say that Jim and David McNeil have made a difference in mine. I am excited for you to read this book so that you can get to know them like I do, and experience the genuineness, warmth and incredible knowledge that they possess. Then I challenge you to experiment with their thoughts and ideas to better your world. When people tell me how hard it is to change their organizations, I always use examples of Jim’s time as a UAW president to illustrate change in a difficult environment.

The format of this book is excellent, each chapter explores different topics that are critical to implementing change. They are discussed in an order that will maximize the results for your organization. For example, in chapter one they lay the foundation of continuous improvement and give a brief history of it. I especially liked this chapter because it discusses the inter-connectedness of systems and departments and how it is critical for practitioners to understand to create that Culture of Continuous Improvement, every day, everywhere! In other words, you cannot change one without affecting the many. Chapter one has great thoughts on how to implement specific behaviors and a culture that will support the tools and systems of Continuous Improvement.

An important section of the book is Chapter Two, where they discuss the Five Keys. Their example of how two identical sites got two different results on their Continuous Improvement journey while basically using the same implementation plan, systems and tools is fascinating. The 5 keys that they discuss are ideas that I often refer to when people ask me “Where do I begin with change? How do I create a culture of Continuous Improvement?”

If you are like me, you will find yourself reading this book repeatedly and using it as a reference in your journey. As I was reading this book it brought back many great memories of time spent with Jim and David and their teachings. One of the best memories I have with them, is working with them to engage the workforce at my site. We wanted everyone to enjoy their jobs and feel that they are part of an important purpose; the process was invigorating. This book has captured the “magic” that impacted my world.

Drew Mark Butler,

Vice President of Operations, Signs.com

Shingo Examiner and Certified Shingo Facilitator

Salt Lake City, Utah

November 2020

Dedication

This book is written for the tens of thousands of individuals charged with leading continuous improvement efforts for their business, organization, or association. This legion is made up of leaders ranging from CEOs to front-line employees. Their responsibilities range from developing and implementing strategic plans to pursuing incremental improvement opportunities. No matter where you may fall on this broad spectrum — CEO, the front line, or the hundreds of positions in between — your future and that of your organization are directly impacted by how successful you and your colleagues will ultimately be.

To ensure we are all speaking the same parlance, we use the phrase continuous improvement or CI throughout the book as an umbrella term for long-standing and ongoing improvement initiatives such as: Process Improvement, Operational Excellence, Total Quality Management, Lean Production, Toyota Production System (TPS), Performance Improvement, Process Excellence, Kaizen, Quality Assurance, Strategic Effectiveness and other titles for ongoing programs dedicated to improving an organization’s functions and processes.

We differentiate between improvement programs, adopted and titled by various organizations, from the vast array of improvement “tools” such as: TQM, A3, Six Sigma, Five S (5S), FIFO, Heijunka, PDCA, Standard Work, Kanban, Value Stream Mapping (VSM), Hoshin Kanri, Visual Controls, etc.

About the Authors

Jim McNeil, left and David McNeil

David McNeil is the Director of Continuous Improvement, North America at Competitive Dynamics International (CDI), a consulting company with clients, past and present, in over 80 countries and more than 3,000 worksites. CDI is dedicated to implementing, sustaining, and growing continuous improvement initiatives world-wide. For over a decade, he has guided dozens of organizations in their quest for continuous improvement, employee engagement, and intentional culture change.

Jim McNeil is an organizational change specialist bringing four decades of hands-on experience to the work. He has provided direction and support to organizations in the United States and Europe from the boardroom to the front lines. In his early days, he served as a union leader for 25 years in the United Auto Workers, successfully bringing changes to a very complex environment.  His clients include: corporations, nonprofits, governmental agencies, and trade unions. Industry experience includes: service, manufacturing, health care, pharmaceutical, telecom and advanced technologies.

Introduction

“Everybody has a plan until they get punched in the mouth.”  

–Mike Tyson

Heavyweight boxer Mike Tyson’s famous quote captures the stark reality of life: that regardless of planning and preparation, things change and change quickly. The relevance of this quote and life lesson was forever driven home as the Covid-19 Virus began to reap havoc across the globe. It was that “punch in the mouth” the world had not anticipated nor adequately planned for.  As the disease spread from Wuhan across China, this epidemic rapidly spiraled into a global pandemic, the likes not seen in over 100 years.  Hundreds of thousands of lives have been lost to this “punch” and those numbers continue to mount. You had to wonder how many lives would have been saved and resulting economic chaos avoided if health agencies and governments had been able to quickly react. They simply failed.

If ever there was a moment validating the benefits of developing and maintaining a culture that is versatile, innovative, and engaged, it was revealed during the most desperate days following the Covid-19 outbreak.   Companies as far afield as the hospital care and medical equipment communities to the manufacturers of autos, apparel, vacuum cleaners, air-bags, electronics, and dozens of other specialties rapidly transformed their manufacturing capabilities to save lives.

These diverse enterprises, almost overnight, shifted production from their traditional product lines to urgently needed ventilators, face shields, reusable gowns, respirators, face masks, and test kits. Their swift response helped protect health care workers and save the lives of the tens-of-thousands who were sick and dying.

The Covid-19 global pandemic, like other global crises, brought about structural changes to organizations of all types. We see dramatic examples of how education, travel, shopping, recreation, medical treatment, food production, dining, and even houses of worship have adapted – some better than others.  We can expect, as we emerge from this calamity, other industries and organizations will be similarly challenged to create their new normal.

Some consider the ability to rapidly pivot, innovate and capitalize on turmoil a miracle!  However, those of us in the continuous improvement field see these capabilities as tangible benefits associated with a participative and engaged workforce.  As demonstrated by the many of organizations that quickly responded to the call, those groups are equally prepared for business challenges that confront them.

Time will inevitably heal the deep wounds inflicted by the Covid-19 Virus yet the need for preparedness will always be with us. The ability to pivot, adapt, and prosper, regardless of the challenges and obstacles faced, is vital to all successful organizations and their members.

The Process-improvement Puzzle

Organizations around the world have launched, in one form or another, hundreds of thousands of improvement initiatives during the last 25 years. These efforts were conceived with the best of intentions, and staffed with capable people to lead the charge. Unfortunately for many, their efforts fell short of the desired bottom-line impact and many improvements were simply not sustainable.

Over the past two decades, we have researched and analyzed the reasons why some improvement efforts generate great results and why others fall short. Through trial and error, we have explored differing strategies, designs, methods, and tools, and over time, zeroed in on those specific aspects of continuous improvement we found most critical for sustainable success.

Why We Wrote This Book: ‘Solving the Puzzle’

Over the course of a decade, while working with a client at two “sister sites” located some 100 miles apart, we experienced very different results. These manufacturing facilities were located in similar communities, produced the exact same product, with the exact same equipment and technology. They reported to the same corporate hierarchy, relied on the same internal support networks, and had the same suppliers and customers.

Given the similarities of these two sites, you would expect similar results – not exact, but similar. If only that were true… One site became the company’s North American model for continuous improvement, while the other site struggled with poor or mediocre performance, higher internal safety violations, and greater turnover. How could that be? Why were results so dissimilar? Why was it a joy to work at one site and a constant uphill challenge at the other? What were we missing?

As consultants for both locations, we continually pondered this dilemma, sharing our conundrum with others in our international consulting group. Collectively, our 20-year old international consulting team has clients in 80 countries around the globe. Together we have launched continuous improvement initiatives at over 3,000 different client sites. Each member in our group has experienced the joy and pride associated with great successes and suffered disappointment in lackluster results. We were determined to discover the reasons why!

The more we worked through this real-time challenge, the more we recognized the need to solve this puzzle. In doing so, we might discover the linchpin for many organizations embarking upon the improvement journey. We had to find the answer.

We decided to zero-in on identifying and standardizing the most critical aspects that buttress our most successful process-improvement initiatives. Regardless of the specific improvement an organization embarks upon, we found that combining certain behavioral science principles with five strategic components, which we refer to as the five keys, can transform a complacent culture into one committed to continuous improvement. In this book, we present our learnings to you in a way that enables you to implement them at your worksite.

Section 1

In our decades of leading improvement efforts, we’ve come across some well-known and some lesser-known concepts and models that we have found to be both foundational and requisite in our work with a variety of clients.

As continuous improvement leaders, it is vital to adopt a “continuous learning mindset.” This approach to your work provides you and your organization with unlimited opportunities to gather knowledge from your experience, formal and informal educational opportunities, training sessions, interaction with others in the field, as well as your work colleagues.

Each new improvement initiative creates the opportunity to learn and grow as the individuals, the environment, the improvement challenge and the work itself are all somewhat different.

Obviously, you can’t know something until you learn it, but where do you go and whom do you talk to in order to gain this understanding? We believe this book can help.

The Roots section presents several short segments containing a collection of history, research, experiential learnings and behavioral science teachings that have enabled us to jump start improvement efforts and assist organizations laying their own grounds for continuous improvement. They include:

‣ The Chronology of Continuous Improvement

‣ Business Systems

‣ The Formula for Change

‣ The Diffusion of Innovation

‣ Culture

Continuous Improvement

“Continuous improvement is not about the things you do well — that’s work. Continuous improvement is about removing the things that get in the way of your work. The headaches, the things that slow you down, that’s what continuous improvement is all about.”

 Bruce Hamilton, Director Emeritus Shingo Institute

The Evolution of Process Improvement

The concept of implementing improvements has always been an instinctive factor in human nature and part of our human story since the cavemen. It is common sense to find ways to make work easier and improvements sustainable.

In the chart above, you can see “game-changers” in the evolution of process improvement dating back to the 18th century. These “breakthroughs” occurred rarely, yet dramatically reshaped the industries where they originated. But it was in the post-World War II era that the notion of “continuous improvement” began to enter the mainstream lexicon and migrated from inventors and theorists to a more mainstream audience involving workers on the front lines.

Continuous Improvement Gains Traction

Continuous Improvement (CI) or Continual Improvement Processes (CIP) accelerated markedly in Japan after World War II. Japanese industries were decimated during the war and the United States provided experts to assist with the rebuild. One of several experts, sent by the U.S., was Dr. W. Edwards Deming an American statistician, originally sent to Japan to assist with census work. During the World War II, Deming was a member of the Emergency Technical Committee, a group charged with developing statistical methods for quality control of materials and products, and taught Statistical Process Control (SPC) to manufacturers engaged in the United States’ war materials production. Based on his wartime experience of improving quality and reducing waste, he was recruited to assist the Japanese in their manufacturing rebuilding efforts.

Deming introduced Japanese industrial leaders to his brand of statistical process control, quality control, and the “Shewhart Cycle” which evolved into the Plan-Do-Study-Act process. Deming, was certainly not the sole inspiration in helping the Japanese rebuild their industries; however, Deming was unrelenting in his focus on improving quality, eliminating waste, and weeding out non-value-added steps in the manufacturing process. He urged companies to focus on streamlining their processes by engaging their frontline workers in these improvement efforts. The approach was known in Japan as “kaizen,” translated literally as “improvement.”

During the 1950s, Japanese products had a global reputation for low costs and poor quality, and were derided by many Westerners as “junk.” But in order for Japan to ever recover economically as a nation, their leaders knew that their success was directly tied to their ability to export. And, in order to export successfully, they knew their products must reflect high quality and be produced cost-effectively.

Let the Good Times Roll

While Japan was in the midst of its industrial revolution, American industry paid little attention — and for good reasons. During the war and thereafter, America became a manufacturing juggernaut. Throughout the war, mass production methods had been fine-tuned, and as the war ended, American consumers were hungry for new everything. Between 1945 and 1949, Americans purchased 20 million refrigerators, 21.4 million cars and 5.5 million stoves. In the 1950s, televisions and auto sales skyrocketed.1

Practically every item that American industry built would be sold, and ravenous consumer spending would continue during the 1950s and 60s. Due to the lack of rivals to American industry, manufacturers were not interested in process improvement or quality controls, and opted instead for greater output.

Quality and cost were non- issues: American industries could sell anything they produced and increased production costs would be passed directly on to insatiable consumers. In this environment, it was not surprising that American industry was not seeking improvements and instead followed the approach of “if it ain’t broke, don’t fix it.”

Conversely, throughout the 1960s and 1970s, Japanese manufacturers distinguished themselves in the production of high-quality textiles, consumer electronics, cameras, watches, appliances, and automobiles. Products from Japan, once considered “cheap” or of “poor quality,” had now become market leaders.

Sony and Panasonic began to dominate the electronics industry, while Toyota and Honda were manufacturing and exporting high-quality, smaller fuel-efficient vehicles. From the ashes of the war, Japan had been rebuilt and become the world’s second largest economy, second only to the US, from 1968-2010.2

The Oil Crises of 1973 & 1979

The 1973 oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OPEC) proclaimed an oil embargo. The embargo was targeted at nations perceived to be supporting Israel during the Yom Kippur War. The nations initially targeted were Canada, Japan, the Netherlands, the United Kingdom and the United States, later extended to Portugal, Rhodesia and South Africa.

By the end of the embargo in March 1974, the price of oil had risen nearly 400%, from US $3 per barrel to nearly $12 globally; US prices were significantly higher. The embargo caused an oil crisis, or “shock,” with many short- and long-term effects on global politics and the global economy.3

This “first oil shock” was followed by a second. In 1979 a decrease in oil output occurred in the wake of the Iranian revolution. Although supplies only decreased by 4%, widespread panic resulted causing crude oil prices to spike at nearly $40 dollars a barrel. Then in 1980, the outbreak of war between Iran and Iraq resulted in severe production shortages triggering recessions in the United States and other countries. Oil prices did not subside to pre-crisis levels until the mid-1980s.4

Global Paradigm Shift

These “oil shocks” appeared to trigger a paradigm shift throughout the world and especially in America, Western Europe, and Canada. No longer was cheap fuel a given, and as a result, consumer tastes began to forever change. Car buyers now demanded fuel efficiency and higher quality. For North American auto and steel producers specializing in the high-volume production of large, fuel thirsty vehicles, this change represented a cataclysmic shift in demand.

While tumultuous shifts in manufacturing and technology had occurred in the past (i.e., textiles, electronics, apparel mills, mining), it seems that this upending of US auto and steel industries, considered the bellwether of American manufacturing, signaled a tipping point extending far beyond these two industries.

Before long, other commercial sectors began experiencing similar customer demands for higher quality and lower prices. As trade barriers fell away, increased competition from around the world forced businesses in a variety of commercial sectors to reinvent how products would be designed and manufactured.

Consumers had awakened to new brands and marketplaces. Enter the advent of Global Competition.

The New Reality

During the ensuing decades, global competitive pressures on businesses and industries to continually improve increased steadily. As technology, process, design, and services became easily transportable, unlikely competitors continued to sprout.

Some businesses found they were no longer anchored in their country of origin, and began relocating to take advantage of low wages, the absence of labor and environmental regulations, and overall cheaper production costs outside the US. Companies of all types now took careful note of their global competition.

And throughout the world, many businesses wisely invested in revitalizing their manufacturing facilities while introducing Japanese inspired “lean” work practices to their worksites

So, it is here that we find ourselves today in an unrelenting contest to produce quality goods and services faster and more cost-effectively than our competitors. It is here that continuous improvement is invaluable.

Continuous Improvement Becomes a Way of Life

Given the ever-changing dynamics of global competition, today’s business leaders should feel no less desperate nor committed than those leaders in Japan after the war. To continually improve is not an option, but a necessity. To remain a viable organization today, you must continually get better. “Good enough” will not sustain most organizations going forward. Today, it is demanded that all organizations continually improve. Failing to do so is a risk to the survival of the institution.

Continuous Improvement is an indispensable methodology essential for all business types to effectively compete. CI is a cornerstone of a successful business strategy in every sector and every nation. Deming provided us with a successful business philosophy that has withstood the test of time and that can be applied in a hospital, bank, or paper company, in Fortune 500 companies or nonprofit organizations, in the private or public sector.

The Benefits of Continuous Improvement

The positive impact of establishing a continuous improvement culture within your organization can be immense. Sustainable leaps in bottom line profitability, volume increases, improved quality, reduced costs, enhanced safety, employee sponsored innovations and engagement are some of many gains cited by our clients over the past 25 years.

The Philosophy

Continuous Improvement or Kaizen is a philosophy – a way of thinking – a workplace culture. This approach continually seeks to identify and implement small incremental changes for the better. It recognizes that the people best-positioned to do this are those on the front lines — the people who work with the process daily and can recognize these opportunities. Of course, major process improvements are not discouraged, but these breakthroughs occur infrequently and often at a high cost. By contrast, small improvements over time can and do lead to significant gains for the organization. (see the graphs below)

Features of Kaizen – Continuous Improvement

A focus on many small improvements over time.

Many small improvements often out-perform infrequent major breakthroughs.

Small improvements typically require lower capital expenditures.

Small improvements can be rapidly implemented.

Improvement ideas frequently come from the front lines – the people closest to the work.

Small changes are likely to encounter less resistance.

Employees and front-line management take greater ownership – people support what they help create.

The Essence of Continuous Improvement

While many programs for continual improvement are available, the essence of CI remains much the same as those principles articulated by Deming nearly 7 decades ago:

“Improve constantly and forever every process for planning, production and service”

— Dr. W. Edwards Deming

This is done by:

‣ Developing sound leadership.

‣ Engaging all employees in your efforts.

‣ Aligning goals throughout.

‣ Demanding accountability.

‣ Providing adequate resources and training where needed.

In 1951, the Deming Prize was established by the Japanese Scientists and Engineers Association – JUSE, in tribute to Deming, recognizing individuals and businesses for their contribution to the field of Total Quality Management. In 1960, Deming was awarded the Second Order Medal of the Sacred Treasure by Japanese Emperor Hirohito honoring achievements in quality.

David Salsburg wrote: 5

“Ford Motor Company was one of the first American corporations to seek help from Deming. In 1981, Ford’s sales were falling. Between 1979 and 1982, Ford had incurred $3 billion in losses. Ford’s newly appointed Corporate Quality Director, Larry Moore, was charged with recruiting Deming to help jump-start a quality movement at Ford. Deming questioned the company’s culture and the way its managers operated. To Ford’s surprise, Deming talked not about quality, but about management. He told Ford that management actions were responsible for 85% of all problems in developing better cars. In 1986, Ford came out with a profitable line of cars, the Taurus-Sable line. In a letter to Autoweek, Donald Petersen, then Ford chairman, said, ‘We are moving toward building a quality culture at Ford and the many changes that have been taking place here have their roots directly in Deming’s teachings.’ By 1986, Ford had become the most profitable American auto company. For the first time since the 1920s, its earnings had exceeded those of archrival General Motors (GM). Ford had come to lead the American automobile industry in improvements. Ford’s following years’ earnings confirmed that its success was not a fluke, for its earnings continued to exceed GM and Chrysler’s.”

The Power of Continuous Improvement and Incremental Change

One of the biggest challenges faced by today’s executive boards and senior management is the need for tangible and immediate results. The pursuit of quarterly profits that is driven by financial markets and shareholders often causes executives to focus on the short term and commit their strained and limited resources to the “program of the day” or “flavor of the month.” The quest to achieve immediate outcomes rather than longer-term sustainable results can actually diminish an organization’s overall return on investment when contrasted with deliberate and methodical improvement efforts.

A major fix, such as reengineering a process, typically is a one-time change that requires a significant investment in time, money, and resources. All too often, resources are taken away from daily activities in order to address a major problem that is hurting operations, stakeholders, or customers. The fix will achieve immediate results, which are often not sustainable, and the organization finds itself addressing the same issue a few years later.

Now what if an organization could achieve even better results that are sustainable over the long-term without requiring resources to be pulled from their jobs? A continuous improvement culture, one where employees view their everyday job as improvement facilitators, can do just that. In the graphs below, developed by George Byrne, it is obvious how the compounding effects of a continuous improvement culture outweighs the one-time benefits of reengineering a single process.

Continuous improvement of a process normally addresses production output or effectiveness. But what if we applied that same principle to cost reduction or the efficiency of a process? Once again, as depicted in the second graphic below, continuous cost reductions over time, as opposed to a one-time reengineering reduction, are both greater and more sustainable in the long run. In the hyper-competitive world in which most organizations operate today, it is important to create a culture that values and drives continuous improvement. Even as organization leaders seek to improve operations, costs, production, and other facets critical to business success, managers must remember that their competitors are not standing still. Staying ahead requires not just vision and planning. It requires a means by which the entire organization is aligned and getting better each and every day. Continuous improvement is a major enabler to that end.

‣ This reality is where we find ourselves today; in an unrelenting contest to produce goods and services faster and more cost-effectively than your competitors. It is here that continuous improvement is invaluable.

‣ Continuous Improvement is a philosophy – a way of thinking — a workplace culture. “Improve constantly and forever every process for planning, production and service”

‣ Staying ahead requires not just vision and planning. It requires a means by which the entire organization is aligned and getting better each and every day. Continuous Improvement is a major enabler to that end.

1 The American Experience.” The Rise of American Consumerism”. Library of Congress.

2 Web-Japan n.d.

3 CBC News. Archived from the original on June 9 n.d.). (Milestones 1969-1976 Oil Embargo n.d.)

4Vessela Chakarova and others. 2013. Federal Reserve History. November 22. Accessed 2020. https://www.federalreservehistory.org/essays/oil_shock_of_1978_79

5 David Salsburg . Course Hero - Texas A&M University. https://www.coursehero.com/file/prdt5a/David-Salsburg-wrote-He-was-known-for-his-kindness-to-and-consideration-for/