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We must ask ourselves, "How is our rudder? How do we ensure clear direction?" To ensure we have a clear direction, we must first ensure that everyone on the team has the same understanding of the organization's definition of "success." Our mindsets are governed by the current paradigms that we use to make decisions each day. These paradigms are developed over the span of our entire lives. We would prefer to run our businesses by habits based on principles versus paradigms. Principles are universally applicable and will ensure that all of us are aligned.
There are many paradigms toward Operational Excellence. I include Lean, Six Sigma, and Theory of Constraints withing OpEx. The first paradigm I would like to address is the paradigm of Lean (aka Continuous Improvement, Kaizen, etc.…). Lean IS NOT "Less Employees Are Needed." Once Lean became the vogue thing to do, people started abusing the power of lean by using it to reduce headcount, so the above paradigm was earned. However, we must now earn the right to change that paradigm. Improvement to remove people is not a goal of mine, and it should NOT be a goal of yours. I use lean as a part of a holistic approach called Operational Excellence. In that context, Lean [Continuous Improvement] is…
A system to identify problems and solve problems utilizing everyone on the team.
Now, to truly understand Continuous Improvement, one must understand the definition of some terms:
- Problem = A deviation from the standard
- Standard = A challenging target condition that cannot always be met (so continuous improvement is a part of the Lean thought process). A standard could be defined by cultural, organizational, or technical work.
The work may reside in the…
- Manufacturing Value Stream (flows from raw material to finished goods)
- Design Value Stream (flows from concept to launch)
- Business Value Stream (flows from order to cash)
Our thinking must be that problems are treasures to be mined; not hidden but exposed for all to see. Once we have alignment around the definition of what Continuous Improvement IS, then we must develop alignment around a common set of habits. When it comes to Continuous Improvement, you don't have to be extreme, but you must be consistent. The steps to improvement are evolutionary, but the results can be revolutionary if you stay the course. Having a common understanding of these habits will allow the team to make better decisions and have better habits going forward. Never underestimate the power of a team that can make decisions effectively. If we want to be a continuously improving, world-class, excellent organization, we need to ensure the continuous, universal application of beliefs (behaviors and thinking). We must also be willing to continually address change, responsiveness, and the organization's ability to improve and adapt to its competitive environment.
This book is aimed at describing the habits that will lead to the technical, cultural, and organizational changes that will drive your company toward True North (Perfection). I hope this book adds value to your journey.
