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Make It Visible.

Make It Visible.

We have written often about Goals and Objectives and Management Measures and Key Performance Indicators. And rightly so. It also ties into my management philosophy of Understanding, Acceptance and Commitment. We MUST have clarity, everyone has to Understand what it is we are trying to do, everyone has to ACCEPT that what we are trying to do and that leads to everyone being committed to getting it done. I call that UAK, from my friend Malcolm Phares, who felt it was more memorable that way.

I want to address now the reporting of the progress towards meeting or surpassing the goals, objectives, management measure and key performance indicators.

Some time ago I was on a board of a manufacturing company. They did fusion welding on cylinder heads and line boring and rebuilding of various components as well as resurfacing camshafts and crankshafts. It was a good business. The owner wanted me to see what we could do about improving throughput. We went about the project in the usual manner and had UAK. But what really made a difference was in how we presented the results of everyone’s efforts. We put up graphic and table results every day in the employee break room.

We had a quick team meeting in which we explained what we were going to do and how we were going to collect the data and how we were going to present it to them. I was a little surprised at the level of interest in this reporting approach. There was very little interest.

The first few days, we started at the beginning of a month, there was rather disappointing interest. It started picking up toward the end of the first week. By the time the second week was finished the employees had figured out how their efforts could influence the results. They started trying out different methods to achieve the results, some that worked and some that did not work. But they quickly figured out how to have the maximum results in how they approach their work.

No one told them what to do, they figured it out themselves. I have always said that the employees doing the job know how to do their job better than anyone else. It has always been rather easy for me to explain to employees what is needed and you will be surprised at what comes out of it. This is standard best practice management isn’t it? That sure happened in this example.
By the end of the first month the improved results were very obvious to everyone. No additional spending, no changed written procedures, and no-one standing above every employee pushing them. Just management and supervision helping the employees out when they wanted assistance.

By the end of the first quarter under this program the throughput nearly doubled, open work orders were down by more than 50% and as you can imagine profit increased. The customers had improved results as well. Lower invoices as the times to do the work went down and the invoices were produced within a day of the jobs being completed.
I believe it was simply the reporting of the results. Made the results visible, explain how you get the information and how you produce the results and then just let it go.

If you already are doing this you know what I am talking about. If you don’t what have you got to lose? Try it out you will be surprised by the results.

The Time is NOW.

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Attracting and Retaining Employees

Attracting and Retaining Employees

 

On January 25th 2016 we published the first blog called Memorable Moments. It dealt with my early years and life. It stopped with the line “That was the beginning of the end.” And it was also the end of the beginning of my life.

Hewitt Equipment provided me with a tremendous opportunity. I was hired on a twelve-month contract. My mission was to find and fix what they felt was a problem with the computer system application in use to manage parts inventories. When I found the fix and got it implemented my job was completed unless we both agreed that I should stay.

This was the point at which I was given a gift of learning. A senior partner from Urwick Currie, his name was David Steele, was tasked with teaching me everything I needed to know about inventory management and business systems to manage parts inventories. He spent one day a week, all day, with me and only me. How many people are given that type of opportunity? I received this opportunity because of my university programs majoring in Mathematics and Physics, with minors in Statistics and Computer Science. In the early days of computer applications mathematics was heavily involved. For instance, there was no square root operator in the computer systems at that time. In using Machine Language, COBOL or FORTRAN programming languages, you had to develop a mathematical model to calculate a square root. Without totally boring you there was an error in the formulas used. The number “10” was put into the program instead of “1.” This meant that the Order Quantity for each part put on a stock order was too high by a factor of about 3.17.

I also was given an opportunity to go to Caterpillar in Peoria and meet with the Parts Management (Bob Kirk) and some of the founders of Dealer Data Processing (Larry Noe). We were going to build an interactive model to simulate our parts business under variable order point and order quantity conditions. Both of these men were extremely talented in their fields and took the time to deal with me even though I was only 22. I am told by coworkers at the time that I was a very impatient pushy person. That clearly is a description with which I will disagree. I mention this because of the view that the leadership and team members have about millennials and the younger workers in the Industry. I don’t think they are any different than I was at the same age.

That first six months left me with a hunger for more. I was a new hire. I was given a specific mission, a project if you will. It had clarity, a very clear objective and time line. I was given specialized training, by the consulting firm and Caterpillar experts. I was given a free hand. I had to make a presentation to the executive and make my case and get the changes I wanted to get made approved. I felt that I had a purpose and an important task.

How do we go about attracting and retaining these new employees? These younger workers? They are our future. I think we better figure out what we are going to do and how to get this plan implemented. Don’t you?

The Time is NOW.