Pitfalls in the race to implement best practices and standards

It sometimes seems that many companies are so focused on implementing a new set of standards or the latest "best business practice" de jour that they lose sight of why they are doing it. This often happens when businesses fail first to fully aligning new standards and business practices with their business objectives and goals. We believe that each standard and target maturity level that is put into place should have clear linkage to the company's goals and objectives.

A desired maturity level for any particular area should be based upon the minumum level to maximize the net benefit for the company's needs for the given maturity area. (i.e. For some skills, a maturity level of II or III may be more appropriate (cost/benefit) than expending additional resources to achieve level V.

Frequently business processes are highly interdependent. Making changes too fast can result in adverse impacts on other areas that have not changed as quickly or effectively. It is important to apply a balanced approach to business improvement efforts.

Let Elton Reynolds Consulting be your partner in implementing rock solid project management for executing your next business process enhancement project.

W. EDWARDS DEMING'S FOURTEEN PRINCIPLES OF MANAGEMENT

(from Chapter Two of OUT OF THE CRISIS)

1. Create constancy of purpose for the improvement of product and service. With the aim to become competitive, stay in business, and provided jobs.

2. Adopt the new philosophy of cooperation (win-win) in which everybody wins. Put it into practice and teach it to employees, customers. and suppliers.

3. Cease dependence on mass inspection to achieve quality. Improve the process and build quality into the product in the first place.

4. End the practice of awarding business on the basis of price tag alone. Instead, minimize total cost in the long run. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.

5. Improve constantly and forever the system of production, service, planning, or any activity. This will improve quality and productivity and thus constantly decrease costs.

6. Institute training for skills.

7. Adopt and institute leadership for the management of people, recognizing their different abilities, capabilities, and aspiration. The aim of leadership should be to help people, machines, and gadgets do a better job. Leadership of management is in need of overhaul, as well as leadership of production workers.

8. Drive out fear and build trust so that everyone can work effectively.

9. Break down barriers between departments. Abolish competition and build a win-win system of cooperation within the organization. People in research, design, sales, and production must work as a team to foresee problems of production and in use that might be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets asking for zero defects or new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.

11. Eliminate numerical goals, numerical quotas and management by objectives. Substitute leadership.

12. Remove barriers that rob people of joy in their work. This will mean abolishing the annual rating or merit system that ranks people and creates Competition and conflict.

13. Institute a vigorous program of education and self-improvement.

14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.