Management Information

Ringing Doorbells Without Howitzers


Many operations leaders have been there, done that with re-engineering. And they report, in effect, that the process is like ringing a doorbell with a howitzer shell.

Reducing costs through wholesale layoffs ostensibly tied to ultimate results provides quick hits on balance sheets, but its clumsy blows can raise hell with operations.

Operational results can be achieved consistently with precision and power not when people are taken out of the organization but instead put back in.

"Putting people in" doesn't mean adding headcount but instead putting people into the mix of vital factors that contribute to operations results - having power with people, not over people.

Just as we're supposed to use only a fraction of our brains' capabilities, so I'm convinced, working with businesses in major industries, that few organizations come close to achieving their potential operational results.

That's because many operations leaders ignore one of the most important aspects of operational effectiveness: the human heart.

When I speak of the heart, I speak of that intuitive, emotional, feeling aspect of all of us.

No question: It's not just technology and equipment that drives operational success. It's employees. Clearly, they must be skilled and knowledgeable, but they also must be emotionally committed to their work. They must be motivated.

Yet most operational strategies and programs focus on rational not emotional/motivational considerations and so let great opportunities slip away.

To understand how quantum leaps in results can be achieved, far beyond re-engineering's capabilities, let's view operations three big drivers -- cost-reduction, productivity and efficiency - in terms of motivational factors.

Cost-reduction: Operations founder when they fail to achieve continuous cost-reductions. A leader of a world manufacturing organization told me, "One of my most tenacious leadership challenges is motivating employees to never stop getting costs out of our plants and processes."

Lesson: Cost-reduction is a leadership issue. It's an issue in which leaders don't order people to do a job but motivate those people to want to do the job. It's in the realm of want to that significant cost reductions take place.

Action: Institute comprehensive strategies, processes, and measurements that focus on having employees be ardently committed to getting continuous cost reductions, and those reductions will far outpace the ones achieved through re-engineering.

Productivity: Clearly, productivity isn't about doing things simply faster but also better. To speed up and be more productive, employees must slow down, reconsider their situation, reevaluate their education and training, then take new action. Only employees who have a strong emotional commitment to their jobs do well in that sequence of actions.

Lesson: Fifteen minutes before shift change, a machine starts to break down. The motivated operator will stay with that machine until its fixed or he will at least get a repair process under way. On the other hand, the less-than-motivated operator will punch out and let the next shift operator take care of the problem. Incidents like these are common and cost countless billions of dollars in lost productivity.

Action: Develop operational systems that are woven into the very driving force of productivity: the heartfelt convictions of the rank-and-file.

Efficiency: Businesses cannot compete well simply by selling what they make. Instead, they have to make what they sell. Which means that operations must be closely connected to the sell, the customer. And because customer needs change rapidly, operations must change with them or risk making inefficiency an institution.

Lesson: Efficiency begins in one place: with small-unit leadership, the leadership of the supervisors and front-line managers. In trying to realize operating efficiencies, top leaders often get jammed up in small-unit leader meat-grinders. Top leaders can usually persuade their direct reports to participate in the changes needed to make efficiencies happen.

However, the far more important task is to persuade the small-unit leaders to champion those changes. Small-unit leaders, who don't buy-in, can and will make mincemeat of any operational program.

Action: Get small-unit leaders to champion your changes at the beginning of the change process to insure that those changes take root.

In summary: When driving cost-reductions, productivity and efficiency, avoid the re-engineering reflex of ringing doorbells by rolling up cannons. Instead, roll out simple, precise strategies tied to the heartfelt needs of skilled employees - then let them get the big results.

=============================
2005 © The Filson Leadership Group, Inc. All rights reserved.
=============================

PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.com

The author of 23 books, Brent Filson's recent books are, THE LEADERSHIP TALK: THE GREATEST LEADERSHIP TOOL and 101 WAYS TO GIVE GREAT LEADERSHIP TALKS. He is founder and president of The Filson Leadership Group, Inc. - and has worked with thousands of leaders worldwide during the past 20 years helping them achieve sizable increases in hard, measured results. Sign up for his free leadership e-zine and get a free guide, "49 Ways To Turn Action Into Results," at http://www.actionleadership.com


MORE RESOURCES:

CBS Local

Two Key Managers to Retire at Ford
New York Times
DETROIT – The Ford Motor Company on Thursday announced the retirement of two members of its management team who were integral to the automaker's financial recovery and product renaissance. The retirements of Lewis Booth, the company's chief financial ...
Management changes at FordCBS News
Ford CEO Mulally stays on amid management shakeupmsnbc.com (blog) (subscription)
Ford CFO Lewis Booth and Global Product Chief Derrick Kuzak to Retire; Veteran ...MarketWatch (press release)

all 121 news articles »


NFL time-management debates go into overtime
San Francisco Chronicle (blog)
The strategy itself has become a fashionable, one-size-fits-all piece of time management. But it didn't match the Giants' needs and won't cover anyone's posterior when it backfires. A team takes a huge risk by ordering the offense to play defensive ...

and more »


Tuition Management Systems Enters Into Marketing Agreement With School and ...
MarketWatch (press release)
BOSTON, MA, Feb 09, 2012 (MARKETWIRE via COMTEX) -- The First Marblehead Corporation /quotes/zigman/331260/quotes/nls/fmd FMD +6.52% today announced that its subsidiary Tuition Management Systems LLC (TMS) has entered into a marketing agreement with ...

and more »


Moneycontrol.com

Oracle to Buy Taleo for $1.9 Billion
New York Times
By EVELYN M. RUSLI Oracle has agreed to acquire Taleo, a Web-based human resources management software maker, for $1.9 billion, as the technology giant looks to bolster its presence in so-called cloud services. The transaction comes amid intensifying ...
Oracle Buys TaleoMarketWatch (press release)
Oracle 'Hires' HR Software Maker Taleo in $1.9B BuyoutFox Business
Oracle buying Taleo for US$1.9 billion in direct hit at SAPComputerworld
Forbes -All Things Digital
all 127 news articles »


Tiedemann Wealth Management Wins PAM Award
MarketWatch (press release)
NEW YORK, NY, Feb 09, 2012 (MARKETWIRE via COMTEX) -- Tiedemann Wealth Management, LLC has been recognized by Private Asset Management (PAM) as Best Private Wealth Manager in the category of firms with over $5 billion in assets under management.

and more »


MOBI Wireless Management Partners with Notify Technology to Offer Integrated ...
MarketWatch (press release)
INDIANAPOLIS, Feb 09, 2012 (BUSINESS WIRE) -- MOBI Wireless Management, a provider of strategic management solutions for corporate mobility programs, today announces a technology partnership with Notify Technology Corporation's NotifyMDM.

and more »


Asset management: The foxy normal
News24
It is apparent that many of the rules of the game have changed for managing a portfolio of investments, whether it is your own money or it belongs to a pension fund or a company. Everyone from laymen to market experts alike is agreed that it is now ...

and more »


Unity Management Group Subsidiary Receives Order and Completes Contract
MarketWatch (press release)
9, 2012 /PRNewswire via COMTEX/ -- Unity Management Group, Inc. /quotes/zigman/582474 UYMG +133.96% (or "the Company") announced today its wholly owned subsidiary Metropolitan Computing Corporation (or MCC) has completed a maintenance contract on a ...

and more »


Integrated Asset Management Corp. Announces Results for the First Quarter of ...
MarketWatch (press release)
TORONTO, ONTARIO, Feb 09, 2012 (MARKETWIRE via COMTEX) -- Integrated Asset Management Corp. ("IAM") /quotes/zigman/18979 CA:IAM -7.14% today announced unaudited financial results for the quarter ended December 31, 2011. Review of the 3-Month Period ...

and more »


Fuel Management Services Awarded GSA -- To Market Fuel Additives to Military
MarketWatch (press release)
9, 2012 /PRNewswire via COMTEX/ -- GSA Applications is pleased to announce that Fuel Management Services, Inc. has been awarded a GSA Schedule 73 contract and are now certified to provide goods & services to the Federal Government.

and more »

Google News

home | site map
© 2006