From September issue of NZ Manufacturer magazine.

 

-Ian Walsh, Partner, Argon & Co NZ

As we head into Spring 2024, it’s encouraging to see fresh growth – both in nature and in the economy.  I appreciate it’s too early to celebrate from the rooftops, but I’m invigorated by the growing number of activities emphasising what matters most – productivity!

The recently repurposed National Infrastructure Agency (NIA) has a remit to drive better practices through New Zealand’s industry sectors. Done right, the promotion of growth in capital investment should lead to an overall improvement in business performance.

But to lock this in as a reality, we know that dedicated investment in people and processes is the only true way to lead to a better performance culture.

 I thought it might be timely to call out some of the “myths and misunderstandings to avoid” and to talk through what a good continuous improvement program looks like, as you may be contemplating what your business can do to ride this wave.

Here is my Improvement Snakes and Ladders. Unfortunately, it is not a touch it once and let it go fix; like fitness, use it or you lose it!

Improvement Snakes and Ladders

1. We don’t need to do this. In NZ less than 20% of businesses know what a continuous improvement or transformation programme truly is. In more competitive markets it’s 100%. Can you wait to find out if you have a competitor who is significantly better than you? Your call, but it sounds risky. Why wouldn’t you do it? At this point, you haven’t even put your piece on the board.
2. We did that. It didn’t work. If you believe you have “done” lean, you don’t understand lean. It is not a project; it is a continuous improvement programme designed to create a culture of high performance. A subset of this is “we did 5S”, which again displays a deep lack of understanding. You are at the start line.
3. We can do it ourselves. Yes, you can, but almost no one succeeds this way. Improvement requires significant change from leaders and throughout the organisation, the right knowledge, and the right application of this knowledge. Doing it yourself is like climbing Everest without a Sherpa. Most will fall off and end up taking the snake back to number 2.
4. We have some better options to improve performance quickly and deliver great results. Do those! Most will be one-offs and will give you a small ladder. But none of these are a journey of improvement.
5. We can’t afford an improvement programme. A good improvement programme should be self-funding: it should break even (at worst) in year one and be 5-10 times ROI by year three. Can you afford not to do it and let your competition steal a lead? Your call here could be your ladder or your competition’s ladder.
6. We have too many higher priority initiatives and can’t resource this. This may well be true, but how many of those deliver a 10-to-1 return in three years with little-to-no capital investment? Do they develop and engage your people, improve morale, and create capability and capacity to survive and grow? These would have to be some impressive priorities to avoid a trip down a snake.
7. I can delegate this programme to a continuous improvement expert who can manage this transformation. Even with good sponsorship, how good is your expert? Are they a genuine Sherpa or a weekend rock climber? Most are the latter.

Make sure you know they have climbed the mountain many times with many organisations. Have they worked in a truly world class company? Have they got proven and trusted references? Are they up to date with global best practice?

You need all of these to get a Sherpa who knows the mountain, knows what the top looks like and can lead a climbing team. If you have this person, you have a ladder. If not, you’re likely to take a snake back to 1.

1. I don’t personally need to be involved in the continuous improvement programme. Delegating authority for a major transformation programme to the CI team or an external consultant typically results in failure, as they do not have the direct authority to drive change.

Typically, when the programme is delegated in this way, the sponsor is too busy to lead it, and so they aren’t invested. This becomes apparent quickly to the wider team who then become uninvested themselves. This is a snake back to 1.

1. We’re already world class. Of course, you don’t need an improvement programme if you’re already world class… but why does every single world class company have one? And continue to do it? Are you truly world class?  If so, you’ve won! Otherwise, take the snake back to 2.
2. We already have an established programme with great support, sponsorship, and engagement. We’re achieving great results and have been doing this for years. If this is true, then take the ladder to the top. You win! And you should share your great achievements with others.

If you want to know where you really are at, on your journey, give me a call. A quick chat should be able to give you some direction.

www.argonandco.com