Tag Archives: Six Sigma

Building an Organization that Can Change Again and Again

Facebook Twitter Linkedin Digg Delicious Reddit Stumbleupon Tumblr Posterous Email

You don’t need a lot of research to show you that change in organizations is an ever increasing phenomena.  New technologies, new products, new competitors, new regulations, new people with new values and experiences.  Every day, organizations try to stay one step ahead of their competitors by changing to meet the needs of their customers either cheaper or faster or both.

Not too long ago, many started recognizing that change within organizations needed to be proactively managed.  Those that were forward- thinking started working explicitly to help the people in their organizations get ready, willing, and able to work in new ways that were required for future success.

Those that hoped people would just “get with the program” or “do what I said because I said so” have lived (and died) with the results of low productivity, engagement, and performance relative to their more enlightened competitors.

For the organizations that have worked hard to manage the people aspects of change explicitly, the rewards have been forthcoming.  But change is speeding up.  As soon as one change is “complete”, it seems another is starting up.  Just paying attention to managing the people aspects of organizational change will not be good enough as time goes by.  The organizations that thrive in the long
term need to develop an organizational change competency.  Change needs to become part of an organizations culture and DNA.

Given the pace of business change today and in the future, building a change management competency is going to be a clear competitive advantage for organizations of the future.  Organizations that are really good at helping their people move from thinking and acting in existing ways to thinking and acting in new ways that are required for the organization’s success are the ones that are going to beat their competition every time.

For lots of years, organizations have viewed change as an event.  Implementing an ERP system.  Reengineering processes.  Redesigning an organization.  Spinning off a division or merging with another entity.  Some have grinned and bared it just waiting for the pain to stop.  Others have learned to muscle through with less pain, but memories that are less than fond.  And still others have gotten pretty good at managing these kinds of change events.

Organizations range from having no change management focus or skill at all, to complete integration and competence in managing the people side of change.

What does it take to build an internal change management competency?  Some organizations are building change management functions or centers of expertise (such as Motorola).  Having a team of people who are dedicated to focusing only on the human elements of change ensures that it is not forgotten.

Other organizations are developing and adopting common tools and techniques that can be used across an organization to manage change.  For example, Johnson & Johnson has their “Change Integration Process” and General Electric has their “Change Acceleration Process”.  The use of a common language and approach to manage the people aspects of change speeds up the process of managing change and instills a mindset that helping people navigate through change is important.

If you don’t want to create your own model for managing the people aspects of change, then adopt one that’s out there already that fits your organization’s level of sophistication and experience.  Start letting people in the organization know why managing change is important.  The act alone of teaching staff about a change management process and tools sends a powerful signal to employees that
the people part of change is important.  And build the skills, tools, and common language to help people start doing the work.

Change management is the next frontier of business improvement for organizations of all sizes.  Just as Six Sigma and Lean started with big companies and “trickled down” to smaller organizations and became a real competitive advantage for some, effectively managing ongoing change is starting to trickle down.  If you can be ahead of the next guy by building an organization that is capable of managing people during change, you won’t be sorry.

Lean and Six Sigma are Good, Adding Change Management is Great

Facebook Twitter Linkedin Digg Delicious Reddit Stumbleupon Tumblr Posterous Email

Six Sigma and Lean are all the rage with some of our clients.  If you haven’t heard of them, Six Sigma is a set of business practices (originated at Motorola) designed to improve processes by eliminating defects, and Lean is a business system (pioneered at Toyota) that aims to reduce waste and improve customer value.  Both can bring tremendous improvements to organizations.

(Those of us of a certain age remember similar process improvement methodologies like Reengineering and TQM.)

One client in particular is a devout follower of both Six Sigma and Lean.  And for good reason.  The processes help clarify issues, diagnose root causes, and pinpoint business solutions.  This client, however, has not always been great at implementing those great business solutions.

When they adopted these new business improvement methods, they jumped in with both feet.  They sent people to training on new tools and techniques, started measuring their use, and encouraged people to get certified in improvement methodologies.  All in, over
30% of their staff is certified in a business improvement method.

With a stable of Black Belts and a sizable budget for Lean consultants, the organization is well positioned to develop the best business solutions in their industry for their customers.  But it has not always been smooth sailing as they got used to their shiny new toolkits.

Their internal and external process experts worked on projects for months and even years, but the organization got stuck when leaders argued about business needs and budget priorities, middle managers questioned the data and the process used to develop the solutions, and front line employees just paid no attention to the new ideas.

They came face to face with the realization that the biggest challenges to making change happen within organizations are people issues.  They realized that they needed to spend a little time thinking about how people internalize the new behaviors required rather than dedicating all of their focus to processes and systems.

General Electric realized, years ago, that Six Sigma falls short unless people within the organization make the personal changes necessary to behave differently.  Some within GE use the equation E = Q x A.  The Effectiveness of the solution is equal to the Quality of the solution multiplied by the Acceptance in the organization of that solution.  The highest quality business solutions are not effective unless they are accepted by people who need to act on them.

The focus on the “people stuff” in and of itself is a discipline called Change Management (not to be confused with technical change management / version control).  Change management is the next frontier of business improvement for organizations of all sizes.  The newly formed Association of Change Management Professionals (ACMP) is growing quickly and globally.

Just as Six Sigma and Lean started with big companies and has since “trickled down” to smaller organizations, effectively managing change is starting to trickle.  You don’t have to be big or rich to be fast… you just have to be fast to be fast.

How did our client make the most of the huge investment they had made in Six Sigma and Lean?  They focused on Change Management.  They acquainted leaders with their role in driving change; included Change Management as part of basic skills training for managers; and certified a group of internal experts on how to make change stick.

Don’t forget about Six Sigma and Lean.  It is all great stuff.  But remember to include a focus on people.  Organizations with a Change Management competency help their people move from thinking and acting in existing ways to thinking and acting in new ways that are required for the organization’s success.  A great solution is no good if people don’t act accordingly.