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Learn about the importance of employee engagement and innovation in achieving business objectives. Explore the innovation hierarchy and optimize productivity and quality to drive growth and success in your organization.
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The World of Idea Management The KISS Principle ... 2 X 2 Matrices, Triangles and Circles Ideas.UK Conference November 12-13, 2014Bernie SanderInnovation Transfer Inc.Ottawa, Canadawww.pit-stop24.com
Welcome to Cardiff…
The 9 most terrifying words in any language are “I am a consultant and am here to help”
Mo-ti-vate: to provide with a motive Translation: to create an environment that increases the likelihood that someone will want to make a contribution
The Importance of Employee Engagement From the Best Employers in Canada study: • employee engagementis a measure of how positively employees feel and speak about their employer, how likely they are to stay, achieve high morale, provide excellent customer service and how committed they are to go "above and beyond" to help achieve business objectives
high low none later Emotional Engagement Workers as of 18 Years Source: Gallup “Even if a Type C employee were to work for nothing, it would be too expensive.” Jack Welch, long-time CEO General Electric
Putting Things in Perspective Things we know Things we know we don’t know Things we think we know but we don’t know Things we don’t know we don’t know
The Onion Skins 1 Do Employees need to be recognized 2 Do we need Ideas Important 3 Do Ideas (as fas as possible) need to be implemented 4 How do we actually recognize employees Less Important Firstly Secondly Employees want to be respected and appreciated
Results & Behaviours are interrelated “What” Premium Performers Culture Disruptors + Results Should not be here Nice People - “How” - + Behaviours
Productivity Innovation We are asking for employee ideas across the Innovation Hierarchy
Innovation Hierarchy Business Model Innovation (Pricing, Channels) Product Innovation (Features, Functions) Process Innovation (Efficiency and Effectiveness)
Efficiency = doing things right Effectiveness = doing the right things or Efficiency is completing a task successfully and without wasting time Lean processes mean the systematic identification and elimination of all non value adding activities by all employees (National Institute of Standard Technologies)
Productivity and Quality “What” right things done right right things done wrong Customers define and customers measure Quality: Effectiveness in meeting customer expectations wrong things done wrong wrong things done right “How” Productivity: Efficiency of our methods and processes
How aware are we of Problems in the Organization ? Problems that senior managers are aware of 4 % Problems that department heads are aware of 9 % How can we take the pressure off these employees? Problems that first line managers are aware of 74 % Problems that the sum of all employees are aware of 100 %
Welcome to Anywhere …
Examples of Waste in Production Areas • Long Distances for Employees • Over Production • Production of Faulty Parts • Inspection and Control Req‘mts • Inefficent Usage of Materials • Bad Information Flow • Energy Wastage • Lack of Cost Consciousness • Tooling Changes/Set-up Times • Moving of Material • Lengthy Throughput Times • Waiting Times • Transport • Inventory • Too Much Material Choice • Searching for ...
Example: Drilling Process What is value adding, what is waste?
Examples of Waste in Administrative Areas • Procedural Delays • Unnecessary Storage / Copies • Checks and Controls • Long Distances for Employees • Inaccurate Distr’n Information • Errorprone Documentation • Lack of Cost Consciousness • Bad Information Flow • Lengthy Decision-Making Times • Sign Off Procedures • Lack of Competence • Inefficient Processes • Paper Requirements • Waiting Times • Mail Delivery • Bottlenecks
Admin / Offive Environments • are just as important as Areas of Production! • -70% of the reasons for customer complaints come from administrative processes - 30% of total work time is wasted through inefficient or poorly organized meetings - 13% of daily work time on average is wasted on searching • - only the fewest employees can describe the actual work • process and the exact expectations of customers
What do poor processes really cost ? Poor process quality harms production and customer satisfaction Internal customer Internal customer Process Step 1 Process Step 2 Process Step 3 External customer supplier rework € rework € extra work € extra work € on-site service and repair process spoilage € spoilage €
Improvement Potential “Iceberg Model” These costs are most commonly known in an organization. 5 – 8 % Turnover Spoilage Repairs Warranty payments Dissatisfied customers Dissatisfied employees Additional service requirements Changes Obligatory follow-ups Holding periods Lost sales Express delivery costs Excessive inventory Inspection costs These are an organization’s least known costs. This constitutes an immense improvement potential. Page 180, Best of Bernie Late payments 15 – 22 % Turnover Reduced capacity
The 1-10-100 Rule Errors Process Non-Conformance costs: 10 Pds/€/$ 100 Pds/€/$ 1.000 Pds/€/$ 10.000 Pds/€/$
Past: Nowadays: Costs Selling Price Profit Selling Price Profit STOP Costs Costs Profit The price is fixed by the customer. In the future the profit results from the reduction of costs. The producer fixes the purchase price based on his profit expectation. The “old” equation: The “new” equation: Price = Costs + Profit Profit = Price - Costs Focus on Costs
Every day, in which you do notactively occupy yourself with the ideas and suggestions of your employees,is a day of wastefulness
Go to GEMBA … where the future will be decided Doers are always right X Office X GEMBA Engineering Worker Academic Knowledge Practical Experience
A problem is half solved when it is clearly defined. John Dewey American Philosopher and Teacher President of the American Psychological Association Known through his “Learning by Deweying”
A first grade girl handed in the drawing below for a homework assignment
After it was graded and the child brought it home, she returned to school the next day with the following note: Dear Ms. Davis,I want to be very clear on my child's illustration. It is NOT of me on a dance pole on a stage in a strip joint. I work at Home Depot and had commented to my daughter how much money we made in the recent snowstorm. This photo is of me selling a shovel.
Key Learning: Why parents should always check their children's homework before they hand it in
Why " on-site " ? • the 70% Theory • have never submitted a suggestion • do not speak the company language as their mother tongue • work according to their job description • can define a problem but not a solution • have never been asked at their workplace
Suggester Profile 700 took part in 2012 600 took part in 2011 200 took part in 2011 and 2012 This circle represents the year 2012 This circle represents the year 2011 300 took part in 2011,12 and 13 10% of all employees 400 took part in 2012 and 2013 200 took part in 2011 and 2013 600 took part in 2013 This circle represents The year 2013 In this true to life example, one can clearly see that only 10%of employees were active throughout the past 3 years. Page 191, Best of Bernie
A List for Every Manager Employees that “suggest” Always Sometimes Never
Evaluations ( according to inventory principles ) LIFO FIFO So ... how does it look really .... LILO FILO ... or FINO ? And wouldn‘t it be nice if ... MSFI or MIFS ? Monday suggested Friday implemented or ...
Some Golden Rules of Evaluation • If I say “NO”, does the problem still exist? • ... My 50% Wager • Did you speak with the suggester? • Did you look at the problem on site?
Fatal Accidents 1-3 Reportable Accidents (longer than a 3-day work loss) 30 Minor Accidents (less than a 3-day work loss) 300 Near Accidents 3,000 Dangers or Risky Situations 30,000 The Accident Pyramid
The Accident Pyramid Technical Change Fatal Accidents 1- Reportable Accidents (longer than a 3-day work loss) 15 Minor Accidents (less than a 3-day work loss) 150 Near Accidents 1,500 Dangers or Risky Situations Behavioural Change 15,000
Suggestions with extraordinarily high benefit and impact 1-3 Tangible suggestions with high monetary benefits 30 Tangible and intangible suggestions with minor benefits ie. average saving levels 300 The smallest intangible suggestions 3,000 Ideas & Thoughts 30,000 The Idea Pyramid
Complexity Time maximal Expert Methods 10% Complexity of Problem/Idea Shopfloor Methods 30-50% minimal minimal maximal Time (Hours)
The Problem Complexity Curve Number of Problems in a Given Work Area 100% Idea Management Black Belt Green Belt 60% 20% Complexity of Problems in a Given Work Area
2. Step: Describe and Sort Problem Causes 3. Step: Rate the Causes 1. Step: Define the Problem The Meeting Date Team Meeting Participants Other Causes Material Manpower Problem 4. Step: Establish and Implement Solutions Solutions 1 2 3 Who When Machine Method
The Clock Step 1: Define and frame the problem Step 2a: Write cause / effect cards 5 5 Buffer Min Min 5 10 50 15 45 15 20 40 25 20 Min 35 30 Min 5 Min Step 4: Step 2b: Discuss and group Find solutions for cards with most points cause / effect Step 3: cards Assign points to key cause and effect cards
Balanced Scorecard (BSC) Thinking Customers PR Finances BR Employees SR Process IR What gets measured gets managed
Idea Management and Personnel Measures: Sick Days SR Turnover PR Punctuality IR Employee Satisfaction BR
What League are we Playing in? Top of A Division Top of B Division Champion’s League Relegation Threathens Bottom of A Division Bottom of B Division Metric Cockpit (SR, PR, IR, BR)
2 Dimensions of our Organic Growth Agenda Expansion of Products and Services for Existing Customers Conquer New Markets New Products or New Applications Expansion of Product Portfolio Product and ServiceOffering Expansion of Business for ExistingCustomers Growth of Market Share Already in use Used Not Used Customers Growth of Market Share
Bottom Up: Ideas, Suggestions Top Down: Demands, Stimulation, Coaching Top Down and Bottom Up Improvement is a guided process !
“If the right person at the right time passes by, I will not have the problem anymore”
What's IN? Co-Creation, Crowd Sourcing, Social Commerce, Open Innovation … give cause to both rethink and redefine the managing of ideas Do we still fit into this idea landscape? The methodology … Gemba, Muda, Kaizen … individual employee interviews at their workplace, clustering of problems and ideas, problem solving in teams? YouTube, Twitter, Facebook … the art of bringing people together and creating networks cannot be imagined away In like fashion, the technique of embracing employee ideas at their place of work, is a similar, strikingly efficient and practical way, to engage employees and thereby win ideas!