You may have heard of SAP software. It’s a software system used by thousands of medium sized and big businesses all over the world. The purpose of the system is to join the whole company together and let hundreds and often thousands of workers to record, share and recall information about the physical and financial activities of the organisation. Successful enterprises are lead by smart individuals who comprehend the strategic value of this category of software, such as how it can give them a picture of why difficulties are happening inside their company or where there might be opportunity for refinements.
This type of software application is often known as ERP. It is very sophisticated, very expensive and can take along time to implement. A deployment of ERP software is a significant investment but this doesn’t stop big firms procuring these systems.
Until recently software similar to this was not feasible or affordable for tiny enterprises. As a result small companies have not been aware of the substantial benefits that ERP systems can deliver. Small enterprises have been hoodwinked by predatory manufacturers like Sage Software and Intuit that small business accounting software is the answer. These systems most often have no features to enable their owners to connect the whole organisation or perform common tasks such as customer relationship management.
It is for this reason that small business ERP vendors similar to Salesorder.com have started to make great progress in the market. They provide on demand software which includes all of the major functionality a small firm needs at an affordable price. What is even more fascinating is these platforms are a cinch to operate and can be delpoyed rapidly.
Today ERP applications are no longer the privilege of big firms.
A Harvard Business Review article “Why Few Executives are Skillful Managers” made the following points: “despite the billions of dollars, euros, and yen invested in coaching and management development, remarkably few executives can be regarded as skillful managers.” I figure that the majority of top level managers with responsibility for large teams either do not possess the required skillsets — or they just don’t practice what they preach. Why? There are three main reasons. First, pressure to deliver results with too little time make it nearly impossible for business leaders to consider consequnese, reflect and apply the best action. Secondly, budget constraints can limit support and follow-through of even the best intentions. Finally, behavioral change is difficult — it’s all too easy for a development plan to slip to the bottom of the to-do list.” The article suggested the following development areas: delegation, management distance, visibility, work-life balance, and continuous learning and reflection.
Consider this… I do not disagree with the issue of executives making skillful managers; however, I have some other thoughts on what should be done to address the problem. Many Executives would do a better job if they adopted the philosophy of the 3 Rs of business; i.e., everyone doing the Right things, and doing them Right, at the Right time. This management system needs to be different than the establishment of somewhat arbitrary goals throughout the organization for departments without a structure plan for determining what will be done differently to determine how the goals are to be met. Additionally, this management system must address the implementation of strategies that lead to targeted efforts that are in line with the financial needs of the company.
With the linked described system, Executives would now have a structured framework for them to operate within that cannot be gamed. Lean Six Sigma consulting and/or coaching would provide more of a structure for what they should be doing to be successful operating their businesses within this infrastructure.
Organizations can have many problems because they are measuring the wrong things, which can lead to unbeneficial or detrimental behaviors. Almost every organization’s measurement and improvement systems need to be improved. Organizations need to avoid the basic red-yellow-green balanced scorecard measures, which, can lead to significant firefighting that does not benefit the enterprise as a whole.
To create a valid process capability statement data needs to be from a stable or “in control” process. Let’s have a sampling process so that if mulitple persons examine the same process their conclusions should be the same even if the process is considered “not in control”. With this statement, reference is made to how they sample from the process, not a chance occurrence. “Predictable” is often easier to understand than “in control”.
It is better to use ppm as a response for process capability and process performance indices, rather than Cp, Cpk, Pp, and Ppk, which can be very confusing and deceiving. A better practice is to use a probability plot to describe process capability/performance, since a probability plot offers more output flexibility and data understanding potential than process capability analyses that also provided Cp, Cpk, Pp, and Ppk outputs. When make a process capability/performance metric statement probability plots are also very useful, even though no specification exists. To get organizations out of the firefighting mode, probability plotting is not the most important issue relative to creating a no nonsense balanced scorecard measures system.
Corporate objectives, when implementing the Integrated Enterprise Excellence (IEE) measurement system, can be achieved. In the IEE methodology, there can become a measurement “pull” for the initiation of projects when a predictive metric does not produce a desirable improvement for the enterprise as a whole. To accomplish this goal, a measurement system is desired which is independent of how a sample collection system is developed.
30,000-foot-level balanced scorecard measures’ (control charting) primary purpose should be an overall view of customer experience. Assuming that there is consensus with this position, a couple questions need to be asked to determine if there is agreement as to what should be considered as a potential common cause and special cause input variable source in a 30,000-foot-level control chart. This is in contrast to the timely identification of an issue using a control chart to stop a manufacturing line for problem resolution because of an out of control signal, which is something that is typically conveyed in classes but does not often occur in the “real world”.
Let’s discuss a typical situation where process raw material is changed day by day. To be sure, consider that some raw material characteristic affects the process’ output. Should we consider raw material as a potential common cause variability source or a special cause variability source?
Raw material should be considered a source of common cause variability in most opinions. If we all agree and there is also agreement that control charting should provide information consistent with what we believe with respect to special and common cause identification, we will not use x-bar and R charts.
Why is this? With our current belief system, the fundamentals behind the creation of an X-bar and R chart can seem inconsistent. X-bar and R chart control limits are only a function of within subgroup variability. When considering x-bar and R control chart limits, variability between subgroups has no affect. The control limit calculations of an individuals control chart provides control limits that are a function of the variability between subgroups. The control chart upper and lower control chart limits might consider the variability between raw material lots; but this would not occur in an x-bar and R chart.
X-Bar and R Charts generated by statistical programs such as Minitab can show process capability, but we don’t think that is the way to go. Following X-bar and R charts can create a lot of fire fighting. X-bar and R charts are not used when making an IEE 30,000-foot-level assessment.
Believe it or not, some people find it hard to believe that the x-bar and R chart they learned about in their basic statistics class has issues. Several 30,000-foot-level articles can be found in the “On-line Resource Library” link at www.SmarterSolutions.com, which provides more details and shows an example, not only for a continuous response output but other outputs as well.
Unfortunately it is probably often true that someone could be reprimanded because of a know-it-all attitude by leadership when suggesting how the overall business could be improved. However, now top leadership is often having major credibility problems, which could mean the stage is set for change.
However, suggesting an improved business system will not be easy. How leadership is approached can often guarantee success. Advocacy selling is the way to go. A leading thinking influencer can have top leadership connections. Headway can be made through his person when presenting a clear concise approach that directly addresses leadership pains; i.e., not selling the benefits. What needs to be sold is a system that is much more than implementing process improvement from a brainstormed list of potential candidates.
The following statement makes sense to me: “We all need a different set of business approaches and metrics that can bring sustainability to our own future development.” If we don’t do something NOW our grandchildren will not have the life that we have grown accustomed to.
To be sure, advocacy selling can trickle up to leadership who have the right intentions for the business in its entirety. We will find executives that would like to have a no-nonsense system for analyses blended w/ innovation, improvements and measurements that benefit the overall corporation. There must come a time when corporate america moves away from top executive changes every new season with an accompanying new-fangled business methology, where the old guard was granted a major golden parachute even as the company value plumeted during their term.
Need help implementing process improvement systems? Achieve the Three Rs of Business; Everybody doing the Right things and doing them Right at the Right time. Subscribe to the articles in the “On-line Resource Center” at www.SmarterSolutions.com that provide insight to a long-lasting Integrated Enterprise Excellence (IEE) system that overcomes these issues.
If you have a passion for implementing process improvement systems, consider becoming an IEE Blackbelt.
Obviously not everyone can work remotely as some vocations require workers to consistently attend their employers premises or travel to perform their tasks in person. But for those of us are allowed to work remotely then I thought it would be useful to share my experiences and present some practical advice by writing and publishing it on the Internet in the hope that I could give others valuable ways for adapting to remote working or managing remote workers.
I can tell you that there are groups of so called ’experts’ on the web who will try and sell you online education for substantial sums of money, believe me you don’t have to do this.
I am lucky enough to be able to work anywhere I choose and just about everybody who asks me what job I do wants to get an idea of how I manage to work remotely. Don’t be fooled here I am still perfecting the art of remote working as everyday I discover persons on the net who show me new knowledge and I am constantly uncovering new software and approaches that make my life easier and improve my productivity.
In the past seven years I have immensely adapted my working methods to enable me to do just about all of my work remotely with a box of online tools and rigid self discipline. One late night whilst searching the net I discovered Quickbooks online and this inspired me as to what just might be possible. The encounter with web based ‘on demand’small business accounting software was inspiration for me and the start of my ‘remote working experience.
I have to mention up front that proficiently working remotely is as much about the systems as it is about self management. Working remotely also means imparting to your co-workers, supervisors and clients as to what they can expect and how they will maintain contact with you.
In ‘Remote Working Part 2 – Why self discipline is important’ I discuss how to focus.
About Integrated Enterprise Excellence
For any business to succeed, it must follow the three Rs of business: Everyone is doing the Right things and doing them Right at the Right time.
Management’s ultimate goal continues to provide maximum, measurable, predictable, and sustainable bottom-line results for the entire, integrated enterprise. Emergence of the process called Integrated Enterprise Excellence (IEE) from Smarter Solutions, Inc. makes all of these possible.
