14 Ways to Destroy Your Organization - And 14 Ways to Develop It!

Transcription

1 14 Ways to Destroy Your Organization - And 14 Ways to Develop It! CQI Presenta,on Dennis Sergent, January 26, 2076

2 Our Program This program provides examples to show how managers can o5en destroy their organiza8ons through a series of ideas and ac8ons that are thought to help according to a rota8ng crowd of authors thought to be experts. Managers and leaders can pay a@en8on to the philosophy of quality and we will share proven ideas that are the an8dote to these fads and we will all learn through your dialogue and thinking. 2

3 Our Thesis Out of the Crisis and The New Economics by W. Edwards Deming are foundational references: * For understanding how to make our organizations more productive. * We all are pressed for improved results in less time, whether we are in business, government or education sectors of the economy. * These two books inform us what methods actually make things better, not just in theory, but in an integrated philosophy, practice and learning. * Deming s 14 Points serve as a guide of what to do. * We are illustrating the inverse to stimulate dialogue. 3

4 1 - Change With The Times * Try new management trends that come along * Drive performance in the organization * Abandon yesterday s priority * Read Best Seller Books like Never Be Lied to Again * Shift with the changing competitive environment * Do what Toyota (or Kia, or BMW, etc.) does * Do what Minnesota (or Idaho, Washington, etc.) does * Do what Michigan State (or UM, Rutgers, etc.) does * Create an annual program of improvement * Create a new program with every changing executive The antidote: Create constancy of purpose toward improvement of product and service. 4

5 2 - Use Prevailing Style of Management * Use Frederick Taylor s Management Science * Managers are paid to be the brains * Workers are the arms and legs of management * Use the speed of the best worker to be a target for everyone else * Don t give away the shop to the union * Hire only Top Business School Graduates The antidote: Adopt the new philosophy. Management must awaken to the challenge, learn their responsibilities, and take on leadership for change. 5

6 3 - Inspect What You Expect * Hire more quality inspectors * Create more rigorous inspection processes * Create more quality requirements * Mandate ISO, Lean, Six Sigma Methods * Hire inspection auditors * Sample more output * Inspect everything before it leaves the shop The antidote: Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place. 6

7 4 - Cut Costs Aggressively * Seek out lowest cost providers * Stimulate cost based competition among suppliers * Keep looking for multiple, hungry suppliers * Insist on supplier reductions, year over year * Demand intervention in supplier processes that cost too much The antidote: End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move towards a single supplier for any one item, on a long- term relationship of loyalty and trust. 7

8 5 - Keep Pressure on the Bottom Line * Exceed quarterly investment house expectations * Focus on quarterly profit margins * Compare each quarter against last year s performance * Adopt poison pills to prevent hostile takeovers * Shorten distances in the logistics supply chain * Use JIT systems * Use Lean or Six Sigma Methods everywhere The antidote: Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs. 8

9 6 - Cut Training to Save Costs * People have already been trained in their jobs, so cut training costs when times are tight * Labor unions have an obligation to train their members too * The Training department is too expensive, so outsource training to vendors * People have to be willing to invest in themselves * Compare training costs to other industries The antidote: Institute training on the job. 9

10 7 - Focus Management Efforts * Bring in more Accountants and CPAs * Promote and hire more MBAs * Hire more auditors * Increase number of professionals to reduce labor issues * Reduce span of control ratios for better oversight and accountability of workers The antidote: Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of an overhaul, as well as supervision of production workers. 10

11 8 - Stimulate Internal Competition * Encourage functional units and departments to initiate cost controls in their own organization * Encourage them to improve quality in their own part of the organization * Set up a one- time program to reward the department that generates the greatest cost savings ideas. * Set up balanced scorecards with metrics for every department The antidote: Drive out fear, so that everyone may work effectively for the company. 11

12 9 - Specialize By Department * Cost based accounting * Make sure every cost center is a profit center * Outsource non- profitable cost centers * Count the cost of every piece of paper and every paper clip, every nickel counts * Host a party to reward the departments that save the greatest costs The antidote: Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service. 12

13 10 - Create A New Slogan * Strive daily for Zero Defects * Reach for new heights * Quality is job one * Our people are the best * Our product is the best * We are the best * Our future depends on me The antidote: Eliminate slogans, exhortations, and targets for the workforce asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 13

14 11b - Use Management By Objective * Corporate set new objectives for the shop floor and we need to drive every manager to meet them * We need every manager to drive every supervisor to meet new corporate objectives * We need every supervisor to drive every worker to meet new corporate objectives * We need to drive results to the bottom line The antidote: Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership. 14

15 11b - Create New Work Standards * We need to enforce the volume quotas set by upper management and get rid of the bottom 5% * We need Zero Defects in our processes * We need to drive results to the bottom line * Our competitors can do this better if we can t. The antidote: Eliminate work standards (quotas) on the factory floor. Substitute leadership. 15

16 12a - Drive Front- Line Productivity * Let s measure the output of every shift against the benchmarks from other shifts in other companies * Let s measure the output of every shift against the benchmarks in other industries * Let s measure the output of every worker against the other workers in their shifts * Let s not ask them how to make the work better, they will just pad their already cushy jobs The antidote: Remove barriers that rob the hourly paid worker of his right to pride in workmanship. The responsibility of supervisors must be changed from sheer numbers to quality. 16

17 12b - Hold Supervisors Accountable * We pay them a lot of money to get the most out of their workers, let s get the most from them * If their team doesn t perform as well as another, let s get rid of them and put in someone who will drive change on the line * Our organization is accountable I hold you accountable for getting the numbers I need The antidote: Remove barriers that rob people in management and engineering of their right to pride in workmanship. This means, inter alia, abolishment of the annual or merit rating and management by objective. 17

18 13 - Cut Back Educational Costs * We only hire qualified people into our organization * Cut costs from further expenses on their education * Let s not make them attractive to other organizations who will cherry pick our best employees * The employee should invest in making themselves more marketable The antidote: Institute a vigorous program of education and self- improvement. 18

19 14 - Appoint a Transformation Czar * Create a task force to find one person who will be accountable for changing performance * Do not be distracted by employee concerns * Do not tell anyone what is the aim or goal * Do not communicate the plan until it is time to implement it The antidote: Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job. 19

20 THANK YOU! Dennis M. Sergent Sergent Results Group 20