4 Factors Of Process Improvement Ownership

January 18, 2011

Leadership, Project Management


This week’s brief post is inspired by another recent blog article: Brad Power’s Where Have the Process Owners Gone? on the Harvard Business Review website.  I recognize the importance of having a dedicated Process Owners and formal process improvement governance and I would love to work with a company that really makes it work.  Throughout my career, I have seen various attempts at putting such roles in place but they failed for the same reasons described in the article.  I have to admit I have never seen it succeed.

However, I have worked in companies that had a culture of process improvement and ownership.  Everyone was a Process Owner at some level.  When a process wasn’t working and we decided it needed to be fixed, anyone could ask “Who owns that?”  and the appropriate person, usually based on role, would take an action item to address it, pulling in whoever needed to be involved.  There was a habit of follow-up, so that action item was not forgotten.

So how and why did that work?  It’s a combination of the following four factors:

1. Culture had strong sense of process and process improvement. In my experience, the places where process improvement was central to the culture were manufacturing organizations.  The core business is driven by assembly lines and supply chains, so all roles understood process concepts.  In one company, they made sure that culture was seeded in the new employee orientation on Day 1.  In the other, they only hired people with that experience or those values.

2. KPIs were rooted in cost reduction. Metrics all boil down to reducing the cost of the product by reducing the cost of producing itOur metrics all had targets.  From all levels of management, we were continually asked what we were doing to meet or exceed those targets. 

3. We were all shareholders in the company. Having actual ownership in the company certainly instills a sense of ownership in the company culture. Having employee shareholders is not a prerequisite for creating that culture, but it certainly does help.  Private companies can still create that sense of ownership toward the success of the company in many different ways. For both private and public companies, the most important ways to create that sense are transparency, communication, and allowing employees to have autonomy to make important decisions in their areas of expertise.

4. Most importantly, we had a strong customer focus. There wasn’t just one voice of the customer.  Our customer’s voices echoed throughout the organization. In one case, there was a lot of direct contact with the customer:  engineer to engineer, buyer to buyer, project manager to project manager. The result was that there were a lot of people who understood what was important to our customer. We knew immediately when they were happy and when they were not. In the other case, we had no direct contact with the customer, but we still had a strong commitment to meet their needs, which was fostered by those who had direct customer contact.

It is the combination of all of the above factors that creates a culture of process improvement ownership. Only one or some of these factors is not enough to sustain the commitment needed to create a culture of process ownership.

 

Related Articles

Enhanced by Zemanta
Advertisements
, , , , , , , , , ,

About Liza Wood

Throughout my career, I have consistently joined companies on the verge of explosive growth and change. From these experiences, I have developed a human, collaborative, and pragmatic leadership style. I would like to share that point of view, along with my experiences, on this blog. Join me on Facebook!

View all posts by Liza Wood

Subscribe & Connect

Subscribe to our RSS feed and social profiles to receive updates.

4 Comments on “4 Factors Of Process Improvement Ownership”

  1. Patricia Says:

    You make some very good points, Liza. Perhaps in another blog you can address how a company can shift from a “we make widgets” focus to a “we provide satisfaction” focus.

    Reply

  2. Liza Says:

    That’s a great suggestion, Patricia. I’ll ponder that and post my thoughts.

    I realize my previous posts and point #1 in this post seem to be centered on “we make widgets”. In writing this post, though, I noticed that customer focus is always the most important factor. I really should explore the concept of customer focus for awhile.

    Reply

Trackbacks/Pingbacks

  1. Greasing The Wheel: Taking An Agile Project To The Next Level « Sockets and Lightbulbs - September 30, 2011

    […] external to the project. Usually, I am the project leader working on the project as well as championing process improvements. While I was providing extra capacity for the project team to do the process improvement work, I […]

  2. How Do I Create Customer Satisfaction? « Sockets and Lightbulbs - March 31, 2012

    […] commenter on one of my posts suggested I write about how companies shift from focusing on “making widgets” to […]

Please Share Your Thoughts

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: