Carlo Scodanibbio presents: Total Employee Involvement · 1 Total Employee Involvement Carlo Scodanibbio presents: ”the real and only secret for achieving Flow Production is PEOPLE

1

Total Employee Total Employee

InvolvementInvolvement

Carlo Carlo ScodanibbioScodanibbio presents:presents:

””the real and only secret for achieving the real and only secret for achieving

Flow Production isFlow Production is PEOPLEPEOPLE””

a training event organised by:a training event organised by:

in all business operationsin all business operations

…….so, you would like your people to be:.so, you would like your people to be:

ResponsibleResponsible

EfficientEfficient

Serious and reliableSerious and reliable

Dedicated to their workDedicated to their work

Committed to improvementCommitted to improvement…………

CostCost--consciousconsciousAccountableAccountable

????????

????????????

????????

2

…….so, you would like your people to be:.so, you would like your people to be:

Efficient Efficient –– Responsible Responsible -- CostCost--

conscious conscious -- Dedicated to their work Dedicated to their work --

Serious and reliable Serious and reliable –– Accountable Accountable ––

Committed to improvementCommitted to improvement………… --

???? ???? -- ????? ????? -- ??????????????????????????

..in a nutshell: you would like your people to..in a nutshell: you would like your people to

performperform

3

This is possible: it can be achievedThis is possible: it can be achieved……

…….it depends on you, .it depends on you,

entrepreneurs and managersentrepreneurs and managers……....

..it..it’’s just your choice..s just your choice..

But:But: there are 3 necessary stepsthere are 3 necessary steps……

…….you would like your people to be: responsible .you would like your people to be: responsible –– accountable accountable ––

efficient efficient -- dedicated to their work dedicated to their work –– committed to improvementcommitted to improvement…………

THE 3 NECESSARY STEPSTHE 3 NECESSARY STEPS

1) Understand the environmental 1) Understand the environmental

change and manage itchange and manage it

2) Be prepared to abandon the 2) Be prepared to abandon the

““formulaformula””

3) Have a clear direction and tell 3) Have a clear direction and tell

people about itpeople about it……..

4) 4) …….and something more.and something more……....

4

STEP 1)STEP 1)

Understand the environmental Understand the environmental


….the world has changed….

Key-Words: lean, manufacturing, power, point, presentation, value, waste, client, service, industry, perform, performance, world, class,

operations, adding, management, productive, process, flow, processing, production, 5S, creativity, people, method, kaizen, improvement, hr,

human, resources, strategy, strategies, tei, employee, involvement, responsibilities, course, carlo, scodanibbio, objectives, mbo, mboII, job,

enrichment, team, work, group, accountability, situational, leadership, Mc Gregor, x-y theory, pigmalion, effect, personnel, labour, division,

smith, taylor, brick, wall, brickwall, description

5

COMPLEXITYCOMPLEXITY

clients are monstersclients are monsters……..

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STEP 2)STEP 2)

Be prepared to abandon the Be prepared to abandon the


the the ““formulaformula””::

the the ““CampariCampari”” syndromesyndrome

7

the the ““formulaformula””The “secrets” of success

The do’s and don’ts

The “taboo” and “holy cows”

The “how to do things”

The areas of “influence”

The “who and what is to be respected”

The “institutionalised” values and principles

The rules

The policies

The procedures

The “descriptions” (jobs, tasks…..)

…………..

the the ““formulaformula””

EMPHASIS

On 3 key departments:

DESIGN/ENGINEERING

TECHNOLOGY/OPERATIONS

MARKETING/SALES

Emphasis on Structure, Organisation, Hierarchy,

Departments & “Compartments”

Emphasis on Control (the “Controller”…..)

Emphasis on Efficiency

Emphasis on Stability

8

protect the protect the ““formulaformula””!!

The Formula must be protected, because it has

generated success for many years:

---- > resistance to change!> resistance to change!

Protection = Vertical ControlProtection = Vertical Control

preserve its integrity!preserve its integrity!

the GUARDIANSthe GUARDIANS’’ function:function:

Vetting/Approving amendments to the

formula or to its main parameters

9

effects of the effects of the ““formulaformula””

Top and mid level managers, with time, get used to the

Formula, and learn how to stick to it.

At lower levels (supervisors, shop-floor workers),

unwritten, similar rules filter down and become

applied.

FlexibilityFlexibility

ReactivityReactivity

InnovationInnovation

little….. (or none)

The Enterprise becomes The Enterprise becomes ““closedclosed””

People become People become ““staticstatic””

the the ““formulaformula”” (after midnight(after midnight……))

If some indicators start showing signals of serious

inadequacy of the Formula all that may happen is a

“reshuffle” of the old status-quo:

CostCost--cutting exercisescutting exercises

Increase in efficiency of less Increase in efficiency of less

powerful department/areaspowerful department/areas

And/or: technological revampingAnd/or: technological revamping

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the obsession to change the obsession to change (the (the ““formulaformula”…”…))

The Formula is The Formula is ““blockedblocked””, and the whole , and the whole

Organisation is Organisation is slowslow and and ““reluctant to learnreluctant to learn””

If signals show very poor performance, If signals show very poor performance,

the need to restructure the Formula and to the need to restructure the Formula and to

change may become an obsessionchange may become an obsession

BUT:BUT: in the end things remain the same.....in the end things remain the same.....

11

homework?homework?

..oh, yes!!!..oh, yes!!!spot the spot the ““formulaformula””

12

STEP 3)STEP 3)

Have a clear direction in your Have a clear direction in your

mindmind…….. .. (and tell people about it(and tell people about it…….).)

the visionthe vision

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TELL YOUR PEOPLE ABOUT TELL YOUR PEOPLE ABOUT ““LEANLEAN””

BUT, before doing so: some checkBUT, before doing so: some check--points!!points!!

“…“…is everybody in your enterprise is everybody in your enterprise –– at at

top/middle level top/middle level -- convinced that people make convinced that people make

the difference between failure and success?the difference between failure and success?””

“…“…is the vision shared at top/middle level?is the vision shared at top/middle level?””

“…“…is the is the ““integrationintegration”” concept clear and concept clear and

understood at top/middle level?understood at top/middle level?””

This is a “pass the Rubiconpass the Rubicon” situation

– there is no come back – it must go

right. So, make your checks “before”!

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PEOPLE PERFORMANCEPEOPLE PERFORMANCE

““TRADITIONALTRADITIONAL”” ENTERPRISESENTERPRISES

Preliminary analysis of main parameters

associated with people performance:

Quality - Productivity - Responsibility

and Accountability - Creativity -

Challenge

Why frustration and Why frustration and

dede--motivation can reach so motivation can reach so

high levels in work forces?high levels in work forces?

15

why people donwhy people don’’t t ““performperform””......…….the root causes of poor performance date .the root causes of poor performance date

back to over 2 centuries agoback to over 2 centuries ago……....

…….we have gone into the .we have gone into the

21st century, with 21st century, with

enterprises designed in the enterprises designed in the

18th and 19th centuries to 18th and 19th centuries to

perform well in the 20thperform well in the 20th……....

why people donwhy people don’’t t ““performperform””......

Effects of Labour DivisionEffects of Labour Division

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Why money doesnWhy money doesn’’t solve the t solve the

problem of poor performance..problem of poor performance..

Interesting/satisfying job

Job security

Understanding of and support for own personal problems

Promotion and growth with Enterprise

Good wages/salary

Top Management’s loyalty and fairness towards Employees

To be fully considered and appreciated for own work

A non-severe/not-too-rigid discipline

To feel involved in own work

Good working conditions

MW/ESentence

WHAT DO WORKERS AND EMPLOYEES EXPECT WHAT DO WORKERS AND EMPLOYEES EXPECT

FROM THEIR WORK?FROM THEIR WORK?

Why do all traditional HR management and Why do all traditional HR management and

motivational techniques somehow fail?motivational techniques somehow fail?

Management by Objectives, Effective Leadership, Diversification,

Z Theory, Situational Leadership, Effective Communication, Zero-

based-Budgeting, Decentralisation, Team Building, Management

by Exception, Dale Carnegie techniques, Interpersonal Skills,

Quality Circles, Excellence, Restructuring, Portfolio Management,

Interactive Management, Matrix Organisational Structure, Total

Quality Management, ISO 9000..... and One-Minute Managing......

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Why is communication so difficult in Why is communication so difficult in

many many ““traditionaltraditional”” enterprises?enterprises?

Why isWhy is real, nonreal, non--spurious improvement so spurious improvement so

difficult to achievedifficult to achieve in many enterprises?in many enterprises?

Why Why ““functioningfunctioning”” well is so awkward in well is so awkward in

many many ““traditionaltraditional”” enterprises?enterprises?

..we have to look at organisational structures..we have to look at organisational structures……

Why do enterprises struggle both when they Why do enterprises struggle both when they

expand and when they are compelled to expand and when they are compelled to

shrink?shrink?

……..that support an effective ..that support an effective

Employee Involvement scheme Employee Involvement scheme

and allow higher levels of and allow higher levels of

PerformancePerformance

ORGANISATIONAL ORGANISATIONAL

STRUCTURESSTRUCTURES

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ORGANISATIONAL STRATEGIES

cultural values• typical of the "technology" era with a strong "Tayloristic” belief

• Credo: "...products and/or technology make business..."

• Competitiveness = costs reduction

relationship with clients• Client is an “entity” that buys our products (and sometimes gives

us a lot of hassles...)

• We do not know much about our Clients (we are mainly

concerned with their “liquidity”...)

relationship with market• Market: unsaturated (demand > offer) and "stable"

• Market's needs: established by "technologists", who decide on

validity and "value" of products

• Products are literally "thrown" into the market (PRODUCT-OUT)

FUNCTIONALFUNCTIONAL--TAYLORISTIC PRODUCTTAYLORISTIC PRODUCT--OUT OUT

(operations oriented - product/organisation oriented)

19

organisation & management• "Mechanical" (Scientific) system

• Organisation structured in great details, and generally "static"

• Decision-making process: top-down

• Max attention to efficiency

• Professionalism: specialised ("technical" positions are the most

essential and rewarded)

• Work: fragmented

• Management: specialised, "per function", bureaucratic

• Budget = basic tool - great attention to "real/estimated"

comparisons/analysis and to "deltas"

• Max control (inspection, supervision)

• Max cost control (per "cost centre")



relationship with employees• Man = productive resource executing planned activities


• Employees are generally performing a series of simple and/or well defined

tasks



procurement & relationship with suppliers• Buy at the lowest possible price (utilising high contractual power)

• "Paternalistic" style of relationship with ("subordinate") suppliers

manufacturing and operational strategy• Max productive volumes (limited only by financial constraints)

• Max productive efficiency with high attention to costs

• Investments: ----> Improvements of organisation and technology ----> R & D

(product and technology)

• "Make" rather than "buy"

20


cultural values•typical of the "marketing" era

•Motto: Max exploitation of the Market

•Logics: Max yearly results (economic - short/medium term strategy)

•Credo: Business is made exploiting opportunities

MARKETINGMARKETING--ORIENTED PRODUCTORIENTED PRODUCT--IN IN

(market oriented - product/organisation oriented)

relationship with market•Market: saturated (offer > demand) - “consumer” - not "mature" - somewhat

unstable - fierce Competition

•Marketing force/abilities indispensable to locate opportunities and generate new

needs in the market

•Sales force/abilities indispensable to enhance competitiveness

•Products developed (functional specs ---> technical specs --->

industrial/manufacturing specs) by locating market needs (PRODUCT-IN)

relationship with clients•Client can and must be known more/well

•Client can be persuaded to buy our products - we have marketing and sales

dept./s that take care of that.....

21

organisation & management"Mechanical" (Scientific) system

•Organisation structured in great details, but somewhat dynamic

•Same organisational principles as in model A), with new, predominant

functions (Sales, Marketing), and a new predominant position: the "Controller"

•Decision-making process: top-down

•Inter-functional management (featuring meetings, committees, inter-functional

project teams....)

•MBO - Management by Objectives

•Very sophisticated budgeting/control system (with EDP/IT aid)



relationship with employees•New parameters at shop-floor level: job rotation, job enlargement, job

enrichment..

•MBO - Management by Objectives

•Tasks performed according to well structured “job descriptions”

manufacturing and operational strategy•Linked to the logics of max turnover and max profit

•Short/medium term strategies driven by market researches

•Product diversification

•Fragmentation into business units (divisions, product lines.....)

•Tendency to commercialisation "only"



procurement & relationship with suppliers•Considerable decentralisation (buy rather than make: to cope with market demand and

peaks, differentiated in volumes and mix)

•Alternative, competing suppliers (in order to achieve cost efficiency and to cope with

demand peaks) - suppliers "in parallel"

•Generation of high competitiveness among suppliers

•Max exploitation of suppliers -----> "disposable" suppliers - turnover of suppliers

22


cultural values•typical of the "quality challenge" era

•Motto: Client's satisfaction ("....client is the king...")

•Logics: Long-term strategy based on the Total Quality approach

•Credo: Business is made improving continuously and systematically the whole

productive process in a "client-driven" mode

relationship with market•Market: saturated (offer > demand) - somewhat less “consumer” - "mature" (capable of

understanding and rewarding quality) - unstable/turbulent

•Market's needs: already established (by western industries) - product lines are well

defined (cars, consumer electronics.....)

•Extensive use of QFD (Quality Function Deployment) techniques for effective/fast

product development

•Market sets productive parameters (quality, delivery, cost) - "...the ocean pulls the

river..."

relationship with clients•Client is “King” and Client’s satisfaction is top priority

•Client’s needs and expectations (explicit and implied) must be fulfilled

INVOLVEMENT PROCESSINVOLVEMENT PROCESS--IMPROVEMENT IMPROVEMENT

(operations oriented process/people oriented )

23

organisation & management•"Organic" system

•From "product" culture (models A and B) to "process" culture and

organisation

•"Macro" organisation, process-related to main productive parameters:

quality - delivery – cost

•"Micro" organisation, also process-related to all other parameters

•Decentralisation of responsibilities, authorities and management activities

•Multi-skilled and multi-function management ("entrepreneurial"

management)

•Decision-making process: rather bottom-up

•Profit-centres rather than cost-centres

•Cost control system: from standard-oriented (models A + B) -----> to target-

oriented (with performance indicators) (Model C)

•Kaizen (continuous & systematic process improvement). From "Static"

standards (models A + B) -----> to "dynamic" standards (model C). High

employees involvement



relationship with employees•Decentralisation of responsibilities and authorities up to shop floor level - some form of

“empowerment” (total delegation of responsibilities and max autonomy within own scope

of work)

•Considerable/high employee involvement at all levels (in problem solving, decision

making, and improvement activities in general)

manufacturing and operational strategy•Linked to the logics of "turnover consolidation & strengthening" (large volumes-

lower costs-larger volumes)

•Driving philosophies: CWQC (Company-Wide-Quality-Control) – TQM (Total

Quality Management) - TP (Total Productivity: JIT – Process Improvement &

Management) - TPM (Total Productive Maintenance)

•Pilot tool: SEW (Systematic Elimination of Waste)

•Considerable/high decentralisation of production (and responsibilities

associated with design, if applicable, and production) and high "integration" with

suppliers

•Internal client = external client



24

procurement & relationship with suppliers•Extensive decentralisation of production (make produce rather

than make) and associated (global) responsibilities

•Creation of own, long-term suppliers network [suppliers: limited in

number, well selected, "dedicated", "married", highly involved in

the improvement of common processes, ideally on the same level

of professionalism and maturity] - Motto: "let's improve together"




25

cultural values•typical of the "World-Class" era

•Motto: Total Satisfaction (client, employees, shareholders, suppliers.....)

•Logics: Long-term strategy based on the VAM (Value Adding Management)

philosophy (and the "value-chain" concept of M. E. Porter: "..be in the right

chain with valid/competitive partners..")

•Credo: Business is made by increasing continuously and systematically the

overall value of the vendor-vendee system and by consistent innovation

VENTURE MARKETVENTURE MARKET--ININ(market oriented process/people oriented )

relationship with clients•Exasperation of the “Client is King” concept --- > “...Client is our Partner in business....”

relationship with market•Market: rich (opulent) - very mature - featuring complexity and economic

turbulence - very high competition - rapidly changing

•Market's needs: extremely personalised (mass-production coma ?)

•Extrapolation/exasperation of the "market sets productive parameters"

concept -----> "market sets business parameters"

organisation & management•Flat Hierarchy (Horizontal Organisation)

•Business/entrepreneurial culture and organisation

•Total decentralisation of responsibilities in respect of overall results –

extensive Process Re-Engineering

•Organic system featuring high level of internal "supplier/client" relationship -

"inter-function" and "matrix“ type organisational structures with high flexibility -

value-adding “(re-)engineered” processes

•Profit centres (ABA - Activity Based Accounting)

•VENTURE = entrepreneurial management (global management + risk

management), highly market-oriented (in real time), with "intra-preneurial"

examples

•From MBO (Management by Objectives) -----> to MBP (Management by

Policies)

•Extensive bottom-up drive

•Top management function: co-ordination - homogenisation - internal

consultancy/coaching


26

relationship with employees•Extensive bottom-up drive (both in decision-making and in design/change of

organisational parameters)

•Empowerment and beyond: “....employees are partners in business...” - considerable

entrepreneurial and “intra-prenerial” phenomena within the Organisation – result-based

merit-o-cratic system, with examples of profit-sharing and share-holding type of rewards

for employees


manufacturing and operational strategy•Linked to the logics of "profit in the medium-long term" maintaining and developing the

enterprise's overall value

•Protagonist: TBI (Total Business integration) [GWQC (Group-Wide-Quality-Control) -

TP (Total Productivity) and all LEAN approaches/disciplines – Value Stream

Management - TPM (Total Productive Maintenance) – 6 Sigma Methodologies - PPD

(Product-Process Development), with QFD (Quality Function Deployment) - CIM

(Computer Integrated Manufacturing) - SEW (Systematic Elimination of Waste) (Group-

wide) - TEI (Total Employee Involvement) (Group-wide) - COMAKERSHIP]

•Accent on total flexibility and extreme attention to all lead-times: time-to-market

(development - engineering) - start-up time - P-time - set-up time - distribution time -

information time ........ with vendors as co-protagonists

procurement & relationship with suppliers•Vendor-Vendee relationship are seen as a starting point (rather than as a

target)

•Driving philosophies: Value-chain - GWQC – Comakership

•Permanent logistic networks integrating vendors and vendees

•Few, selected, reliable, integrated suppliers - high degree of reciprocal trust -

joint improvement programs – "open" enterprises


27

REAL ENTITIESREAL ENTITIES

effective Human Resourceseffective Human Resources

Management StrategiesManagement Strategies

28

EFFECTIVE HR MANAGEMENT STRATEGIESEFFECTIVE HR MANAGEMENT STRATEGIES


29



30



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““...the worst thing that could possibly ...the worst thing that could possibly

happen to an enterprise and its employees happen to an enterprise and its employees

is the adoption of an ineffective H R is the adoption of an ineffective H R

Management strategy......Management strategy......””

EXAMPLES OF EXAMPLES OF ““MISMIS--MATCHMATCH””

E2 M2

M1

E1

32


every enterprise has a HR strategy, even if not every enterprise has a HR strategy, even if not

well defined, structured and formalisedwell defined, structured and formalised……

��Is it inIs it in--line with the overall Organisational & line with the overall Organisational &

Operational Strategy (Operational Strategy (EffectivenessEffectiveness)?)?

��Or only partially coherent (Or only partially coherent (Partial EffectivenessPartial Effectiveness)?)?

��Or, is it clashing (Or, is it clashing (IneffectivenessIneffectiveness)?)?

key questions:key questions:


��Does such strategy show continuity ?Does such strategy show continuity ?

��Or, is it irregular Or, is it irregular -- scattered scattered -- ““jumping to jumping to

extremesextremes”” ??

��Is such strategy Is such strategy ““globalglobal”” ((companycompany--widewide), or), or

��fragmented fragmented ““per departmentper department”” ((hybrid situationhybrid situation) ?) ?

every enterprise has a HR strategy, even if not every enterprise has a HR strategy, even if not

well defined, structured and formalisedwell defined, structured and formalised……

key questions:key questions:

33

homework?homework?

..oh, yes!!!..oh, yes!!!understand your organisational strategiesunderstand your organisational strategies

34

SCANNING AN ORGANISATIONAL STRUCTURESCANNING AN ORGANISATIONAL STRUCTURE

area: cultural valuesarea: cultural values• typical of the "technology" era with a strong "Tayloristic” belief

• Credo: "...products and/or technology make business..."

• Competitiveness = costs reduction

• typical of the "marketing" era

• Motto: Max exploitation of the Market

• Logics: Max yearly results (economic - short/medium term strategy)

• Credo: Business is made exploiting opportunities

• typical of the "quality challenge" era

• Motto: Client's satisfaction ("....client is the king...")

• Logics: Long-term strategy based on the Total Quality approach

• Credo: Business is made improving continuously and systematically the whole productive

process in a "client-driven" mode

• typical of the "World-Class" era

• Motto: Total Satisfaction (client, employees, shareholders, suppliers.....)

• Logics: Long-term strategy based on the VAM (Value Adding Management) philosophy (and the

"value-chain" concept of M. E. Porter: "..be in the right chain with valid/competitive

partners..")

• Credo: Business is made by increasing continuously and systematically the overall value of the

vendor-vendee system and by consistent innovation

area: relationship with marketarea: relationship with market

• Market: unsaturated (demand > offer) and "stable"

• Market's needs: established by "technologists", who decide on validity and "value" of products

• Products are literally "thrown" into the market (PRODUCT-OUT)

• Market: saturated (offer > demand) - “consumer” - not "mature" - somewhat unstable -

fierce Competition

• Marketing force/abilities indispensable to locate opportunities and generate new needs in the market

• Sales force/abilities indispensable to enhance competitiveness

• Products developed (functional specs ---> technical specs ---> industrial/manufacturing specs) by locating

market needs (PRODUCT-IN)

• Market: saturated (offer > demand) - somewhat less “consumer” - "mature" (capable of

understanding and rewarding quality) - unstable/turbulent

•Market's needs: already established (by western industries) - product lines are well defined

(cars, consumer electronics.....)

•Extensive use of QFD (Quality Function Deployment) techniques for effective/fast product development

•Market sets productive parameters (quality, delivery, cost) - "...the ocean pulls the river..."

• Market: rich (opulent) - very mature - featuring complexity and economic turbulence - very

high competition - rapidly changing

• Market's needs: extremely personalised (mass-production coma ?)

• Extrapolation/exasperation of the "market sets productive parameters" concept -----> "market sets

business parameters"


35

area: relationship with clientsarea: relationship with clients

• Client is an “entity” that buys our products (and sometimes gives us a

lot of hassles...)

• We do not know much about our Clients (we are mainly concerned with

their “liquidity”...)

• Client can and must be known more/well

• Client can be persuaded to buy our products - we have marketing and

sales dept./s that take care of that.....

• Client is “King” and Client’s satisfaction is top priority

• Client’s needs and expectations (explicit and implied) must be fulfilled

• Exasperation of the “Client is King” concept --- > “..Client is our

Partner in business....”


area: organisation & managementarea: organisation & management

• "Mechanical" (Scientific) system

• Organisation structured in great details, and generally "static"


• Max attention to efficiency

• Professionalism: specialised ("technical" positions are the most essential and rewarded)

• Work: fragmented

• Management: specialised, "per function", bureaucratic

• Budget = basic tool. Great attention to "real/estimated" comparisons/analysis and to "deltas"


• Max cost control (per "cost centre")

• "Mechanical" (Scientific) system

• Organisation structured in great details, but somewhat dynamic

• Same organisational principles as in model (A), with new, predominant functions

(Sales, Marketing), and a new predominant position: the "Controller"


• Inter-functional management (featuring meetings, committees, inter-functional project teams....)

• MBO - Management by Objectives

• Very sophisticated budgeting/control system (with EDP/IT aid)


36

area: organisation & managementarea: organisation & management

• "Organic" system

• From "product" culture (models A and B) to "process" culture and organisation

• "Macro" organisation, process-related to main productive parameters: quality - delivery – cost

• "Micro" organisation, also process-related to all other parameters

• Decentralisation of responsibilities, authorities and management activities

• Multi-skilled and multi-function management ("entrepreneurial" management)

• Decision-making process: rather bottom-up

• Profit-centres rather than cost-centres

• Cost control system: from standard-oriented (models A + B) -----> to target-oriented (with performance

indicators) (Model C)

• Kaizen (continuous & systematic process improvement). From "Static" standards (models A + B) -----> to

"dynamic" standards (model C). High employees involvement

• Flat Hierarchy (Horizontal Organisation)

• Business/entrepreneurial culture and organisation

• Total decentralisation of responsibilities in respect of overall results – extensive

Process Re-Engineering

• Organic system featuring high level of internal "supplier/client" relationship - "inter-function" and "matrix“ type

organisational structures with high flexibility - value-adding “(re-)engineered” processes

• Profit centres (ABA - Activity Based Accounting)

• VENTURE = entrepreneurial management (global management + risk management), highly market-oriented

(in real time), with "intra-preneurial" examples

• From MBO (Management by Objectives) -----> to MBP (Management by Policies)

• Extensive bottom-up drive

• Top management function: co-ordination - homogenisation - internal consultancy/coaching


area: relationship with employeesarea: relationship with employees

• Man = productive resource executing planned activities


• Employees are generally performing a series of simple and/or well defined tasks

• New parameters at shop-floor level: job rotation, job enlargement, job enrichment

• MBO - Management by Objectives

• Tasks performed according to well structured “job descriptions”

• Decentralisation of responsibilities and authorities up to shop floor level - some

form of “empowerment” (total delegation of responsibilities and max

autonomy within own scope of work)

• Considerable/high employee involvement at all levels (in problem solving, decision

making, and improvement activities in general)

• Extensive bottom-up drive (both in decision-making and in design/change

of organisational parameters)

• Empowerment and beyond: “....employees are partners in business...” -

considerable entrepreneurial and “intra-preneurial” phenomena within the

Organisation – result-based merit-o-cratic system, with examples of profit-sharing

and share-holding type of rewards for employees


37

area: manufacturing and operational strategyarea: manufacturing and operational strategy

• Max productive volumes (limited only by financial constraints)

• Max productive efficiency with high attention to costs

• Investments: ----> Improvements of organisation and technology ----> R & D (product and technology)

• "Make" rather than "buy"

• Linked to the logics of max turnover and max profit

• Short/medium term strategies driven by market researches

• Product diversification

• Fragmentation into business units (divisions, product lines.....)

• Tendency to commercialisation "only"

• Linked to the logics of "turnover consolidation & strengthening" (large volumes- lower costs-larger volumes)

• Driving philosophies: CWQC (Company-Wide-Quality-Control) – TQM (Total Quality Management) – TP (Total

Productivity: JIT – Process Improvement & Management) - TPM (Total Productive Maintenance)

• Pilot tool: SEW (Systematic Elimination of Waste)

• Considerable/high decentralisation of production (and responsibilities associated with design, if applicable, and production)

and high "integration" with suppliers

• Internal client = external client

• Linked to the logics of "profit in the medium-long term" maintaining and developing the enterprise's overall value

• Protagonist: TBI (Total Business integration) [GWQC (Group-Wide-Quality-Control) - TP (Total Productivity) and

all LEAN approaches/disciplines – Value Stream Management - TPM (Total Productive Maintenance)

– 6 Sigma Methodologies - PPD (Product-Process Development), with QFD (Quality Function Deployment) -

CIM (Computer Integrated Manufacturing) - SEW (Systematic Elimination of Waste) (Group-wide) -

TEI (Total Employee Involvement) (Group-wide) and TEP - COMAKERSHIP]

• Emphasis on total flexibility and extreme attention to all lead-times: time-to-market (development - engineering) - start-up time -

P-time - set-up time - distribution time - information time ........ with vendors as co-protagonists


area: procurement & relationship with suppliersarea: procurement & relationship with suppliers


• Buy at the lowest possible price (utilising high contractual power)

• "Paternalistic" style of relationship with ("subordinate") suppliers

• Considerable decentralisation (buy rather than make: to cope with market demand and

peaks, differentiated in volumes and mix)

• Alternative, competing suppliers (in order to achieve cost efficiency and to cope with

demand peaks) - suppliers "in parallel"

• Generation of high competitiveness among suppliers

• Max exploitation of suppliers -----> "disposable" suppliers - turnover of suppliers

• Extensive decentralisation of production (make produce rather than make) and associated

(global) responsibilities

• Creation of own, long-term suppliers network [suppliers: limited in number, well selected,

"dedicated", "married", highly involved in the improvement of common processes, ideally on

the same level of professionalism and maturity] - Motto: "let's improve together"

• Vendor-Vendee relationship are seen as a starting point (rather than as a target)

• Driving philosophies: Value-chain - GWQC – Comakership

• Permanent logistic networks integrating vendors and vendees

• Few, selected, reliable, integrated suppliers - high degree of reciprocal trust - joint improvement programs –

"open" enterprises

38

finally:finally:

a a ““traditionaltraditional”” enterprise is like a lawn mowerenterprise is like a lawn mower……

People 20 years agoPeople 20 years ago

People todayPeople today

and

39

Personnel Selection & EvaluationPersonnel Selection & Evaluation

(before (before ““midnightmidnight””))

ABILITY:ABILITY:

Knowledge and skills necessary Knowledge and skills necessary

to perform a job to perform a job

= WORKING MATURITY= WORKING MATURITY

MOTIVATION:MOTIVATION:

willingness and commitment willingness and commitment

= PSYCHOL. MATURITY= PSYCHOL. MATURITY

Personnel ManagementPersonnel Management

EMPLOYEE (before EMPLOYEE (before ““midnightmidnight””))

M1 = IMMATURE PERSONM1 = IMMATURE PERSON

M2 = POTENTIAL PERSONM2 = POTENTIAL PERSON

M3 = DEM3 = DE--MOTIVATED PERSONMOTIVATED PERSON

M4 = MATURE PERSONM4 = MATURE PERSON

PROFESSIONAL MATURITY =PROFESSIONAL MATURITY =

WORKING MATURITY + WORKING MATURITY +

PSYCHOLOGICAL MATURITYPSYCHOLOGICAL MATURITY

40


EMPLOYEE (before EMPLOYEE (before ““midnightmidnight””) ) –– THE TARGETTHE TARGET


MANAGER (before MANAGER (before ““midnightmidnight””))

OPERATIONAL BEHAVIOUROPERATIONAL BEHAVIOUR

Direction Direction –– Control Control –– Attention to Attention to

Operational affairs (productionOperational affairs (production……))

RELATIONAL BEHAVIOURRELATIONAL BEHAVIOUR

Intensity of social/emotional Intensity of social/emotional

support support –– Attention to peopleAttention to people

41


(before (before ““midnightmidnight””) ) –– Leadership StylesLeadership Styles

S1 S1 –– DIRECTSDIRECTS

Gives orders/instructions Gives orders/instructions –– Sets targets/objectives Sets targets/objectives

–– Defines tasks & duties Defines tasks & duties –– Controls/evaluatesControls/evaluates

S2 S2 –– SELLSSELLS (COACHES, GUIDES, SUPPORTS)(COACHES, GUIDES, SUPPORTS)

Guides and supports psychologically Guides and supports psychologically

collaborators collaborators –– makes them makes them ““purchasepurchase”” the the

wanted behaviourswanted behaviours

S3 S3 –– SUPPORTSSUPPORTS

22--ways communication with collaborators ways communication with collaborators ––

attention to collaboratorsattention to collaborators’’ problems problems –– high high

““relationalrelational”” supportsupport

S4 S4 –– DELEGATESDELEGATES

Sets targets and constraints Sets targets and constraints –– Gives high D/M and Gives high D/M and

operational autonomy operational autonomy -- monitors (background)monitors (background)


(before (before ““midnightmidnight””) ) ––

Situational LeadershipSituational Leadership

“…“…the most the most

effective leadership/ effective leadership/

management style management style

in each and every in each and every

situationsituation……....””

D

GNI

TC

ER

I

GN

IL

L

ESGN

IT

RO

PP

US

GN

IT

AG

ELED

42


(after (after ““midnightmidnight””))FROMFROM

TOTO

PROFESSIONAL MATURITY PROFESSIONAL MATURITY

==

WORKING MATURITY WORKING MATURITY

+ +

PSYCHOLOG. MATURITY PSYCHOLOG. MATURITY

++

CULTURAL MATURITYCULTURAL MATURITY


(after (after ““midnightmidnight””))

43

Cultural MaturityCultural Maturity

(after (after ““midnightmidnight””))

Understanding of Understanding of ““valuevalue”” -- Orientation to Orientation to ““valuevalue””

Attitude and opening to learnAttitude and opening to learn

Opening to innovationOpening to innovation

Understanding of change Understanding of change -- Opening to change Opening to change -- Ability to changeAbility to change

Attitude to creative thinkingAttitude to creative thinking

Interest for workInterest for work

Participation Participation -- InvolvementInvolvement

Understanding of EnterpriseUnderstanding of Enterprise’’s goals s goals -- Alignment with themAlignment with them

Spirit of initiative Spirit of initiative –– entrepreneuringentrepreneuring

Attitude to work in teamAttitude to work in team

####### #######

employ a personemploy a person……..

EXERCISE????EXERCISE????

……oh, yes!!!!oh, yes!!!!

44

““magneticmagnetic”” organisational structureorganisational structure

(before (before ““midnightmidnight””))

the solution?the solution?

teamteam--workwork

teamteam--workwork

45

TeamTeam--work work –– the solution?the solution?

The principle of working in team to tackle The principle of working in team to tackle

all sorts of organisational and technical all sorts of organisational and technical

issues has been discovered several issues has been discovered several

decades agodecades ago……..

Project TeamsProject Teams

……and and MeetingsMeetings: Board Meetings : Board Meetings -- Management Management

Meetings Meetings –– Department Meetings Department Meetings –– InterInter--functional functional

Meetings Meetings –– Production Planning Meetings Production Planning Meetings –– etc. etc.etc. etc.

BUT:BUT:

InterInter--functional Teamsfunctional TeamsImprovement TeamsImprovement Teams

ReRe--engineering Teamsengineering TeamsQuality CirclesQuality Circles

Kaizen TeamsKaizen Teams

6 Sigma Teams6 Sigma Teams……SelfSelf--Directed Work GroupsDirected Work Groups

…….do you recall at least one .do you recall at least one

meeting from which you (or meeting from which you (or

someone else) came out someone else) came out unun--

satisfiedsatisfied? or a bit ? or a bit frustratedfrustrated? or ? or

possibly possibly stressedstressed??


……not to mentionnot to mention

confusedconfusedirritatedirritated

annoyedannoyed

intimidatedintimidated

perturbedperturbed bored to deathbored to death

humiliatedhumiliated

angryangry

horrifiedhorrified

exhaustedexhausted terrorisedterrorised……..???..???

BUT:BUT:

46

Meetings and teamMeetings and team--work are work are

not necessarily associated not necessarily associated

with high involvement and with high involvement and

effective improvement nor do effective improvement nor do

represent the sole/best answer represent the sole/best answer

to performance improvement...to performance improvement...


……oh, yes !!!!oh, yes !!!!

industrial espionage industrial espionage



47

From the suggestion box From the suggestion box

scheme to total participationscheme to total participation

…….so: what are the secret, missing ingredients that will give .so: what are the secret, missing ingredients that will give

the correct shape to highthe correct shape to high--employeeemployee--involvement structures?involvement structures?

..that will contribute to generate people interest and ..that will contribute to generate people interest and

participation, directed to produce genuine value?participation, directed to produce genuine value?

48

EMPLOYEE INVOLVEMENTEMPLOYEE INVOLVEMENT

4 Key Factors affecting the degree of involvement:

KNOWLEDGEKNOWLEDGE: that enables Employees to understand the

Organisation and contribute to its performance

POWERPOWER: to make decisions that influence organisational

strategies, policies, processes and practices

INFORMATION (FEEDINFORMATION (FEED--BACK)BACK): about Organisation's

performance/Process/es’ performance

REWARDREWARD: based on Organisation's/Process’ performance

and individuals' contributions

the more the 4 factors are shifted downward in the hierarchy the more the 4 factors are shifted downward in the hierarchy

ladder, the more involvement may be generatedladder, the more involvement may be generated

All Industrial Models have attempted to generate

Employee Involvement.

4 different levels and 4 different approaches:

1. Parallel Suggestion Involvement1. Parallel Suggestion Involvement

2. Job Involvement2. Job Involvement

3. MBOII (Management by Objectives II)3. MBOII (Management by Objectives II)

4. High (Total) Involvement4. High (Total) Involvement

EMPLOYEE INVOLVEMENTEMPLOYEE INVOLVEMENT

49

1. PARALLEL SUGGESTION INVOLVEMENT1. PARALLEL SUGGESTION INVOLVEMENT

flash concepts:flash concepts:

A Reward SystemReward System is normally associated (generally:

nominal rewards).

Employees are asked to solve problems (corrective corrective

suggestionssuggestions) and produce ideas (improvement improvement

suggestionssuggestions) that “may” or “should” influence

Organisation's operational performance.

Examples: Suggestion Box Schemes - Quality Circles


ProPro’’ss: Enterprise benefits from suggestions, and

Employees have the opportunity to participate in

problem-solving and improvement schemes.

ConCon’’s & Limitationss & Limitations:

i) Employees may run out of suggestions because they

do not have enough expertise to solve more complex

problems or tackle more sophisticated improvements.

ii) Suggestion schemes that are not supported by

an adequate reward system may loose momentum

and disappear.

iii) “Fake” involvement/suggestions (due to

lack of direction)


50


the the ““fakefake”” improvement listimprovement list

2. JOB INVOLVEMENT2. JOB INVOLVEMENT

Work is designed in such a way that it will motivate

better one’s job performance, differently from traditional,

standardised, simplified work.

Two alternatives:

2.1 Job Enrichment2.1 Job Enrichment:

• focuses on creating individual tasks that give people

feedback

• increases their influence over how the work is done

• requires them to use a variety of skills

• and gives them a "whole piece" of work(Hackman & Oldham, 1980)


51


2.2 Work Groups or Teams2.2 Work Groups or Teams:

It takes the work-group as the primary unit of

involvement, with similar features.

(Examples: Autonomous Work Groups - Self-Managing

Groups - Work Teams)

Individuals or groups are given new skills and

knowledge, more feedback, additional decision making

space, and may be rewarded differently.

The Team approach has, obviously, higher effect.

Involvement is not a special activity, but it is simply

the way of doing business.



ProPro’’s & Advantagess & Advantages:

More consistent than in the Parallel Suggestion

Involvement.


• Lost opportunities. The involvement is limited to

immediate work decisions, and the Employees' or

Groups' tendency is primarily to optimise their

own performance, without paying a great deal of

attention to the overall Organisation's

performance.

• Job Enrichment schemes may simply be “imposed”

• Inadequacies typical of Team-Work.


52

3 3 -- PARTICIPATIVE MANAGEMENT (MBOII)PARTICIPATIVE MANAGEMENT (MBOII)

a mida mid--way compromise in Employee Involvementway compromise in Employee Involvement

EMPLOYEES RESPONSIBILITIESEMPLOYEES RESPONSIBILITIES:

Work together to achieve mutual goals consistent

with the objectives of the Organisation

• analysing process and work-related problems

• making team decisions about schedules, priorities,

and quality and costs issues

• being responsible, accountable, and committed to

the team and the objectives

• providing peer support, development, and

feedback in achieving objectives



a mida mid--way compromise in Employee Involvementway compromise in Employee InvolvementMANAGERS/SUPERVISORS RESPONSIBILITIESMANAGERS/SUPERVISORS RESPONSIBILITIES:

• Provide support in the form of commitment and

leadership

• Provide clear and reasonable visions/objectives

• Provide information, processes, resources and

methods as required, to meet the objectives

• Provide training, equitable rewards, and team

facilitation

• Provide continuous support, and recognition for

accomplishments

In MBOII great care is to be taken to ensure that people and jobIn MBOII great care is to be taken to ensure that people and jobs matchs match


53



MBOII is generally adopted by large Organisations

Bureaucracy is the biggest obstacle to MBOII.

Bureaucracy inhibits people from making decisions and

acting.

Bureaucracy feeds on itself by creating a need for a

hierarchy to manage decisions, and consequently slows

down the decision making process.

When approvals are required too high up by people who

don't understand the process, a backlog of doubt and

indecision grows and progress slows - sometimes stops.




Major task and strategy of Participative Management is

the elimination of Bureaucracy and the enhancement of

individuals'/teams' decisions, by providing adequate

decision making space.

With this approach, people/teams become more self-

sufficient and self-managed, and capable of assuring

that they will not do anything or much wrong.

This leads to less need for supervision and control.

The overall Reward structure must be revised

accordingly.


54

TOTAL EMPLOYEE TOTAL EMPLOYEE

INVOLVEMENTINVOLVEMENT

55

4. HIGH (TOTAL) INVOLVEMENT4. HIGH (TOTAL) INVOLVEMENT

• they knowknow about it and have the skillsskills and expertiseexpertise to

contribute to it (KNOWLEDGE*KNOWLEDGE*)

• they are able to influenceinfluence it because they have the necessary

spacespace and sufficient POWER*POWER* to do so

• they get FEEDFEED--BACK*BACK* on their own and the Organisation’s

Performance and adequate REWARD*REWARD*

It structures an Organisation in such a way that people,

even at the lowest levels, will have a sense of

involvement, not just in how they do their jobs or how

effectively their group performs, but also in the

performance of the total Organisationperformance of the total Organisation, for which they

carecare because:


Employees need to have expertise at least in: creative creative

problemproblem--solvingsolving – creative search for opportunitiescreative search for opportunities -

decision makingdecision making techniques - self and time self and time

managementmanagement - process engineeringprocess engineering (basics) - specific

tools and techniques – etc.

This simply means extensive, continuous training.

They also need to be cross-trained, so that they

understand the entire work process in theirs and

surrounding work areas.

56


MOST IMPORTANT:

they must be made

knowledgeable about the

Value Adding ManagementValue Adding Management

and LeanLean ThinkingThinking philosophies

and their main principles!

ProPro’’s & Advantagess & Advantages: extremely more consistent and

effective than in previous approaches.

LimitationsLimitations:

Getting relevant business information to all Employees,

according to their involvement status, becomes a key

challenge.

Structuring such an Organisation is clearly a hard and

delicate task, especially in a western industrial

environment.


57

As people's best motivations come from their As people's best motivations come from their own own

ideasideas, TEI stimulates people to release, in a , TEI stimulates people to release, in a

channelled mode, their channelled mode, their own creative energyown creative energy

for the benefit of the Customers, the Organisation's for the benefit of the Customers, the Organisation's

and their ownand their own

TEI is TEI is everyoneeveryone in the Organisation deeply involved, in the Organisation deeply involved,

using own using own brain powerbrain power, in , in problemproblem--solvingsolving, , learning, ,

continuous improvementcontinuous improvement activities, and systematic activities, and systematic

search for opportunitiessearch for opportunities

in a nutshell


TEI is a system for organisational and people's TEI is a system for organisational and people's

changechange. .

It is a system that improves people's working It is a system that improves people's working

conditions by their own actions.conditions by their own actions.

TEI is a system for direct participation of people to TEI is a system for direct participation of people to

Organisation's success, by letting them take Organisation's success, by letting them take

responsibilitiesresponsibilities. .

TEI wants people to be responsible for their own TEI wants people to be responsible for their own

motivation and their own improvement: simply by motivation and their own improvement: simply by

letting them know the letting them know the scorescore........


in a nutshell

58

TEI is a system that TEI is a system that

stimulates people to stimulates people to

become become responsibleresponsible agentagent

for their own for their own securitysecurity..

HIGH (TOTAL) INVOLVEMENTHIGH (TOTAL) INVOLVEMENT

in a nutshell

…….responsible.responsible agentagent for for

their own their own securitysecurity……..

the worm

59

TEI represents a continuous TEI represents a continuous

challengechallenge to people, by letting them to people, by letting them

set the path to their set the path to their fulfilmentfulfilment at at

work, work, enjoyingenjoying the very process......the very process......


in a nutshell

Obviously, to get there, we need the Obviously, to get there, we need the

right HR strategies and tacticsright HR strategies and tactics……..

HUMAN RESOURCES HUMAN RESOURCES

MANAGEMENT MANAGEMENT

TACTICSTACTICS

FOR A HIGH FOR A HIGH

INVOLVEMENT INVOLVEMENT

ENVIRONMENTENVIRONMENT

60

encourage people to look creatively for ways encourage people to look creatively for ways

to work "smarter", with a corresponding to work "smarter", with a corresponding

reduction in stress and frustration, a higher reduction in stress and frustration, a higher

level of accountability, increased flexibility level of accountability, increased flexibility

and adaptability to (continuous) change, and adaptability to (continuous) change,

higher productivity/performance, higher productivity/performance,

and improved levels of customers' and and improved levels of customers' and

employees' satisfactionemployees' satisfaction

HOW?HOW?

THE TARGET FOR H.R. MANAGEMENTTHE TARGET FOR H.R. MANAGEMENT

11--develop peopledevelop people

22--break the brickbreak the brick--wallwall

33--go LEAN!!go LEAN!!

a) The traditional a) The traditional ““match jobs and peoplematch jobs and people”…”…..

11--MAKE PEOPLE GROWMAKE PEOPLE GROWtipstips

OKOK

OKOKFEAR

FRUSTRATION

(I am worth nothing….)

(They are trying to get

rid of me…)

BUTBUT……..

61

a) match jobs and people: leta) match jobs and people: let’’s analyse furthers analyse further

11--MAKE PEOPLE GROWMAKE PEOPLE GROW

highhigh

LowLow

HighLow

LowHigh

BehaviourAttitudeBehaviourAttitudeResultAbilities

& Skills

Job

Difficulty

bossboss collaboratorcollaboratorcollabcollab..

FEARFEAR Anxious

DepressedAlternating Anxious

DepressedSubjection Subjection

SlaverySlavery

FRUSTRATIONFRUSTRATION Anxious

Persecutory

Sovereignity

Dominance

Anxious

PersecutoryRebellion Rebellion

EscapeEscape

OK??OK?? Apathy Public Servant Apathy GovernmentGovernment’’s s

faultfault……..

OK!!OK!! Stimulating Delegation Dynamic SatisfactionSatisfaction

SOSO……..

b) donb) don’’t get trapped into Petert get trapped into Peter’’s principles principle……..


ANDAND……..

tipstips

62


c) ..develop your collaborators c) ..develop your collaborators

through modern Situational through modern Situational

Leadership principlesLeadership principles……

tipstips

Develop: Develop:

Working Maturity, Working Maturity,

Psychological Psychological

Maturity Maturity ANDAND

Cultural Maturity! Cultural Maturity!

PERSUADE PEOPLE TO CHANGE, TO BREAK PERSUADE PEOPLE TO CHANGE, TO BREAK

THE BRICKTHE BRICK--WALL, OVERCOMING WALL, OVERCOMING

RELUCTANCE AND RESISTANCERELUCTANCE AND RESISTANCE

THE MANAGEMENT CHALLENGE OF THE YEARS 2000THE MANAGEMENT CHALLENGE OF THE YEARS 2000

22--BREAK THE BRICKBREAK THE BRICK--WALLWALL

63

the syndrome the syndrome

of the of the ““wasted wasted

yearsyears””......

MANAGEMENT CHALLENGE OF THE YEARS 2000MANAGEMENT CHALLENGE OF THE YEARS 2000

go go ““LEANLEAN””

33--EXPLAIN THE EXPLAIN THE ““DIRECTIONDIRECTION””

64

LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1Maybe you fish itMaybe you fish it……....

……maybe you farm itmaybe you farm it……....

LEAN THINKING: THE ORIGIN 1LEAN THINKING: THE ORIGIN 1

65

……maybe you mine itmaybe you mine it……....


……maybe you breed itmaybe you breed it……....


66

……maybe you mill itmaybe you mill it……....


……maybe you brew itmaybe you brew it……....


67

……maybe you manufacture itmaybe you manufacture it……....


……maybe you construct itmaybe you construct it……....


68

……maybe you simply sell itmaybe you simply sell it……....


or maybe you dance itor maybe you dance it……....


69


You catch it, you farm it, You catch it, you farm it,

you mine it, you breed it, you mine it, you breed it,

you mill it, you brew it, you mill it, you brew it,

you manufacture it, you you manufacture it, you

construct it, you simply construct it, you simply

sell it or you dance itsell it or you dance it……

……no matter what you do no matter what you do -- you must generateyou must generate……..


VALUEVALUEfor your customersfor your customers

70


Everyone that works in your organization is doing one of three tEveryone that works in your organization is doing one of three things:hings:

1. They are generating value for your customers 1. They are generating value for your customers -- oror

2. They are creating or reshuffling waste 2. They are creating or reshuffling waste –– oror

3. They are doing absolutely nothing3. They are doing absolutely nothing

The market leaders will always The market leaders will always

have the majority of their people have the majority of their people

dedicated to the first of thesededicated to the first of these

……in an office (or a bank, or a travel agent, orin an office (or a bank, or a travel agent, or…….) the floor .) the floor

cleaner may be adding more value than most employees..cleaner may be adding more value than most employees..

71

LPMLean

Project

Mangmt

FPFlow

Process

72

VAMVAM

VALUE ADDING VALUE ADDING

MANAGEMENTMANAGEMENT

the VAM approach to the productive processthe VAM approach to the productive process

process process

time time

analysisanalysis

73

SEWSEWSYSTEMATIC SYSTEMATIC

ELIMINATION OF WASTEELIMINATION OF WASTE

VALUE!VALUE!

74

spot the waste!spot the waste!

labour misuse: handlinglabour misuse: handling

75

spot the waste!spot the waste!the the ““prepre--preparationpreparation”” syndromesyndrome

WASTE WASTE –– THE TABLE OF EXCUSES THE TABLE OF EXCUSES -- OLDOLD1) That's the way we have always done it1) That's the way we have always done it

12) I wasn't hired to do that12) I wasn't hired to do that

11) I thought I told you11) I thought I told you

10) I'm so busy I just can't get around to it10) I'm so busy I just can't get around to it

9) I didn't think it was very important9) I didn't think it was very important

8) I forgot8) I forgot

7) Wait till the boss comes back & ask him7) Wait till the boss comes back & ask him

6) That's his job 6) That's his job -- not minenot mine

5) I am waiting for an OK5) I am waiting for an OK

4) No one told me to go ahead4) No one told me to go ahead

3) That's not in my department3) That's not in my department

2) I didn't know you were in a hurry for it2) I didn't know you were in a hurry for it

76

WASTE WASTE –– THE TABLE OF EXCUSES THE TABLE OF EXCUSES -- NEWNEW1) That's the way we have always done it1) That's the way we have always done it

12) All machines eventually give problems12) All machines eventually give problems

11) We must control quality or clients will complain11) We must control quality or clients will complain

10) Set10) Set--up time cannot be reduced furtherup time cannot be reduced further……..

9) We need stock: it9) We need stock: it’’s a good investments a good investment

8) Impossible8) Impossible

7) You mean we are stupid the way we do it???7) You mean we are stupid the way we do it???

6) Managers and consultants6) Managers and consultants……. Only able to mess us up. Only able to mess us up

5) We have tried in the past, and it didn5) We have tried in the past, and it didn’’t workt work……

4) Why change? We are already so busy4) Why change? We are already so busy……..

3) This way we know it works3) This way we know it works……..

2) There is no better way, believe me2) There is no better way, believe me……..

Implementation Strategies for TEIImplementation Strategies for TEI

Getting Getting startedstarted……....

……and taking the and taking the ““LeanLean”” wayway

77

The role of Lean Disciplines in The role of Lean Disciplines in

developing Employee Involvementdeveloping Employee Involvement

The role of The role of

Lean Lean

Disciplines in Disciplines in

developing developing

Employee Employee

InvolvementInvolvement

78

the the ““SOCOSOCO”” (5S) approach(5S) approach

how to insert people in how to insert people in

valuevalue--generating processesgenerating processes

how to evolve from simple how to evolve from simple

tasks to simple processestasks to simple processes

79


……oh, yes!!!!oh, yes!!!!a hiccup processa hiccup process……

COMPLEX PROCESSES, INVOLVING SEVERAL PERSONS COMPLEX PROCESSES, INVOLVING SEVERAL PERSONS

or DEPARTMENTS, OFTEN ORIGINATE ERRORS or DEPARTMENTS, OFTEN ORIGINATE ERRORS

IMPROVING PERFORMANCE: IMPROVING PERFORMANCE:

THE LEAN KAIZEN APPROACHTHE LEAN KAIZEN APPROACH

the bottomthe bottom--up approach to Performance Improvement has a name:up approach to Performance Improvement has a name:

80

systematic and methodical approach, topsystematic and methodical approach, top--

driven, codriven, co--ordinated and supported, ordinated and supported,

to continuous improvement towards an to continuous improvement towards an

"excellent, lean status" target in various "excellent, lean status" target in various

organisational and operational areas;organisational and operational areas;

in a "stepin a "step--byby--step" fashion;step" fashion;

and with deep, active involvement of those and with deep, active involvement of those

concerned in each improvement areaconcerned in each improvement area

today's KAIZENtoday's KAIZEN

increase in effectiveness increase in effectiveness

and/or efficiency of processesand/or efficiency of processes

(all the rest might be spurious, fictitious (all the rest might be spurious, fictitious

improvement)improvement)

IMPROVEMENTIMPROVEMENT

��PREVENTIVE ACTIONSPREVENTIVE ACTIONS

��CORRECTIVE ACTIONSCORRECTIVE ACTIONS

throughthrough

81

the piers the piers

of Kaizenof Kaizen

82

KAIZEN & TEIKAIZEN & TEI

.....if he only knew how.....!.....if he only knew how.....!

.....the person doing the job .....the person doing the job

knows far more than anyone knows far more than anyone

else as to the best way of else as to the best way of

doing that job, and therefore is doing that job, and therefore is

the one person best fitted to the one person best fitted to

improve it....improve it....

83

KAIZEN IS TEAMWORK!!!KAIZEN IS TEAMWORK!!!

verticallyvertically

horizontallyhorizontally

internallyinternally

externallyexternally

KAIZEN IS PROBLEMKAIZEN IS PROBLEM--SOLVINGSOLVING

THEORY AND PRACTICE THEORY AND PRACTICE

methodologies to approach methodologies to approach

problems and complexity:problems and complexity:��KK--T methodT method

��Brainstorming, Lateral Thinking & other Creative P/S Brainstorming, Lateral Thinking & other Creative P/S

techniquestechniques

��Critical Examination & other "global" ProblemCritical Examination & other "global" Problem--SolversSolvers

84

KAIZEN IS DECISIONKAIZEN IS DECISION--MAKING MAKING

ABILITY AND PRACTICE ABILITY AND PRACTICE

methodologies to approach the methodologies to approach the

decisiondecision--making process:making process:

��Archer methodArcher method

��optimisation methodsoptimisation methods

��elimination and evaluation chartselimination and evaluation charts

��decision trialdecision trial--balance methodbalance method

��matrix techniquesmatrix techniques

KAIZEN IS INTELLIGENT USE KAIZEN IS INTELLIGENT USE

OF THE OLD & NEW TOOLS FOR OF THE OLD & NEW TOOLS FOR

LEAN IMPROVEMENTLEAN IMPROVEMENT

��Data Collection Chart, Scatter Diagram, Control ChartsData Collection Chart, Scatter Diagram, Control Charts

��Graphs, Histograms, Pareto Diagram, ABC analysisGraphs, Histograms, Pareto Diagram, ABC analysis

��Cause and Effect (Ishikawa) Diagram, Relations Diagram Cause and Effect (Ishikawa) Diagram, Relations Diagram

Affinity Diagram, CEDAC, Arrow Diagram, FlowAffinity Diagram, CEDAC, Arrow Diagram, Flow--ChartsCharts

��Tree (Systematic) Diagram, Matrix Diagrams, PTree (Systematic) Diagram, Matrix Diagrams, P--M M

AnalysisAnalysis

��FMEA/FMECA MethodsFMEA/FMECA Methods

��Radar (Spider) ChartsRadar (Spider) Charts

��and all LEAN THINKING tools and techniquesand all LEAN THINKING tools and techniques

85

KAIZEN IS KAIZEN IS

CULTURAL CULTURAL

CHANGECHANGE

The The

implementation of implementation of

““LeanLean”” DisciplinesDisciplines

in a in a KaizenKaizen style style

means faster and means faster and

more effective more effective

jumps towards jumps towards

higher higher Professional Professional

MaturityMaturity levels of levels of

workers and workers and

employees!!employees!!

LEAN & KAIZEN LEAN & KAIZEN ““makemake”” TEI!!TEI!!

KAIZEN & TEIKAIZEN & TEI

86

lean practices & lean practices &

people involvementpeople involvement

VITAL!!!!VITAL!!!!KAIZENKAIZEN--STYLE STYLE

LEAN MASTER LEAN MASTER

PLANPLAN & &

MILESTONES MILESTONES

SCHEDULESCHEDULE

KAIZEN & THE LEAN DIRECTIONKAIZEN & THE LEAN DIRECTION

87

WHAT A WHAT A

DIFFERENCE, DIFFERENCE,

COMPARED TO A COMPARED TO A

TRADITIONAL TRADITIONAL

IMPROVEMENTS IMPROVEMENTS

LISTLIST……..

a marketing problema marketing problem

EXERCISE???EXERCISE???

……..oh, yes!!!..oh, yes!!!

KAIZEN IS KAIZEN IS ““THINKINGTHINKING””

88

a practical model for TEIa practical model for TEI

89

high involvementhigh involvement……..

high involvementhigh involvement……..

90

getting highly involvedgetting highly involved……..

involvement: special cases involvement: special cases

91

involvement: special cases involvement: special cases

Necessary rolesNecessary roles……. . with simple job descriptions (1 with simple job descriptions (1 –– 2 items)2 items)

Retailing personnelRetailing personnel

Service establishments personnelService establishments personnel

Public officialsPublic officials

BottomBottom--ofof--thethe--ladder personnelladder personnel

The IWT triumph!The IWT triumph!

92

from TEI to TEP: a jump into the future

In advanced worldIn advanced world--class enterprises, the class enterprises, the

TEI approach is no longer sufficientTEI approach is no longer sufficient……....

there, the second Industrial there, the second Industrial

Revolution has already startedRevolution has already started……....

having highly involved employees and not having highly involved employees and not

achieving adequate results in terms of achieving adequate results in terms of

performance is no big deal, is it?performance is no big deal, is it?

THE SECOND INDUSTRIAL REVOLUTIONTHE SECOND INDUSTRIAL REVOLUTION

……associated with every pair of associated with every pair of

arms there is a mindarms there is a mind……....

……why many workers abandon why many workers abandon

their best abilities and talents their best abilities and talents

outside the enterpriseoutside the enterprise’’s gate?s gate?

93


Value-delivering, dynamic, flexible

flow processesflow processes built around clients' expectations and needs

main features:main features:

MultiMulti--functionfunction and multimulti--skillskillpersonnel

Global responsibilityresponsibility for the process and its output

Decision-making autonomy



TEI/TEP: job satisfactionjob satisfaction

FlatteningFlattening of organisational structures

Intelligent exploitation of technology

94

Reduction/elimination of

supervisionsupervision and controlcontrol



Management: from supervision,

to coachingcoaching

EmpowermentEmpowerment: making people conscious of their abilities and competence – giving them “areas of purposeareas of purpose”, “spacespace”, and powerpower to do - so that they can autonomously act within that space

efficiently and effectively.


empowerment & coachingempowerment & coaching

Empowerment is always Empowerment is always integralintegral

transmission of transmission of ResponsibilitiesResponsibilities

95

CoachingCoaching: vision, training and support



Coaching makes people believe in Coaching makes people believe in

themselves so that they can give their bestthemselves so that they can give their best

Coaching enables people to understand their potential, their targets and their capacity to

progress

CoachingCoaching: symbols, mottos, logos, songs...



96

CoachingCoaching: symbols, mottos, logos, songs...


fromfrom toto

internal attentioninternal attention attention to clientattention to client

attention to taskattention to task

simple taskssimple tasks

function unitsfunction units

attention to processattention to process

simple processessimple processes

process unitsprocess units


97

Public Public enemyenemy n. 1:n. 1:

brain lazinessbrain laziness

……and thinkingand thinking


thinking and other featuresthinking and other featuresbefore midnightbefore midnight

Business:

specialisationspecialisation-formatted

after midnightafter midnight

Business:

integrationintegration-formatted

Automatic ThinkingAutomatic Thinking

(associated to specialised

jobs)

and/or

ExternallyExternally--guided Thinkingguided Thinking

(from Management above)

Hard, creative thinking

Value-generating thinking

SelfSelf--integratedintegrated Thinking

Both lead to:

Reactive ThinkingReactive Thinking (reaction to

the ambient/work before the

person)

Leads to:

Projective/ProProjective/Pro--active Thinkingactive Thinking

(controls and manages the

ambient/work before the

person)

98

Based on brainbrain--lazinesslaziness :

needs external authorityexternal authority

to be governed

Based on own brainbrain--

powerpower : has the authority

internally

Suitable for fragmented

bits of work (work

formatted Adam Smith

style)

Suitable for

integrated flow of

work (a process)

before midnightbefore midnight after midnightafter midnight

thinking and other featuresthinking and other features

MaintainsMaintains only (it may even

destroy...)BuildsBuilds, achieves, generates

wealth

Keeps people busy at making

things going (deceiving

oneself to be working hard)

Makes people stick to value

generation (working hard for

production of Value)

Self-integrated Thinking

discouraged (dangerous !!)

Self-integrated Thinking

promoted (essential !!!)


PushPush functioning, top-

driven/imposedPullPull functioning, market/client-

driven


99

COMPLEXITY: COMPLEXITY:

many people using specialised

thinking to control many

others using automatic and/or

externally-guided thinking.

Absurdity.

SIMPLICITYSIMPLICITY:

fewer people using hard,

integrated thinking,

empowered to manage value

generating processes - simply

controlled (in-process and in

real-time control through basic

indicators).


Based on “DELEGATIONDELEGATION"

which, in the majority of

cases, is not transmission of

responsibilities, but

evaporation of responsibilities

(fresh-air effect).

Based on EMPOWERMENTEMPOWERMENT

which is integral/total transfer

of responsibilities.

Empowering = transferring a

business mind to all bodies

concerned with value

generation


Leads to stagnationstagnation (un-

integrated, cul-de-sac

responsibilities): people

stagnating into day-to-day

problems that get trapped with

Leads to wealthwealth (integrated

responsibilities & areas of

purpose): people

concentrating only onto value

generation


88--5 attitude5 attitude/mentality because

of little purpose or none at all Entrepreneurial attitudeEntrepreneurial attitude

because of areas of purpose

Personnel have little/no

purpose, therefore little/no

MOTIVATIONMOTIVATION. The typical

employee does not know,

does not feel, only has cul-de-

sac responsibilities....

Entrepreneur's attitude,

approach, MOTIVATIONMOTIVATION,

knowledge and sensations

because of areas of purpose


100

Generally leads (in a

conscious or un-conscious

mode) to employees'

DISSATISFACTIONDISSATISFACTION - cul-de-

sac responsibilities are the

best guarantee of frustration,

stress and dissatisfaction

Generally leads to employees'

JOBJOB--SATISFACTIONSATISFACTION -

integrated responsibilities are

the essence of real values,

happiness and excitement

Motto: "...work is a necessary

evil..."

Motto: "...work is a gymnasium

in which people can practise,

test themselves, evolve,

develop, learn, grow, and be

happy and proud of the value

they produce..."



Knowledge, associated to

specialised work, is the most

valuable asset: it must be

maintained, preserved and

protected

Knowledge is not as

important. The ability to

"learn" and the opening to

"learning" and perfecting

knowledge are most

important.

Traditional, static

Organisation

Dynamic, Learning

Organisation



101

TOTAL EMPLOYEE TOTAL EMPLOYEE

PERFORMANCEPERFORMANCE

Beyond TEI

Why do all traditional HR management and Why do all traditional HR management and

motivational techniques somehow fail?motivational techniques somehow fail?

Management by Objectives, Effective Leadership, Diversification,

Z Theory, Situational Leadership, Effective Communication, Zero-

based-Budgeting, Decentralisation, Team Building, Management

by Exception, Dale Carnegie techniques, Interpersonal Skills,

Quality Circles, Excellence, Restructuring, Portfolio Management,

Interactive Management, Matrix Organisational Structure, Total

Quality Management, ISO 9000..... and One-Minute Managing......

TEI and beyond - TEP: TOTAL EMPLOYEE PERFORMANCE

102

“It is not a matter of applying

fine psychology, or of following

pipe-smoking top notch

consultants’ refined theories….

the philosophythe philosophy


…..it is just a matter of

understanding that time is due to

go back to basics: few, but clear,

core concepts - few, but well

identified, values – and, most of

all, simple, basic methods......



103

Give a chance to people to perform, to be job-

satisfied, and to re-gain professional dignity,

by empowering them to be totally responsible

and accountable for a complete process, of

which they can understand the entity, the

parameters, the importance, the inputs, the

outputs, the client, the associated value, and

the performance measuring criteria.



….give people a chance to be

craftsmen in their workshop,

or traders in their shop, in

strict contact with their

customers....



104

…give people a chance to be

proud of the value they

generate, of the wealth they

create for themselves, and for

others......”



Value ProducersValue Producers

…let people be responsible..



105

Value ProducersValue Producers

…let people be responsible..

why worldwhy world--class enterprises class enterprises

do not suffer from the do not suffer from the

absenteeism plague? absenteeism plague?

open debateopen debate

106

a world-class

project-driven

enterprise

….shift

from: TGIF

to: TGIM!!to: TGIM!!


107

a practical model for TEP

108

are there any examples of are there any examples of

TEP actually operational?TEP actually operational?

is the TEP scenario only suited to small businesses?is the TEP scenario only suited to small businesses?

The growth of an Enterprise does not The growth of an Enterprise does not

increase the number of valueincrease the number of value--

generating processes nor the generating processes nor the

number of basic responsibilities. number of basic responsibilities.

It is the way we have changed and It is the way we have changed and

manipulated industry that has manipulated industry that has

created an enormous number of created an enormous number of

““dummydummy””, fictitious responsibilities , fictitious responsibilities

(and functions).......(and functions).......

109

If the business volume grows, there are If the business volume grows, there are

various ways of dealing with it rather various ways of dealing with it rather

than building pyramids. For instance:than building pyramids. For instance:

��a a ““company without a companycompany without a company””

��““parallelparallel””, horizontal processes, horizontal processes

��one or more one or more ““replicareplica”” of the original businessof the original business

a a ““company without a factorycompany without a factory””

110

““ReplicasReplicas””, , ““Parallel ProcessesParallel Processes””, ,

““Companies without a CompanyCompanies without a Company””, and , and

other similar, new business styles have other similar, new business styles have

one very important feature in common: one very important feature in common:

they are

untouchable by

Smith’s virus

HR MANAGEMENT HR MANAGEMENT

in a lean environmentin a lean environment

““simple is beautiful!simple is beautiful!””

““small is beautiful!small is beautiful!””

111

small is beautiful! small is beautiful! -- 11

PaulanerPaulaner BrBrääuhausuhaus

Clock TowerClock Tower

Cape Town WaterfrontCape Town Waterfront

112

113

114


Bakeries todayBakeries today

115

116


2 small SA enterprises2 small SA enterprises

117


williamwilliam

williamwilliam

118


edithedith

edithedith

119

…….so you would like your people to be: responsible .so you would like your people to be: responsible –– accountable accountable ––


THE 3 NECESSARY STEPSTHE 3 NECESSARY STEPS

1) Understand the environmental 1) Understand the environmental


2) Be prepared to abandon the 2) Be prepared to abandon the


3) Have a clear direction and tell 3) Have a clear direction and tell

people about itpeople about it……..

4) 4) …….and something more.and something more……....

STEP 4) STEP 4) ((…….the something more.the something more……))

Believe in people and in theirBelieve in people and in their

capacity to grow, evolve and performcapacity to grow, evolve and perform

120

Mc Mc GregorGregor and the Xand the X--Y theoryY theoryHypotheses on human nature

5) People can be self-disciplined and

perform without much control…

5) In order to achieve operational targets, is

indispensable to control people (and often to

“force” them…..)

4) People motivational factors is a cocktail

that includes also social, esteem and self-

fulfilment needs

4) People motivation is restricted to the

satisfaction of physiological and security

needs (lower motivational factors)

3) The capacity of being creative is

potentially widely spread – possibly, it needs

to be “triggered”

3) Most individuals have little creative

capacity (or none at all), therefore they

cannot contribute to solve organisational

problems

2) Most individuals can self-manage and self-

control themselves, which is the basis of a

good performance

2) Most individuals are not ambitious, don’t

like responsibilities and prefer to be

“directed”

1) Working is natural and pleasant as

playing, if there are “favourable” conditions

1) For most individuals “working” is

unpleasant (…a necessary evil….)

Y TheoryY TheoryX TheoryX Theory

Mc Mc GregorGregor and the Xand the X--Y theoryY theory

The Manager:

• Co-ordinates

• Assigns responsibilities

• Delegates

The Manager:

• Directs

• Gives orders

• Controls

Y TheoryY TheoryX TheoryX Theory

121

Generally, for the majority of individuals, the “initial”

situation is “neutral”:

The individual (collaborator) may assume an X behaviour or The individual (collaborator) may assume an X behaviour or

a Y behaviour, depending upon the Managera Y behaviour, depending upon the Manager’’s behaviours behaviour

According to Mc Gregor, individuals with “dominant” X or Y

behaviours (“initially”) would represent the “exception”:


Managers may rectify exceptional “initial” collaborators’

behaviours adopting counteracting behaviours:


122

Managers may strengthen the X or Y features of

collaborators’ behaviours (initially in a “neutral” situation):


the Pygmalion effectthe Pygmalion effect

BELIEVE IN BELIEVE IN

PEOPLE!PEOPLE!


123

LegaLega del del filofilo dd’’orooro

http://www.legadelfilodoro.itNon-profit Organisation – Osimo – Italy

Assisting the blind, deaf and dumb.

Communication: MALOSSI

124



THE CHOICE IS YOURSTHE CHOICE IS YOURS……

methods

traditional

responsibilities

limited

waste

involvement

high

little/none

Job Satisfaction??Job Satisfaction??



THE CHOICE IS YOURSTHE CHOICE IS YOURS……

methods

lean

value added

high

responsibilities

high

involvement

Job Satisfaction!!Job Satisfaction!!

high

125

total employee total employee

involvementinvolvementA course presented by: Carlo A course presented by: Carlo ScodanibbioScodanibbio

Organised byOrganised by::

CREDITSCREDITS

The documentary material of this course is based on papers and wThe documentary material of this course is based on papers and works by:orks by:

and on personal experience and development by Carlo and on personal experience and development by Carlo ScodanibbioScodanibbio

Music by: Bach Music by: Bach –– Beethoven Beethoven –– Corelli Corelli –– HaydinHaydin –– Rossini Rossini –– Vivaldi Vivaldi –– RimskyRimsky--Korsakov Korsakov

& others& others

Copyright Copyright ©© Carlo Carlo ScodanibbioScodanibbio 20092009

total employee total employee

involvement involvement ““““““““a cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolutiona cultural revolution””””””””

126

TOTAL EMPLOYEE INVOLVEMENTPower Point Presentation by Carlo Scodanibbio

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