Performance improving is paramount to succeed in his technological era.
Organizations are directing their focus in two fields:
- Management systems.
- Continuous improvement and learning.
According to McKenzie and Company, only 30 percent of the companies or less achieve transformation, 70% see change difficult, uncomfortable, and stressful.
A study shows that 96 percent of the companies agreed that need a cultural change, but only 57 percent agreed that past failures were the main contributory factors to change resistance1.
Another study showed that 33 percent2 of failure is lack of top management involvement in management systems, continuous improvement, and learning.
According to Adam Fridman3, there are four reasons why management systems and performance improvement fail:
- Cookie cutter solutions: Standards and regulations are sometimes strict and tight that might slow improvement. Therefore, a creative organization will be able to comply with standards and regulations to meet their goals.
- Lack of desire for improvement: There is an ideology across of several industries that if it doesn’t break, does not fix it. The organizations must do more than complying with the international standards. Status quo is the worst enemy of any organization to succeed.
- Stakeholders expectations: International standards help to standardize and control business processes but sometimes do not meet stakeholder’s expectations. The organization needs tailored solutions to meet those expectations.
- Organization behavior: Organizations need to engage their entire company to rethink your process to do things.
I would like to add other reasons:
- Do you remember the United Airlines case? Top management stays too long in the war room. Tools are effective if employees contribute with their ideas to feed them.
- No changing mindsets: Efforts are directed to change behaviors to improve safety and quality performance but not mindsets. The numbers show there are a lot of fatalities and warning letters from government agencies.
- No balance. Management needs to assess how the management system will affect other units of the organization. Companies need to keep all departments strong and balanced.
What does the 30 percent do to succeed?
Here are the seven key components to make your management system successful.
- Connect: Employees shall understand how important is for the organization, how valuable is to make the organization adaptable to satisfy the market, themselves and peers.
- Discover: Best practices shall be reviewed, shared and updated by the organization according to the new demands of the market.
- Enable. Decode tacit knowledge.
- Deliver: Organizations shall be able to optimize and understand tacit knowledge.
- Problem-solving: Standards and regulations are rigorous. Compliance is paramount; however, they do not stop creativity.
- Expertise. You need experts that shall be capable to do three things:
- Know the standards extensively.
- Have practical experience.
- Capable to establish relationships with employees and workers.
- Use assessments as a teaching platform. Top management and employees shall expose themselves to the assessment process to solve problems.
- Recommit to culture change. Nothing will be solved by using the old practices.
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In conclusion, creativity and problem solving are the two components to make your management system successful.
What does successful mean? It means that the organization will benefit from learning, sharing ideas and creating their own know-how to find their tailored solutions.