True Productivity

Regardless of the size or whether the aim is for-profit or non-profit, improving productivity is the number one goal of organizations around the world. For most people, this simply means “doing more with less”. That, however, merely is the essence of Efficiency: Doing things the right way (or at least the best way possible), and thereby getting the most output from the input of resources. Doing the right things on the other hand, is what Effectiveness is all about.

 

Only when those two elements are combined, can True Productivity emerge: Doing the right things the right way.


Effectiveness + Efficiency = True Productivity

 

There is no sense in working hard on making a process more efficient that does not produce the needed outcome in the first place. While the effort may result in some reduced cost, it in essence is like "putting lipstick on a pig". The time and resources would have been much better spent on re-thinking the bigger picture. Any process improvement undertaking should therefore start with the question, “is this the right thing to begin with?” Unfortunately, skipping this step is surprisingly common and the biggest wasted opportunity in today's busy world.


The three steps in achieving organizational True Productivity are:

  1. Hoshin Kanri (Strategy: Choose the focus and set objectives)
  2. Value Stream Mapping (Process Analysis: Identify the improvement opportunities)
  3. Kaizen (Process Improvement: Improve identified opportunities with a clear set of goals)


Having a clear objective derived from a clear strategy prior to embarking on any process improvement is imperative. Without it, potentially “wrong” things are improved to be done more efficient, the time and resources wasted on this effort would be better spent with a different focus that actually hits the bottom line or serves another goal of the company.


Achieving True Productivity means first establishing a strategic framework within which all efforts can be justified. One highly effective tool for this is called Hoshin Kanri – a process of deriving strategic objectives from the organization’s vision, and then governing the execution of the objectives with an effective management system that ties every effort back to that vision. In doing so, Strategy Deployment also becomes a powerful communication and alignment device.


Once the goals and objectives are clear, gaining a thorough understanding of what constitutes "value" is the next important step. Gauging the current state of the processes against this yardstick becomes the foundation for an improved future state roadmap. One proven method of identifying the right things to improve and establishing this roadmap is called Value Stream Mapping – a multi-tiered process that depicts all steps (good and bad) along the path of creation for a product or service from beginning to end.


The execution of that roadmap is done most effectively by the people that own the processes, not anyone looking in from the outside. People that are part of the process in question have a much better understanding of its intricacies, regardless of whether the process is of manufacturing, administrative or even creative nature. The likelihood of changes grabbing hold also is exponentially higher if implemented by the people who have to "buy in" to the new way of doing things. A tremendously effective vehicle for process improvement are so-called Kaizen Events – team-based improvement workshops with the authority to make change happen.

 

In order to successfully implement individual change (sustained increase in efficiency) and not have its effect evaporate on a larger scale, the aforementioned clear objectives have to be derived from an overall strategy first. Done correctly the result has the potential to be an improvement of a quantum leap order of magnitude.


Regardless whether your organization is large or small, whether you are established or a start-up, whether you manufacture widgets or deliver services, run a call-center or administer a college program, PSPadvisor can help with every step of this journey: