
Many operations leaders have been there, done that with re-engineering. And they report, in effect, that the process is like ringing a doorbell with a howitzer shell.
Reducing costs through wholesale layoffs ostensibly tied to ultimate results provides quick hits on balance sheets, but its clumsy blows can raise hell with operations.
Operational results can be achieved consistently with precision and power not when people are taken out of the organization but instead put back in.
"Putting people in" doesn't mean adding headcount but instead putting people into the mix of vital factors that contribute to operations results - having power with people, not over people.
Just as we're supposed to use only a fraction of our brains' capabilities, so I'm convinced, working with businesses in major industries, that few organizations come close to achieving their potential operational results.
That's because many operations leaders ignore one of the most important aspects of operational effectiveness: the human heart.
When I speak of the heart, I speak of that intuitive, emotional, feeling aspect of all of us.
No question: It's not just technology and equipment that drives operational success. It's employees. Clearly, they must be skilled and knowledgeable, but they also must be emotionally committed to their work. They must be motivated.
Yet most operational strategies and programs focus on rational not emotional/motivational considerations and so let great opportunities slip away.
To understand how quantum leaps in results can be achieved, far beyond re-engineering's capabilities, let's view operations three big drivers -- cost-reduction, productivity and efficiency - in terms of motivational factors.
Cost-reduction: Operations founder when they fail to achieve continuous cost-reductions. A leader of a world manufacturing organization told me, "One of my most tenacious leadership challenges is motivating employees to never stop getting costs out of our plants and processes."
Lesson: Cost-reduction is a leadership issue. It's an issue in which leaders don't order people to do a job but motivate those people to want to do the job. It's in the realm of want to that significant cost reductions take place.
Action: Institute comprehensive strategies, processes, and measurements that focus on having employees be ardently committed to getting continuous cost reductions, and those reductions will far outpace the ones achieved through re-engineering.
Productivity: Clearly, productivity isn't about doing things simply faster but also better. To speed up and be more productive, employees must slow down, reconsider their situation, reevaluate their education and training, then take new action. Only employees who have a strong emotional commitment to their jobs do well in that sequence of actions.
Lesson: Fifteen minutes before shift change, a machine starts to break down. The motivated operator will stay with that machine until its fixed or he will at least get a repair process under way. On the other hand, the less-than-motivated operator will punch out and let the next shift operator take care of the problem. Incidents like these are common and cost countless billions of dollars in lost productivity.
Action: Develop operational systems that are woven into the very driving force of productivity: the heartfelt convictions of the rank-and-file.
Efficiency: Businesses cannot compete well simply by selling what they make. Instead, they have to make what they sell. Which means that operations must be closely connected to the sell, the customer. And because customer needs change rapidly, operations must change with them or risk making inefficiency an institution.
Lesson: Efficiency begins in one place: with small-unit leadership, the leadership of the supervisors and front-line managers. In trying to realize operating efficiencies, top leaders often get jammed up in small-unit leader meat-grinders. Top leaders can usually persuade their direct reports to participate in the changes needed to make efficiencies happen.
However, the far more important task is to persuade the small-unit leaders to champion those changes. Small-unit leaders, who don't buy-in, can and will make mincemeat of any operational program.
Action: Get small-unit leaders to champion your changes at the beginning of the change process to insure that those changes take root.
In summary: When driving cost-reductions, productivity and efficiency, avoid the re-engineering reflex of ringing doorbells by rolling up cannons. Instead, roll out simple, precise strategies tied to the heartfelt needs of skilled employees - then let them get the big results.
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2005 © The Filson Leadership Group, Inc. All rights reserved.
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PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.com
The author of 23 books, Brent Filson's recent books are, THE LEADERSHIP TALK: THE GREATEST LEADERSHIP TOOL and 101 WAYS TO GIVE GREAT LEADERSHIP TALKS. He is founder and president of The Filson Leadership Group, Inc. ? and has worked with thousands of leaders worldwide during the past 20 years helping them achieve sizable increases in hard, measured results. Sign up for his free leadership e-zine and get a free guide, "49 Ways To Turn Action Into Results," at http://www.actionleadership.com
AP - The U.N. Security Council called for an immediate cease-fire in Gaza, but an intense bombardment of missiles from Israeli jets and helicopters early Friday and a barrage of Hamas rockets indicated there may be no quick end to the fighting.
AP - Gov. Rod Blagojevich faces almost certain impeachment by the Illinois House, a historic step that would trigger a trial to determine whether the Democratic governor should be tossed out of office.
AP - Lawmakers are under orders to finish action on President-elect Barack Obama's nearly $800 billion economic recovery plan by mid-February. But already it is plain that a set of serious fissures need to be bridged if the bill is to be completed within five weeks.
AP - Democrats are ushering in what they believe will be a new labor-friendly era in Washington with House votes on two bills aimed at helping women fight pay discrimination in the workplace.
AP - Trying to survive a deepening recession, employers are cutting their work forces to the bone, leaving more Americans unemployed and with dim prospects of finding a new job any time soon.
AP - Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated.
AP - President-elect Barack Obama is completing his national security team by announcing his unusual choices for CIA director and a national intelligence director who may face tough Senate confirmation questioning over how he confronted the Indonesian military when civilian massacres were occurring in East Timor.
AP - Just minutes after George W. Bush took the oath of office eight years ago, he signed papers formally nominating 13 Cabinet-level officials. Several hours later, the Senate, meeting in a special Saturday session, confirmed seven Cabinet secretaries, including the heads of the key posts at State, Treasury and Defense.
AP - Tim Tebow enjoyed the battering-ram runs. He liked the old-school jump pass. Drawing a rare penalty, that really made Tebow's day. With No. 1 Florida about to finish off No. 2 Oklahoma 24-14 for the BCS championship Thursday night, Tebow was flagged for unsportsmanlike conduct.
Reuters - U.S. employers probably cut the most jobs in at least 34 years last month as the global economic crisis gathered pace and moves by policy makers took time to filter through to struggling companies.
Reuters - Israel pushed ahead with its two-week-old offensive in the Gaza Strip, ignoring a U.N. Security Council resolution calling for an immediate ceasefire.
Reuters - Europe sought a swift restoration of gas supplies on Friday after striking a deal with Moscow on monitoring gas shipments via Ukraine that have been halted by a pricing dispute with Kiev.
Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.
Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.
Reuters - President-elect Barack Obama's economic team is urgently overhauling the $700 billion financial rescue package to broaden its scope beyond Wall Street, The Washington Post reported on Friday.
Reuters - Al Qaeda's operations chief in Pakistan and a top aide are believed to be dead, a U.S. counterterrorism official said on Thursday, in what appeared to be the latest results of a campaign targeting the militant group's leadership.
AFP - Israel and Hamas launched heavy air strikes and rocket attacks on each other Friday, ignoring a UN Security Council order on the warring rivals to end their conflict.
AFP - The European Union demanded Friday that Russian gas supplies to Europe resume immediately now that details of a mission to monitor the flow through Ukrainian pipelines have been agreed.
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