|
By: Desi Narayanan
Organizations want to become better and stronger. Of course, better and stronger mean different things to different people. For example, the General Manager of a manufacturing company might say it means growing a loyal and predictable customer base. A restaurant owner might say it means handling seasonal fluctuations better. A research and development company might say it’s getting new products to market faster. All of these companies have mentally defined what they value as a “return” and have some way of quantifying it.
The economic downturn has choked the flow of money for many organizations. Managers are being challenged to deliver ongoing improvements under frozen department budgets. If you can’t demonstrate a spectacular ROI, chances are, your project will not see the light of day.
So what do you do? Some of us can’t take “no” for an answer. We search the organization for data, create fancy charts, and prepare even fancier presentations. We think if we’re lucky, we can create the perception of ROI. To be honest, this actually works sometimes. Whether it’s the right thing for the organization is a different matter altogether.
So what’s the better way? More accurately, what’s a simpler and easier way? First of all, understand what “better and stronger” means to the person that matters. It might be your boss, or it might mean your president. Whoever it is, you need to know how that person imagines and quantifies “better and stronger”. If you can manage to do this, you’ve found the magical “return” that so many seekers fail to recognize. Half your battle is now won.
Next, you need to create a convincing hypothesis. A hypothesis sounds something like this. If we make the following changes in “x”, then we expect the following changes in “y”. The “y” we’re talking about, of course, is the “return”. Let me give you an example from my own family.
My wife loves cars and would be overjoyed to own an Audi TT as a summer vehicle. In order to get her summer car faster, I might hypothesize that if we spend less money “eating out”, we can save more money for the “car” that she’s always wanted. She’d probably propose a different hypothesis to me that would sound something like this. If you sold “your car and took the bus”, we can get a “new car” for me faster. Let’s just say, we’re still forming hypotheses.
Now that you’ve got a convincing hypothesis, you’re ready to put numbers into play. You know what return is of interest to the person that matters. You also know how that person quantifies that return. You know what changes you want to make and can quantify what they will cost. You’re now ready to pitch your improvement solution!
Desi Narayanan - Lean Six Sigma Consultant
Desi Narayanan is a recognized leader in the field of Structured Continuous Improvement. He has facilitated organizational transformations for businesses across a wide range of industries that include energy production, manufacturing, healthcare, and research and development. He has led numerous facility tours and spoken at several conferences.
Desi has a passion for structured continuous improvement that is matched only by his deep respect for the human condition. He founded Building Perspective in 2006 as a vehicle to accelerate his contribution to the world and share his vision for organizational excellence. As a principal with Building Perspective, Desi works with clients to create strategic, tactical, and cultural excellence.
Desi holds an engineering degree from the University of Toronto. He is a recognized lean practitioner and a certified six sigma black belt. When he is not transforming organizations, Desi can be found playing drums, working on a musical collaboration, or out and about helping his community. ... www.buildingperspective.com
|
Articles
