Part 3 of 3
In Part 1, we discussed how to focus your efforts and develop a compelling case for change, and in Part 2, how to analyze the data and identify the most significant problems driving the performance gap. In Part 3 we will cover how to develop and implement permanent solutions and document impactful results.
Implementing robust solutions and documenting results were the keys to success. Many improvement initiatives fail in the implementation of proposed solutions, regardless of the potential benefits. Therefore, Project Management techniques including Work Breakdown Structure, Risk Analysis, Action Planning, pilot testing and calculating the expected Return on Investment were applied so implementation could be properly managed and reliable estimates could be made regarding the expected benefits. Countermeasures for team #1 were implemented about 90 days after project initiation, and preliminary results were documented after 90 more days, just as team #2 got started. By the 180th day, new hires leaving between 0 – 90 days of hire dropped by 65%, well below the target. A small decline in the overall turnover rate from 24% to 22% was also documented. After another 180 days, both team #1 cohorts were showing significant improvements, exceeding the targets set in their respective Problem Statements. By the close of 2019, team #1 had achieved its target of 14% overall turnover and therefore, eliminated the $12,000,000 Cost of Poor Quality.
Team #2, which started its initiative 6-months later, also showed significant improvement, but was impacted by the start of the pandemic in early 2020 and was unable to isolate its improvements from external conditions affecting all aspects of its organization’s operations.
Maintaining the gains is difficult for most process improvement initiatives. But it is key that process changes are supported by revised standard operating procedures, documented workflows, training and mentoring so that solutions become “standardized”. Otherwise, performance gains will gradually decline to previous levels.
Summary and Lessons Learned
It is tempting to follow the lead and rely on industry publications, experience, and anecdotal data from interviews, surveys, and experts when searching for solutions. Although all organizations may be composed of systems, processes, people, and equipment, how these elements work together is always different, thereby producing different outcomes for each organization. Just because two organizations may share the same poor performance level doesn’t mean they share the same problems or root causes. The best approach is to apply a systematic approach for process improvement, collect the appropriate quantitative data, and utilize the appropriate analytical techniques to develop the right solutions for your organization.