BSBMGT516C Facilitate Continuous Improvement

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1 Course Name: Diploma of Management BSBMGT516C Facilitate Continuous Improvement WORKBOOK Facilitate continuous improvement Version 2.0 Page 1 of 41 Disclaimer: Printed copies of this document are regarded as uncontrolled Last Updated: 19/9/12

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3 CONTACT DETAILS Workshop Trainer: Chris Margaritis Business and Finance Faculty South Western Sydney Institute (SWSi) Contact Number: Address: College: Liverpool College of TAFE College Street, Liverpool 2170 Business and Finance Faculty Contact: Candice Mesecke Head Teacher, National & International Business, Business & Finance faculty Contact Number: Address: College: Liverpool College of TAFE College Street, Liverpool 2170 Facilitate continuous improvement Version 2.0 Page 3 of 41 Disclaimer: Printed copies of this document are regarded as uncontrolled Last Updated: 19/9/12

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5 CONTENTS Contact Details... 3 Welcome to: Facilitate continuos improvement BSBMGT516C... 6 Element 1 - Lead continous improvement systems and processes... 6 Continuous Improvement... 6 Continuous Improvement Practices... 8 Quality Management Deming s 14 points on TQM version Deming s 14 points on TQM version Strategies and Techniques for Continuous Improvement Communicating, Mentoring and Coaching for Continuous Improvement Mentoring is KEY STEPS IN A MENTORING PROGRAM Element 2 - Monitor And Adjust Performance Strategies Performance indicators Element 3 - Manage Opportunities for further improvement Continual Quality Improvement Continuous Quality Improvement Using PDCA What is the PDCA Cycle? References and further reading Facilitate continuous improvement Version 2.0 Page 5 of 41 Disclaimer: Printed copies of this document are regarded as uncontrolled Last Updated: 19/9/12

6 WELCOME TO: FACILITATE CONTINUOS IMPROVEMENT BSBMGT516C ELEMENT 1 - LEAD CONTINOUS IMPROVEMENT SYSTEMS AND PROCESSES Today, all organisations need to work towards improving quality, productivity and profit. In order for these improvements to be real and sustainable a continuous improvement program is necessary. Developing the required knowledge, skills and planning in continuous improvement systems and processes will enable managers to put this into place. This topic will equip you with the knowledge and skills to: identify opportunities for continuous improvement evaluate current workplace systems and processes facilitate change by communicating plans effectively and involving others in the achievement of objectives CONTINUOUS IMPROVEMENT The idea of continuous improvement is related to the belief that there is always a way to improve the way we do business. By identifying opportunities, having consistent processes in place and constantly reviewing performance, businesses can remain competitive. This relates to the whole organisation as well as all tasks undertaken by all work units and individual employees. The Japanese word for continuous improvement is kaizen. The Japanese approach to continuous improvement has enabled them to develop quality processes and provide quality service. The kaizen approach is: 'Let's keep examining everything we do and see how we can do it better.' This is very different to the thinking that is: 'If it ain't broke, don't fix it.' "Kaizen means gradual, unending improvement, doing "little things" better, setting and achieving even higher standards.' (Bank, p.243) Facilitate continuous improvement Version 1.0 Page 6 of 41

7 Kaizen and Toyota The Japanese vehicle manufacturing company, Toyota, utilises Kaizen in its production system. Kaizen - Continuous Improvement Kaizen is the heart of the Toyota Production System. Like all mass-production systems, the Toyota process requires that all tasks, both human and mechanical, be very precisely defined and standardised to ensure maximum quality, eliminate waste and improve efficiency. Toyota Members have a responsibility not only to follow closely these standardised work guidelines but also to seek their continual improvement. This is simply common sense - since it is clear that inherent inefficiencies or problems in any procedure will always be most apparent to those closest to the process. The day-to-day improvements that Members and their Team Leaders make to their working practices and equipment are known as kaizen. But the term also has a wider meeting: it means a continual striving for improvement in every sphere of the Company's activities - from the most basic manufacturing process to serving the customer and the wider community beyond. Source: Facilitate continuous improvement Version 1.0 Page 7 of 41

8 CONTINUOUS IMPROVEMENT PRACTICES When organisations plan to develop continuous improvement practices into their systems, processes, people and management they need to understand the core concepts of how continuous improvement can be developed and which improvements they need to make. All organisations are unique and their approach to continuous improvement varies based on their individual organisational goals and vision. There is a large amount of literature on this topic and information provided below is based on literature that has been written on this topic, and provides a summary of what organisations should consider when they develop their overall approach to continuous improvement. According to Green, L.( 2006) Continuous improvement learning guide, there are six core functions within an organisation where continuous improvement should be applied: Customer/supplier model - quality should be created all along the chain, not just at the final inspection point Process control and capability - looking at all the steps in the work process to ensure quality Informed decision making - management by fact and the collection of correct data, not guesswork. Problem-solving - using the collected data to find solutions that will lead to improvements. Cost of quality - for organisations to flourish, they must bear the cost of certification. Teamwork and involvement - management need to create the appropriate environment to allow workers to be involved in decision making and working well as a team. Bank, J.(2000) The essence of total quality management, suggests that there are five basic ways to create improvement within an organisation: 1. reduce resources - and so reduce waste 2. reduce errors - and decrease poor work performance 3. meet or exceed expectations of customers 4. make the process safer - a safe workplace is more productive with fewer lost -time accidents and compensation claims, and 5. make the process more satisfying to the person doing it. These concepts and approaches can be used to form an organisation's continuous improvement principles and polices. This can then be used to develop strategies and implementation plans. Facilitate continuous improvement Version 1.0 Page 8 of 41

9 ACTIVITY 1.1 Continuous improvement Looking at your workplace what forms or systems of continuous improvement exist? ACTIVITY 1.2: Identify one or two areas you consider require a continuous improvement program. Review the information above for ideas/triggers. Facilitate continuous improvement Version 1.0 Page 9 of 41

10 QUALITY MANAGEMENT What is Quality? Organisations all around Australia and the world are developing and implementing quality programs. So, what does quality mean? As a manager you must be able to define quality in order to develop approaches to implementing strategies for continuous improvement. The fact is that everyone perceives quality differently. What the customer perceives as quality may be different to what the supplier considers a quality product or service. The customer may place emphasis on several different things when looking for quality. So, quality is an assessment by the customer as to how well the goods or the services meet their specific needs. International Standards Organisation Although quality is an international buzz word, it is supported by an international process of certification. You may have seen organisations that advertise that they have been certified by international standards (ISO9000 to 9004) or to the equivalent Australian standards (AS39000 to 39004). Many people are more likely to purchase a product or service from one of these organisations as they know they are committed to quality. Certification offers this assurance. The international and Australian standards guide organisations towards creating, running and maintaining quality improvements. The standards provide clear information on the way organisations must define, set up, explain and direct the design, development and production of their goods and services. Many customers are interested in the quality of particular goods and services they require, but they also want that quality to be consistent. Organisations that have certification to a particular quality standard are able to show how their quality processes can guarantee consistency of quality. These features of quality certification can provide a competitive advantage. On the ISO standards website the ISO 9000 introduces the eight quality management principles on which the quality management system standards of the ISO 9000:2000 and ISO 9000:2008 series are based. These principles can be used by senior management as a framework to guide their organizations towards improved performance. The principles are derived from the collective experience and knowledge of the international experts who participate in ISO Technical Committee ISO/TC 176, Quality management and quality assurance, which is responsible for developing and maintaining the ISO 9000 standards. Facilitate continuous improvement Version 1.0 Page 10 of 41

11 The eight quality management principles are listed below: Principle 1: Customer focus Principle 2: Leadership Principle 3: Involvement of people Principle 4: Process approach Principle 5: System approach to management Principle 6: Continual improvement Principle 7: Factual approach to decision making Principle 8: Mutually beneficial supplier relationships Total Quality Management These days, businesses that are focused on improving their performance make sure to implement programs to improve quality, productivity and profit. However, many programs typically run into serious resistance during the implementation phase, which often lasts less than 12 months, and the results are disappointing. The key to achieving enduring success is to create a positive attitude to continuous improvement throughout the entire organisation, and that includes the internal customers (employees) as well as external customers. Cultural changes need to be initiated and maintained if an organisation is to be successful with a continuous improvement plan. The aim of total quality management (TQM) is to improve systems and processes across the entire organisation. TQM provides a series of tools and techniques to improve quality, save money and improve the use of people and information across the organisation. TQM traditionally focuses on continuous improvement making lots of small improvements, which all add up to provide improved productivity and performance. Here are some examples: reducing power costs on the bakery production floor by turning off the ovens for two hours during the night shift by implementing a check sheet on the production floor that records accidents and injuries, workers become more aware of the need for improved OHS this means workers compensation and down time due to injury is reduced. Facilitate continuous improvement Version 1.0 Page 11 of 41

12 DEMING S 14 POINTS ON TQM VERSION 1 A key person in establishing the total quality management approach, Dr W. Edward Deming had the following advice to offer those about to take the quality journey. 1. Begin with the end in mind. Ensure all efforts are aligned with your organisation s vision, mission and strategies. 2. Build a culture that encourages reduction in errors and resource wastage. 3. Ensure all processes have a quality focus. Think proactive NOT reactive. 4. Price is not the only variable that will make you competitive think quality! 5. Identify problems and fix the system that supports an effective use of resources. 6. Train, coach and mentor for motivated and focused employees. 7. Empower front line managers who are close to the customer to make necessary improvements. 8. Encourage a culture of innovation by eliminating barriers such as fear. 9. Support open communication throughout the organisation regardless of levels and departments. Work together as one large team! 10. Make organisational goals meaningful. 11. Aim for quality, not quotas, when setting work standards. 12. Encourage employees to take ownership of their work. 13. Create an organisational culture of learning. 14. Insist that management follows up on any issue by following the 13 points listed above. Facilitate continuous improvement Version 1.0 Page 12 of 41

13 DEMING S 14 POINTS ON TQM VERSION 2 1."Create constancy of purpose towards improvement". Replace short-term reaction with long-term planning. 2."Adopt the new philosophy". The implication is that management should actually adopt his philosophy, rather than merely expect the workforce to do so. 3."Cease dependence on inspection". If variation is reduced, there is no need to inspect manufactured items for defects, because there won't be any. 4."Move towards a single supplier for any one item." Multiple suppliers mean variation between feedstocks. 5."Improve constantly and forever". Constantly strive to reduce variation. 6."Institute training on the job". If people are inadequately trained, they will not all work the same way, and this will introduce variation. 7."Institute leadership". Deming makes a distinction between leadership and mere supervision. The latter is quota- and target-based. 8."Drive out fear". Deming sees management by fear as counter- productive in the long term, because it prevents workers from acting in the organisation's best interests. 9."Break down barriers between departments". Another idea central to TQM is the concept of the 'internal customer', that each department serves not the management, but the other departments that use its outputs. 10."Eliminate slogans". Another central TQM idea is that it's not people who make most mistakes - it's the process they are working within. Harassing the workforce without improving the processes they use is counter-productive. 11."Eliminate management by objectives". Deming saw production targets as encouraging the delivery of poor-quality goods. 12."Remove barriers to pride of workmanship". Many of the other problems outlined reduce worker satisfaction. 13."Institute education and self-improvement". 14."The transformation is everyone's job". Facilitate continuous improvement Version 1.0 Page 13 of 41

14 ACTIVITY 1.3: Select two of Deming s principles that could be beneficial to your workplace? Explain why you have chosen them i.e. what will the benefits be? Systems The Foundation for TQM No organisation performs at its peak in all aspects of its operations all the time. Even if systems and processes have been streamlined and duplications reduced, changes always occur, and this means that you will need an organisational culture that embraces continuous improvement and quality management. Systems should be in place to ensure that all employees know what to do and how to do it. They must be communicated widely, implemented consistently and simple to follow. The driving force behind TQM is to continually improve systems and processes so that they will consistently and cost effectively deliver superior customer service. Don t forget that customers are both internal and external to the organisation. How can you improve systems for superior customer service? There are four key areas to focus on: the suppliers of raw materials and equipment organisational processes external customer service after sales service. Facilitate continuous improvement Version 1.0 Page 14 of 41

15 Ask questions, such as: Do our suppliers meet our needs? Where are things going wrong? What s causing the problem? Do our customers come back to us? Are they happy? Effective systems reduce the chance of mistakes and allow organisations to use the resources they have at their disposal. If good quality systems are the foundation for continuous improvement, how do we ensure that the right systems are in place? To work out whether a specific process or system needs improving, ask these questions. Does this step in the process help to: deliver better customer service? empower employees to make the best use of resources? increase productivity? enhance communication? reduce costs without reducing quality? cut out unnecessary red tape? support originality? TQM Tools The basic purpose of any measurement system is to provide feedback relative to your objectives. Measurement gains true value when it provides information for timely decisions. If you can get your performance measurement right, the data you generate will tell you where you are, how you are doing, and where to go next! Decide what to measure Applying the often quoted 80/20 rule (that 80% of business comes from 20% of an organisation s customers) to an organisation will help you to create the greatest stakeholder value and generate the most profit with the least expenditure on assets, wastage and employee costs. The key is to identify the few spots where small changes can bring about the greatest gains. Decide how to measure it Charts and graphs are useful when they collect and present meaningful information that you can use to make improvements. Data will need to be collected in a consistent manner by welltrained staff who are committed to the process. TQM tools should be used to simplify data and allow analysis for smart business decisions. Facilitate continuous improvement Version 1.0 Page 15 of 41

16 Examples of measurement tools Here are some tools to identify and prioritise areas for improvement: 1. Check sheets Table 1: Check sheet of wastage issues Wastage issue Number of problems reported Week Week Week Total Faulty ovens Packaging errors Total The check sheet above is like a tally sheet where incidents (in this case faults and errors) can be recorded on a daily or weekly basis. This way, you can measure the amount of times a particular error is occurring over a monthly period and whether or not there are any patterns. If you are looking to improve systems and processes you will need to diagnose before you prescribe. A check sheet will show you where the problem is occurring, and how often. Only then, can you attempt to fix the problem. 2. Pie charts This pie chart compares the occurrence of various types of accidents on the production floor over a yearly period. You will notice that the message is displayed in a simple visual format (coloured pie pieces) as well as numerically (using percentages). At a quick glance it is easy to spot that the biggest problem for this organisation is the number of falls that have occurred in Brainstorming Brainstorming involves a group of people coming together to generate new ideas. It is a useful technique because once generated, ideas can then be explored, refined and developed it allows all individuals within an organisation to have some input into developing ideas it provides Facilitate continuous improvement Version 1.0 Page 16 of 41

17 qualitative and quantitative measures. For example, employees can be asked how they feel about a particular issue as well as how many of them are affected by it. Here are some more tools to further identify and analyse areas for improvement: 4. Stratification charts Stratification charts will help you to clearly identify issues. Using this example, data from the weekly check sheets on the bakery production floor was collected and inserted in a word document chart. You can see from the chart below that there were 10 falls recorded in the first quarter (January March 2004) and so on. This table data was then plotted on a stratification chart to provide a clear visual message on where the biggest issues are for OHS in this particular organisation. 5. Pareto charts The Pareto chart has been used below to measure and identify the number of hours that the bakery s ovens are non-operational over a monthly period. The information you can see from the chart is similar to both the pie chart and stratification chart in that it provides a clear visual message of numerical data that can be used to identify and analyse problems. Note: If you d like to know more information about these tools, you can read Cole, K (2001) Supervision. The theory and practice of first-line management. 2nd Edition, Prentice Hall: Sydney Chapter 9, pp Facilitate continuous improvement Version 1.0 Page 17 of 41

18 STRATEGIES AND TECHNIQUES FOR CONTINUOUS IMPROVEMENT Continuous improvement strategies are developed in line with the organisations vision and goals, particularly in relation to the vision an organisation develops on quality. The strategies that are developed from here largely depend upon how invested an organisation is in developing people, systems and processes for the aim of meeting the quality vision. Making this investment is an ongoing commitment, as all organisations exist in a dynamic and changing market place and so the importance of developing continuous improvement strategies is paramount. What you have covered so far in this topic can be summarised as: What is continuous improvement The benefits of continuous improvement through Kaizen Importance of Total Quality Management The next part of this course is to gain a better understanding of how an organisation can develop continuous improvement strategies into their organisations, through management, staff, systems and processes. This topic area runs through the remainder of the course, looking at strategies, techniques and practices with the aim of applying them to real situations and your organisation. Organisational Culture In order for an organisation to implement continuous improvement practices within it's management team and all staff it is important that: organisational mission, vision and goals are created and accepted people at all levels identify with the organisation's goals and aims Organisation had confidence in their leaders participation and input in making decisions is encouraged at all levels all assume responsibility in continuous improvement Creating a culture for continuous improvement Effective continuous improvement doesn't just happen. It is a planned strategic decision that an organisation needs to make in order to embrace the practice and experience the benefits. All departments throughout an organisation must make the commitment to the continuous improvement process. In some organisations where continuous improvement practices have not been implemented or embraced this may need to be developed and a cultural change may need to be initiated. Facilitate continuous improvement Version 1.0 Page 18 of 41

19 Valuing your personnel Involving personnel in decisions made at a department or even organisational level is a clear demonstration that you value their experience, ideas and ability. The reality is that nobody knows the job as well as the person who is doing it and their knowledge is valuable to an organisation and should be harnessed. People always work best when a sense of belonging is communicated to them and they are given the decision making responsibility. This also shows that people are valued and it turn they are willing participants in the workplace. Developing leadership To assist with the development and implementation of continuous improvement it may be necessary to appoint a continuous improvement leader and or steering committee. This is a more formalised and constructive move for implementing these practices and they can ensure that progress is made and maintained. Quality Circles TQM improvements are successful mainly because many small-scale improvements that are cheap and quick to implement result in the greatest gains. They usually come from shop-floor employees who have a detailed appreciation of the benefit each change might make to the process concerned. By implementing many small improvements, you create a substantial overall effect. One of the most well-known techniques of the TQM approach is the idea of quality circles. Quality circles can be defined as a group of workers who do similar work and who meet: voluntarily regularly during work time under the guidance of their team leader or supervisor to spot, describe and solve work-related problems to recommend solutions to management. Successful quality circles usually follow some or all of these guidelines: Circles should involve 5 10 people to ensure everyone has an opportunity to contribute. Meetings should be held in a staff room or away from the work area so that members can concentrate without interruptions. The group should meet for about one hour, once a week to start with, and then on a needs basis. A clear purpose and agenda should be set. Facilitate continuous improvement Version 1.0 Page 19 of 41

20 Expert help can be called upon if needed. Process Re-engineering The focus of quality circles is small changes. The process of re-engineering is the opposite. Reengineering is about monumental changes that bring about dramatic improvements. Process reengineering involves rebuilding organisational processes from the bottom up. The purpose usually centres on meeting customer needs by reducing inefficiencies throughout the organisation. In the past, some organisations that have undergone a restructuring process have found that staff morale has dropped. This is usually due to large-scale retrenchments, poor communication or implementing changes that are not aligned with the strategic plan or vision of the organisation. The best use of re-engineering is when an organisation has clearly identified a need to make big changes to remain competitive. As a result of this process the gains usually result in: more cross-functional teams better use of resources reduced outgoings increased output improved customer service. Benchmarking Benchmarking is all about comparison between individuals, teams, departments and competitors. If we are to stay competitive in the market then it is necessary to know where we stand compared with everyone else. Facilitate continuous improvement Version 1.0 Page 20 of 41

21 COMMUNICATING, MENTORING AND COACHING FOR CONTINUOUS IMPROVEMENT This section covers the importance of communicating continuous improvement processes and how Mentoring and Coaching can be used to implement processes. Communicating Improvements There are many types of organisational communication we need to understand before we can decide which form of communication will be the most effective for our particular need. For example, communication may need to occur: between organisations within an organisation within a group between individuals. Friendly and helpful communication between an organisation and its external customers can lead to more valuable products and services. We may communicate with our customers by phone, , fax or in person, depending on the circumstance. Understanding your customers needs and then communicating how the unique features of your product or service meet those needs, will help to build strong long-term relationships. Effective communication between an organisation s internal customers, such as between research and sales, can lead to better coordination of activities and ideas. For example, the research department can provide ongoing support to current products by giving feedback on areas for market expansion. If communication is open and responsive throughout an organisation, opportunities for exchange of ideas and information become apparent. Be aware when choosing your mode of communication, that most of us send and receive information from various sources every day. The key to communicating effectively is to decide which is the best communication method for the type of message you wish to send. Examples of effective communication are: a retail furniture outlet faxing a customer order to the supplier to ensure fast delivery a monthly group sales meeting discussing sales strategies a video conference to announce changes to customer service policy across a national organisation. Employee Empowerment Facilitate continuous improvement Version 1.0 Page 21 of 41

22 No organisation can achieve consistently high results in today s market with an unmotivated workforce. In fact, your employees can be your greatest asset! Competitors can copy your products and technology but they can t match energised employees who really care. The people who work within an organisation hold the knowledge and workings of an organisation and are central to its competitive advantage. Well-trained, coached and dedicated staff are critical to the development and implementation of continuous improvement strategies. Remember that those working directly with the customers know what is happening. When the ideas of all employees are valued and acted upon, the talent you have hired is able to provide you with more than just their day-to-day contribution. They will provide an insight into the way the customer feels, and may also provide some creative solutions to the problems you face. Collaborative Decision Making A quality workplace culture supports and promotes communication right across the organisation. Whether workers are focused on research, production, marketing or customer service, they should be working together to share ideas and reduce unnecessary errors. Successful collaboration involves establishing an environment in which it can effectively operate. Leaders must possess particular qualities to enable the benefits of collaborative decision making to become a reality. Leaders who encourage and promote collaborative decision-making have the confidence to involve everyone in the decision-making process. They are able to: communicate a vision to employees inspire energy in others set challenging goals see change as an opportunity, not a threat think laterally. Good leaders are open to new ideas and committed to quality and excellence. Giving Feedback To be a successful manager leader, you must be skilled at giving feedback to ensure your employees continue to do what they are doing well and change what they aren t. Even if feedback is constructive or positive, it needs to be delivered in a way that makes your team members feel valued and supported. Facilitate continuous improvement Version 1.0 Page 22 of 41

23 Feedback needs to be: Consistent with the values of the organisation and yourself. The feedback you give should not depend on whether you are having a good or bad day. Deliver the same message to all employees. For example, if you praise the effort of one employee for excellent customer service, try to praise all who are delivering the same results. Objective keep emotions out of a feedback session and never criticise someone s character. Describe the employee s actions in simple, clear and specific terms and offer advice on what needs to be corrected if necessary. Timely where possible, give simple, clear, constructive feedback during or just after a skill is performed. Given in an appropriate setting give feedback for one employee in private, with no one else present. If the feedback is for the whole team, organise a team meeting to focus on it. Approached positively you are in a position where you rely on your team to perform effectively, so that you can reach your goals and objectives. Performance feedback should be used to improve performance without making the other person feel threatened, misunderstood or victimised. For more information about feedback, click on Stephen R Covey's website, The 7 Habits of Highly Effective People. Reward and Recognition Today, managers, team leaders, supervisors and coordinators need to be innovators dedicated to developing people, stimulating teamwork, servicing customers properly and ensuring top quality work. To be a successful manager, you must: achieve great results develop people encourage team work be forward thinking and creative believe in excellent customer service respect and encourage individuality be trustworthy and reliable be quality-focused have extensive knowledge of your business, the competitors business and the global economy. Facilitate continuous improvement Version 1.0 Page 23 of 41

24 You can see from this list that team leaders and supervisors achieve success through managing others. This is why they must be able to give rewards and recognition to the employees they are responsible for. Your team deserves and appreciates recognition for excellent work, income-producing ideas and triumphant innovation. Using rewards increases the potential for productive behaviour and demonstrates an appreciation for a job well done. Here s a list of possible rewards and incentives. You can: recognise individual and team effort in your organisation s newsletter or the local newspaper organise financial bonuses give rewards such as gift vouchers, CD vouchers, movie tickets and company products organise discounts on company products approve attendance at conferences approve scholarships for further education offer promotion or extra responsibilities that may lead to promotion organise an employee of the month/year program thank your staff for their effort. Remember that rewards have more value if the employees themselves have a say in how they are rewarded. It makes sense that for a reward to be worthwhile, it must be something a person sees as valuable. ACTIVITY 1.4: What rewards or recognition systems would you put in the workplace? Facilitate continuous improvement Version 1.0 Page 24 of 41

25 Performance Appraisals A performance appraisal is a discussion used to evaluate the work performance of an employee over a specific period of time (often annually), as well as to identify training and development needs and future work goals. It provides an opportunity to assess what has been achieved to date and gives you, as team leader or supervisor, an opportunity to provide constructive advice on areas for improvement. Performance appraisals should: set mutually accepted goals for performance and future development evaluate past performance and decide upon ideas for improvement provide an opportunity for a manager to give one-on-one feedback identify training and development needs identify employees with potential to take on further responsibilities determine performance-based pay increases. The chart on the next page is an example of a competency-based performance appraisal form used to examine the performance of a sales representative in the area of customer service. Employees are asked to rank themselves on a performance continuum and give examples to demonstrate that they have reached a particular level. A certain level of performance is expected for sale representatives, although this level varies for junior and senior representatives within the organisation. Performance is assessed using this form once a year. However, sales representatives must collect examples of performance on a monthly basis and store them in a performance file so that when their review is scheduled, they can show that they have met the competencies throughout the review period. Facilitate continuous improvement Version 1.0 Page 25 of 41

26 MENTORING IS developing insight so that hindsight becomes foresight. In The Odyssey (written by Homer, a Greek poet), Odysseus was preparing to fight the Trojan War when he realised he would be leaving behind his only son and heir, Telemachus. Since the child was young and wars typically dragged on for years Ulysses entrusted Telemachus care and education to Mentor, his wise, trusted friend. Today, mentoring is a process in which an experienced individual helps another person to develop his or her goals and skills through a series of time-limited, confidential, one-on-one conversations and other learning activities. Mentors also draw benefits from the mentoring relationship. Training Coaching Mentoring The success of the mentoring relationship depends on the time and commitment invested in the relationship. A strong mentoring relationship helps mentees adjust to and succeed in the work environment. Consider a time when you have been in a mentoring-type relationship, either as mentor or mentee. Be ready to be interviewed by your learning partner in response to the following questions. How did the relationship come about? What was happening? How did it feel? What did you gain from the relationship? What do you think the other person gained from the relationship? What skills were needed? Why did you have confidence in the relationship? Facilitate continuous improvement Version 1.0 Page 26 of 41

27 What do mentors do? The mentor helps the mentee make sense of the broader requirements of the job. A mentor: Advocates Offers sponsorship, provides exposure and visibility within the organisation Acquires resources Brings critical readings, opportunities, or experiences to the attention of the mentee Acts as a role model Offers insight on how he or she made it in the organisation Advises Shares institutional and professional wisdom, critiques performance, makes suggestions Coaches Helps a mentee learn new skills and practice new behaviours Supports Listens with a sympathetic ear, explains unwritten rules, and acknowledges disappointments and triumphs. Challenges - Sets challenges and realistic expectations for career progression. Provides environment for reflection Exposes - Provide opportunities for networking and professional contacts Discuss How does this list relate to your role as a workplace mentor? A good mentor provides information, shares their experiences or expresses an opinion. However, it is always the mentee that decides, acts and produces outcomes. Facilitate continuous improvement Version 1.0 Page 27 of 41

28 KEY STEPS IN A MENTORING PROGRAM 1. Determine need and capacity. Identify the number and type of employees who want to build relationships and learn from more senior management. Identify specific opportunities where mentoring will benefit both employees and the organisation. Determine your organisation s capacity for launching a mentoring program. o Is senior management supportive of a potential mentoring program? o Will the organisation allot staff time to coordinate the program? o Is the organisation willing to give staff members the time needed to develop their mentor-mentee relationship? 2. Define the population to be served. Who will be served by the mentoring program? Before designing a program, identify the kinds of participants you want to involve. 3. Determine the type of mentoring program that fits your organisation. One-on-one mentoring can be an extremely gratifying process for the participants, but there may not be enough mentors to match everyone in your organisation who would like to be involved. Other mentoring options exist; for example, mentoring circles and e-mentoring have increased in popularity and may meet the needs of your organisation better than the traditional model. 4. Draft the time frame for the mentoring program. As you plan your mentoring program, link your goals to a defined time frame. 5. Build organisational support. It is important to present a clear business case to justify the need for a mentoring initiative. Don t assume that everyone in your organisation will be supportive. 6. Decide how mentors and mentees will be chosen. The matching process can make all the difference to your mentoring program. How will mentors be chosen? Do not assume that a senior-level title is the only criterion. Mentors should be motivated by a strong desire to see the next generation achieve its leadership potential. They must be willing to make a time commitment to their mentee. How will mentees apply or be selected? Mentees must show willingness to take direction and to be exposed to new opportunities. Mentees also must have the maturity to manage the mentoring relationship, by respecting their mentor s time and professional responsibilities. Facilitate continuous improvement Version 1.0 Page 28 of 41

29 7. If a one-on-one program is chosen, determine how to pair mentors and mentees. Ask participants to prepare biographies with their educational and professional history, career objectives, strengths and weaknesses and expectations for the program. This information will guide the matching process. 8. Decide when and where the mentoring will take place. The organisation can suggest a general timetable that can be used as a guideline, but it is best to let the mentor pairs determine a schedule that meets both of their needs. Remind the pair of their commitment to the program, but let them decide how much time they are willing to devote to the relationship. 9. Conduct an orientation program for participants on effective mentoring. For a successful mentoring program, orientation is critical, both to state the program s goals and to clarify expectations. Some organisations find that separate orientations for mentors and mentees work well, allowing each set of participants to express their hopes and concerns freely. 10. Encourage mentors and mentees to collaborate on a plan. Following orientations, mentoring pairs can be brought together for a joint training session. Mentees can be asked to define their goals for the mentoring program. Mentors can respond by projecting how they might facilitate the learning of their mentee. Understanding each other s goals and expectations will make it easier to move the relationship forward. 11. Monitor the Program. Establish a system for monitoring your mentoring program. Contact your mentoring pairs (or mentoring circle) on a regular basis to find out how the relationship is progressing. Offer guidance and support as needed, and should a conflict arise, address the issue immediately. 12. Evaluate the program. After the program s completion, ask the program participants to evaluate their experience. Did the program meet their goals? What worked well? What could have worked better? What recommendations would they make for future mentoring initiatives? The organisation also should play a role in assessing the success of the mentoring program. How have the mentees progressed in the organisation; for example, by increasing their visibility, skill development and whether they are promoted to senior positions faster than their colleagues who did not participate in the program. Facilitate continuous improvement Version 1.0 Page 29 of 41

30 ACTIVITY 1.5: What are the important components of a mentoring system? Facilitate continuous improvement Version 1.0 Page 30 of 41

31 ELEMENT 2 - MONITOR AND ADJUST PERFORMANCE STRATEGIES Continuous improvement is all about finding ways of doing business better. Using reliable tools you will be able to collect and analyse data and plan for further improvements. Monitoring for Continuous Improvement Why Monitor? Improving quality is all about directing your team to effectively meet customer needs. It is a continuous process that involves: achieving a better understanding of the market being innovative when developing products and processes managing and distributing products and materials providing high quality service to customers. The success of quality improvement is based on how well you measure the success of your organisation's products and services against your customers' expectations. You have probably heard the term: if you fail to plan, then plan to fail. Planning is essential for business success. But monitoring is just as important as planning. Without continual feedback on how a plan is going, the plan itself becomes meaningless. Developing and reviewing progress reports and adjusting plans when necessary, will ensure that quality improvements are achieved. Steps to Monitoring Step 1: Where do you need to monitor? Ask the question: What change would make the single biggest difference to your workplace? Some of the following examples of organisational improvements may apply to your organisation, or there might be other ones that are important for your team to function at their best: customer service on the telephone reducing waste increasing profit improving production/supply advertising and marketing your goods/service. Facilitate continuous improvement Version 1.0 Page 31 of 41

32 Step 2: What will you measure to provide quick and clear information? You will need to know what you are measuring and why. For example, there is no use measuring the effectiveness of a new telephone customer service program by surveying all your customers you need to speak with those customers directly affected by the new service. This way you will receive specific and timely feedback so that progress can be checked against the plan for improved service. What will you need to look for in an effective measurement tool? It must be: accurate specific well-timed providing quick and easy feedback when you need it cost effective. Step 3: What is the gap between current performance and the goal or standard? Ask the question: How is your team performing now compared with where you would like to be? You should establish a basis to work from and then measure progress towards your goal. Step 4: What action do you need to take? Making unnecessary changes will de-motivate your team. However, collecting and analysing carefully measured results will give you the information you need to do one of the following: 1. Make short-term quick fixes in the interim until you have worked out a better long-term adjustment. 2. Change plans if the goal has been unrealistic, for example sales targets might need to be adjusted if your product has experienced a delay from the overseas suppliers, a situation that couldn t have been predicted. 3. Make corrections so that barriers to performance can be eliminated. 4. Prevent problems that have been identified by your monitoring system. 5. Develop and follow a contingency plan of action if there are unforeseen circumstances that have taken you temporarily off target. Monitoring the Results In the past, most organisations approached quality control by inspecting products and services after they were produced or accomplished. Quality assurances were typically audits done by specialists using pre-determined standards of performance as their criteria, but they were done after the Facilitate continuous improvement Version 1.0 Page 32 of 41

33 product or service had been supplied! Traditional organisations anticipated that there would be errors in the results and devoted generous resources to fix the problems. Total quality management (TQM) focuses on improving the processes and systems that create the products or services, so that they are error free and there is minimal waste of resources. TQM puts quality control and quality assurance further back in the production and service process by empowering team leaders and workers. Using Technology to Monitor Traditional management also tends to rely on technological advances such as automation and computers to produce improved quality and productivity. These tend to be one-off improvements, and this means that you must then wait for the next major technological advancement to initiate the next improvement. TQM does not ignore these breakthroughs but places more value on small, incremental gains resulting from daily attention to enhancing how work is done. Continuous improvement relies on feedback from the customers both internal and external. This feedback can be both informal, for example using stakeholder analysis, and formal, for example using focus groups and surveys. In a TQM system, technology is used to measure and manage variance this is any deviation or variation from a particular level of performance outcome. The specific tools that are used include: stratification charts flow charts process control charts scatter plots. They are tools used by an organisation to determine if a process is within control limits. Adjust and Communicate Strategies Team leaders and supervisors are a vital link between different levels in an organisation and act as a focal point of change. They receive plans from above and are responsible for communicating them to their staff. They are also responsible for making sure that feedback from those in direct relation with external customers is communicated to upper management. Facilitate continuous improvement Version 1.0 Page 33 of 41

34 The concept of proving opportunities for further improvement links us back to the Kaizen approach: The kaisen approach is: 'Let's keep examining everything we do and see how we can do it better.' By taking on this approach organisations should: implement processes to ensure all staff are informed of savings and productivity improvements document work performance to aid in identification for improvements manage records, reports and recommendations for improvements within the organisations systems and processes. All staff are informed When success is achieved and communicated to staff they feel empowered and inspired, which in turns creates a positive work environment which works towards further improvement. ACTIVITY 2.1: Use the table below to identify and list all the current means by which your team is informed of productivity and service improvements. Information How team is informed Productivity Improvements Service Improvements Documenting Work Performance Decisions about productivity and service performance in business cannot be left up to gut feelings or personal opinions. Better decisions are made when they are based on facts and data. This should be part of a quality system were reporting and recording results is a standard procedure. In order to maintain a successful culture for continuous improvement we need to get the facts. Facilitate continuous improvement Version 1.0 Page 34 of 41