PERFORMANCE IMPROVEMENT: THE MEANS TO PROCESS IMPROVEMENT John R. Schultz

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1 PERFORMANCE IMPROVEMENT: THE MEANS TO PROCESS IMPROVEMENT John R. Schultz Successful problem solving and improvement require more than the discovery of a workable solution. At some point, the results need to become part of daily routines and locked in place so that these new practices do not revert to old, less productive habits. Using performance improvement steps to secure the change can ensure that process owners will not revisit the same set of issues in the future. MANY OF US HAVE WORKED in organizations where considerable time was spent studying and improving systems or processes. The method used probably followed a well-defined and rational set of steps that encouraged measurement and root cause analysis. When applied to process concerns, this approach can readily clarify issues and find solutions that enhance operations. But integrating process improvements into daily organizational work can often be a challenge for the HPT professional. Improvement projects, although well intentioned and defined, often bog down in the latter stages because team members and sponsors can lose focus once a solution is found. Efforts naturally center on the problem, measurement, analysis, and potential solutions, but they often fail to consider factors affecting how improvements will become a permanent way for functioning. Process improvement methods are typically twostaged. The first phase is concerned with problem identification and solution finding and the second phase with implementing a corrective action. These activities often operate under time constraints where energy is exhausted on the preliminary stage as team members grapple with issues and resolutions. Implementation then becomes a rush where thoughtfulness about people and process impacts may frequently get shortchanged. Table 1 characterizes this process. For instance, once a process improvement solution is found, there is a temptation to push new ideas on the system, only to find actions foundering as participants come to grips with unfamiliar concepts. Even when the need for change is recognized and a solution is acknowledged as technically sound, work activities may continue as if nothing new had been proposed. DEFINING AN APPROACH THAT WILL SECURE IMPROVEMENTS Any time there are improvements or changes to established routines, no matter how inconsequential, many people have invested time and energy in existing operations and may find proposed revisions unsettling. So shifting process structures, activities, and cultural behaviors should be handled systematically and with consideration for consequences. Therefore, including steps in the improvement method that explain how people will benefit and accommodate stakeholder needs can secure acceptance of change and ensure a more successful conclusion with minimum upset. Table 2 illustrates how these steps for performance improvement are integrated into the process improvement framework. The performance improvement steps that follow define an approach that on its own can be used to bring about change; when it is applied in conjunction with process change, it ensures desired behavioral adjustments and improvement outcomes. Step One: Define Goals and Performance Expectations Before people can perform as expected, they need to understand desired direction and anticipated outcomes. Often changes to systems and processes produce insecurities because anticipated results are poorly defined and Performance Improvement, vol. 46, no. 7, August International Society for Performance Improvement Published online in Wiley InterScience ( DOI: /pfi

2 TABLE 1 TYPICAL PROCESS IMPROVEMENT MODEL Problem identification and solution finding 1. Identify and define the problem. 2. Describe and measure the process affected. 3. Identify and analyze causes. 4. Develop a solution that addresses causes. Actions are often readily and enthusiastically accomplished. However, Finding a solution, not corrective action, becomes the goal. Energy is dissipated on solution finding. Problem solvers retire mentally once a solution is found. Solution implementation and corrective action 5. Plan and implement process improvements. 6. Evaluate outcomes, and make modifications as required. 7. Reinforce priorities and new work patterns. Actions are often insufficiently thought through and hastily done. Time becomes a factor, and there is a rush to conclude the project. Impacts on people get shortchanged. Standardization and integration are incomplete. Source: Brassard, Field, Oddo, Page, Ritter, & Smith, articulated. Communication ought to be more than a set of well-crafted words or an announcement demanding commitment. It should convey a sense of reason and purpose that allows all involved to have a stake in the future. A well-stated purpose should accomplish the following: Be brief and well focused so that it can be easily communicated. Convey a picture of the future or desired end. Say something that is enabling and appealing to stakeholders and customers alike. Be realistic in its purpose so the end appears obtainable. A well-crafted performance expectation should do the following: Describe desired values and principles for working relationships. Explain how individual job functions fit the larger purpose of the process or system. Depict what is expected of the individual when performing work and what is considered good work. Step Two: Identify the Performance Gap, Including Its Sources and Causes The objective of this step is to accurately understand where behaviors may not align with expectations. The effort, however, should be more than a campaign to reduce ambivalence and complacency. It should examine and compare process or system realities with stated purposes. The job, of course, is to uncover and collect evidence that performance does not conform to declared goals and results. In particular, look for situations where there are requirements to follow a schedule, complete certain tasks, use specific tools or equipment, report within a time frame, complete a record, or act in accordance with others. Evidence is typically collected in the following ways: Examining documents and records to assess if procedures and work instructions are being followed Collecting and examining data where measurements and counts can be made or routines fail to operate within prescribed limits TABLE 2 STEPS FOR SECURING IMPROVEMENT PROCESS IMPROVEMENT MODEL PERFORMANCE IMPROVEMENT STEPS 1. Identify and define the problem 2. Describe and measure the process affected 3. Identify and analyze causes 4. Develop a solution that addresses causes 5. Plan and implement process improvements 6. Evaluate outcomes and make modifications as required 7. Reinforce priorities and new work patterns 1. Define goals and performance expectations 2. Identify the performance gap, including its sources and causes 3. Develop solutions that address causes 4. Plan a corrective action 5. Empower individuals to take responsibility and action for improvement 6. Create opportunities for small, meaningful accomplishments 7. Expand accomplishments and complete unfinished change activities 8. Reinforce the new approach 28 DOI: /pfi AUGUST 2007

3 Observing activities to see if operations are performing as specified Interviewing people connected with redefined process activities to see if they understand expectations or procedures and work instructions Step Three: Develop Solutions That Address Causes This step, where causes are matched with effective solutions, requires innovative thinking. However, there are dangers because problem solvers tend to interpret information based on their experience. Building on existing knowledge in relation to what works and what does not work is fine, but it can trap people into using familiar answers over and over again. To keep this from happening, consider discussing issues and causes with stakeholders as well as team members. Use techniques that by their nature produce alternative ways of solving a problem. Here are ways to help develop solutions that address issues: Use classic brainstorming or cause-and-effect diagramming to bring out ideas. Identify factors that place limitations on the use of resources, such as time, budgets, materials, equipment, and people. Rank potential solutions against limitations using a criteria matrix or nominal group technique. Select the best overall solutions, and discuss their efficacy with process stakeholders. Generate a list of tasks that are required to implement proposed solutions. Step Four: Plan a Corrective Action This is where details for making improvements operational and permanent are worked out. Planning is not difficult and is fairly straightforward. There are individual approaches and techniques that can be used, but the completed plan should sequence and schedule tasks. This is also the step where methods for reducing and accommodating resistance to changes should be considered and incorporated. A typical plan contains these elements: A method for determining constraints or issues that may become barriers to implementation Requirements for equipment, materials, people, and training so implementation tasks can be completed A sequence of steps that map out tasks required for completing the transformation An estimate of time for the completion of each task so deadlines become apparent An assignment of responsibilities for tasks so activities are implemented and completed Step Five: Empower Individuals to Take Responsibility and Action for Improvement Empowerment is the process of power sharing between work groups and their leaders. It is defined by a relationship where members are granted authority to make changes and accept the responsibility for decisions related to those actions. Empowerment implies a defined purpose, freedom to make choices, and sufficient support to complete assigned activities. Table 3 identifies barriers to empowerment. The following activities support empowerment and advance process improvement: Provide training so people are capable of operating in a new environment. Provide mechanisms for addressing infrastructures that undercut change activities. Ensure that decisions by work groups are not reversed without member consultation and consent. Place responsibility for the details of getting work done in the hands of informal leaders and process operators who have the insight and capability to complete transformational activities. Step Six: Create Opportunities for Small, Meaningful Accomplishments These are transition activities of moderate importance that create a sense of accomplishment. By itself, the result may seem to be of minimum importance, but as these small achievements accumulate, they show advancement that can win allies and soften resistance. People can begin to measure progress and visualize a successful conclusion. This sets in motion forces that are more favorable to TABLE 3 BARRIERS TO CHANGE AND EMPOWERMENT Lack of a clear focus or purpose Making decisions that are detached from solid information or facts Creating plans that are self-serving and undermine proposed goals Requests without explanation Questioning without listening Saying one thing and doing another (not walking the talk) Increasing responsibility without granting full authority Demanding changes without providing sufficient resources Not providing a method of recourse for injustice Not sharing the rewards with those who produced the results Performance Improvement Volume 46 Number 7 DOI: /pfi 29

4 completing another step. Success tends to attract more success for these reasons: Small steps are more attainable because risks and costs are low and the fear of failure is reduced. They reinforce the idea that effort will produce results. They provide a sense of achievement and satisfaction. They enhance the feeling of competence and ability. They reinforce the feeling of control during difficult circumstances. They create interest and optimism in the next set of activities. Step Seven: Expand Accomplishments, and Complete Unfinished Change Activities This is the point where new structures, work operations, communication links, and relationships are being formed, with old interdependencies disrupted and new ones established. However, as these separations and connections are being made, resistance may reassert pressure to maintain old and familiar alliances. Maintaining momentum, reestablishing focus, and ensuring support are critical in this step, so that the project does not bog down or derail. This can also be the time when some people want to prematurely declare success. To keep the transformation process on track, ensure the following: Managers and supervisors lead by example. Adjustments are made when new patterns prove unworkable. Formal and informal structures include communication processes that are compatible with new objectives. Individual work activities are designed to support structural changes and new objectives. An involved sponsor or coach allows people to experience the change by identifying and seizing opportunities to try out new skills, behaviors, and relationships. As small achievements accumulate, they show advancement that can win allies and soften resistance. Step Eight: Reinforce the New Approach Although the improved system or redesigned process may appear successful, there are still some things that can help lock the new approach in place: Acknowledge and celebrate the accomplishments of all supporters and stakeholders. Continue to monitor and measure system outputs for efficiency and quality. Continue to monitor system decision making and how people relate to one another. Initiate problem solving if outputs or behaviors fall below acceptable expectations. Acknowledge and reward those who continue to ensure system performance and supportive relationships. DEALING WITH RESISTANCE TO IMPROVEMENT Proposed improvements can be perceived as threatening when unfamiliar skills and social structures are required. Employee uncertainty and resistance may take many forms, ranging from negative attitudes to reduced productivity, decreased quality, increased absenteeism, and increased grievances. In general terms, the sources for resistance (Lawrence, 1969) are summarized in Table 4. TABLE 4 SOURCES OF RESISTANCE TO CHANGE Doubt about the causes and effects of the proposed improvement There is uncertainty about the intention behind the change and how it will affect existing work structures and relationships. Concern over the loss of existing benefits There is fear over how potential changes will affect power, prestige, salary, quality of work, or other perceived benefits attributed to the current system. Realization that the proposed improvement is flawed There is awareness that the new way for operating has problems that will create difficulties in the current system or adjacent process. Source: Lawrence, DOI: /pfi AUGUST 2007

5 Fear and anxiety are a natural response to change. An atmosphere of openness is key to coping with resistance and addressing the needs of people affected by change. Table 5 shows specific strategies for dealing with resistance to process improvement changes: Two-way communication. This is used when there is an assumption that information is lacking, is inaccurate, or is being poorly analyzed. It requires listening to employee concerns and providing precise information. Group participation and decision making. This ensures that those affected by the change have input into the design and realization activities. Employee groups are encouraged to take an active role in the change process, including planning and implementation. Education and training. Special attention is paid to people s needs and concerns through team building, confidence building, and training to ensure skills are sufficient for modifications in responsibility. TABLE 5 METHODS FOR MANAGING RESISTANCE TO CHANGE TECHNIQUE APPLICATION ADVANTAGES DISADVANTAGES Two-way communication Promote benefits Provide accurate information Challenge rumor and speculation Builds trust Reduces anxiety Provides a common vision Takes time Uses top-down selling that can be overbearing or misunderstood Group participation and decision making Solicit and share information Provide shared responsibility Build relationships Encourages an exchange of ideas Increases commitment Promotes teamwork Takes time Requires training and skill building Requires expertise in group dynamics Education and training Reduce barriers Ease adjustment to a new situation Provide new skills Lessens insecurity Builds a team atmosphere Provides direction Takes time Requires training and skill building Requires supervisors with coaching and mentoring skill Negotiation and bargaining Desire to create balance and equity Create a caring environment Reduces management guilt Reduces anxiety Requires negotiating skills May be time consuming Economic incentives Compensate for economic and social losses Lessens the feeling of loss Reduces resistance Can be expensive Manipulation and concealment Other tactics do not work Environment is politically charged Fairly quick to implement Reinforces control Relatively inexpensive Destroys trust Can lead to future problems May be challenged as unethical Power and coercion Eliminate entrenched resistance Maintain a position of power or control Ensures a fast implementation Least expensive Destroys trust Creates a strong feeling of loss Can encourage sabotage and whistle blowing Source: Kotter and Schlesinger, Performance Improvement Volume 46 Number 7 DOI: /pfi 31

6 Negotiation and bargaining. Through a process of open discussion and exchange of ideas, modifications are made to the proposed change. Usually the rate of implementation and issues dealing with employee welfare are negotiated. Economic incentives. Some form of compensation is provided to reduce losses that result from the change. Guarantees against the loss of wages and commissions may be used to offset position adjustments. Two more approaches can be used to overcome and reduce resistance. However, they deserve separate consideration since they are coercive, very top-down in nature, and are often used as a first alternative rather than a last choice. Their application produces not buy-in but compliance, where continuing relations between levels of authority often become adversarial: Manipulation and concealment. These involve covertly managing and distorting information as well as systematically controlling resources, rewards, and key personnel through subterfuge and deception. Power and coercion. This approach blatantly uses power with the threat of adverse consequences and punishment to force acquiescence or compliance with the proposed objectives. SUMMARY AND IMPLICATIONS FOR HPT PRACTICE Successful problem solving and improvement require more than the discovery of a workable solution. At some point, results need to become part of daily routines and then locked in place so new practices do not revert to familiar less productive habits. Using action steps during the solution implementation phase to secure change will ensure that results become standardized. Equitably addressing concerns and fears should become a matter of practice when reordering operations. Simply providing information and exhorting modified behavior is seldom successful. People rarely change Communication should convey a sense of reason and purpose that allows all involved to have a stake in the future. because of being pushed, told, or warned. Such appeals, in fact, typically serve to heighten tension and prolong resistance. The goal of implementing a performance improvement solution should go beyond simple resolution of a problem. It should be focused on facilitating corrective actions designed to secure integrated and sustained organizational change. References Brassard, M., Field, C., Oddo, F., Page, B., Ritter, D., & Smith, L. (2000). The problem solving memory jogger. Salem, NH: Goal/QPC. Kotter, J.P., & Schlesinger, L.A. (1979). Choosing strategies for change. Harvard Business Review, 57 (2), Lawrence, P.R. (1969). How to deal with resistance to change. Harvard Business Review, 47(1), Related Readings Kotter, J.P. (1996). Leading change. Boston: Harvard Business School Press. Lewin, K. (1951). Field theory in social sciences: Selected theoretical papers. New York: HarperCollins. Rollo, J. (2001). Performance management: A pocket guide to employee development. Salem, NH: Goal/QPC. JOHN R. SCHULTZ is a management consultant and retired college professor. During the past 20 years, he has administered an advanced technical certificate program in quality management and taught courses in management and leadership development. Prior to teaching, his work experience included 25 years of technical services administration and new product development in the construction equipment industry. He has done graduate study in adult education and has a master of science degree in management and undergraduate degrees in industrial management and organizational behavior. He may be reached at jrschultz@aosmail.com DOI: /pfi AUGUST 2007

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