Taking Aim, Cannon Advantage Monthly Newsletter

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Volume 3, Issue 12 - December, 2004

• Agility for Sustainability

High Engagement, it’s not your standard Employee Motivation

All organizations today are faced with intense competition and rapidly changing markets, customers, products, delivery, systems and services. The rate of change is outpacing our ability to adapt. We are witnessing this inability to adapt every day as organizations in business, government, religion, healthcare etc. fail right before our eyes.

Sometimes, I think we overlook the fact that the rules of the game have changed as well. Early on in my career, businesses were evaluated by the amount of assets or “Retained Earnings” showing on their books. “Good Will,” used to be a bone of contention in determining the real value of an organization. Today, little if any attention is paid to “Retained Earnings” as we have switched to measuring “Return on Investment” and other measures of efficient use of capital. In part, efficiency has become the key instead of asset accumulation because a product and process that is generating a profit today may be tomorrow’s buggy whip. Change in our environment and change in the rules we are measured by all point to the need to be adept at change.

To me, an agile organization is one that is proficient at change. It can do anything it wants, whenever it wants. There have been lots of different operating strategies presented over the last few years to help us transform our organizations to higher levels of performance. These strategies include, LEAN, TQM, Continuous Improvement, SMED, Process Reengineering, Mass Customization and others. Sadly many of the efforts to implement these strategies have failed not because the strategy was wrong, but rather because agility was missing in the organization. Agility is a people issue not a strategy or process issue. Successful adoption of operating and transformational strategies will happen much faster and with less expense as an organization becomes more agile.

Like evolution and mutation in living organisms, organizational adaptability or agility is a core survival requirement. Achieving agility in an organization is contrary to the way most of us were trained to manage. Most management training even today is still based on the work of Frederick Taylor. It is an approach to management that worked well at the beginning of the Industrial Revolution, but is sadly out of date in today’s highly sophisticated world where computers, cell phones, the internet, radio and television are commonplace and workers are better educated and more involved in their world than ever before.

As I witness the changes in organizations, I become more convinced daily that all of the process improvements in the world will not by themselves solve the problems facing organizations. It is time for a new approach to management that involves people in the issues that affect them leading to engagement, creativity and commitment in the workplace. Jack Stack in his book The Great Game of Business makes the case when he says, “…productivity depends on people. I don’t disagree that machines can make you more competitive. They can absorb overhead. They don’t take breaks. They don’t go on vacation. They don’t sit around wasting time. What machines can’t do is figure out how to make money. Only people can do that. If you have people who know how to make money, you’ll win every time.”
For too long, we have relied on a leader – who by virtue of position, greater experience, wisdom or skill, is relied upon as the problem solver and that leader fails to ask for or accept input from team members. Psychologist Patrick Laughlin and his colleagues at the University of Illinois recently released a new study that shows that the approaches and outcomes of cooperating groups are not just better than those of the average group member, but are better than even the group’s best problem solver functioning alone.

Not only do groups make better decisions, but once agreed to, the decisions are far easier to implement and have much greater likelihood of success. More and more research points to the advantages of group engagement and decision-making. It is no longer a matter of why you should adopt a high engagement strategy with your people to gain agility, but rather how to implement this process.

Roadway is a trucking company that is currently implementing a high engagement strategy in their organization with some tremendous successes. Their approach includes three elements and may very well be the model for other organizations. The three elements of their program are: 1.) Education, 2.) Tools, 3.) High Engagement.

First, Roadway is spending a lot of time educating their people about the business. They have adopted much of the thinking from Jack Stack’s book, “The Great Game of Business.” The key is to help their employees understand the financials of the business and how they affect the numbers. Second, they have trained their people in the basic principles of LEAN so that they can evaluate current processes and procedures and have a basis for making changes that will positively affect the bottom line. Finally, they have adopted and use a positive approach to achieving “High Engagement.” Rather than focusing on the problems in the company, they have chosen to look at the strengths of the company and build on those strengths using David Coopperrider’s 4D model for positive change.

The results at Roadway have been impressive. There are many stories of success at individual terminals that are now being shared across the company and in the meantime just one of the measures they use has recorded a $10 million improvement over the last 4 years. Roadway is rapidly developing Agility to help them face a very competitive and rapidly changing world. Without it, they would most likely not have survived.

If you need to become more agile or have undertaken operational or transformation strategies that didn’t get the results you wanted, give us a call to discuss how you can use “High Engagement” to achieve sustainability.

• OptiLedge System the pallet alternative
While attending the Fabtech show, I ran into Taking Aim subscriber John Huot of Huot Manufacturing. During our discussion, John suggested that I visit the OptiLedge System booth to see the alternative approach to pallets that he believed would save his company tens of thousands of dollars in just one year. After visiting the booth, it became apparent that this could be a great gift for other Taking Aim readers. To learn more, visit www.rehrigpacific.com and click on the OptiLedge System button on the home page.

• Latest Research
I cdnuolt blveiee that I cluod aulaclty uesdnatnrd waht I was rdanieg. The phaonmneal pweor of the hmuan mnid Aoccdrnig to rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? yaeh and I awlyas thought slpeling was ipmorantt!

• Happy Holidays!
As we come to the end of 2004, I want to take this opportunity to thank all of you for your part in helping make this year truly memorable. Thank you to our clients who made this possible. Thank you to the over 600 executives now receiving “Taking Aim.” Thank you to the “Virtual Team” including Joe, Kim, Linda, Paul, Peg, Peter and Susan for your support, your wisdom and your friendship.

If you have a subject that you would like to see covered in future issues of “Taking Aim,” please send me an email at aim@CannonAdvantage.com.


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Bob Cannon, Principal, The Cannon Advantage

Robert E. Cannon
Management Consultant
175 Sorrelwood Lane,
Chagrin Falls,
OH 44022 USA
866.598.8450 phone/v-mail
440.338.7159 facsimile

aim@cannonadvantage.com


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Anonymous

 

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