September 1996 € Volume 6 € Number 9
Employees Can Make or Break a
Business Change Initiative
By Michael E. Kane
There is a tremendous amount of business literature in existence that describes
and directs a company through the improvement process. The vast majority
of the information focuses on the technical aspects of business change.
The latest and greatest innovations in information technology, quality measurements
and manufacturing control systems are touted time and again. However, with
rare exception, these innovations alone do little to enhance the bottom
line of a business. Sure, a UNIX-based information system may cost less
to manage than a system that has been around for the better part of two
decades. But real bottom-line success hinges on a business's people and
real changes to business processes.
There is an old adage that drives consultants: "Business change is
95 percent tactical and 5 percent technical." Therefore, to successfully
launch a true business change initiative, companies must focus on their
employees as the factor that will make or break the initiative.
Throughout many of the human resource columns over the past two years, we
have discussed the virtues of communication. Communication is typically
considered a soft issue that does little to enhance the bottom line. It
is commonly skipped over in the change process, especially by companies
in dire financial straits. However, communication in a business change process
involves spelling out the details of the change initiative for all employees.
This may sound like a monumental task in itself, especially in large companies,
but communication at the early stages can eliminate uncertainty and resistance
later in the effort. Communication means that management describes the entire
change process to all employees. They need to communicate the good with
the bad. If downsizing or job realignment is a part of the process, then
it should be communicated. All successful businesses have the same thing
in common. As an organization, they trust their management team. There is
a difference between trusting and liking everything that is said, but trust
is critical to success in any organizational setting.
All business change efforts are initiated with a goal in mind. Not only
should the goal be communicated, but also the measurements that will be
used to evaluate the process. People need to know how they influence the
performance of a business or its specific goals.
This goes for shop floor workers as well as top executives. Describing goals
and their ingredients can provide a powerful morale boost to the business
as it improves. For example, a furniture manufacturer worked very hard on
its delivery reliability. The company struggled with the hands-on management
necessary to sustain any improvements it had made. After posting results
of the measures weekly in each area of the shop and realizing results, the
company wanted more -- it wanted to know, at any point in the day, how well
it was meeting delivery goals. The company installed computer teletape boards
that flashed the percentage of product that was delivered versus what was
due for the day. This created tremendous teamwork within the business. As
the day progressed, employees sought out problems that stood in the way
of the 100 percent delivery goal. Knowing the ingredients of the measurement
and how they affected performance was the key to pushing the company over
the top.
A very important aspect of any improvement initiative is the quantification
of results. Communicate how the results of individual goals or processes
contribute to the benefit of the entire enterprise. Many organizations,
for example, are implementing a work team approach among their work force.
Some of the benefits are a more productive, cross-functionally trained work
force. Nice words, but what do they mean? More importantly, what do they
mean to the employees who are going to submerge themselves in learning unfamiliar
tasks? They need to understand that through their hard work and dedication,
the business will be able to fulfill greater sales with the same amount
of employees. Therefore, they make more money. Tell them how much more the
business will make.
Advertise business improvements and overall performance as well as the accolades
of individuals that go above and beyond the normal call of doing their job.
For example, a plant manager of an aerospace manufacturer was leading a
business change initiative along with the president of the division. Each
month both the president of the division and the plant manager met with
every employee in the facility, in small groups, to discuss the operating
results for the location. This appears to be a basic, but admirable task.
However, they communicated because they believed in the process. There were
more than 2,000 employees in the facility.
Successfully launching a business change initiative is a large and difficult
task. It can seem monumental for those managing the process. However, the
key to success in any business change initiative is not found in the magnitude
of technical information surrounding the process, but in the tactical approach.
Success is found in tactically bringing people into the process and making
them feel a part of successes and setbacks by effectively communicating
intentions, evaluation methods, and subsequent improvements in process and
business performance.
Michael E. Kane is a member of Spectrum Management Consulting, Wallingford,
Conn. He holds an MBA from Rensselaer Polytechnic Institute and a master's
degree in industrial technology from Central Connecticut State.
For more information about this article, input the number
9 in the appropriate
place on the September
Reader Service Form
Copyright © 2020 by APICS The Educational Society for Resource
Management. All rights reserved.
Click here
to return to the table of contents.