Book Review Enigma of Lean Demystifying Mysteries of Lean. Author – NC Narayanan

 After Learning Six Sigma, Lean was next on my list. So, when I read details about this book on social media, its fascinating title, and the fact that this book also discussed about RMAOR approach to implementing Lean in an organization, I decided that had to read this book. This book was my introduction to the subject of Lean.

Best part that I liked about the book is it’s highly structured & organized content. Author has written the book in a simple & easy to understand language. The book starts with Why adopt Lean followed by how Continuous Improvement (CI) & Quality Philosophy evolved. It also introduces the readers to Lean Thinking & Evolution of Lean. There is also a chapter dedicated on Myths of Lean.

In part 2 of the book, the author proposes a new methodology for lean application called RMAOR (Recognise - Map & Measure - Analyze - Optimize - Repeat) with step by step roadmap and tools and techniques that can be applied. Six Sigma makes use of the DMAIC problem-solving framework, but Lean does not. Hence RMAOR approach is proposed by the author.

By reading this book, it helped gain clarity on concept of Lean and how it is different from Six Sigma.

The key learnings from the book that I want to share with you are: 

• Lean is a strategy for reengineering an entire organization for breakthrough improvements. In many cases, lean interventions are performed with tools, but there are no ways to do things or beliefs, which is why organizations don't see any lasting results. A lean approach is more than a tool; it is a philosophy that is applied through methods and tools to accomplish a company's financial goals. 

• Implementing 5S, Kaizen, and TPM on the shop floor may serve as a good starting point to enroll and involve people in continuous improvement culture, but may not have any breakthrough effects. Only when Lean is applied as a top-down organizational strategy to gain a formidable competitive position does it enhance profitability and growth.

• Six Sigma minimizes variation and defects, while Lean improves manufacturing/service efficiency. Many organizations solve a single problem at a time with one tool, like six sigma. Such approaches do not last long and yields only marginal improvements.

• The main challenges in implementing Lean are cultural changes rather than technical ones. During the transformation process, leaders and change agents must ask, “What are the expected outcomes?” as well as “Why is the transformation necessary?” before taking action to transform the organization. The choice of the ideology, methodology and tools should follow, after answering the above-mentioned questions.

In my opinion, the book offers a comprehensive understanding of Lean and is a great way to learn more about it and thus gain new skills.

Healthcare’s Evolving Role in Service Excellence.

On 23^rd July 2022, attended a session organized by Service Knowledge Base (SKB) on Healthcare’s Evolving Role in Service Excellence. Speaker was Netra Tandon, Head Service Excellence, Aster DM Healthcare.

The key takeaways are:

Service Excellence is a value system on which the success of any brand depends. Creating a unique patient experience will allow hospitals not only to win the game, but it will allow them to change the rules of the game altogether. Service is valued more especially by a healthcare customer, who is willing to pay 4X the price. Recent studies say emotions play a larger role than analysis in service settings. Decisions of patients to choose hospitals are 70% emotion based - trust, transparency, confidence, integrity, etc.

A successful Service Excellence framework is to establish a formal voice of the customer program, document and deliver on service standards, hire the right talent, equip employees to deliver on excellence, and create valuable and memorable experiences.

Every customer journey & feedback is unique. It is very important to know what customer is saying about the healthcare service provider. This can be achieved e.g. by senior leaders performing “Manager on Duty” roles at IPD, and OPD intermittently to know what the customer is saying. Customer Experience is the key to exceeding customers’ expectations in the Healthcare sector. Business leaders need advanced analytics, the ability to deeply understand customers, get insights, and tell compelling stories. Technology plays a great role in healthcare - establishing communication touch points e.g. text messages indicating the status of reports, automatic reminders for the next appointment with the doctor, etc. it’s also about continuity of care once a patient leaves the hospital so they have a quality outcome. These are called PROMs (Patient Reported Outcome Measurement) and PREMs (Patient Reported Experience Measurement). From there, patients can more proactively drive their own wellness plans.

As a customer or patient-focused business, healthcare employees must live and breathe company values, be committed to helping customers solve problems, and be willing to go above and beyond to serve their needs. To achieve service excellence, total employee involvement, teamwork & active cross-functional participation is very important.

Service Recovery - Winning Back a Customer is very important for Healthcare Sector. Healthcare has adopted many best practices from the hospitality industry. Service Wallet is one such concept wherein a frontline employee can spend a certain amount in a day without waiting for approval from seniors to enhance the service experience. A small gesture like sending a bouquet of flowers with an apology note goes a long way.

How do you know if your customer service is living up to customer expectations? The answer is in KPIs. Some Key Performance Indicators in Service Excellence Journey for Healthcare Sector are C-SAT, NPS, Customer Retention Score, Average Resolution Time, Complaint Escalation Rate, Customer Effort Score, People Competency Development, Develop Effective / Efficient Quality Management System.

Why Service Excellence is required in Healthcare? Health industry and its components owe it to the clients they have decided to serve. With excellent, value-based services, there will be more clients, and there will be maximal utilization of services, resulting in enough revenues and income to continue to operate and to expand when and as needed. An advice for those who will manage Service Excellence in hospitals - the journey should start early and one has to be very perseverant as there are a lot of challenges and new things to learn.

The session concluded with the speaker recommending a few books to read on service excellence. They are Service Culture Handbook by Jeff Toister, Delivering Happiness by Tony Hsien, Be our Guest by Theodore Kini, Human Sigma by Jim Asplund & John Fleming.

Corporate lessons from political happenings in Maharashtra

1.  Top Boss must be accessible to ALL: MLAs rebelled due to inaccessible CM.
2. Wrong business Alliances can break your company: SS entered into an alliance which was against the political ideology. Cultural integration became an issue, ultimately failed.
3. If unemployed, be ready to accept one level down position: Devendra Fadanvis assumed the post of Deputy CM after serving as the CM in his last stint.
4. Experience is superior to the inheritance: 2/3 of the MLAs supported Mr. Shinde who is a home grown talent of the party over the political heirs of Late Shri Balasaheb Thackeray.
5. Do not neglect your middle management: a neglected middle manager can be the future CEO of another company.
6. When the other party needs an alliance: negotiate hard- NCP and INC grabbed meaty portfolios in previous govt. They were aware about the shorter life span of the alliance.
7. CEO can't be on WFH.
8. Never underestimate your competition no matter how long you may have been in the field of politics. Devendra Fadnavis whose age is even less than the number of years Sharad Pawar has been a politician, yet he had this time going for him.
9. Always keep your eyes and ears open and be alert to all the happenings around you. The home minister of Maharashtra was caught unawares of the movement of state MLA's from one state to another in the middle of the night.
10. Gone are the days when you could be a chief minister or a minister of state for full five years. VUCA times is applicable to politicians as well. We have seen in the last 3 years that Maharashtra state has had 3 CM's, one for 2 days to another one for 2.5 years and now another one helming the affairs for the moment.
11. The sky is the limit for those who can dream and work towards it. Even an Auto Rickshaw Driver can become CM of a state that is the financial capital of the country.
12. We, as voters need to vote for a party based on what they have done for the state and it's people and what they can do in the future. Should not vote based on ideologies, freebies and populist measures.
    
    
    

Business Process Management (BPM) and how it delivers value to an organization

I listened to Anshuman Tiwari discussing all aspects of Business Process Management (BPM) and how it delivers value to an organization in a podcast hosted by Daniel Rayner that aired on 30th May. This is what I learned from the conversation:

Why do some organizations treat process-centricity well, while others do not?

Nobody wants to fail, and companies with more success tend to have a clear focus and don't experiment with new ideas all the time. The problem with less focused or less cognizant organizations is that they don't see any significant results in one or two quarters, no change in profitability, so they decide that it's not worth it and give it up. The more clear-headed and focused organizations know that they will suffer short-term pain, but they will come to appreciate it after a certain period of time, and then the fruitful period will arrive. As individuals build habits, organizations also require time to build habits, which is why it takes a long time. This is the main reason why some organizations are successful with processes-centric approaches, while others fail.

What drives an organization to adopt a process management approach, and what are the most common reasons for doing so?

Organizations that multiply and add departments, locations, products & services tend to have processes that are patchy or like Band-Aids, holding things together. It is common for companies to design processes in silos. Consequently, a lot of stuff is passed from department to department, for example, sales give items to operations, operations says it’s waiting for someone, etc. Eventually, it becomes overly complex to handle. Therefore, the end result is poor quality products or services that dissatisfy customers. Therefore number one driver when companies are looking to adopt a process management approach should be simplification combined with customer experience.

The second is cost because as you add parts to your process and everyone has to be paid, the process becomes more costly as a result because you are putting more in to get the same value out. Eventually, the process that is added is giving less return. 

The third driver is people being employed.

In view of limitations in the number of word characters in a LinkedIn post, part 2 of this conversation will appear tomorrow.

What challenges will an organization face as it embarks on this process management journey? 

Alignment, Infrastructure & Response

Organizational alignment is the biggest obstacle. Process Management is about taking steps to achieve an intended outcome and planning, improving, and controlling the process. It seems that processes have the highest priority in operations-related functions. Functions like sales, after-sales, HR, finance, procurement, etc. seem to be uncoordinated. If operations is only going to BPM, then the business part is already out and the process is also limited. So in a way, only a limited process is being optimized, a shorter process. Most process improvement projects are more effective when they are multifunctional.

It is also important to create an infrastructure that manages processes because nothing will happen by itself. People may notice you, but you won't get anything accomplished.

People engagement is another challenge. Picking and training the right people for BPM is the key to overcoming this challenge. Organizations need to recognize that every employee does not have the temperament to be an improvement professional. Some may be good at planning, others at compliance, hence recognize who is good at what and train them accordingly. 

How do you get different functions aligned to process management and ensure that it’s not just confined to one area or function?

Seek out quick wins and influencers. It can be done by starting where you are, don't wait for instructions from Senior Leadership, find some quick wins, and you will see you will always have takers, see them as examples, make them heroes, and eventually, they will do the talking for you, to bring more people in. 

Try to solve problems that affect a large group of people, since these will become your ultimate examples. E.g. Solve problems for HR or for Finance because their problems impact a large number of people and when people see that change, they will begin to think that this works, so maybe we can support this. Don’t go in for specalised solutions as nobody will get to know

Conclusion

Process management today - The last 2 to 3 years have shown that technology is critical, the world is fragmented and remote teams will work together in the future, this will continue in the foreseeable future

Process mining is going to become very important because a good process mining software can run incognito without any people intervention and can tell you how your processes are operating and where are the pitfalls. This is equivalent of you walking around the process and doing the Gemba. Process Management is more Gemba & Conversation, Are you visiting this part, are living this part, are you talking to people as compared to doing it on Powerpoint, Visio, Email, etc…

Qualities, Skills & Competencies required for The New Age Manager

With time change, everyone is going through a process of transformation. It is no different for managers, the New Age Managers. How do new-age managers fit into the needs of new-age organizations? 

A report from the Business Manager for June 2022 by Management veterans and Industry experts who have seen and experienced generations shares the following insights

• By being aware of the change in employee psychology - Managers should unlearn the intuitive side of decision making and turn towards new, rich analytics based decisions.
• By learning to transition from authority to informality, from democratic to inclusive, and from the top down to the bottom up, transforming from a traditional authority figure to a trusted mentor, coach, and friend.
• Focusing on facilitating performance and reducing friction to manage continuous change.
• Becoming people managers, starting with dedicated efforts around wellness and care, leading to the creation of a psychologically safe environment where teams can thrive and unlock their potential.
• By being agile, i.e. able to quickly pick up new skills.
• Adapting quickly to the rapidly changing environment will be necessary for managers as they will be evaluated based on their capabilities in the areas of motivation, technological, cultural, social, emotional, economic, and digital agility. New age organizations will operate using these competencies.
• Demonstrate compassion by moving beyond the industrial-era style of command and control and instead creating cultures of empowerment and contribution. Make decisions and solve problems more quickly by flattening out the hierarchy.
• In this digital age, learn how to lead teams. The new managers will require a very different set of tools, e.g., agility, frugality, as well as a core of trust, empathy, and compassion.
• The human touch is going to be more and more important as technology advances, as it is at the core of our human nature. We will never be able to replace human interaction completely.
• It's all about embracing new initiatives that will lead to innovation at workplace since leadership style will always remain the same whether you're a fresh manager or seasoned manager leading through turbulent times. To stay on the crease and make way for the team while handling every challenge that comes your way and still be able to withstand emotional pressure will be a challenge for the new age leader/manager.

To conclude, these required qualities are not new and have always been identified, known and taught across ages. But the gap always has been in practicising them consistently. But what is changing is the degree of importance in implementing them NOW, in the current paradigm, it becomes more imperative & urgent.

Pragmatic Leadership

On the 4th of June, I took part in an online lecture on 'Pragmatic Leadership'. Narayanan NC provided excerpts from his book, 'Pragmatic Leadership,' including what to expect when you read it.

Pragmatic leadership refers to the development of leadership through practical methods. Leadership explained in plain English is the book's goal. This book is designed to help readers shape themselves into future leaders and to provide guidance on what skills are necessary to succeed in business. We all have read many Western leadership books, but Pragmatic Leadership takes us to the eastern path of leadership. This book shares the author's own life experiences with leadership. 

Leadership begins from within i.e. Personal Leadership which is followed by Team Leadership & finally Organizational Leadership. 

 

Indian paradigm states that every human being is born with capability. Every human being has the power of becoming a leader provided he or she chooses to sharpen those skills. If you are a good observer & conscious of your brain’s functioning, you will be able to develop Leadership skills. You do not need to have taken the Leadership Course from Harvard.  People become leaders when they develop competencies in themselves.

 

In order to grow in your career, you must create value. By improving top line, bottom line, and perpetuity of the organisation we work for, we create value for that organization.

 

Utility + convenience equals personal equity. A multi-skilled person is able to contribute to the organization through utility skills. "How easily others can work together with us without hassles" determines convenience.

 

Difference between a Transformational Leader versus Transactional Leader is that whilst the latter are always doing the same thing day in & day out, Transformational Leaders are always bringing about change

 

Extensive & Intrinsic Motivation are needed to be a Leader. We need to take charge of our own development by using our own brain power & moving forward. Expecting the organization to take care of your development, your growth is not the right approach.

 

A leader's golden rules

 

1. Don’t focus only on technical skills. Else you will be stuck in career growth by age of 35-40 years. Try to develop your overall personality.

2. The manner in which you interact with other people, your peers, supervisors, etc., and how you are perceived as a relationship person, is very important for your career path

3. Work beyond your organization's boundaries without waiting for it to give you the opportunity. Take on some of your boss' responsibilities.

This book has certainly caught my attention and I'm looking forward to reading it. How about you?

Differences between Assessment and Audit

1) Auditors assess compliance, while assessments analyze the maturity and depth of a system

2) The audit process is a pass/fail one. Assessments are a way of grading the maturity level of the process that helps the organization plan for its future growth in its pursuit of excellence. An assessment gives the organization a sense of where they stand and what needs to be improved.

3) The audit is a very specific examination within a predefined scope. Assessment is much more holistic and broader. An assessment does not get into minute details about every element of the excellence model against which the assessment is being conducted. A big picture view is used.

4) The audit is conducted according to a set of standards. The assessment focuses on a range of best-in-class criteria.

5) The length of time for an audit varies with the size of the organization, the locations to be covered, and the allocation of manpower, while the length of time for an assessment is usually 3 or 4 months with predefined steps. Key business factors are agreed to, followed by individual assessments, and then by consensus, forming a single viewpoint for the assessee company. A site visit then follows to verify or clarify critical issues identified during assessments with company officials. Upon completion of the site visit, the assessment concludes with the submission of a final feedback report based on the data gathered.

6) As most audits are accompanied by a predefined checklist, audits do not generally require high skill on the part of the reviewer. An assessment requires high levels of maturity on the part of the reviewer. This means being open to learning, appreciating, and developing.

7) Audits pinpoint mistakes, and assessments identify what's working well for you (best practices).

8) Having the mindset of an inspector is essential for an auditor. An assessment requires a developmental coach mentality, the assessor must demonstrate the spirit of appreciative inquiry

Last but not least, while audits conclude with the submission of the report, assessments are not just about giving feedback, but are also about the learnings acquired from the assessors throughout the assessment process. As a result of feedback, what are the key points the organization remembers that helped them improve their systems? It’s about getting people engaged and having a positive impact. 

Audited vs. assessment: which is better? Thoughts?