Celebrate World Quality Month in 2019!

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Join The Celebration

Join the global quality community to celebrate World Quality Month 2019! World Quality Month (WQM) is a worldwide celebration of quality. It’s a time to showcase the advancement and valuable contributions quality professionals make in businesses, communities, and institutions. This month allows us to shine a light on the industry and the individuals striving to provide excellence through quality.

ASQ has created several downloadable activities and materials to help celebrate! Share your Celebrations with us on social and join the World Quality Month discussion on myASQ.

Banners

These banners and headers can be used in e-newletters, webpages, email headers, and other digital channels. Choose from four different sizes, designed to accommodate multiple templates. DOWNLOAD BANNERS

Which Guru Are You?

World Quality Month 2019 What Guru Are You Illustration

Have you ever wondered which Guru you have the most in common with? Now you can find out by taking our Which Guru Are You? quiz! Select the link below and be sure to share your results on social. TAKE THE QUIZ

Desktop and Mobile Wallpapers

Download a WQM wallpaper to showcase the month-long celebration on your desktop and cell phone. Choose from two different designs. DOWNLOAD WALLPAPER

Trivia

Each day we will be sharing quality trivia and interesting factoids on our Twitter account @ASQ. At the end of each week, we will share the trivia tiles on this page for you to download. Check back each day to download new tiles. DOWNLOAD TRIVIA TILES

Quality Memes

Have your expectations ever differed from reality? This series of images is a lighthearted depiction of some of the misconceptions individuals may face when entering and working in the quality industry. DOWNLOAD MEMES
Have you had a similar experience? Share your story with us on social!

Posters

Encourage others to celebrate by downloading printable posters. These posters can be hung in your personal workspace or communal areas in your workplace. Two different sizes are available to accommodate multiple spaces. DOWNLOAD POSTERS

Change Leadership

 

How can quality professionals become successful change leaders?

Robert Mitchell

Change Leadership Process schematic by KnowledgeBrief (KBM)

Change Leadership Process schematic by KnowledgeBrief

The Baldrige Criteria defines change management as a leadership-induced process that involves transformational organizational change that leadership controls and sustains. It requires dedication, involvement of employees at all levels, and constant communication. Transformational change is strategy-driven and stems from the top of the organization. Its origin may be from needs identified within the organization and it requires active engagement of the whole organization.

McKinsey & Company states that, “Change management as it is traditionally applied is outdated. 70 percent of change programs fail to achieve their goals, largely due to employee resistance and lack of management support. We also know that when people are truly invested in change it is 30 percent more likely to stick.”

My 35+ years of experience is that the effective change leader possesses 3 critical skills:

  • Communication
  • Facilitation
  • Project management

The effective change leader must be able to communicate a compelling business case for change and a clear call to action throughout the organization: up, down and across. The change effort should be in alignment with the organization’s vision, values and strategic plan. The change initiative must be communicated regularly with a clearly understood strategy, with action plans and key metrics that are cascaded and deployed down to each department and individual. Change progress must be consistently measured and frequently reported against the established goals or targets.

The effective change leader demonstrates strong facilitation, influence and collaboration skills necessary to build support, remove barriers and reduce resistance to change. The change leader must be able to enhance/ build the Systems & Structures necessary to drive the required change, reward desired behaviors and prevent organizational backsliding. The effective change leader identifies the key stakeholders and implements influence strategies to gain their support in helping to “model the behaviors that create the experiences needed to change beliefs resulting in actions that deliver expected results” (The Oz Principle: Culture of Accountability). An all-too-often over-looked influencer is the organization’s “Keyhub” – those employees not part of the official managerial org chart, but whose experience/opinion/ insight is highly sought and respected among his/her peers, colleagues and subordinates. The identification of and collaboration with the keyhub is an important networking strategy to help lead successful change efforts in any organization.

The effective change leader must be able to marshal the resources and competencies necessary to support the change, adapt to challenges, and keep the change project on schedule and in budget. The change leader should follow a formalized change strategy or framework incorporating the methods, tools and technical assistance necessary to lead the process and coach the people through change. Three common models of a change management process are:

 

Nicole Radziwill

Change is hard only because maintaining status quo is easy. Doing things even a little differently requires cognitive energy! Because most people are pretty busy, there has to be a clear payoff to invest that extra energy in changing, even if the change is simple.

Becoming a successful change leader means helping people find the reasons to invest that energy on their own. First, find the source of resistance (if there is one) and do what you can to remove it. Second, try co-creation instead of feedback to build solutions. Here’s what I mean.

Find Sources of Resistance

In 1983, information systems researcher M. Lynne Markus wanted to figure out why certain software implementations, “designed at great cost of time and money, are abandoned or excessively overhauled because they were unenthusiastically received by their intended users.” Nearly 40 years later, enterprises still occasionally run into the same issue, even though Software as a Service (SaaS) models can (to some extent) reduce this risk.

Before her research started, she found these themes associated with resistance (they will probably feel familiar to you even today):

  1. To avoid resistance, get top management support and obtain user involvement in the design process
  2. Technically sound systems are less likely to be resisted than those with frequent downtime and poor response time
  3. Users resist systems that are not “user friendly” (assertions by EDP equipment vendors);
  4. All other things being equal, people will resist change (receive wisdom);
  5. People will resist an application when the costs outweigh the benefits (receive wisdom).

By studying failed software implementations in finance, she uncovered three main sources for the resistance. So as a change leader, start out by figuring out if they resonate, and then apply one of the remedies on the right:

Radziwill

As you might imagine, this third category (the “political version of interaction theory”) is the most difficult to solve. If a new process or system threatens someone’s power or position, they are unlikely to admit it, it may be difficult to detect, and it will take some deep counseling to get to the root cause and solve it.

Co-Creation Over Feedback

Imagine this: a process in your organization is about to change, and someone comes to you with a step-by-step outline of the new proposed process. “I’d like to get your feedback on this,” he says.

That’s nice, right? Isn’t that exactly what’s needed to ensure smooth management of change? You’ll give your feedback, and then when it’s time to adopt the process, it will go great – right?

In short, NO.

For change to be smooth and effective, people have to feel like they’re part of the process of developing the solution. Although people might feel slightly more comfortable if they’re asked for their thoughts on a proposal, the resultant solution is not theirs — in fact, their feedback might not even be incorporated into it. There’s no “skin in the game.”

In contrast, think about a scenario where you get an email or an invitation to a meeting. “We need to create a new process to decide which of our leads we’ll follow up on, and evaluate whether we made the right decision. We’d like it to achieve [the following goals]. We have to deal with [X, Y and Z] boundary conditions, which we can’t change due to [some factors that are well articulated and understandable].”

You go to the meeting, and two hours later all the stakeholders in the room have co-created a solution. What’s going to happen when it’s time for that process to be implemented? That’s right — little or no resistance. Why would anyone resist a change that they thought up themselves?

Satisficing

Find the resistance, cast it out, and co-create solutions. But don’t forget the most important step: recognizing that perfection is not always perfect. (For quality professionals, this one can be kind of tough to accept at times.)

What this means is: in situations where change is needed, sometimes it’s better to adopt processes or practices that are easier or more accessible for the people who do them. Processes that are less efficient can sometimes be better than processes that are more efficient, if the difference has to do with ease of learning or ease of execution. Following these tips will help you help others take some of the pain out of change.

John Hunter

In order to lead efforts to improve the management of an organization understanding how people will react to change is critical. For that reason I have written about change management often on this blog since I started publishing it in 2004.

In, Why Do People Fail to Adopt Better Management Methods?, I wrote:

It seems that if there were better ways to manage, people would adopt those methods. But this just isn’t the case; sometimes better methods will be adopted but often they won’t. People can be very attached to the way things have always been done. Or they can just be uncomfortable with the prospect of trying something new.

Lead change efforts requires paying attention to the existing conditions: the culture, the motivation to adopt this change and/or the motivation to resist it, the history of change where the change is being attempted and the reasons the change is desired (by at least you and hopefully others). And then you need to build a case for the change and manage the process.

In some case it isn’t that complicated, there is interest in the change from a critical mass of people, the change isn’t that difficult, the advantages are obvious to many people and no one has a strong interest in resisting the change (that has the power to make adopting the change difficult). In that case you are lucky, but that is often not the case, even though many attempts to change are managed with the hope that no real effort will be needed to get the change adopted.

Those that successfully lead change efforts know when to invest the effort in getting the change adopted. They study (and often can sense) where the effort will need to be placed in this particular effort and plan ahead to support the adoption of the change and to avoid problems that can greatly set back the efforts to improve the existing system.

And they put effort into creating a culture that will make change efforts easier going forward. We need continual improvement of how we work and that requires continual change. We need to build systems that support that and coach people so they are comfortable with that.

I included some ideas on how to grow your circle of influence: which would be useful development strategies for someone seeking to become a successful change leader.

Communication is an Important Part of Any Change Effort

I believe the best way to communicate such changes is to explain how they tie into the long term vision of the organization. This requires that such a vision actually exists (which is often not the case). Then all strategies are communicated based on how they support and integrate with that vision. In addition that communication strategy incorporates an understanding about what weaknesses with past practices are addressed by this new strategy.

Often organizations have a poor history with failed change efforts, and the larger the effort the more likely it was to have been problematic. Pretending that poor history doesn’t exist and being surprised by resistance to change is not a sensible way to manage. But it is a common one. Instead, to be successful, after past failed efforts, show that you know the history and have learned from it and are taking steps to make this change effort more successful than past efforts.

Change Management – Post Change Evaluation and Action

There are many reasons the change may need to be iterated over to adapt it to different conditions. The important factor, that is far too often overlooked, is to collect evidence on the result of the change as it is deployed and to study that evidence to determine if the improvement is able to be deployed more broadly without modification. It may be that you learn more PDSA is needed as part of the process to deploy it more broadly.

Using the PDSA is an extremely valuable tool to aid change efforts. The process of using it requires you to evaluate the success of the change after the change is deployed. That may seem an obvious thing to do, but it often is not done. And often those in the work know nothing improved and become more cynical about any future change attempts. But those charged with leading the change effort often have incentives to move on and ignore the results.

To help create a culture that value continual improvement find projects that would be good candidates for visible success that matters. Use the ideas here and in the linked posts to make those efforts successful and then build on those successes.

If this is done right the organization will continually grow the ability to improve and successfully adopt changes that are worthwhile. Your job of leading change efforts will get easier (though you might take on much bigger and more complex changes so that can again add challenges and keep you engaged).

Luciana Paulise 

Many companies around the world are moving towards an agile way of work to be able to tackle constant changes and capture the opportunities those changes bring. As per a survey done by McKinsey 37 percent of respondents said their organizations are carrying out company-wide agile transformations. Why? Because today the only constant is change. “Agile organizations can develop products five times faster, make decisions three times faster, and reallocate resources adroitly and quickly” based on the research “Leading agile transformation:  The new capabilities leaders need to build 21st-century organizations”.

So the question now is, what is the role of the leader in these agile organizations? Agile companies work in small teams that are multidisciplinary and autonomous, some don’t have leaders, some simply have facilitators to ensure successful interactions among team members, suppliers and customers. New leaders need to let go of micromanaging the day-to-day activities to become success facilitators. They will set a long-term vision, promote interaction across the organization, provide support to unleash team member’s idea and define priorities.

Leaders are no longer “bosses” of the people on their team, customers are. That’s why structures in agile companies flatten to:

–  Allow fast and online communication top down, bottom up and inside out.

– Facilitate fast decision making within the team, without the need to wait for management approval

– Ensure everybody is connected to the customer needs, and the needs of each of the team members

In agile companies, everybody can become a change leader within their teams, depending on the task at hand, so everybody needs to be trained to CARE for their team, through four main habits:

  • Connect: Communicate the vision, values and objectives that drive the team and build the network of stakeholders required. Team members how decide the best way to accomplish the goals.
  • Ask: ask more questions at the front-line to deeply understand results, instead of advocating opinion or direction. Analyze risks and always look for outside-in perspectives from the customers to make decisions with the team.
  • Respect: Build confidence and trust, foster open communication and respect differences in the workforce to allow multidisciplinary teams to thrive. Strengths, skills and ideas work at their best when relationships are based on mutual acceptance.
  • Empower: Prioritize objectives visually, build systems and team routines, promote self-discipline and time management and encourage immediate problem-solving. Avoid constant updates, briefings, micromanagement, and approvals, all very costly.

Luigi Sille

How can an individual become a successful Change Leader?  

Every organization or institution has to deal with change.  No one can hide or run from it. In the last couple of years the world has been changing at a rapid pace.

Normally, accepting change and going through the change process is NOT easy. Change is very hard for humans to accept (it’s human nature), to get everyone on board is a big challenge. The success of change depends upon the people, so everyone is important.

To manage, and/or coordinate the whole change process, effective leadership is one of the main components necessary to achieve a successful transition. For me personally, it is the KEY to success.

Which leadership skills contribute to someone becoming a successful Change Leader?

Communication

Communication is one of the most important skills in becoming a successful Change Leader. A successful Change Leader is one that can communicate, but also LISTEN to the group.  The listening part is very important, it is the moment to get information, feedback, or possible ideas in order to improve: TOGETHER.

Always communicate WHY we need the change, WHAT is going to change, and the impact the change is going to have. The benefits that change can have for the organization, and for the whole group. Open and honest communication helps a successful change leader gain the trust of the group, and in its turn it will help the overall change process.Maintain a communication strategy, and always check if it is actually working.

Collaboration

Bring everybody together (teamwork) to make decisions, plan (encourage the employees to be innovative, creative) and execute. This is so critical.  That feeling of being part of the process gives everyone a sense of pride. A positive organizational culture motivates the group, and that sense of belonging to the organization inspires loyalty.

It strengthens their commitment. This results in no or almost no resistance to the change process. Everyone is important. Fix small team problems on the way, otherwise it will have a negative impact on the whole process.

Commit

A successful Change Leader shows his commitment to the change. Be a role model.  Maintain control over the whole process: identify and focus on priorities. Maintain a clear purpose.

His or her behavior / beliefs is important to the rest of the group.

If the leader doesn’t believe, or doesn’t commit, it will have a negative impact on the change process, therefore the chance of FAILURE is extremely high.

If there is No effective leadership present, effectively implanting change will almost definitely fail.

A successful Change Leader has to remember that:

  • Leading change is not a ONE man job.
  • He has to believe in the team
  • Motivate the team
  • Be a role model
  • Pass responsibilities to other leaders in the group
  • Has to obtain a collection of skills to keep on top of change.
  • Communicate
  • And also: listen to the group

End to End Supply Chain

What are some best practices for planning and implementing an end to end supply chain?

Robert Mitchell

Investopedia defines an E2E SCP as, “…a term used to describe products or solutions that cover every stage in a particular process, often without any need for anything to be supplied by a third party. It also embraces a philosophy that eliminates as many middle layers or steps as possible to optimize performance and efficiency in any process.”

E2E Supply Chain graphic via LeanCorp.com

Traditional supply chains involve individual organizational silos that often result in inefficient overall performance and constrained supplier relationships. An end-to-end view of the complete supply chain begins with product design, supplier selection and management, then scheduling, production, distribution, and should include after-sale customer service. A holistic E2E Supply Chain integrates all revenue and expense streams. Effective E2E Supply Chains enable disruptive innovations in customer experience by delivering greater visibility of product design & performance and manufacturing capabilities, as well as order management and inventory status.

Building an effective E2E Supply Chain requires the implementation of an Enterprise Resource Planning (ERP) system that bundles top-level business processes such as Concept-to-Launch, Procure-to-Pay and Order-to-Cash functions as well as Hire-to-Retire and Sustain-and-Retain human capital asset management processes to present a holistic view of supply chain operations, while improving organizational strategic planning & deployment, decision-making, workforce planning and overall business growth.

Best Practices in E2E Supply Chains:

  • Inventory Management via Lean principles to eliminate waste (including unnecessary inventory) and reduce non value-added activities thereby reducing lead times and order fulfillment errors, resulting in improved customer perceptions of organizational responsiveness.
  • Customer Demand Planning that uses the customers’ order history, market analysis, seasonality, competitive landscape, and other factors to understand your customer needs better than they do enabling a more stable and predictable planning process.
  • Human Capital asset planning and management that assesses current workforce capability and capacity in response to strategic plans, focusing on the organization’s core competencies and strategic advantages.
  • A Lean Management System deploying data-driven root cause analysis where everyone from the CEO down to the intern is a problem solver, coupled with stronger supplier & vendor collaboration can strengthen an organization’s ability to plan effectively and respond to changes with greater agility.

Superior network connectivity between the supplier – manufacturer – customer can be a distinct competitive advantage to building strong business relationships. Working within and across the network to improve quality, service and cost at all touch points is a winning formula to help assure business success.

Nicole Radziwill

Supply chains are the lifeblood of any business, impacting everything from the quality, delivery, and costs of a business’s products and services to customer service and satisfaction to ultimately profitability and return on assets.

Stank, T., Scott, S. & Hazen, B. (2018, April). A SAVVY GUIDE TO THE DIGITAL SUPPLY CHAIN: HOW TO EVALUATE AND LEVERAGE TECHNOLOGY TO BUILD A SUPPLY CHAIN FOR THE DIGITAL AGE. Whitepaper, Haslam School of Business, University of Tennessee.

Industry 4.0 enabling technologies like affordable sensors, more ubiquitous internet connectivity and 5G networks, and reliable software packages for developing intelligent systems have started fueling a profound digital transformation of supply chains. Although the transformation will be a gradual evolution, spanning years (and perhaps decades), the changes will reduce or eliminate key pain points:

  • Connected:Lack of visibility keeps 84% of Chief Supply Chain Officers up at night. More sources of data and enhanced connectedness to information will alleviate this issue.
  • Intelligent:87% of Chief Supply Chain Officers say that managing supply chain disruptions proactively is a huge challenge. Intelligent algorithms and prescriptive analytics can make this more actionable.
  • Automated:80% of all data that could enable supply chain visibility and traceability is “dark” or siloed. Automated discovery, aggregation, and processing will ensure that knowledge can be formed from data and information.

Since the transformation is just getting started, best practices are few and far between — but recommendations do exist. Stank et al. (2018) created a digital supply chain maturity rubric, with highest levels that reflect what they consider recommended practices. I like these suggestions because they span technical systems and management systems:

  • Gather structured and unstructured data from customers, suppliers, and the market using sensors and crowdsourcing (presumably including social media)
  • Use AI & ML to “enable descriptive, predictive, and prescriptive insights simultaneously” and support continuous learning
  • Digitize all systems that touch the supply chain: strategy, planning, sourcing, manufacturing, distribution, collaboration, and customer service
  • Add value by improving efficiency, visibility, security, trust, authenticity, accessibility, customization, customer satisfaction, and financial performance
  • Use just-in-time training to build new capabilities for developing the smart supply chain

One drawback of these suggestions is that they provide general (rather than targeted) guidance.

A second recommendation is to plan initiatives that align with your level of digital supply chain maturitySoosay & Kannusamy (2018) studied 360 firms in the Australian food industry and found four different stages. They are:

  • Stage 1 – Computerization and connectivity. Sharing data across they supply chain ecosystem requires that it be stored in locations that are accessible by partners. Cloud-based systems are one option. Make sure authentication and verification are carefully implemented.
  • Stage 2 – Visibility and transparency. Adding new sensors and making that data accessible provides new visibility into the supply chain. Key enabling technologies include GPS, time-temperature integrators and data loggers.
  • Stage 3 – Predictive capability. Access to real-time data from supply chain partners will increase the reliability and resilience of the entire network. Enterprise Resource Planning (ERP), Manufacturing Execution Systems (MES), and radio frequency (RFID) tagging are enablers at this stage.
  • Stage 4 – Adaptability and self-learning. At this stage, partners plan and execute the supply chain collaboratively. Through Vendor Managed Inventory (VMI), responsibility for replenishment can even be directly assumed by the supplier.

Traceability is also gaining prominence as a key issue, and permissioned blockchains provide one way to make this happen with sensor data and transaction data. Recently, the IBM Food Trust has demonstrated the practical value provided by the Hyperledger blockchain infrastructure for this purpose. Their prototypes have helped to identify supply chain bottlenecks that might not otherwise have been detected.

What should you do in your organization?

Any way to enhance information sharing between members of the supply chain ecosystem — or more effectively synthesize and interpret it — should help your organization shift towards the end-to-end vision. Look for opportunities in both categories.

What is the Most Effective Performance Management Approach?

In an evolving workplace, there is a growing trend suggesting end-of-year performance reviews are no longer effective. To remedy this, some companies have decided to utilize software to improve their process. Other companies have elected to eliminate reviews altogether.

What is the most effective performance management approach?

Sarah Haynes

Performance reviews are often the subject of much scorn and mockery in the corporate world.  In my 15 years of consulting with dozens of clients, I’ve only encountered ONE that actually considered their performance management process to be integral to employee development, and truly valuable to their company.  For the rest, it was a forced exercise that did not appear to be linked to results, aside from bitterness and regret. According to a Deloitte Insights survey, 58% of the companies polled reported that they view their current performance management process as not being an effective use of time and only 8% reported that their process drives high levels of value. Why is this?

Performance reviews are almost always linked to compensation.

Reviewees are motivated to score themselves as highly as possible in order to secure the best possible raise for themselves.  Reviewers (the managers) are pushed by the company to average out the performance rating across all individuals in a given cost center. So, for every employee considered “exceptional”, there must be one considered “underperforming”.  It’s a terrible trade-off, and one that often pits managers against staff. I’ve actually had a boss ask me if I’d be OK with a sub-par rating, because he really needed to give a large raise to my co-worker in order to keep him from quitting.

In order to make performance reviews effective, the direct link between reviews and compensation must be broken.  This is the only way to create an environment for an honest conversation, where employees do not have to feel like they’re fighting for dollars and cents.  Secondly, managers should be coached on how to provide effective feedback to employees.  It’s not easy, and many managers will do anything to avoid an awkward conversation.  Lastly, performance feedback should be provided on a regular basis, at least once per quarter.  If you wait until the end of year to provide feedback on annual objectives, it’s way too late to correct course.

Only one of my bosses throughout my career actually cared enough to provide me with constructive feedback, during performance reviews, that I could use to improve my performance.  I truly valued the insightful feedback he provided. Of the others, some were not involved enough with my work to be able to provide feedback, and the rest – well, I guess they just didn’t want to get into it.  I know I would have appreciated it and felt more valued as an employee, if they had.

Ted Hessing

The Science of Encouraging High Performance

We humans are funny creatures. We don’t always act in our own best self-interest. And when we get into groups we don’t always make better decisions. Sometimes we build entire organizational practices that are nonsensical, counterproductiveanachronistic, and/or that we ourselves would not want to be subject to. Case in Point; Performance Management.

let’s take a user perspective rather than a managerial perspective. After all, they should be the same thing, right? It’s always a good idea to start with the client in mind and, under this perspective, the contributors we are seeking to encourage to high performance would be our clients. This perspective can be best understood by the concepts of Servant Leadership. Here’s an overview of servant leadership if this term is new to you.

What’s My Motivation?

Most performance management techniques revolve around 2 axis; rewards or penalties. On the rewards side we can call it salary, bonus, compensation, or whatever. But generally people are incentivized to high productivity via rewards. The flip side are penalties which could range from reduction or absence of rewards to reduced or eliminated security, status, and stability.

But is that carrot and stick approach the best system to use? Turns out the science says ‘no.’

Autonomy, Mastery, and Purpose

In Daniel Pinks excellent book Drive: the Surprising Truth About What Motivates Us (and eponymous TED Talks), he reveals that the research say unequivocally no. Rather than re-state Pink’s message (see above 10 min video for a great overview); Rewards don’t work the way you’d expect them to.

It turns out that after a certain amount of compensation, rewards are actually counter-productive in terms of increasing performance in any endeavor requiring a modicum of cognitive skill. After that magic level of compensation, people require other attributes to be present in order to Got that?

In other words, if you want higher performance, you have to pay people enough where they aren’t worried about money but then you have to enable 3 other key attributes; autonomy, mastery, and purpose.

Thus,the overwhelmingly most popular way of incentivizing performance, reward vs penalty, is wrong. if you want to maximize performance, it turns out that you must optimize for motivation.

So, how does one do that? What’s the right way to handle performance management? If rewards are wrong (or at least only part of the story), then it seems we’d best change our performance management process to the other key factors Pink identifies; Autonomy, Mastery, and Purpose.

Let’s take each one step by step.

Purpose

Per Pink, Purpose is each team member being able to say  “I know why I am here and what I contribute with (as an individual or as a team)” How do we maximize a sense of purpose? So, as managers with a strong background in quality and strategic deployment techniques seeking to maximize performance, how do we maximize a sense of purpose?

I like Simon Sinek’s approach of ‘Start with the Why. Again, if you haven’t seen this Ted talk, you’re missing out.

To my mind, conveying Why is all about alignment. Alignment between the strategic direction of the company and the front-line personnel executing the vision. Some techniques quality leaders can use that we can use to achieve, communicate and measure that alignment are:

If we want to maximize performance management, it behooves us to make the alignment of why behind what people are being asked to do explicitly clear.

Often, when we make that alignment clear we find that much of the resources of time, talent, and energy that people are currently expending

are in pursuit of things that don’t matter or don’t matter as much as other goals they could be working towards. And that is clearly a waste.

Mastery

If the next attribute in results is Mastery, then it makes sense to incorporate this into our performance management techniques. How can we best help people pursue and achieve mastery of their professions?

Some tools we can use to monitor and maximize mastery are visual management principles and gauge R&R techniques. Perhaps the two that I like best are Skill Matrix boards – an excellent

visual management of team skill mastery and credibility as described by Ray Dalio in Principles. However, there are countless adaptations of each that we can apply to skill acquisition.

Also, it is helpful to recognize that every member of a company has a profession (what they do) and an industry they perform it in (where they do it.) It makes sense from a performance management standpoint to help contributors to develop a strong understanding of both the skills and context for their role and their industry at large. T shaped employee management is an excellent framework for this/

Autonomy

Now that we’ve addressed how to manage clear alignment and skill acquisition – the why’s and what’s of a role – let’s move on the how’s.

Again Pink helped us by illustrating how autonomy and empowerment are crucial pieces of the performance management puzzle. And we helped ourselves by showing the alignment of the highest strategic goals of the company

Now, autonomy is scary for many managers. To overcome this hurdle we could use a ‘trust but verify’ model of cascading dashboards and assigning responsible parties for work streams. And the autocratic manager will be happy with this. But autocratic leadership has it’s limits.

Sources: Business Case Studies and Cleverism

Perhaps the best way to encourage autonomy to meet our desired performance management goals is to favor the empowerment of a Team of Teams model such as the ones favored by General Stanley McChrystal (and others) in his book Team of Teams.

Autonomy is best served by employee empowerment. There is a link between employee desire to participate on autonomous teams and having a significant sense of ownership in team outcomes. Simply put, members of autonomous teams desire the ability to make decisions in an entrepreneurial climate without too much managerial interference. And arguably employee empowerment is best achieved through managers leading by illustrating a clear vision and then getting out of their way.

 Bringing it All Together

As leaders it is important for us to recognize that performance management is itself a process. It’s subject to an equation Y=f(x) where f(x) is often more complex than we think. But fortunately, like any other process, it can be measured, faults found, and hypotheses tried, tested, and improved upon.

Luciana Paulise 

The current performance appraisal methods have been hardly criticized in the last years, especially in the era of agile companies and continuous innovation. In the following article we will share some ideas and tips on how to adapt to your specific company culture.

Performance appraisals are the most common performance measurement strategy. A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance in relation to certain objectives.

Neverthless, several studies have been showing that the effectiveness of the current methods is not clear, as employee’s habits and company cultures have been changing and need different incentives to work better.
What are the main cons of a performance appraisal?

Frequency: Performance appraisals are usually done annually or quarterly. The frequency of feedback should not be defined by a standard, should be defined based n the specific need of the employee and his/her supervisor. Periodic evaluations usually generate more frustration that satisfaction to the employees because as it’s based on past performance and it’s general, it doesn’t help to actually change behaviors in the future. Millennials expect continuous feedback on each situation that helps them improve performance on the near future.

Specificity: appraisals tend to be general as they are the only opportunity throughout the year to formally discuss how we are doing. Clearly many items cannot be discussed, so supervisors tend to choose only a couple of hot topics, very good or very bad based on the general evaluation. So they really don’t tackle specific strategies for improvement, but simply try to confirm what we already know: we are in the top 10 percent, or just out of it. So 90% of the employees just get frustrated, while the other 10% get anxious about keeping the top for themselves on the next review.

All the employees have the appraisals at the same time, so instead of a real opportunity to improve, it becomes another item on the supervisors To Do lists, which they have to do as quick and neat as possible. While for the employee, it may be the opportunity they have been waiting to showcase their results or received some praise for their work.

A performance appraisal is usually focused on individuals, without considering the system or the team. Agile organizations are more prone to work in teams, so individual measurement may be counterproductive. It may impact team collaboration and promote competition instead, to achieve the individual results agreed in the individual discussion.
Subjectivity: No matter how well defined the dimensions for appraising performance on quantitative goals are, judgments on performance are usually subjective.

There are always winners and losers: When salary increases are allocated on the basis of a curve of normal distribution, which is in turn based on a rating of results rather than on behavior, competent employees may not only be denied increases but may also become demotivated. Performance appraisals turn to be unfair trying to fit everyone in the bell curve.

New strategies to have a successful performance appraisal
As peter Scholtes says in Total Quality or Performance Appraisal: Choose One, “Improvement efforts should focus on systems, processes, and methods, not on individual workers. Those efforts that focus on improving the attentiveness, carefulness, speed, etc., of individual workers — without changing the systems, processes, and methods — constitute a low-yield strategy with negligible short-term results”.

Continuous feedback

Annual performance appraisals are pretty standardized, not very much open to discussion and done only once a year. They are usually time-consuming and generate a stressful situation supervisor-employee, so doing it just once a year “looks great”. But real coaching for behavioral change should be short, continuous and spread throughout the year based on the need. It can be positive or negative, but for sure it should be based on recent situations that allow the employee to take action immediately. Innovative companies should count on that to be able to adapt quickly to the changes in the environment.

Leadership training

Many leaders say they don’t have the time in this high-pressure economy for the tedious work of teaching people and helping them grow. On the opposite, the one main task for leaders should be to facilitate their employee’s growth, and there should be no specific time for it, should be part of their day-to-day. Leaders tend to have a lot of work when they have an over dependent team. become demotivated work should not be done by them even if they can do it better, they should help their people to learn and do it better, that is their job. Leaders should be trained to develop habits that make their team owner of the tasks, autonomous and therefore more engaged. RECOMMENDED COURSE: Leadership

Fact-based

Continuous feedback doesn’t need to be based just on impressions or feelings, it can also be based on facts and data. Depending on the type of operation, leaders can use different tools to help employees ask for help or solve problems on the go, instead of hiding issue to avoid bad appraisals. Manufacturing companies can use run charts and graphics to evaluate trends and identify issues. Charts can show if the issues are systemic (all the lines are having delays due to inadequate maintenance) or individual (an employee is not well trained). In some companies, we suggest to do monthly audits with scores and detail action plans, to provide not only a fact-based measure but also a means to improve.

On demand

The best way to provide feedback is making sure the employee knows it before the supervisor, and before it’s too late. Timely feedback can be done when the information and the performance are online and accessible to everyone involved. Measures can be done by the employee himself, or through IT. For example, online retail agencies can provide to employees with online information about customer satisfaction, delays or errors so that employees can adjust the service accordingly. Many companies have 5 stand-up minutes to talk about issues and potential solutions.

Win-win

Performance measurement should be a tool to improve the team and organizational performance, not to blame employees or justify layoffs. It should help to know why a process is failing and what can we do about it, no matter who. So every measurement should not be used along with a root cause analysis and follow-up method.

Feedback at the gemba

A performance appraisal tends to be so formal that is never done on the work floor but inside an office or meeting room. As it is not the normal workplace for the employee, it can be more stressful. If it is done on the workshop, it allows for a more direct discussion. It allows for a psychological safety for the employee, which promotes more innovation and reduces the sense of failure. You can even find more solutions on the floor than in a meeting room or a cold management report. As Edwards Deming would say, successful companies must also manage what cannot be measured (the data-invisible elements).

A performance appraisal or any type of measurement is not bad per se, what matters is what you do with them. Good luck!!

Robert Mitchell

As a Baldrige Examiner, I like to begin my roundtable discussions with a review of the Baldrige Criteria. Category 5 of the Criteria focuses on the Workforce. The Workforce category asks how the organization assesses Workforce Capability and Capacity needs and builds a workforce environment conducive to Engagement and High Performance. The Baldrige Criteria defines High Performance as ever-higher levels of overall organizational and individual performance, including quality, productivity, innovation rate and cycle time.

High performance results in improved service and value for customers and other stakeholders. High performance stems from and enhances workforce engagement. Some characteristics about workforce high performance:

  • It involves cooperation between management and the workforce; cooperation among work groups and teams; empowerment of employees and building personal accountability.
  • It may involve learning to build individual and organizational skills; creating flexible job design; decentralized decision making and making decisions closest to the front line.

My career experience, and observations of applicants to state and national quality programs using the Baldrige Criteria has revealed six key processes necessary to effectively encourage high performance:

  1. A Formal on-boarding as part of the New Employee Orientation process
  2. Providing immediate, open and honest feedback
  3. Regular, periodic “pulse” surveys to measure employee satisfaction and engagement
  4. Frank, two-way skip-level meetings between management and its people
  5. A Career Pathing process to manage employee progression
  6. A Learning & Development System that supports organizational needs and employee development
  7. Systems & Structures supporting compensation, benefits and policies, rewards, recognition, as well as incentives to encourage continuous improvement, intelligent risk-taking, innovation and customer focus.

For more information about these key business and workforce processes, I highly recommend learning about the Baldrige Excellence Framework and attending Baldrige Evaluator training.