Here's wishing for a great 2012

Greetings!

Here's wishing for a great 2012. Not doubt next year will be an interesting one. Several domestic indicators late in the year (shopping trends, job creation and housing starts) have provided reason for cautious optimism, while international economical/political news still require that I keep an adequate supply of antacid tablets on hand.

Several topics have caught my eye recently. And, like I did at the holiday buffets that I was fortunate enough to be invited to this season, I have decided to visit each one and sample its contents:

First, I attended an ASQ meeting recently and was introduced to the Hoshin planning model. Yes, I am a member of ASQ. And yes, I am a CQM, however, I have to admit I have next to no knowledge regarding this model. A vice president of quality for a local medical equipment company has made it his mission to spread the word and spoke at a recent ASQ meeting about the model - and has even developed a software package to aid folks bold enough to test the waters with it. However, the fact is, it's simple. Basically, the model requires company executives determine and agree upon the company's most important goals/objectives for the year. Then, they develop strategies for each goal - then tactics. Each tactic at one level of the organization may then drive a strategy at the next level - which in turn drives another tactic set. Sounds easy enough - right? The problem, but not with Hoshin is (actually, there are four major ones):

1. Executives have to decide and agree upon objectives. Some good organizations do this very well. However, for too many companies, somehow this remains an elusive goal. I can't help but believe the numbers would improve if more executives had formal quality and/or project management backgrounds. I may be partial, but that's my story and I'm sticking to it.

2. The management team (and employees) all the way across the organization have to ensure that they have interpreted the objectives correctly so that their strategy/tactics align with objectives. In other words, there needs to be an ongoing communications stream across the spectrum.

3. Be able to audit status against goals for each level of the organization. Please see#1 above for the reason this is often not successful.

4. This planning model doesn't work overnight. It can take 2-3 years before the organization speaks and acts with true unity regarding its goals and objectives. The organization has to be disciplined enough to stay with it until positive outcomes prevail. Yes, I am saying executive teams lack the perseverance to stay the course. Doing RCA on this topic for many teams may yield some profound outcomes.

In summary, for Hoshin to work, companies need to be able to agree on the decision making process - and stay with the decisions once made. Embark on a constant communication program, develop measurable feedback with full engagement with employees on what measurements should look like, and have the discipline to stay with it. So simple - yet so difficult. No wonder the Hoshin model lacks more widespread adoption. The road to Hoshin may not be a short drive, but still worth the effort when you arrive.

Second, a terrific article was written recently by NiloferMerchant in the HBR entitled; 'People Are Not Cogs'. She feels that the new economy is about producing ideas, experiences and meaning. The output of these singular and collaborative entities may produce revenue on its own, or could be the input to other ideas, experiences and meaning. The full engagement of all employees as collaborative partners is imperative for success. As she states:

'Look at Apple. Their earnings per employee figure is $419,528 per head, beating out even Google's of $335,297/head and well on its way to be double that of Microsoft, currently at $244,831. They outperform their industry because they've figured out how to enable the key asset of the new economy: scalable leverage many people's contributions, including the app developers eager to piggyback on the industry's most attractive devices. Yet most organizations still operate much as they did in the industrial age. We manage the measurable, rather than the things that create meaning that fuels creativity, that enables innovative thinking and that helps any company to outpace the market.'

Also, she goes on to provide objective evidence when shes states:

' (The) Gallup, the research firm, recently did a meta-analysis across 199 studies covering 152 organizations, 44 industries, and 26 countries. It showed that high employee engagement brings an uplift of every business performance number. Profitability up 16%, Productivity up 18%, customer loyalty up 12% and quality up an incredible 60%.'

Then why do many businesses measure the employee as a resource, which keeps the employee at a virtual 'arms length' with the employer. How can true engagement occur when many organizations run on earlier industrial age thinking. Company performance and people are not mutually exclusive - but are rather mutually inclusive now for company success. Again, it seems simple. And, given the data, why are more companies not sprinting in this direction?

Third, a gentleman recently passed away who was a past CEO of a large company in my area - as well as a founder of a couple of other smaller companies. He was a true believer in the quality philosophies of Dr. Deming, and even received the prestigious Edward Medal from ASQ some years ago for outstanding application of quality principles. He and his wife were frequent donators to many local organizations. They have an ice arena, Boys and Girls Club cafeteria and college building named after them. He was a 'people above all else' person, he was constant in purpose and felt you should continually attempt to improve anything you did - or it wasn't worth doing at all. Looks like his legacy would be a great role model for leadership in the new economy. People and performance - together. Thank you Mr. Conway.

People and performance - together. Sounds like the makings of a good company mantra for 2012 and beyond. I'm ready .... bring it on 2012!

Next topic: Method To The Madness: Rise of the idea system