Business Process Improvement

Achieve Operational Efficiency through Continuous Improvement

Table of Contents

Let's face it, in the business world, standing still is a recipe for getting left behind. This is where continuous process improvement comes in. It’s more than just a buzzword, it’s about building a culture that thrives on evolution.

 

But what does a culture of continuous improvement truly look like and how can it benefit a company?  Before we move on, first let me introduce myself.

 

Hi, I am Lonnie Ayers, PMP and a Kaplan-Norton Certified Balanced Scorecard Consultant.  I help companies develop and execute strategies that are designed to get them to unheard of levels of performance.

 

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Understanding Continuous Improvement

In simple terms, continuous improvement involves constantly seeking ways to make things better. This could mean optimizing existing processes, developing new and innovative products, or even fostering a more engaged and efficient work environment. It doesn't happen overnight, it's an ongoing process.

Principles of Continuous Improvement

There are some universal guidelines to help guide the process of continuous improvement and help make it part of your everyday work culture.

Customer Focus:

This involves truly understanding your customer base's needs and wants. You must address their interests and challenges. Most importantly, know your customer's pain points. Ultimately, strive to provide customers with positive experiences and meet expectations with better products or services. Deliver outstanding customer service at every touch-point. This concept applies to every industry, including manufacturing processes.  

Eliminate Waste:

Every process in your organization should contribute to creating value. It's important that every team member is on board with eliminating anything that doesn't move the needle.

 

Identify and reduce anything deemed wasteful in terms of cost, time, or defects (and strive for zero waste.). Even if it's a time-honored way of doing things, if a step no longer serves the company's best interests, it should be revisited or potentially eliminated entirely. Implementing improvement like this can involve supply chain management or other areas ripe for reducing waste.

Gemba Walk:

Take time to walk around. The Japanese concept of "gemba" essentially translates to "the real place" where the work happens. Go to gemba, even if that's just down the hall. This provides valuable insight into how your organization functions.

Gemba allows you to be present, witness your processes firsthand, identify opportunities, and be more in tune with the daily reality of your organization at every level. It can also uncover small inefficiencies that can become much bigger problems if left unattended for too long.

Empower Your People:

This is key. It's not enough for one person to be passionate about continuous improvement. This involves making sure every team is aligned to your CI (continuous improvement) principles, regularly reviewing their progress, and being open to their suggestions. It’s about recognizing that the best ideas for improvements often come from the employees doing the actual work.

 

One method of continuous improvement is called catchball. It begins by identifying who is responsible for the process and requiring them to explain the process, any issues, and the overall purpose, to the team. This is a perfect way for employees to contribute ideas.

 

Catchball works well to elicit valuable input for improvements because it involves “throwing” out the concern or process for open discussion while keeping one person responsible for the final outcome.

 

Empowering people means fostering a workplace culture where your staff feel valued and are encouraged to contribute their insights—regardless of how small or insignificant their ideas seem initially. Encourage them to bring up problems they notice and give them ownership over finding solutions.

 

Sometimes, just tweaking wording slightly to make instructions clearer is an improvement. An employee’s simple suggestion to streamline an inefficient task or update antiquated technology can positively impact everyone. Encourage everyone to look for ways to enhance a business's operations and increase employee involvement.

 

By implementing these practices, your team may even feel less micromanaged and be more engaged with their roles as they’re contributing to a process that is designed to recognize and address inefficiencies for optimal outcomes.

Methodologies and Tools for Continuous Improvement:

Over the years, various continuous improvement models and frameworks have evolved. But there are some popular techniques for formally putting this process into action. Let's delve into some improvement techniques.

The PDCA Cycle:

The Plan-Do-Check-Act cycle (PDCA), also referred to as the Deming Cycle, offers a systematic approach to continuous improvement. Using PDCA involves establishing a clear hypothesis, then developing a plan for addressing the hypothesis.

 

It is a simple four-step approach that includes the following actions:

 

  • Plan: Create a hypothesis about what is causing the problem, as well as any possible solutions to the problem.
  • Do: This step is to implement a chosen solution and closely track and measure how it unfolds.
  • Check: Here you examine whether the new solution had a positive impact. This might require the team to review data, compare, and decide what worked well and what requires further adjustment.
  • Act: Take action based on step 3. If a solution worked to improve the process, then integrate the solution on a wider scale. But if it didn't have the intended result, return to step one and try again with a new potential solution.

LEAN

This approach is based on customer-centric thinking. Introduced by Toyota to enhance their production cycle, LEAN Technology focuses on streamlining work by examining each step in a process. Once you identify the steps customers value the most, then you determine what steps in the process can be reduced or eliminated. Lean methodology aims to pinpoint waste, reduce expenses, and optimize processes by understanding exactly what customers find valuable.

Six Sigma:

This method, first introduced by Motorola in the 1980s, centers around minimizing variations and errors. Its goal is to guarantee quality and boost overall performance by creating streamlined workflows. Six Sigma prioritizes customer-focused efforts, eliminating issues or defects, collaborating across teams and departments, working flexibly, and incorporating continuous improvement measures. This is one of the improvement strategies that can transform a business.

 

A cornerstone of Six Sigma is data. It uses a variety of tools, primarily statistical ones, to identify areas that require improvements. But Six Sigma doesn't end there; it encourages collaboration across the board, acknowledging that success hinges on involving people from different teams and departments to leverage multiple viewpoints.

Kaizen:

This Japanese philosophy emphasizes making small, incremental improvements over time—involving everyone in the process, from top-level management to employees. Kaizen prioritizes continuous improvement as an ongoing part of the company culture rather than an infrequent, separate initiative. It's based on five core principles:

 

  1. Knowing your customer.
  2. Letting processes flow seamlessly.
  3. Being present.
  4. Empowering all team members.
  5. Maintaining a constant state of evolution.

According to Toyota’s founder, “the ideal conditions for making things are created when machines, facilities, and people work together to add value without generating any waste.” Kaizen underscores the power of consistent, small changes, which over time can snowball into impressive gains.

Kanban Boards:

For teams who favor a more visual representation, Kanban offers a valuable tool that provides at-a-glance insight into which tasks are complete, currently underway, and next in the pipeline. For instance, one team at ProductPlan found implementing a more visually accessible Kanban-style roadmap to be highly beneficial.

 

Kanban isn't just a pretty way to view workflows but a method for increasing overall efficiency. Teams can seamlessly adapt to shifting deadlines and changing demands using a Kanban-style system. By making data and project stages more accessible and viewable in real-time, teams are also better equipped to adjust workflow based on the ebb and flow of the business’s output demands. This helps the entire organization get better.

Why Is Continuous Improvement Important?

Think about continuous improvement as the key to making sure a company doesn’t stagnate. Whether your industry is in healthcare, public sector, financial services, government work, or manufacturing, technology-driven software and other digital transformations can support Continuous improvement. Using tech wisely lets you implement these measures rapidly. It also simplifies data tracking, reporting, and measuring the results of any improvements.

 

For instance, implementing solutions like Business Process Management (BPM), Robotic Process Automation (RPA), process automation, intelligent document processing, or a digital process automation platform helps to integrate AI tools for improved insights and automation. These improvements help your company in the ever-changing market.

Real-World Example

Take Motorola in the 1980s. When faced with a competitive market, they embraced Six Sigma as part of their growth strategy. The outcome? A massive increase in their bottom line. They increased their productivity by 500% and saw quality skyrocket by 1000%, all within a 14-year span. Fast Company wrote about this example. This is a great case study in how to achieve continuous improvement.

In another real-world situation, by simply focusing on improvement, customer and staff satisfaction rose by 54%, proving that it’s more than just about dollars and cents— it's also about people. Successful continuous improvement requires commitment to being better.

FAQs About Continuous Improvement

What is the meaning of continuous improvement?

Continuous improvement is a management philosophy that means continually looking for ways to improve processes, products, services, or the overall workflow, even if they are deemed already successful. An example of continuous improvement would be optimizing successful strategies or increasing product quality where there are no issues. This is sometimes referred to as "CI".

What are the five key principles of continuous improvement?

The five core principles include customer focus, the elimination of waste, being physically present, empowering employees, and always remaining in a constant state of positive change. By following these principles, your team can implement improvement.

What are the 4 steps of the continuous improvement process?

There are four steps in the process known as the PDCA Cycle or Deming Cycle, an iterative four-step method used for continuous quality improvement in business. The four steps are Plan, Do, Check, and Act. Continuous improvement also involves incorporating methodologies like Lean and Six Sigma to ensure better outcomes for stakeholders.

Why is Continuous improvement important?

By practicing continuous improvement, your business can cut expenses, decrease wasteful processes, encourage productivity, and streamline workflow. But perhaps most important, but less talked about, is that you boost employee engagement by making team members feel valued and increasing morale overall. All of this will lead to increasing quality within your company.

Conclusion

No matter the size of your business or what industry you’re in, implementing continuous improvement is paramount for sustainable, long-term growth and success in today’s marketplace. By weaving these core concepts into the very fabric of your work culture, and by investing in training and professional development—you too can realize success stories like Motorola and enhance your business one step at a time.

 

Continuous improvement isn't just about doing more—it’s about achieving more by working smarter. It helps to save money and improve operational efficiency.

 

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Lonnie D. Ayers, PMP

About the Author: Lonnie Ayers is a Hubspot Certified Inbound Marketing consultant, with additional certifications in Hubspot Content Optimization, Hubspot Contextual Marketing, and is a Hubspot Certified Partner. Specialized in demand generation and sales execution, especially in the SAP, Oracle and Microsoft Partner space, he has unique insight into the tough challenges Service Providers face with generating leads and closing sales using the latest digital tools. With 15 years of SAP Program Management experience, and dozens of complex sales engagements under his belt, he helps partners develop and communicate their unique sales proposition. Frequently sought as a public speaker in various events, he is available for both inhouse engagements and remote coaching.
Balanced Scorecard Consultant

He also recently released a book "How to Dominate Any Market - Turbocharging Your Digital Marketing and Sales Results", which is available on Amazon.

View All Articles by Lonnie D. Ayers, PMP

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