“If we want to improve a whole system, where do we start?”
This was a question asked at my recent webinar, where we talked about the importance of taking a “whole system” view of operations, with all of the elements working effectively together to deliver “high performance with ease”.
My (unintentionally facetious) answer was very much “it depends”. Not to avoid the question, but to highlight that it’s important to determine which elements of your operation are not in alignment with what is required for “high performance with ease” and hence what areas need to be addressed to deliver both short–term results and build towards a sustainable high performance system.
So where you really need to start is to establish what is happening now. Since what you are dealing with is a complex integrated system, you really need is a whole system perspective, as everything is connected to or impacts every other thing.
Taking this “whole system” perspective, you are likely to see many things that you might need to change. Ask yourself which of these are symptoms and which are actually root causes. In doing so, you may surface assumptions you have been holding (about performance and improvement) that are limiting your ability to improve.
From this evaluation, perhaps using something like a simple prioritisation matrix – typically “likely performance gains” vs “cost/difficulty of implementing” – you can determine which areas will give you the greatest initial benefit. That’s not to say that this is all that’s needed. You are likely to have to work on more than one area at once and work iteratively to make real progress.
Of course, if I were starting with a brand-new business, I would have a very clear view of the order in which the “operating system” is best established. However, it is rare that businesses have the luxury of this opportunity, and a more pragmatic approach us usually required.
Equally, whether such businesses realise it or not, they already have a “whole system” that represents how their business works today. The parts may not be joined together very well, some desirable elements may be missing, but it’s there nonetheless. As W. Edwards Deming said, “every system is perfectly designed to get the results it gets.”
In addressing what the current system looks like, in my experience, there are three key questions to ask:
How is the business performing compared to where we want it to be? Having a clear sense of the results you aspire to, financial and other, is both an important reference point and a start point to dig down to the root causes of performance that doesn’t meet those aspirations.
What is working well already that we can build on? Even if your current system isn’t delivering the results that you want, you will most likely have some elements of a “high performance with ease” system already, and these strengths will be a key component of tackling the rest.
What needs to be added or improved? Identifying the “gaps” to a “target condition” will give you a clear indication of where improvement effort needs to be directed and, equally importantly, allow you to determine a priority order for action.
While it is important not to get stuck “analysis mode” you need a reflective process that allows you to tease out insights at the “whole system” level. Based on the model I outlined in the webinar, here is a simple questionnaire to help you focus your reflective efforts and avoid “analysis paralysis”.
Another question I get asked is “what if we get it wrong and don’t work on the right thing?” My view is that, as long as you’re heading in roughly the right direction, it doesn’t matter as much as you think. Getting started and generating some momentum is probably more important than getting it perfect.
If you embrace experimentation and are prepared to learn from whatever happens, your approach will, almost inevitably, be “self–correcting”. There will be unexpected consequences, but they won't all be bad news!
When you take a “whole system” approach, working in one area will almost inevitably bring to the surface aspects of another part of the system that needs to be improved. So, over time, you will bring all of the elements into alignment to truly deliver “high performance with ease” and bring benefit to all stakeholders – customers, employees and shareholders alike.