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KNOWLEDGE BANK
Contributing to the Bottom Line In Tough Times (And Good)

 

Jul 09 | When organisations are operating in difficult circumstances and struggle to sustain business performance, Managing Directors and CEOs are often hard pressed to maintain positive communication with employees. In the absence of information from the top, unfounded rumours will inevitably fill the void. Rumours quickly become fact and tension builds. Employees quickly become distracted, individual and department performance levels fall, and the difficult situation faced by the organisation is magnified.

 

DOUG SHADBOLT
IMAGE COURTESY : DOUG SHADBOLT

Making Improvement Workshops work successfully - everyone has equal say!

To ensure the most senior or outspoken people didn’t dominate the workshops leaving others disappointed and disengaged, a simple technique was used.

1. The large group was broken into sub-groups of 6 to 8 people with a mix from different departments and ensuring no one had their boss in the same group. Senior managers in attendance were not allocated to a sub group but acted as information sources.

2. To ensure everyone was involved –
- The process and objectives for sub-groups to identify and prioritise improvement projects were clearly explained. Improvement ideas had to be quantifiable; that is, improve sales, reduce costs, improve efficiency, reduce waste, or improve customer service.
- After general discussion about what improvement suggestions might involve each person was asked to write down their ideas for improvements, as many as they could think of, big or small.
- Each person was then asked to rank their ideas in order of importance based on likely impact on the business (improve sales, reduce costs, etc.), time frame for achieving the result, and cost of implementation.
- Each sub-group nominated a ‘scribe’ to record the findings.
- Working sequentially around the sub-group table each person gave their highest priority idea with a brief explanation. The scribe listed these. The sub groups continued to work sequentially around the table with each person giving their next idea, and their next, and so on until all ideas had been tabled. [Note: some people only had one idea and others had many. This didn’t matter. It was important that everyone had a chance to have all of their ideas recorded]
- Each person was asked to consider all suggestions from their sub group and select the three they believed the most likely to have a positive impact. The ‘votes’ were used to rank all suggestions in order of priority.
- Returning to a full group format the workshop leader asked the ‘scribe’ from each sub group to give their three highest priority ideas and provide a brief explanation of each. The result was a list of 18 improvement ideas from the six sub groups, but some were similar and were combined thereby reducing the final number.
- Everyone was then asked to select the three best ideas from the final list using the same prioritising criteria as before. ‘Scribes’ collated the ‘votes’ from their tables and reported back to the workshop leader. Summation of all ‘votes’ identified the highest priority ideas to be addressed.

3. The final stage of the session was to invite staff to volunteer for any project they were keenly interested in. This was done by asking people to put their name on a list at the end of the session rather than having to indicate their interest publicly.

4. The steering committee then reviewed all improvement ideas from all workshop sessions to identify :
- A manageable number (about 6) of the highest priority ideas to be addressed
- Volunteers who were best placed to work on the selected projects
- Any smaller or lesser priority improvement ideas that could be addressed and implemented easily and quickly without forming a project team.

These improvement projects were proposed to senior management for approval, and project sponsors identified.

 

 

 





Being involved with an organisation confronting this situation some years ago, I found a solution that was surprisingly simple, effective and inexpensive. It proved that HR can play a very positive and influential role in engaging staff, heightening focus on work outcomes and improving overall business performance during tough times.

The scenario
The company was experiencing a very difficult financial situation which resulted in drawn out negotiation with financial institutions. These interactions were extremely sensitive, requiring total involvement of the Board and CEO, plus frequent involvement of members of the senior management team. With this major distraction, top down communication to staff virtually evaporated.

The lack of information coming from the top was ‘deafening’. Staff became increasingly nervous, some resigned but most remained – distracted, de-motivated and underperforming.

The solution
The intervention to change the situation involved engaging staff in a business improvement exercise which lead to identification of a series of very practical changes to business processes to improve sales, improve efficiency or reduce costs.

The CEO agreed to support the initiative but was not put under pressure to reveal any sensitive or negative information about the company’s situation. His input was to provide support for the initiative and explain that in the current difficult circumstances it was important for everyone to contribute to help the business be as successful as possible.

An attraction was that the solution was inexpensive as it used the internal resources of the organisation led by the HR Manager.

The process
Steps in the business improvement initiative were:
1. Gaining the CEO’s commitment
The HR Manager obtained the CEO’s agreement to support the initiative by openly endorsing it and encouraging all staff to become involved. The CEO also committed to implementing any business improvement recommendations that emerged from the process, subject to financing requirements. This put a sensible commercial constraint on staff when considering improvement ideas.

2. Staff Engagement sessions
All staff were invited to attend a business improvement workshop session. While not compulsory, staff were aware that this was an important event and almost 100% attendance was achieved even though sessions were held partly out of normal working hours. Meeting rooms at company premises were used which made it easy for staff to attend.

Approximately 200 employees were involved so it was necessary to arrange four sessions to ensure a maximum of 50 people in each group. This ensured all staff were involved and able to have their ideas heard.
[Note: For very large organisations it is recommended that the exercise be broken down to a location or division level to ensure staff feel close to the business activities and processes involved.]

The objective of each group session was to achieve a prioritised list of improvement projects “endorsed” by all staff, and a team of volunteers who were keen to work on specific projects.

3. Making the sessions work
Sessions were structured around a simple format which could be easily facilitated. As the business improvement initiative was clearly people related, it provided an excellent opportunity for the HR Manager to lead the overall exercise and the workshop sessions. Each session lasted approximately two hours.

Session content covered :-
- An introduction and confirmation of the importance of this initiative delivered by the CEO, or in his absence, another senior management team member.
- A structured process to identify business improvement ideas prioritised on the basis of likely impact, realistic timeframe, and financial outlay relative to payback. [see the sidebar, "Making Improvement Workshops work successfully" for more detail on the structure and techniques used to stimulate ideas from staff and ensure all were able to express their ideas and feel engaged in the process]
- Obtaining volunteers for selected improvement projects based on the enthusiasm, skills and experience they could contribute, and volunteers for the ‘steering committee’ to set up and monitor progress of the selected improvement projects.
- Closing the session with clear information on what will happen next and what ongoing feedback employees would receive.

4. Organising the improvement projects – the Steering Committee
The steering committee led by the HR Manager played an important role in aggregating the prioritised projects from each group session, checking for overlap between projects, deciding which projects were to be pursued, deciding which volunteers were to be invited to work on each project and confirming their involvement .

Other important roles of the steering committee:-
- Identified and gained the commitment of an appropriate senior person to be “Project Sponsor” for each of the selected projects. The sponsor had to be in a position to authorise implementation of any findings and allocate resources.
- Set guidelines for each project; eg milestones and time for completion, format for financial analysis, internal resources available to project team members.
- Analysed all suggestions which weren’t selected as projects to find any which could be implemented quickly and cheaply without the input of a project team.
- Monitored progress of each project against deadlines. [Note: some projects did not proceed after initial analysis as it became obvious the idea wouldn’t work, would cost too much or would take too long for a payback to be achieved.]
- Communicated progress back to the CEO and senior management team
- Communicated progress regularly to all employees.

5. Project recommendations and implementation
Project teams worked independently (except for advising the steering committee of progress), reporting their findings and recommendations directly to the project sponsor. Once recommendations were considered robust enough for implementation and benefits had been clearly quantified, the project sponsor took responsibility for implementation.

The benefits
By engaging all employees this process provided important feedback on the organisation’s situation and gave a positive focus for the immediate future. The workshops ensured everyone had an opportunity for their ideas to be considered. Some small improvement ideas were responded to quickly, thereby providing an immediate motivation boost.

While the improvements which flowed from this process didn’t immediately turn around the fortunes of the organisation, they did make a contribution, and more importantly the process of staff engagement provided a positive focus to counter the feelings of helplessness and de-motivation many were feeling.


An example of what can be achieved


One project team addressed the issue of slowness of confirmation between sales, administration and operations in confirming sales contracts. The company sold ‘house and land’ packages from display homes. Sales people were required to complete a complicated sales document which was then forwarded to Sales Administration which checked the details in two ways. Firstly, in terms of clarity of customer details, including their financial position and ability to afford the purchase, and secondly, the details of the home to be purchased, including options and variations which had implications for the designers who were required to provide plans for the purchasing department and building teams.

Much time was lost in this clarification process because of poor or incomplete information obtained by the sales person and the importance of ensuring the customer’s requirements were accurate as this had serious implications for costing the purchase. During this ‘clarification’ period many sales were lost as customers changed their mind or went elsewhere for an alternative home.

The improvement project team devised a change of business workflow that introduced a dedicated Administrator to each customer on the next working day following the sale, thereby shortening the clarification process and keeping the customer excited and committed to their purchase.

The result – a significant reduction in cancelled sales.

Doug Shadbolt is Managing Director of Human Resource Dimensions Pty Ltd, an Australian HR consulting firm he founded 13 years ago. The company’s consulting activities have been far reaching including significant involvement in management and professional development training, change management projects and talent management and retention. Doug has a Bachelor of Arts (Economics) and MBA, and is an Associate Fellow of the Australian Institute of Management, a Certified Professional of the Australian Human Resources Institute and a Member of AustCham in Singapore.

For more information, please visit www.hrd.com.au.




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