Eliminating the Causes of Work

Fixing effects is a lot like shuffling the chairs on the deck of the Titanic. Lots of work gets done and things look different but the original problem still remains.

Fixing effects increases the complexity of our work and the technology we us to support it. It’s a vicious cycle many of us are stuck in. The more we do the worse it gets. Soon analysis paralysis sets in. We’re stuck and there’s no place for us to go.

Meanwhile successful companies around the world are now eliminating causes rather than fixing effects. But how do they spot causes and eliminate them? Is a host of Master Black Belt Cause Eliminators needed to get the job done?

Of course not. Moments of Truth, Break Points and Business Rules are the causes of work. Once we start looking for them we spot them. Elimination comes from challenging what we currently do – looking for Actions that eliminate Moments of Truth, Break Points and Business Rules.

How big is the size of the prize? Efficiency and productivity gains of 30% to 60% are common. Cost reduction of services by 50% is not unusual.

Cause elimination is a seek and destroy mission. It’s the challenge to weed out the “dumb stuff” in our organizations. Are you ready to challenge your assumptions and start eliminating those causes of work?

Complexity is the result of lack of alignment to customer success (Part 1 of 4)

There is no excuse for complexity. It is a consequence of muddled thinking and a lack of understanding of the true goal of the organisation, which is creating Successful Customer Outcomes.

Complexity has developed as organisations have added new routes to market, new ways of delivering service, new enterprise IT systems and a myriad of improvement approaches. Each internal functional specialism has developed a mindset to optimise their part of the organisation, sometimes at the expense of others. The unwieldy complexity that results has caused a reaction primarily aimed at the need to create order out of this chaos, as if accepting that complexity itself as a right to be. This is not so. Let us unravel the muddle of complexity once and for all.

All work in an organisation is fundamentally created by the need to provide product or service to the customer. Everything else is a consequence of that need, which creates value for the shareholders and creates a livelihood for the work force. All else follows.

Furthermore all interactions in meeting the needs for customers are the cause of all work within an organisation. These interactions, or Moments of Truth[i], create work in so far as we need to attend to a request internally.

In doing so we interact with our colleagues, systems and other internal processes, and create internal Moments of Truth, which can be referred to as Breakpoints[ii]. The way we deal with Moments of Truth and Breakpoints is underpinned by Business Rules[iii] which may be thought of as ‘decision points within processes’.

These three entities determine the shape of our organisation, the internal landscape of how we do work. The resulting activities from Moments of Truth, Breakpoints and Business Rules create the very processes themselves. In fact process is simply an effect caused by the way we choose to interact and guide the customer to obtain our products or service.

Think about that – process is an effect. If that is the reality then the vast range of tools and techniques created in the last century, and sometimes before, are fixing an effect. It is like taking painkillers for discomfort and nothing more. If we are not getting to grips with the causes of the pain it will surely get worse and as we discover, stronger pain killers are then required.

That’s the rub. We have been systematically fixing the wrong things and is it any wonder that change doesn’t stick? Have you ever had that feeling that this is the same project challenge as before, just dusted off and here we go again? It is because we are not fixing the causes of work, and while we continue to ignore the causes the complexity worsens, costs increase and service suffers.

Einstein put it well when he said
“We can’t solve problems using the same kind of thinking we used when we created them”

Part Two: Case Study – UK Bank “How complexity developed” – See http://bit.ly/LBhwq

[i] Moments of Truth – a concept discovered and explained by Jan Carlson.
Any interaction with the customer is a Moment of Truth.

[ii] Breakpoints – internal handoffs within an organisation.

[iii] Business Rules -Decision Points within a Process.

The Causes of Work

Every Customer Interaction is a Moment of Truth (MOT). Whether it’s person to person, person to system, system to person, system to system or person to product they are all Causes of Work.

That work in dealing with MOT’s creates internal handoffs, these are Breakpoints. Places where things can and do go wrong and we see them happening between people, systems and services all the time.

All our internal communications are in fact Breakpoints. For instance how many emails do you receive from colleagues and business partners daily? How many calls do you have to make to get the job done? How many ‘systems’ do you work with?

According to US research firm The Radi… [more]

Delivering Customer Service to reduce costs, improve revenue and enhance Service

“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else”. Sam Walton, founder Walmart. And never has there been a time when this is more true. Competition, globalization, conformance, complexity are all things forcing us to look at how work [more]

Executive Team Asleep at the Wheel?

This goes out to all “c” Level Executives struggling with the Credit Crunch
Is you Executive Team Sleeping at the Wheel?

Despite the potential meltdown underway in the financial sector it seems, from my discussions last week as we undertake the annual BP Group survey (see here), that many senior managers, apparently responsible for processes and performance management are oblivious to the immediate dangers during this current crisis. Almost as if the global brand makes them immune from economic reality they put down the failings elsewhere to some sort of black magic. Please if that’s the way you feel – wake up and smell the coffee!

Never before has there been a time to step forward and guide your organisation by accelerating cost reduction, improving service and preserving revenues the only way businesses can – through their business and performance management processes.

If you find yourself the pending victim of ‘asleep at the wheel’ then your choices are straight forward:
1. Blow the whistle and write to the CEO/COO/CIO anonymously (otherwise in the resulting car wreck your job may be one of those that goes)
2. And if you are the CEO/CIO/COO then ask the question “How much can we reduce costs by focusing on successful outcomes?”. If the answer is anything less than 30% in 12 months you know where the first cost cuts start!

This is not the time for the faint hearts and excuses. The time for action is now.

What Price Complexity?

Complexity is insidious. Costs go sky high. People get confused and systems can’t cope.
When production and service cycles take forever, and costs are high, chances are that most of your processes are mired in complexity. Since Victorian times, companies have felt compelled to offer consumers whatever they want, creating a myriad of choice with goods and services each having their own process and production lines.

In turn these processes are supported by complex systems and require specific skills for bespoke services and products. How often do you hear the recital “oh we’re very different around here. What we are do is unique in the industry.”
And it probably is to the detriment of the very people you are trying to please – the customer.

Consider a few of the not so hidden costs of complexity:
1. Customer inconvenience – Your customers have to negotiate your complex system and its mind-numbing array of alternatives.
Q. Just how many Moments of Truth are there?

2. Unwieldy sales processes – The sales systems needed to support complex product lines soon grow too cumbersome, whether they require filling out complicated order forms, getting indecipherable invoices or navigating endless voice mail paths.
Q. How many rules exist to ‘guide and direct’ and are now out of date slowing things to crawl?
Q. How many handoffs occur in your processes between people, systems and services?
Eradicating those Moments of Truth, Rules and Breakpoints can change everything.

3. Impact on management – Eventually, even your managers will find numerous services and processes too much to track.
Q. How much money have you spent training people to deal with this complexity?
Remove the complexity and those inside-out approaches such as Six Sigma and Lean are not required!

4. As an absolute, the greater an organization’s complexity, the less focused its management.
Q. Where does all that management time get directed? Fire fighting and fixing problems caused by the nightmare of complexity.
Refocus management time to helping align processes for successful outcomes.

It doesn’t have to be this way.
Download the free report on ‘Accelerated Cost Reduction’ for the inside track and get on route one to success. http://www.cityprocessmanagement.com/CostReduction.html

Accelerated Cost Reduction – utilize ground breaking techniques created by the market leaders who have redefined their markets and continue to outplay the competition in every aspect of the game.

Screw it – Let’s Do it (Part 3)

In the early parts we reviewed ‘Business Transformation are you on board?’ and the ‘Zen and the Art of Process Management’ and we now bring the story together with ‘Screw it – Let’s do it!’. In our efforts to improve our organzations we involve ourselves in approaches that frequently get mired in their own complexity. It doesn’t have to be that way.. . {…} more

See Part One Part Two

Slash Costs But don’t Kill the Business

Approaches such as Lean and Six Sigma are having a tough time in the face of a compelling need to dramatically reduce costs caused by the current economic downturn, credit squeeze and market volatility. Companies are looking beyond the ‘business as usual’ 5-10% annual reductions and need to slash costs just to stay in business. Tightening belts and just ‘doing things right’ really isn’t good enough anymore as long established companies go to the wall on the back of short term and short sighted decisions made in better times.. {…} more