Friday, November 10, 2006

Management Tampering

Our firm has had a diverse experience in many industries. From Healthcare, Insurance, Wireless, Transportation and Real Estate we've seen over a hundred companies from the inside out. What is a repeated behavioral problem is "Management Tampering" which does nothing more than increase cost and create further problems. What is "Management Tampering"? It is simply coming to conclusion on a solution without throughly understanding the root cause of a problem.

In many of our engagements we've witnessed complex process problems that had driven cost up. Upon analysis of the problems we've consistently discovered that the problems were caused by previous attempts to solve problems. The attempts were nothing more than what we call "shot gun solutions" being someone, somewhere, at sometime simply though they had the best idea which they thought would solve a problem. The fact is that previous solutions only created further problems, increased cost and the ongoing "shot gun approach" created yet a another series of problems which only further increased cost. The cycle is a like cancer eating away at productivity and profitability. When will management STOP THE MADNESS?

The answer is only when they see and understand that problems are systemic and solutions need to be systemic as well. This requires an understanding of how things are connected, how the connection cuts across multiple processes, how interconnection relates to outcomes or results. Learning the "how" requires a change in mindset. Changing mindsets requires education but many managers already think they know it all and they are the Kings because of their title or position in a company. The biggest barrier to improvement is the "mindset" of management. We have found that employees, for the most part, want change and can contribute to effective change. There isn't a customer in any industry that would want better service, an improved or innovative product at great value and all at the lowest possible cost. So what is the biggest barrier to fulfilling these opportunities, Management!

What does it take to change "mindsets"? Sometimes it takes a shock treatment: loss of market, employee turnover, loss of profit etc etc. Even when these events occur sometimes it still doesn't create the awakening needed for change. Leadership is needed to set a new tone, a new direction and new mindsets.

The alternative is to recognize the need for change, learn new methods, adopt a new philosophy and gain new directions and new confidence. However, this is a hard road for entrenched mindsets and one that requires a recognition that new knowledge is needed. Where will the new knowledge come from? Who has it and how can it be gained, used and executed effectively? Until there is recognition of these issues progress cannot be made and repeated mistakes will be the method for going forward into chaos.

Personal change is a requirement of transformation. However it is the toughest challenge of all change initiatives.

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