It is very important to understand before use the business improvement tools for improvement purpose. Choosing a management structure, that is appropriate for a particular organization is !. The first step towards the successful implementation of improvement initiatives.
Here as below some helpful information that may help you to make the clear decisions.
Improvement strategy
There is a lot of talk today about organisations abandoning improvement initiatives after significant financial, and human resources have been invest in them. This is explains by the fact that the tangible benefits from the introduction of such initiatives are not obvious. Studies of such situations tend to reveal a lack of a clear comprehensive strategy for improvement.
Improvement tools should be chosen, so that they enable the organization to achieve its goals. In other words, these tools should allow to close the gap (discrepancy) between the actual state of the system and the state, that is determined by the requirements for the selected management structure.
Careful attention to closing the existing discrepancies and achieving the set goals will avoid the problems associates with distraction to the emerging new (not yet proven) preferences of the month. Adherence to the goal will also avoid staff frustration. Which may be provoked by management, which makes obviously irrational decisions to exclude current initiatives in order to launch new ones. Each tool for improvement should contribute to the overall strategy for improvement.
Improvement plan
The clarity of purpose and scope of each improvement initiative should be such that their contribution to the overall strategy for improving performance is maximising.
What is the specific purpose of the improvement? What is the exact scope of the improvement initiative? How do I align the initiative with the organization’s plan? Are clear indicators identified for the characteristics of the initiative in units of resource allocation, key stages of work (milestones), deliveries, return on investment?
A critical review of the suitability and benefits of each of the improvement initiatives should ensure that they are consistent and supportive of the organisation’s plans. Each initiative should also be reviewed for time prioritisation. Depending on the culture of the organization and the prevailing mood at the moment, some Business Improvement Tools may be perceived better than others at any given time. Sensitivity to such temporal considerations greatly increases the likelihood of successful implementation of initiatives.
As the improvement tool is properly placed in the context of the overall framework and the improvement plan, it will help the organization close out deviations (discrepancies) towards its ultimate goals. In other words, such initiatives should become a kind of “fix” idea for a person and should be competitive in resources in comparison with other planned projects.
Business Improvement tools
The choice of Business Improvement Tools is predetermined by the current needs and cultural traditions of the organization. Specific deadlines and the prevailing climate in the organization also affect the degree of success. You should carefully consider what tools can be use, when and how. The specific choice and sequence of application of tools are determined by the improvement plan and should be aligned with the improvement strategy of the entire organization.
Below are described a few of the main tools for improvement from many possible. Which can make a significant contribution to the improvement of the organization.
Process Management
This approach consists of identifying and documenting activities that combine the key processes needed to design, create, and deliver services and products.
For example, Japan views process management as a cornerstone of its successful national economy and global presence in most industries.
Process management is often chosen as the first tool for improvement because it is a very simple concept to understand and requires little cost in its application, bringing almost immediate benefits. The approval of this methodology ensures a focus on the goal and the coordination of key works throughout the organization. Thereby contributing to increasing customer satisfaction, improving employee morale and business results as a whole.
Project Management
Managing work within an organization within a project consists of focusing on resource allocation, scheduling, and monitoring key milestones in terms of schedules and costs. This approach is based on the principles of results-based management in terms of budgets and schedules applicable to projects.
Some organizations operating in a rapidly changing environment of multiple projects build a complete hierarchy of project reporting to adapt them to the organization’s activities and thus make them highly reactive.
Typically, project managers report to the central project management office, which operates in parallel with traditional root functions. It is interesting to note that project management and process management can be used as complementary tools, because the management of numerous projects also involves the management of cross-processes.
Identifying root processes in an organization and assigning process owners will provide an organisational framework to ensure that root processes complement and support projects. Proper deployment of project management provides a powerful approach that has a further impact on increasing customer satisfaction, improving employee morale and business outcomes as a whole.
Quality Cost Management
This approach consists of balancing, on the one hand, the costs of prevention and quality assessment and, on the other hand, the costs caused by problems recorded both inside and outside the organization. This concept has been successfully applied in industrial organizations.
Later, it began to be used in the service industry. A growing number of professionals are realizing that using this tool to justify investments and prioritize improvement initiatives provides them with a valuable weapon when discussing the state of affairs with senior management, namely a common language expressed in terms of financial costs and benefits, returns on investment and their impact on overall business results.
Successful application of the concept of quality costs requires an atmosphere of cooperation and trust in the organization, because this approach relies on the ability of staff to identify the time spent on correcting and preventing problems. If management cannot ensure that such reporting is done in the spirit of identifying opportunities for improvement, the information provided by employees is likely to be perceived by them as a disgrace to them.
Organizations that foster a culture of openness and a desire for improvement will find that a quality cost approach helps them identify and prioritize opportunities for improvement in terms of their relative impact on the organization’s home line.
Management of consumer expectations
An organization’s existence depends on its ability to continuously demonstrate to its customers the added value it can offer them. Information based on customer feedback is vital for organizations because it gives them a solid basis for making decisions to improve operations and prioritize investments that can have a positive impact on customer satisfaction and loyalty. This requires the organization to be able to gather customer perspectives and maintain feedback from them.
Typical answers to be received from consumers should allow for the strengthening, modification or refinement of products or services, the adaptation of new policies or procedures or, in other words, a change in the way we do business. To collect information from consumers, various methods can be used, including surveys, focus groups, interviews, etc. Using the Internet allows you to get results more quickly, with a higher speed of responses and at a significantly lower cost than conducting surveys by phone or e-mail.
Direct consumer-based information is essential in order to manage consumer expectations. Rumors and feelings taken as the basis for managing expectations can create confusion and become a means of creating potential problems with consumers. Managing customer expectations is an approach that allows an organization to not only guarantee customer satisfaction, but also to improve employee morale and overall business outcomes.
Knowledge Management
The most important, but also the most elusive, resource of any organization is its intellectual potential (IQ – intelligence quotient). Knowledge management is an approach where the individual experience and knowledge of staff. The so-called “silent” knowledge, is harmonised and enhanced through synergy from the sharing of knowledge. Without agreeing to share this tacit knowledge, a situation is created where the stock of accurate and documented knowledge is significantly less than the total potential IQ of the organization.
It should be noted that at present the popularity of knowledge management. It has slightly increased as a consequence of the concept of lessons learned. Workers are potential sources of valuable information that can be collected (“captured”, verbatim) to bring benefits. Such as increased productivity, cost savings, and opportunities for improvement. Organizations that foster a culture where the exchange of ideas is encouraged usually have a higher morale of employees . Which then facilitates the exchange of experiences about best practices.
Such organizations can offer consumers more innovative solutions that will increase the satisfaction of both customers and employees, as well as provide improved overall business outcomes.
Conclusion
The selection process that identifies appropriate Business Improvement Tools should ensure that each tool is truly appropriate for the organization. As part of its improvement plan and supports its overall improvement strategy. Careful attention should be pay to the timeliness and culture of application of the selected tools. As they can affect the degree of success and their real impact on the organization.