Box 337, Gilbert, AZ 85299 USA
Our 3-Year Barrier Study
“THERE WERE NOT 20 REASONS WHY WE COULDN’T MAXIMIZE PERFORMANCE. THERE WERE NOT 10 REASONS. THE SAME 4 REASONS WERE THE ROOT CAUSE OF EVERY FINANCIAL SHORTFALL AND FAILURE TO CHANGE… ALL CAME FROM THE SAME SOURCE.” Kay Sever, 2013
WHAT WAS THE CATALYST FOR THIS STUDY?
I help companies improve productivity, processes, cost and culture. I also put them on a path to full optimization. A few years ago, I began recognizing patterns in my work with clients. The same patterns surfaced regardless of the scope of work. All of these patterns involved management – patterns in thought, patterns in behaviors and patterns in choices.
I will say this again…. all of these patterns involved management – patterns in thought, patterns in behaviors and patterns in choices. They did not involve equipment or systems. They did not involve products or services. They surfaced regardless of the number of employees, sites or divisions.
I began studying these patterns because there were always losses associated with them, sometimes significant losses that could have been captured or avoided… but weren’t!
- Millions in production losses and increased costs that were not recognized or known.
- Project overruns or delays, sometimes in the millions of dollars.
- Millions in losses “trapped” in the culture by mistrust, fear of talking about problems, and Interactions between departments.
- Lost management credibility is a product of these losses that drives other financial losses.
All three types of patterns create barriers to change, but are overlooked or inadequately addressed by change initiatives. These patterns work behind the scenes to steal profit, hurt culture and management credibility, and prevent change. My goal is to maximize profit and change for my clients. I knew that I could never help them OVERCOME the barriers that were holding them back without understanding what was driving these patterns.
WHAT MY BARRIER STUDY REVEALED
When I began studying these patterns, I knew I had to think out of the box. Assumptions had been made for decades about change and change methodologies, but what I was observing was outside the scope of traditional processes for change…
- HISTORY OF CHANGE: Since the time of Henry Ford, change in business has started with processes, looking for a better way to do things, measure things, control quality, etc. One hundred years ago, simple measures were taken on the assembly line to control the quality of cars on the mass production line. As the decades past, the methodologies for change became more complex, moving from simple process measures to TQM and continuous improvement in the 60’s and 70’s to Six Sigma in the 80’s and Lean in the 90’s. Over time, the methods for change grew increasingly complex and required more resources and significant investments. Getting the return on that investment became more and more important. When executives set expectations with the board of directors about expected gains, their credibility is at stake. However, widely-accepted tools and methods for change do not always deliver the desired result.
- CHANGE AND RACING: In auto racing, car owners invest huge sums to create the opportunity to win the race. Pit crews train to Six Sigma levels of excellence. On race day, if there is any obstacle on the track, people hurry to clear it before the race begins so the cars can maximize their speed and win the race.
In companies, we invest millions of dollars in equipment and systems with the intent of “winning” for shareholders. But here’s the difference between racing and change… we start change without removing our barriers. Instead, we hope that barriers will “disappear” during the change process, which doesn’t always happen. Barriers linked to process changes do disappear when process improvements are made, but “root barriers” (the barriers created by the three management patterns) do not. When employees talk about change as the “fruit of the month club”, they are experiencing the impact of these barriers as they move from initiative to initiative, hoping for a better result but coming up short every time. If we treated these root barriers like obstacles on a race track, how much more money could we make? If we went looking for them, how much faster could we change?
- OPTIMIZATION: If a company’s goal was optimization instead of improvement, I found that the “plot thickened” as even more factors appeared that interfered with success. Optimization means achieving your best performance every single day with the assets and people you have in place. The goal of optimization is profit maximization, which means that potential profit now becomes the target, regardless of the budget goals. And here’s where a major invisible barrier popped up: management systems focus on actuals and budget, but not potential. The success of day to day business is measured by comparing actual to plan or budget. Potential (what could have happened but didn’t) isn’t on the general ledger and isn’t on management’s radar unless an event happens and the cost of that event is calculated afterwards.
I call this gap between the management system and potential “misalignment”. Misalignment acts as an invisible “lid” that hides potential. This lid is a barrier to optimization because it limits management beliefs about what is possible to achieve. It also impacts behaviors and choices important to change and optimization. Misalignment reduces ROI on equipment and projects, increases costs and losses, and causes people to unintentionally make choices that “trap” or forfeit profit and sabotage change.
To achieve optimization, you need more than equipment or systems. To “manage towards optimum”, you need new management patterns in thought, behaviors and choices aligned with optimization goals. Without these patterns, companies are disconnected from potential and don’t know it.
- THREE CATEGORIES OF MANAGEMENT BARRIERS:
- Barriers that “hide” potential profit.
- Barriers that “divide” people that need to work together to capture potential profit.
- Barriers that “hinder” change.
Narrow Set of Linkages: Management perspectives, decision criteria and interactions related to change and optimization.
If management teams know how to remove these barriers, they are empowered with information that forever changes their perspectives and ability to control performance, change and profit generation.
- As I progressed in my study, it became obvious that the secret to amazing performance and fast change lies in an understanding of what is holding us back (i.e., clearing the track), not in pursuing change amongst barriers and hoping for the best result. This is a very different way of looking at change.
My goal was to discover what ultimately separates companies from maximum profit. Once I had the answer to that question, developing a solution that would fill the 100-year-old gap in change methodology would be the next step…
THE NEXT STEP
As my insights unfolded about what was missing from processes for change and optimization, it was obvious that every management team could benefit from this information. A training program designed specifically for management teams was the solution. Content would:
- Share the insights from this study and teach tactics for barrier removal and “alignment”.
- Give management teams more control over financial and cultural performance.
- Help them meet expectations for change.
- Enable them to maximize profit and extract the full value from their ore bodies.
TRUTH, TRUST & TONS™ is that program – the WORLD’S FIRST BARRIER REMOVAL PERFORMANCE PROGRAM for management teams.
TRUTH, TRUST & TONS™ offers TRAINING and TACTICS for management teams in these areas:
- OPTIMIZATION MANAGEMENT and PROFIT MAXIMIZATION
- VALUE STREAM MANAGEMENT
- CULTURE CHANGE
- BARRIER REMOVAL
- FAST & SUSTAINABLE CHANGE.
YOU CANNOT AFFORD TO WAIT ONE MORE DAY FOR THIS KIND OF TRAINING.
An odorless invisible element defined as a favorable set of circumstances in business. The only element with an infinite atomic number and weight. When discovered, it reacts with management strategies and corporate cultures to produce a desirable green substance found in financial institutions.