Continuous improvement is about changing the culture of your business to engage all employees & stakeholders with the aim of improving products, services and systems on an ongoing basis.
It is about continuous and incremental change driven by all employees and key stakeholders within the business.
Over the past decade the pace of change has accelerated enormously. Technology and the Internet have delivered new ways of doing business that seemed pure fantasy only a few years ago. Indeed the top 10 jobs in 2010 did not even exist in 2004!
For those of us in business this has meant, in a global marketplace unless we change and evolve, we face the prospect of diminishing returns, new competitors taking our market by delivering service in a different format or even worse, the loss of our business.
Many business owners may feel they are already involved in continuous improvement, however for most this tends to be purely reactive, not proactive.
Continuous Improvement & Kaizen
Kaizen is an approach that has been used in Japan to bring about change within business by means of incremental improvement. Kaizen literally means “change for good”.
The process focuses on incremental and continuous improvement rather than continually looking for the next big thing or major wins. However the reality often is that by focusing on the small incremental steps within processes and systems, major steps forward can be identified.
Continuous Improvement is not just for major corporates
It is a mistake to think continuous improvement or Kaizen is only for major corporates or manufacturers. To the contrary, it is equally applicable to small and medium businesses. To survive in an increasingly competitive and global world, every business needs to be continually innovating and evolving in order to survive.
Continuous Improvement – what does it involve?
The first step is to recognise that continuous improvement or Kaizen involves every facet of your business. Encompassing: planning, marketing, enquiry, customer service, product or service delivery, administration, paper work, after sales service, maintenance, logistics, stock quality and management, stores, merchandising, finance, suppliers and supplier relationships – everything within the business!
The key steps involved with Continuous Improvement involve:
- Examination of all processes and systems – Reflection. Break each process down into individual elements or steps.
- Identify opportunities for improvement – just a suggestion from a positive position
- Identify the problem
- Ask what needs to be changed, reduced, eliminated or introduced
- Focus on continual incremental steps
- Keep a record of changes made – the Journey
- Celebrate success – recognise contributions
Continuous Improvement – Create the right environment
To enjoy the benefits of continuous improvement the first step is to create the right culture within your business, where:
- Incremental improvement is encouraged – not just a focus on big wins
- Employees are encouraged to contribute – feel listened to
- Processes and systems within a business are pulled apart and evaluated
- Ideas are tested and evaluated
- Steps forward are acknowledged and rewarded
Where to start:
The first step on your continuous improvement journey is to involve all members of your team in the process. This is crucial as it is often the people working at the coal-face or junior team members, who can be the source of the best insights.
The next step is to make a list of all the processes within the business – then break them down into their individual elements.
Next assign responsibility to review (reflect) on the process to individuals – even better seek volunteers. This work should involve breaking down the process to components, then ask – what is working, what is not, what can be changed, eliminated, introduced to make it work better.
Remembering this is about continual incremental change, ask: “what can we implement this week to improve ……….?
Don't forget to:
- Implement the change on a small scale first. A low risk strategy.
- Evaluate the results – measure. Ensure the change makes a difference. That it works
- Rollout on a broader scale only when benefits have been established– Explain the reasons/benefits to the team. Don't overlook the need for training.
- Celebrate Success
- Continually review and innovate
The benefits of undertaking the Kaizen continual improvement process
- Changes within the business come from many small incremental changes - they are part of a journey of continuous improvement.
- As most ideas will come from team members, there is greater ownership. Less resistance to implementation
- Incremental change is less likely to require major capital outlays.
- Employees will feel they are part of the solution – more readily looking for ways to improve the business.
- Encourages employees to take ownership for their work, improves motivation and teamwork.
Summary
Continuous improvement is a journey that all business needs to undertake. It can be an exciting and rewarding journey that can, not only help keep you ahead of the game, but also fundamentally change the culture of your business.
If you would like to learn more about the continuous improvement process and how we may be able to assist you, call us today for a free discussion on 03 9524 3150.