A Guide to Continuous Improvement Transformation: Concepts, Processes, Implementation

211 Pages·2013·1.96 MB·English

by  Aristide van Aartsengel, Selahattin Kurtoglu (auth.)

Management for Professionals
For further volumes:
http://www.springer.com/series/10101
.
Aristide van Aartsengel •
Selahattin Kurtoglu
A Guide to Continuous
Improvement
Transformation
Concepts, Processes, Implementation
Aristide van Aartsengel Selahattin Kurtoglu
Wijk Aan Zee Bochum
Netherlands Germany
ISSN 2192-8096 ISSN 2192-810X (electronic)
ISBN 978-3-642-35903-3 ISBN 978-3-642-35904-0 (eBook)
DOI 10.1007/978-3-642-35904-0
Springer Heidelberg New York Dordrecht London
Library of Congress Control Number: 2013931849
# Springer-Verlag Berlin Heidelberg 2013
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Acknowledgments
Throughout the two books entitled: “A Guide to Continuous Improvement Trans-
formation: Concepts, Processes, Implementation” and “Handbook on Continuous
Improvement Transformation: The Lean Six Sigma Framework and Systematic
Methodology for Implementation,” we have referenced many illustrious
practitioners to whom we are obviously indebted. The text of these volumes
books has also been hugely improved through the friendly criticism and advice
given by various extremely generous individuals.
We would like to express our gratitude to all those who taught us, worked with us
over the years, and those who have helped us with this work or inspired new ideas.
They are, literally, too numerous to mention. Many of the ideas and examples come
from practice. We are therefore especially indebted to the many colleagues,
managers and CEOs who have allowed us to share their work on continuous
improvement and project management.
We also wish to acknowledge dozens of people from our client organizations,
practicing Kaizen in manufacturing plants, Business Process Management, Project
Management, Lean Six Sigma, Lean Manufacturing, Total Quality Management
(TQM), Total Quality Control (TQC) and Total Productive Maintenance (TPM) to
whom we owe special thanks and who have shown the applicability of the ideas and
methods described in this handbook.
We would also like to acknowledge all the client organizations over the years
that have trusted our advice and provided us with the greatest laboratory there is –
their organizations. Their willingness to test new hypotheses contributed greatly to
the material. We extend a deep bow to IQPM Consulting for giving us such an
interesting subject about which to learn.
Finally, our families deserve loving mention, and sincere thanks, for putting up
with the hours of time spent hunched over our computers writing and revising the
content of this book.
Aristide van Aartsengel, Ph.D., Six Sigma Master Black Belt
Selahattin Kurtoglu, Ph.D., Project Management Professional
v
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Contents
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 The Issue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 The Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 So You Want to Start a “Continuous Improvement” Initiative . . . 3
1.4 The Purpose of This Book and Our Next Book . . . . . . . . . . . . . . 4
1.4.1 What Makes This Book Different . . . . . . . . . . . . . . . . . . 5
2 Defining ‘Continuous Improvement’ . . . . . . . . . . . . . . . . . . . . . . . . 7
2.1 Setting the Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2 What Is “Continuous Improvement”? . . . . . . . . . . . . . . . . . . . . . 11
2.2.1 System Thinking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.2.2 Characteristics of Enterprise Business Maturity Stages . . . 17
2.3 How to Realize a State of “Continuous Improvement”? . . . . . . . . 22
2.4 Where Does Your Business Fit? . . . . . . . . . . . . . . . . . . . . . . . . . 27
3 Understanding Leadership Dimension . . . . . . . . . . . . . . . . . . . . . . . 31
3.1 What Is Leadership? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3.2 Leadership Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.3 Leadership Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3.4 Importance of Leadership for the Transformation . . . . . . . . . . . . 36
4 Culture and Values Dimension . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
4.1 Enterprise Business Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
4.1.1 Identifying an Enterprise Business Values . . . . . . . . . . . . 41
4.2 Understanding the Resources-Processes-Values Framework . . . . . 42
4.2.1 Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4.2.2 Processes and Values . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
4.3 Defining an Enterprise Business Culture . . . . . . . . . . . . . . . . . . . 44
4.3.1 Features of Enterprise Business Culture . . . . . . . . . . . . . . 46
5 Strategic Planning and Management . . . . . . . . . . . . . . . . . . . . . . . . 51
5.1 Enterprise Business Intended Strategy . . . . . . . . . . . . . . . . . . . . . 51
5.2 Strategic Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5.3 Strategic Planning Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
5.3.1 Financial and Shareholders Intended Strategies . . . . . . . . 57
5.3.2 Design Business Intended Strategy . . . . . . . . . . . . . . . . . 57
vii
viii Contents
5.4 Strategic Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
5.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
6 Performance Measurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
6.1 Performance Measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
6.1.1 Major Functions of Performance Measures . . . . . . . . . . . . 66
6.2 Realizing Performance Measurement . . . . . . . . . . . . . . . . . . . . . 69
6.2.1 Create a Positive Context for “Performance Measures” . . . 69
6.2.2 Focus: Select the Right “Performance Measures” . . . . . . . 72
6.2.3 Integration: Align “Performance Measures” . . . . . . . . . . . 73
6.2.4 Interactivity: Develop Dialog on “Performance
Measures” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
6.3 Assessing Performance Measurement Maturation . . . . . . . . . . . . 75
7 Performance Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
7.1 Purpose of Performance Management . . . . . . . . . . . . . . . . . . . . . 77
7.2 The Balanced Scorecard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
8 Alignment and Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.1 What Is Alignment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
8.2 How to Realize Alignment? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
8.3 Enterprise Business Alignment Process . . . . . . . . . . . . . . . . . . . . 85
8.3.1 Define Overall Alignment Plan . . . . . . . . . . . . . . . . . . . . 87
8.3.2 Review Background Information . . . . . . . . . . . . . . . . . . . 87
8.3.3 Determine Key Differentiator Performance Measures . . . . 88
8.3.4 Determine Operational Performance Concepts . . . . . . . . . 93
8.3.5 Select Projects and Operations . . . . . . . . . . . . . . . . . . . . . 96
8.3.6 Assess Alignment and Implementation . . . . . . . . . . . . . . . 98
8.3.7 Formulate, Approve and Communicate Alignment
Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
8.3.8 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
8.4 Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
8.4.1 Alignment Content and Context . . . . . . . . . . . . . . . . . . . . 102
8.4.2 Assessing Commitment Capabilities . . . . . . . . . . . . . . . . 104
8.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
9 Team Development and Management . . . . . . . . . . . . . . . . . . . . . . . 109
9.1 Defining a Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
9.2 Team Development: The Challenge of Building Teams . . . . . . . . 112
9.2.1 Forming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
9.2.2 Storming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
9.2.3 Norming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
9.2.4 Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
9.2.5 Adjourning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
9.3 Realizing Tuckman’s Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
9.3.1 Create an Optimal Environment . . . . . . . . . . . . . . . . . . . 128
9.3.2 Develop Collaborative Problem Solving Capabilities . . . . 130
Contents ix
9.3.3 Encourage Team Members to Assume Leadership Role . . . 138
9.3.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
9.4 Team Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
9.4.1 Forming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
9.4.2 Storming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
9.4.3 Norming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
9.4.4 Performing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
9.4.5 Adjourning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
9.4.6 Resolving Conflict Rationally and Effectively . . . . . . . . . 142
9.5 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
10 Process Improvement and Management . . . . . . . . . . . . . . . . . . . . . 151
10.1 Characterizing and Defining a Process . . . . . . . . . . . . . . . . . . . 151
10.2 Importance of Business Processes . . . . . . . . . . . . . . . . . . . . . . 153
10.3 Realizing “Process Improvement and Management”
Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
10.3.1 Context of “Process Improvement and Management” . . . 158
10.3.2 Focus of Specific Technical Content . . . . . . . . . . . . . . 163
10.3.3 Integration Management of Specific Technical
Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
10.3.4 Interactivity of “Process Improvement
and Management” . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
10.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
11 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
11.1 What Is Value Creation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
11.2 How Value Is Created and Destroyed . . . . . . . . . . . . . . . . . . . 178
11.3 Value Creation Through Sustaining and Disruptive Innovation . . . 182
11.3.1 Creating Capabilities to Cope with Disruptive
Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
11.3.2 Creating New Capabilities Internally . . . . . . . . . . . . . 184
11.3.3 Creating Capabilities Through a Spinout
Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
11.4 Value Creation Through Diversification . . . . . . . . . . . . . . . . . 186
12 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
12.1 Improving and Managing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
12.2 Final Admonition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
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