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i-nexus makes The Telegraph 1,000!

October 21st, 2011

I’m really proud of how far i-nexus have come in the last 10 years, which is why it was a great honour to be listed in The Telegraph’s Top 1,000 order of mid-sized companies in the UK.

The list was compiled by government innovation agency NESTA and business information specialist Dun & Bradstreet and it identified 1,000 private and Alternative Investment Market-listed companies. The list also took polls of more than a dozen membership organizations, such as the Chartered Insurance Institute, the Institute of Physics and the Royal Academy of Engineering.

It was great to see i-nexus sitting alongside companies such as Lovefilm, Skyscanner and Photobox in the ‘Britain’s Brightest Businesses’ list.

However, the biggest compliment for me was the fact that the list also took nominations from readers and conducted research of companies that had received peer acclaim.

It was a great achievement to have been listed. To read the full article, click here.

Business Execution for Financial Services

October 18th, 2011

The last few months have been tough for everyone, with warnings of a double-dip recession and more cuts being announced.

Slow growth and a weakening outlook has forced an increasing number of companies to reassess their expectations, and with UK profit warnings rising sharply year-on-year in the second quarter of 2011, there is a greater need than ever before to drive consistent and relentless execution of strategies. i-nexus Business Execution software can help organizations in the financial services sector to achieve this.

On Friday 18th November, I’ll be hosting a seminar in London on this very topic. I’ll be talking through ways in which Business Execution can accelerate Lean transformation in the financial services sector, which in turn will help to improve the probability of business objectives being achieved. Business Execution as a discipline is already being used by global companies to manage their policy deployment processes and align them with Lean initiatives, and now is a perfect time for the financial service sector to see how it can benefit from this approach.

The seminar will be taking place at Intellect House, London from 10am until 1:30pm, with lunch included. The delegate rate is £150 and the seminar provides a great opportunity to meet with other like-minded individuals in the industry to network and swap best practice techniques.

For more information and to register, please click here.

Public Sector Savings

October 13th, 2011

With the news dominated with more reports about slow economic growth and public sector job losses, the UK’s current financial situation is at the forefront of everyone’s mind. I read an article a few weeks ago that stated that more than 110,000 public sector workers have lost their jobs in the second quarter, with job cuts in the sector already 5 times greater than expected for the year.

It got me thinking about alternative ways that these savings can be made. There’s a real need for public sector managers to effect these savings through improvements in operating efficiency or elimination of wasteful activity and not through the implementation of short-term, tactical solutions that deliver immediate budget gains to the detriment of frontline services.

These kind of improvements in efficiencies can be brought about through the implementation of best-practice methodologies. As I’ve discussed many times before, a CEO’s biggest challenge, be it in a private or public sector organization, is engaging thousands of employees in pursuit of a common goal. Lean Six Sigma, Hoshin Planning and Balanced Scorecards can help to achieve this.

My own experience in private sector organizations has shown me that simply training employees in tools such as Lean Six Sigma, and setting new targets rarely leads to improved performance.

What is needed is a closed-loop approach to engage management at all levels.  When outputs are fed back in as inputs, the organization has a clearer insight into whether the targets that have been set are going to be delivered on.

And given the challenges facing public sector managers in the coming years, having visibility of whether the initiatives in place are the right ones to deliver the targets will be essential – now so more than ever before.

Why do Lean Six Sigma programs fail?

October 11th, 2011

It’s not exactly breaking news that the majority of Lean Six Sigma programs fail, and it’s a topic I’ve covered quite a lot in my blogs recently. Yet it’s hard to find a detailed breakdown of exactly why most Lean Six Sigma projects do fail. So I thought it would make an interesting blog topic to expand a little more about the top reasons that I see as the downfall of operational excellence projects.

The number one reason in my opinion that the majority of operational excellence projects fail is because the project leaders do not secure enough executive buy-in. Without the right amount of top management mind and wallet share, the project will simply never get off the ground. As with any critical organizational change effort, Six Sigma requires leaders to stay engaged in the effort, and really reinforce the importance of the initiative. It needs to become the way things are done on an everyday basis, not just another initiative that will fall by the wayside after a few months.

Next up is a lack of tangible results from the pilot project.  The first step in any Lean implementation is to ensure that the project is linked to improving measurable performance. Because Operational Excellence programs are often driven by improvement priorities, the impact of the projects on strategic indicators are rarely articulated, and as such, are not deemed a finished success for some time. Resources are used and time is spent on initiatives that are not aligned with strategic objectives and as a result, the outcome of the project seldom achieves what it needed to ensure a project is deemed a success.

Lack of quality resources can be seen as another major reason for the failure of many Lean Six Sigma projects. When organizations do not take a structured approach to how they allocate resources to support their Six Sigma efforts, Six Sigma will probably fail. Again, this can relate back to a lack of executive buy-in. If senior management are not fully behind the project, they won’t allocate their best Black Belt to the project.

But how can you overcome these issues to ensure your project is a success? From my own experience, I know how hard it is to align Lean Six Sigma initiatives with your organization’s strategic objectives, especially when spreadsheets are used as an alternative to Lean Six Sigma software. What is needed is a Six Sigma project tracking tool that allows users to capture, align and evaluate projects and see, at a glance, the outcome of each action within the project.

A true visionary

October 6th, 2011

 

It saddened me greatly to hear the news about Steve Jobs death this morning. He was a true visionary, and one of the greatest innovators and leaders of our time who was “bold enough to believe he could change the world, and talented enough to do it.”

Steve Jobs

A few weeks ago I came across a really interesting anecdote about Steve Jobs that really highlighted the passion he had, and was a great example of strong leadership and attention to detail.

Remembering an interaction he had with Jobs back in 2008, Vice President of Engineering at Google, Vic Gundotra explained how, during a religious service on a Sunday morning, he received a voicemail message from Jobs asking him to call him back immediately to deal with an “urgent matter.”

What could possibly be urgent enough for the CEO of Apple to call about on a Sunday morning? It turned out that whilst looking at the Google logo on an iPhone, Jobs wasn’t happy with the yellow colour of the second “o”. So, he called Gundotra, explained the gradient was wrong and that someone would be looking at it tomorrow.

Minutes after the call, Gundotra received an email directing him to the person to work with to resolve the issue.

It’s a lesson we could all learn from. As CEO, every tiny detail is worth a telephone call, even if it is on a Sunday. It’s a great example of excellent ‘hands on’ leadership style, and sets the bar for others to follow. Jobs will be missed, but his legacy will live on.

Is NVA activity draining your operational excellence resources?

October 4th, 2011

I’ve already mentioned before how spreadsheets can have their limitations when it comes to managing multiple projects.

But did you know that the vast majority of organizations are losing at least one belt to non-value-added activity for every ten they train?

NVA can be incredibly draining on an organization’s operational excellence resources, and coupled with the lack of flexibility that spreadsheets offer once they are scaled, it is clear that a more effective way to create reports is needed.

I recently recorded an hour-long webinar for the PEX Network that detailed not only the principle NVA activities that are typically undertaken by belts and how to eliminate them, but also the hidden dangers and costs of managing operational excellence initiatives with spreadsheets.

So, if you’re interested in cutting NVA activities in your organization, and want to hear real examples of the ways in which Business Execution technology is helping deployment leaders replace ‘out-of-date’ spreadsheets with real-time insights into the benefits and progress of their operational excellence programs, the free webinar is available to download now.

Register at http://www.i-nexus.com/news/free-black-belt-webinar.html

How would you define Lean?

October 4th, 2011

I was asked this question during a recent interview with the Lean Management Journal, and it really got me thinking about the journey I’ve been on throughout my career that has led me not only to consider lean six sigma as part of a bigger picture, but also how it can have a huge impact on an organization’s business execution model.

So, my first encounter with Lean was whilst I was working at Marconi in the 1990s, where the focus was very much on the reduction of time and the implementation of Kanban for our overall production management approach. I soon began to learn more about the concepts of the wider Toyota Production System, which really taught me about the interdependency between concepts for daily management and longer range ideas for objective realization and policy deployment, like Hoshin Planning.

But it wasn’t until I became head of operational excellence at Marconi that it really became clear to me that no single method, when used in isolation, would be an effective means of driving a project. Looking back, I wish I knew then what I know now – that in order to create a complete alignment of goals, further methodologies need to be built, and a Six Sigma approach needs to be combined with Lean to work effectively.

It was this realisation that became the driving force behind my belief that Lean is a critical part of Business Execution.

The most effective organizational infrastructure needs to recognise the importance of cascading goals through Hoshin Planning, of driving projects at different levels, of interpreting progress and of forecasting success. And as well as being recognised, these elements of execution need to link together.

I really believe that organizations need to know how to link policy deployment with project execution methodologies like Six Sigma, and operational improvement processes like Lean, with measurement frameworks, like the Balanced Scorecard to create an integrated cycle of Business Execution.

Today people are managing the deployment of strategy and the management of goals through spreadsheets and individual strategic planning and appraisal cascade documents, as well as using all sorts of different methods to capture KPIs. There is a lot of heavy lifting involved in trying to understand all the information and everything is completely fragmented which means people have no way of knowing whether work throughout the organization is actually driving and delivering against the set objectives. Business Execution helps to close up the planning and execution cycle, turning Lean and Six Sigma into critical tools in the execution process.

To read about my Lean journey in more detail, read the full article here.

Business Execution Seminar – Ohio

September 27th, 2011

Next month I’ll be travelling to Ohio to give a seminar on the basic principles of Business Execution and to share best practices with leading organizations. So, if you’re in the area and want to learn how you can dramatically increase the probability of delivering on your organizations goals, it would be great to see you.

Taking place at the Embassy Suites Cincinnati, I will give real examples of organizations who are already benefitting from the joined-up and systematic approach that Business Execution Software offers. I will also discuss how to successfully integrate strategy platforms such as Hoshin Planning and Balanced Scorecards with initiatives such as Lean Six Sigma into a ‘closed-loop’ Business Execution system, along with the six core steps that form the basis of the Business Execution cycle.

So, if you’re interested to learn how the emerging discipline of Business Execution can help your organization, register here.

What truly motivates a workforce?

September 19th, 2011

Motivation.

It’s something I often think about in my role as a CEO with a team of people to motivate, and in relation to strategy execution – something that Business Execution software is designed to help make easier for organizations. I saw a clip of American author and speaker Dan Pink the other day and he was talking about the science behind motivation. Much of what he said really resonated with me as I could link it directly back to the foundations of i-nexus Business Execution software.

For a workforce to have a chance of feeling motivated, they need to feel part of what’s going on and have a genuine belief that what they do on a daily basis actually makes a difference to organizational performance. Often, by the time strategic objectives have been cascaded (and cascaded again!) to the front-line teams, they bear little or no resemblance to the clear, focused strategy created by the senior team, as they have passed through too many hands.

One of the best practice frameworks that underpins Business Execution is Hoshin Planning – a Japanese inspired methodology for defining, cascading and reviewing goals within an organization. Hoshin ensures that everyone in the organization works towards achieving the same breakthrough objectives through a consensus building process known as ‘catch-ball’. The key element of ‘catch-ball’ is that the project assigner and the assignee work through a process of negotiation to agree achievable objectives as part of the overall strategic plan.

Another benefit of Hoshin Planning software is the on-going review process which tracks the performance of the key indicators over time and causes counter-measures to be instigated if performance varies from targets to bring it back on track. The outcome of all of this is a more intrinsically motivated team working towards the delivery of achievable goals.

This brings me back to Dan’s speech. The gist of his set is that the common business approach to motivation is through extrinsic incentives, i.e. ‘put up a cash reward and the task will be completed quicker/better/with more enthusiasm’. Scientific tests, however, have proved time and time again that although incentivising can be a highly effective motivator for mechanical-skill-based tasks, it can actually do harm with cognitive tasks by dulling thinking and blocking creativity. The tests prove it.

What Dan’s speech highlights is something that we at i-nexus are fully aware of; that a workforce is truly motivated by knowing how they can contribute in the organization, by feeling part of organizational success and by being aware of the their role in delivering it. This is what Business Execution software helps to realise.

With this insight, it is so disappointing to know that only a quarter of employees have access to their company’s strategic plan. If that’s not an instant de-motivator, I don’t know what is. Looks like it’s time for a different approach to motivation – science is telling us to do so!

Lean Six Sigma Seminar

August 18th, 2011

I would like to say a huge thank you to everyone who attended our Lean Six Sigma seminar yesterday. Addressing the common dilemma of making Operational Excellence a CEO’s number one priority, it was really interesting to hear real-life stories of the struggles Op Ex leaders face.

These seminars really help to bring to life a lot of the statistics that are often quoted in articles and papers (and by myself in my presentations and blogs!) It was interesting to hear that every one of the Operational Excellence delegates that attended today has the same problems when it comes to implementing Lean Six Sigma initiatives, and I hope that by sharing best practice methodologies during the session it gave an insight into how these issues can be addressed.

The two-hour seminar was attended by Op Ex leaders from a variety of industry sectors, including automotive, utilities, IT and manufacturing, and featured a lively debate about the effectiveness of problem-solving methodologies.

The seminar was a great opportunity to discuss the benefits of Business Execution and was a huge success, with some fantastic input from the attendees.

 

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