How to initiate step change in an organization

1. Where Do You Begin?
You have takenon a newpositionordecidedthatastepchange needstobe made to improve your
business’sefficiency. Where doyoubeginandhow do you make the transfereffective withoutslowing
downthe businesstoan unprofitable margin,alarmingcustomerswithlate deliveries,orcreatingatotal
disarrayof the business?We have witnessedmanybusinessesoverthe yearsgothrougha restructuring
planthat has severely effectedthe businessinanegative financials andhasforcedthe owners torecoil
initiatives. These businesses thenpullbackto a ’yearoveryear’ small percentage change andnever
make the stepchangesnecessarytoevolve the business thereby capturingnew markets. There are
stepsthat can be takenand a strategicplanthat can be developedwherebyall ownersknow whatis
expectedandthe pace of whichimprovementswilloccur. The followingpointsmustbe consideredto
be successful onyourjourney.
1. You needaVisionthatstates where youwantthe companyto evolve toinone,three,five andten
years.That visionmustbe acceptedbythe CEO, COOand the Board of Directors.
2. There mustbe a yearlystrategicplan. Thisplanmustbe clear andmust state details,expectations
and risks.
3. Knowyourrisksand the impactsof them. Divulge thematyourstrategicplandiscussions. Toomany
plansare overlyoptimisticanddonotinformthe ownersof the inherentfailuresthatcanhappento
eventhe beststrategy.
4. Contingencyplaneveryavenue of definedrisk. Itisacceptable tohave differentlevelsof riskinyour
plan. Categorize themandall highandmediumrisksmusthave contingenciesconstructedaheadof
time to ensure thatthe effectsare minimized.
5. Do not change the planto hitfinancialsquarterpoints. Youcan adjustyourstrategyto accomplish
the tasks necessarybutyoumustnot chase a metricfora quarter pointandchange your strategyina
haphazardmanner.
6. Assure youunderstandhowchangesaffectcosts,workers andmanagers. Minimizewastesof people
waiting,overproduction,procurementoridle equipment, andexcessive stagnation andtransportation
of product.
7. Processchange one piece at time. Whenyouprocesschange intoo many areas,youcannot
understandthe dataand the attributes. Therefore,youcannotconstrue acause andeffectrelationship
as the changesand theireffectsare muddledtogether.
8. Use Kaizen burststo implementsmall changestoa largervalue streamimprovement.
9. Realize thatnewcapital isa financial drag. The more the expense thatcapital incurs,the more cost
structure youmust absorbimmediately. Thinksmall andlessexpensive. Anyonecanengineeraprocess
withthe mostelaborate equipment. A goodplanis one that usescurrentresourcesandequipmentwith
some intermediate investments.

2. 10. Realize thatthisisnot easy. Neverbecome discouraged. A failure orsetbackismerelyan
opportunityforimprovement. Youcan accomplishthe tasks if youplanout your processimprovements.
We tendto applythese improvementstothe manufacturingworld.Inreality,the service industryneeds
the same overhaul anddrive forefficiency.