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all three aspects of empowerment. For example, we establish the expectations of employees before signing up for training. We also give employees time off from work life by sending them to a seminar. Training employees and expanding their skills are one of the best investments a company can make, especially when the employee can use the skills learned in the training class. There is also value in simple awareness, however; that is a short-term benefit with no significant impact on the bottom line. The authorizing aspect of empowerment means communicating an assignment and then forgetting it. Authorization includes clearly communicating the expectations of the project, the expected behaviors and processes, and the accountability for results. Just as there is a reward for excellence, there must also be a lesson learned from failures, which are not to be repeated. In many companies, people do the work and try their best while all the while not really knowing what is expected of them. In other words, they really do not understand what and how they are supposed to perform at work. Lack of clearly defined expectations, responsibility, and accountability leads to suboptimal performance instead of peak performance. Among these employees indecisiveness prevails and dependence on superiors increases. Through better checks and balances, empowerment occurs in a subtle manner to achieve common objectives. Change is routine in any business. There are no two identical days, strategies, or even people in this world. Everyone must be prepared to handle change. For a group in a business, the change process must be managed based on sound building blocks. John Kotter, in the book Leading Change (1996), has identified eight stages of implementing a change. The first stage is to establish a sense of urgency. We allow too much complacency in the early stages of the project, assuming there is still a lot of time to complete it. Producing initial successes, like small wins, is very critical in order to understand the details of the new strategy and optimize the execution process. The initial phases of the change process are overlooked. We end up having a change process that lacks urgency, doesn t provide mentoring, and poorly communicates expectations.
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CHAPTER FOUR
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Another stumbling block is the decision-making process. Uncertainty about doing a task is worse than doing it wrong or not doing it at all. Uncertainty creates confusion and affects others. Indecisiveness comes from a lack of information and a fear of failure. The leadership must reward innovation and risk taking, and it must also establish a culture to make decisions and move on them. That creates a dynamic and ever-changing organization, as people are willing to try different things and do not fear failure. Well-executed strategy can be measured in terms of its performance against expectations and its timeliness. If we do a great job when the customer does not need it, that is just as bad as performing a job poorly. Every requirement has a timeliness component associated with it, and it must be given equal significance. The challenge is to define expected performance levels and establish appropriate timeliness requirements associated with them. Performance can be measured in terms of Cp , a ratio of expected to actual performance levels: Cp Expected performance level Actual performance level
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In manufacturing operations, the expected performance level is predefined tolerance, and the actual performance level is the process capability in terms of its variance. Another measurement, Cpk, measures the shift from the target, or closeness to the limits, to estimate the reject rate. In general, Cpk can be stated as follows: Cpk Nearest limit Average performance Inconsistency in process
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In other words, we need to measure how much inconsistency we have in our processes compared to expected inconsistency, and how far we are from the established target performance level. These are statistical measures and are a good set of performance measurements. The total cycle time and the attempt to reduce the total cycle time enable us to identify waste of resources and streamline processes.
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