Tuesday, October 5, 2010

Stagnation

R.E. Powell, General Transport, and Amerifuel have initiated a project called "Zero Defects". Our desired outcome from this project is to significantly decrease the number of errors/mistakes that we cause that negatively impact our customers. During the month of August we began tracking a variety of defects that are taking place within the company. As we started tracking the defects, we noticed that each week, the number of defects reported increased over the prior week. By the end of the month we were documenting a much higher level of defects as compared to the beginning of the month.

Were we really making more mistakes as time passed by? Was our performance actually decreasing instead of increasing?

To better understand this situation, I'd like to share the following experience. During a recent trip to Mount Rainier National Park, our family hiked from the lodge at Paradise to Myrtle Falls. It was a short hike, but with three young kids and a very pregnant wife, it was challenging nonetheless. As we reached the falls, our efforts were rewarded with a breathtaking sight. Glacier fed water sparkled in the sunlight as it tumbled over large boulders. Wildflowers bloomed in all directions, as majestic Mount Rainier towered above us. A few days after our visit to Mount Rainier I was standing on the bank of a small river in Eastern Washington. The current was very weak at this part of the river and the water's stagnation, had allowed the water to become murky, smelly, and full of unsightly growth. While I stared at the river, I contrasted what I saw with what I had seen just a few days earlier at Mount Rainier.

Stagnation can have a similar negative effect on our business. When significant performance gaps exist within a business, and team members avoid dealing with these gaps, the business will develop murky, smelly stuff. You know the stuff I'm talking about. It's the stuff nobody wants to talk about. It's the stuff we try to sweep under the rug so no one sees it. The funny thing is, even though we do our best to hide this stuff, everyone usually knows it's there.

In contrast, when our teams make a conscious decision to embrace performance gaps, they have taken the first step in combating stagnation. With our Zero Defects Project, we have taken this first step, and it shouldn't be a surprise that we are uncovering some murky, smelly stuff.

During August we recorded 39 defects. This means that our performance gaps negatively impacted at least 39 customers. Remember, this is 39 defects in just 31 days. What if this performance continued for a whole year? That would mean almost 500 customers could potentially be negatively impacted by our performance gaps. Kind of mind-blowing, huh?

The second step in combating stagnation is to focus on closing the performance gaps. This is the fun part! During this step, teams embrace the fact that gaps in performance are normal, and instead of hiding the problems, they begin making the necessary changes to close the gaps. This is when performance really starts to accelerate, and just like the water cascading down Myrtle Falls; it can be a breathtaking experience.

Are you seeing significant performance gaps in your department? What are your thoughts on how we can get real traction on closing these performance gaps?

I'd love to hear your thoughts. tony@repowell.net

Tony Christensen
www.repowell.net

No comments:

Post a Comment