Startups need process too!

December 30th, 2011

by Jamie Flinchbaugh

Startup companies, and their corresponding entrepreneurs, often focus on the “big idea.” Recently I disappointingly saw an entrepreneur state “all the big ideas have already been taken.” Wow, has history proved that wrong again and again. As an angel investor myself, it’s often easy to focus on the big idea: is it original? is it defensible? is the market big?

But I believe we focus too much on the idea, and too little on the execution of the idea. Execution is often the difference between winning and losing. What does that mean for investors? Focus on the team, their perspective, and their plan.

Here’s some evidence: in a statistical review of 32 startup company postmortems, this review categories 20 failure reasons. By my count, execution makes up 13 reasons that startups failure. Strategic failures make up the next biggest category.

Execution means that we must focus on process: decision making, customer support, problem solving, spending, and so on. Startups like to believe that process is the domain of all, boring, mega-companies. They can believe that, but only to their own peril.

Promoting Employee Engagaement–A Cautionary Tale

December 22nd, 2011

by Andy Carlino

Those of you who know me are aware that I have been slow to embrace the power and value of social media.  Fortunately my friend and partner, Jamie Flinchbaugh, has convinced me of the error of my ways.  This is my 1st foray into the blogosphere and I hope to be a valuable contributor. 

Although it is becoming less common, unfortunately it is still not uncommon to find employees, and even entire departments, unwilling to participate and contribute ideas or suggestions to improve their organization.  The reasons are wide and varied and often would take a psychiatrist’s couch to understand.  The following is a tale of an extremely important department in a company, we will call them AAA, that was not only unwilling to be engaged, they were downright militant about it.

They were a very mature workforce with many years of experience with a long history of employee engagement being unwelcomed and, in fact, discouraged.  The only requirement was “just get the work done”.  How efficiently or effectively you got the work done was not important.  Times have changed at AAA and so have the expectations.  Efficiency and effectiveness are now paramount and absolutely critical.  Unfortunately these employees are in an “entitled” environment and they are essentially employed for life unless they commit some significant egregious offense.  Little to nothing can be done to force performance improvement and professional “encouragement” was not working. 

A previous and proven method we have used to promote employee engagement and performance improvement in a difficult environment was to simply post real-time performance metrics at the point-of-activity.  In most cases we see a 3%-7% improvement in performance by posting the metrics. The thinking is that most of us want to know what the score is at any time and the metrics will stimulate the competitive and winning spirit in all of us.   So, of course, that was that was our solution at AAA.  Up went the metrics with the goal lines and the traditional and simple visual management technique of red, yellow and green color coded performance indicators.  The color coding made it easy for everyone, including the department employees, to recognize performance status.  We might as well have put a red cape in front of a raging bull. The reaction was a disaster.  What a mistake.  None of the metrics were even close to goal so they were obviously “all” red.  Not only was this not a motivator, it was a demotivator.  They were insulted and even more resistant to contributing and improving.  The cautionary tale is simple.  Regardless of how powerful or effective you think a simple lean tool/technique like color coded visual management indicators may be, never underestimate the power of the culture.  You too will experience the “unintended consequences” of acting without thinking.

We are trying to correct the mistake.  Still have metrics at the point-of-activity but they are only bar and trend charts.  No color coding, no goal lines.  Not sure if we can recover but the data suggests things aren’t any worse off than before and possibly getting better.  Time will tell.  I can tell you this, I don’t want to ever go through this experience again and hopefully you never will.

More Process Mapping Tips

September 1st, 2011

Process mapping is a tool used pretty extensively in lean journeys. It is also used because the problem is complex enough that it is required, and therefore, there are plenty of opportunities to improve its use. Here, Jamie and Andy share some tips in using process mapping effectively.

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Building Effective Escalation with Triggers

June 27th, 2011

Escalation is an important process. It exists in every company – it is how senior leaders find out about problems within the organization. It is often ad hoc, and not a designed and deliberate process. Andy Carlino and Jamie Flinchbaugh discuss the building of effective triggers and escalation.

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Using a Lean Roadmap

November 10th, 2010

In this video blog post, Andy and Jamie discuss using a lean roadmap. There is no one way to drive a lean journey. It depends on where you are and where you want to go. There are 5 phases to the lean roadmap:

  • Phase 0 – Exploration
  • Phase 1 – Building the Foundation
  • Phase 2 – Expand and Focus
  • Phase 3 – Integration
  • Phase 4 – Momentum

Please watch, but also share your comments and questions.

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Follow this link if you have problems viewing it to go directly to the source page. If your company blocks streaming video, you will have to watch this from another location.

Reflection through After Action Reviews

October 11th, 2010

One of the simplest ways to begin your lean journey is through the use of After Action Reviews. Andy Carlino and Jamie Flinchbaugh discuss how After Action Reviews can be used to drive reflection and learn and improve both from our failures and our successes.

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Engaging Through Daily Huddles

September 7th, 2010

Regardless of where you sit in the organizational hierarchy, daily huddles are a great tool for any team to create engagement, alignment, surface problems, and more. Andy Carlino and Jamie Flinchbaugh discuss daily huddles, which are a great add-on if you watched our last video about scoreboards.

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Please let us know if there are any topics you would like us to cover in the future.

Keeping score and setting direction

July 30th, 2010

It doesn’t take many distractions or changes for a team to be no longer aligned. That is one of the reasons that scoreboards are so important. They not only help you keep score, but keep you focused and aligned when used properly. Andy Carlino and Jamie Flinchbaugh discuss the effective use of scoreboards in this latest video.

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Lean Assessments

June 1st, 2010

Assessments can be an important tool in your lean journey. Like a compass, they help to keep you pointed in the right direction. In this video, Andy and Jamie discuss assessments versus audits, different forms of assessments, and the purpose of assessments. How have you used assessments in your organization?

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Process mapping in a business environment

April 27th, 2010

In this edition, Andy and Jamie take on the topic of process mapping. A tool that spans beyond lean into every form of continuous improvement, it is often underutilized and misapplied. We focus on mapping business processes, and why both product / process maps and activity maps are so important.

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If you cannot view streaming video, you can go directly to Viddler to download the video. If you are interested in learning more about process mapping, you could attend our Kaizen Boot Camp course or purchase our Single Point Lessons.