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When people who are
responsible for the smooth running of their systems and processes are too
busy to identify the true causes of problems, they usually apply pressure to
the wound and move on. When it’s a small problem, we call this a
"Band-Aid" and when it’s a significant problem, we say we’re
"stopping the bleeding" with a tourniquet. In another overused
metaphor, we say we’re too busy "fighting fires" to fix our
problems. We used to say we were too busy to find the "guy with the
matches."
Postponing corrective
action on the "root cause" is habit forming. In the press of daily
routines, busy managers and engineers often find themselves putting off the
treatment of the core problems, so they can keep treating symptoms, so the
business can keep running and the payroll can be met. There’s no point in
whining about that—it’s a fact of life, usually necessary to the health
of the enterprise. The second factor that contributes to delayed action on
core problems is that problems are usually acceptable. There’s no point
arguing that they’re not acceptable— if they were not acceptable, they
would not occur, or would occur much less often.
There are actually some
industries where problems are truly unacceptable, as they are in the
commercial nuclear power industry, medicine, and aircraft manufacturing.
Companies in these fields have well-established standards, specifications,
systems, and organizations, and are receiving heavy-handed help from
government and other sources in decreasing the likelihood of accidents. In
spite of everything that groups of intelligent and motivated people can
do—airplanes crash, reactor cores melt down, and the wrong limbs are
amputated.
Can you imagine either a
reward so great or a punishment so severe that they can prevent mistakes and
problems?
For most of us it’s cost
that ultimately drives us to inject some fix money.
And there’s usually a
delay between causes and effects. We need to develop special programs such
as "Root Cause Analysis" to help remind us that, for example, the
preventive maintenance program we put off last year may be linked to the
high number of product rejections we’re experiencing this spring.
For one reason or another,
sometimes at the urging of dissatisfied customers, sometimes because of
dissatisfaction inside the organization, the problems eventually become
annoying enough to take a higher priority in management staff discussions.
What happens next is
important. Insecure managers with convenient memories have a long history of
forgetting who cut the training budget, the plant modernization plan, and
the health insurance package, and then using the very pride with which they
could be building winning organizations as leverage to spread guilt. They
siphon responsibility away from themselves through blame.
In previous years, I have
highlighted the folly of being a "one dimensional manager" that
is, focusing only on money, instead of on the causes of long term business
success. The August 1998 issue of "Industry Week" reported that
the 100 best managed companies invest more than their competitors in
employee training and on industry health plans. They spend heavily on
research, plant modernization, and environmental and safety concerns. They
don’t meet government standards in these areas; they exceed them by a long
shot.
Then these managers ask for
superior financial performance, and they get it. They’re not immune to bad
quarters or disappointing years—but they stay the course and rebound from
both internal and market problems better and quicker. The Industry Week top
100 companies are leading their competitors in profit margins, leverage,
sales turnover, inventory turnover, return on assets and return on equity.
They are better in total revenues, earnings per share and profit growth.
The 1980’s (the decade of
quality) required the best of managers to take a leap of faith that taking
good care of customers was not an expense, it was a powerful competitive
strategy. When the results arrived, they exceeded everyone’s expectations.
Fortunately, the evidence
is piling up that it is every bit as sensible to take good care of your
employees.
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