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The measurable value of a Continuous Improvement Program (CiP) program can be significant for any enterprise needing to improve efficiency, reduce costs, and improve quality. Typically ranging from 15-20%, the benefits will vary by industry and specific goals.
The standard Plan, Do, Check, Act (PDCA) cycle is a proven, versatile approach used to deliver many of these CiP programs. While the PDCA process is straightforward, people can still find the CiP exercise disruptive and challenging, and delivery teams can face resistance and confront missed-aligned expectations.
That’s why evidence shows there's a 50% failure rates for CiP initiatives.
The business value is clear and the processes are straight forward but widespread gaps in the use of Emotional Intelligence are the root cause of this coin toss performance. Emotional intelligence (EQ) is the “secret sauce” for successful leaders and teams involved in CiP initiatives. The front line of CiP delivery in most organisations is resourced by Project Managers and PMO leaders. EQ becomes a core requirement for their success when leading a CiP programs.
PMs and PMO leaders with higher EQ build stronger trust and rapport, to more effectively improve conflict management skills. They also increase the capacity for stronger team motivation, by being better able to understand stakeholders and higher EQ PMs can provide more emotionally intelligent responses to people’s feedback & expectations. An independent professional practice coach is a extremely valuable way to help PMs and PMO leadership build and apply the higher emotional intelligence that's required. Coaching provides the tools, techniques, with support that’s necessary for best practice program management and for solving real project delivery challenges. An external coach helps PMs and PMO leaders improve their applied EQ.
Independent professional practice coaching is a great way to help Project Managers and PMOs optimise their skill sets and deliver a sense of assurance with Project Managers to more confidently conduct the "orchestra" for their own CiP projects.
A Continuous Improvement Program (CiP) is an initiative found in most enterprises. It involves constantly striving to improve processes, products, and services. It’s all about systematically identifying and addressing problems or gaps, and can lead to significant 15-20% improvements in cost savings, greater efficiency, quality, and customer satisfaction.
CiP initiatives typically help to:
Improve efficiency or productivity.
For example by identifying and eliminating waste, so operations are more efficient and produce more with fewer unnecessary resources.
Increase quality.
For example by making small, incremental improvements to processes, to improve the quality of products and services and so increase customer satisfaction and loyalty.
Reduce costs.
For example by eliminating waste and improving efficiency, to help businesses to reduce costs and free up resources to be reinvested in other areas of the business.
Stay ahead of the curve.
The strategic environment is constantly changing, so enterprises that do not continuously improve are always at risk of being left behind or of adding unnecessary cost for their stakeholders rather than always adapting to the new challenges and opportunities.
The measurable value of CI programs can be significant. One recent study by the US EPA found that a CI program at a manufacturing plant led to a 20% reduction in costs and a 15% increase in productivity.
And the contribution of CiP programs are also well proven across services industries:
In the healthcare industry: CiP programs can be used to improve the efficiency of patient care, reduce costs, and improve patient satisfaction. For example, a CI program could be used to streamline the process of admitting patients, or to reduce the number of errors made in medication administration.
In the financial services industry: CiP programs can be used to improve the efficiency of customer service, reduce fraud, and improve compliance. For example, a CI program could be used to streamline the process of opening new accounts, or to identify and prevent fraudulent transactions.
In the hospitality industry: CI programs can be used to improve the efficiency of hotel operations, reduce costs, and improve customer satisfaction. For example, a CI program could be used to streamline the process of check-in and check-out, or to reduce the number of errors made in room service orders.
CiP programs are used in any industry where there is a need to improve efficiency, reduce costs, and improve quality. The specific benefits of a CiP programs will vary depending on the industry and specific goals of the program.
An objective RoI value of a CiP program is not always easy to measure because benefits can sometimes be indirect or long-term. For example a CiP program that improves the quality of a product may not lead to immediate financial benefits. However, the improved quality of the product can lead to increased customer satisfaction and loyalty, then leading to increased sales in the long term.
So when implementing a continuous improvement program in any business, there are a few things to keep in mind:
Start small:
Don't try to do too much too soon. Start by identifying a few key areas (strategic or tactical) where improvements can be made, and then focus on those areas.
Get buy-in from management and leaders:
Continuous improvement is a team effort, so it is important to get buy-in from management and from employees and stakeholders.
Use a systematic approach:
There are many different continuous improvement methodologies available. Choose one that fits your business and your culture.
Measure your results:
It is important to track your progress and measure the results of your continuous improvement efforts. This will help you to see what is working and what is not.
CiP is an ongoing process, but it can be a very rewarding one.
One of the better proven and more versatile approaches to run a CiP process is the Plan, Do, Check, Act (PDCA) tool. It can be used for a wide range of improvement initiatives in the enterprise ranging from problem solving, to process improvement, new product & service testing or CSAT improvements. It is simple and easy-to-understand, and it can be very effective when used correctly.
Basically PDCA is a four step, cyclical process:
Plan: Identify the problem or opportunity for improvement.
This is the essential starting point of any PDCA cycle. This is where the problem or opportunity for improvement is identified, data is gathered, and an action plan is developed. The goals of the improvement effort must be clear and its critical to develop a plan that is realistic and achievable.
Do: Implement the improvement.
This is where the plan is put into action. This can be a challenging stage, as it requires making changes to the way things are currently done. It is important to be prepared for challenges and be willing to make adjustments as needed.
Check: Measure the results of the improvement.
This is where results of the improvement effort are measured. This is where you will see if your plan was successful and if the changes made have had the desired effect. It is important the assessment is totally objective and there must be a willingness to make further changes or refinements if necessary.
Act: Make changes as needed based on the results.
This is where changes are applied, on an as needed basis driven by insights gained from the check stage. This may also involve going back and making further changes to the first plan, or it may involve abandoning the original plan altogether. It is important to be flexible and to be willing to learn from mistakes and postmortem findings.
While CiP clearly adds value and while the PDCA process is straightforward, people can still find the exercise disruptive and challenging and the team can face resistance and confront missed-aligned expectations.
For these reasons a successful CiP program is also critically dependant on:
Leadership:
Support, guidance and sponsorship from senior stakeholders and executives is essential for the success of any PDCA effort.
Leaders need to be strong and committed to continuous improvement and they need to provide the resources and support that are needed to make it happen.
Communication:
Communication is key to the success of any PDCA effort.
The goals, the plan, and the results of the effort all need to be clear and unambiguous for everyone involved in the CiP effort. Communication especially of the plan, must be effective, open and transparent. There must be ongoing and effective employee engagement throughout the PDCA cycle.
Continuous learning:
Continuous learning is essential for the success of any PDCA effort.
Throughout the PDCA cycle, new things will be learnt and mistakes will be made. It is important to be open to learning from the mistakes and to use what what has learnt to improve future efforts.
So how can it be that failure rates for CiP initiatives are commonly cited at 50%? While the business value is clear and the processes are straight forward, gaps in these key areas are the root cause.
The ISO's Technical Committee on Quality Management and Quality Assurance (ISO/TC 176) surveyed over 1,000 organisations from around the world to assess the current state of continuous improvement (CiP) in organisations and found 40% of CI initiatives failed to achieve their goals. A study by the American Productivity & Quality Centre found that 45% of CI initiatives failed to achieve their goals. Another study by the International Organisation for Standardisation found that 40% of CI initiatives failed to achieve their goals.
The top reasons constantly cited for CiP initiative failure are:
Lack of leadership commitment.
Poor plan alignment.
Resistance to change.
This evidence highlights the critical role that Emotional Intelligence has in the success of CiP initiatives. Studies specifically looking at the role of emotional intelligence (EQ) in CiP initiatives have found employees with higher EQ are more likely to be engaged in CiP initiatives, will see the benefits of change, and will be more satisfied with their jobs. Higher emotional intelligence helps with:
Building relationships:
EQ can help people build relationships with their colleagues and managers. This is important for CiP initiatives, as it allows people to work together effectively and to share their ideas.
Managing conflict:
EQ can help people manage conflict in a constructive way. This is very important for CiP initiatives, as it is conflict that can often derail improvement efforts.
Motivating others:
EQ can help people motivate others to participate in CiP initiatives. This is important for CiP initiatives, as it is gaps in participation across the organisation that will cause failure.
Making good decisions:
EQ can help people make decisions that are in the best interests of the organisation. This is important for CiP initiatives because its vital to be making good decisions that will lead to improvement and add value.
Emotional intelligence is the “secret sauce” for successful leaders and teams involved in CiP initiatives. There is a growing body of research verifying the benefits of EQ for individuals and organisations. This includes some notable studies:
By the Consortium for Research on Emotional Intelligence in Organizations (CREIO) that found EQ was a significant predictor of job performance, leadership effectiveness, and organisational citizenship behaviour.
By the Hay Group [Hay Group, "Emotional Intelligence: A Critical Ingredient for Leadership," 1998] that found EQ was associated with increased productivity, decreased turnover, and improved customer satisfaction.
By the University of Pennsylvania found that EQ was a significant predictor of success in sales and customer service roles.
While it’s important to acknowledge some academic debate about the definitions and measurement of EQ, the available research clearly shows higher EQ is a valuable asset for individuals and for organisations.
In most organisations the front line of CiP delivery is resourced by Project Managers and PMO leaders. They play a critical role often with responsibility to:
Identify and prioritise improvement opportunities:
Using intelligence collaboration tools Project managers and PMOs can apply their skills and experience to ensure areas are identified where improvement is needed. They can help manage and administer the identification, qualification and prioritisation processes for improvement opportunities based on their value and impact.
Define and implement improvement projects (Kanban Sprints):
Project managers and PMOs help to define and implement the PDCA improvement initiative. They help to manage the lifecycle and ensure that activities are completed on time, within budget, and to the desired quality standards.
Measure and track improvement results:
Project managers and PMOs check, measure and track improvement results. They help to identify the root causes of problems, learn the lessons and develop solutions to address them.
Communicate improvement progress and results:
Project managers and PMOs communicate PDCA progress and CiP results to stakeholders. They help to build support for improvement initiatives and ensure that they are sustained over time.
In addition to these specific requirements, project managers and the PMO will also play a more general role in promoting a culture of continuous improvement within the organisation. Working with their teams they can:
Encourage employees to think critically and identify improvement opportunities:
Project managers and PMO leaders can help to create a culture where employees feel comfortable challenging the status quo and identifying improvement opportunities.
Provide instruction and support for CiP initiatives:
Project managers and PMO leaders can help to provide visibility and understanding of improvement initiatives. They also help to identify and connect employees with the resources they need to be successful.
Celebrate successes:
Project managers and PMO leaders can help ensure successes are recognised. This will help to motivate employees who may be challenged by an improvement initiatives and see value in the work they’re doing.
By playing these roles, project managers and PMO leaders can help to improve the performance of their organisations through successful continuous improvement.
Emotional Intelligence (EQ) is a critical skill for PMs and PMO Managers. When leading a continuous improvement programs (CiP) it is a core requirement for success. By applying and increasing their EQ, PMs & PMO managers are better at understanding stakeholders and providing more emotionally intelligent responses to feedback & expectations. With higher EQ PMs and PMO leaders can build stronger trust and rapport to more effectively improve conflict management skills and increase the capacity for stronger team motivation.
For example, only by expanding, refining and using applied EQ skills will PMs and PMO leaders successfully:
Identify and understand what stakeholders feel they need, in order to be satisfied and positive:
Stakeholders are very often involved in continuous improvement programs. Their emotions and sense of personal ownership can have a significant impact on the success of these CiP programs. By understanding the emotional needs of stakeholders, PMOs can better tailor their communication and engagement strategies to meet those needs.
Build trust and rapport with stakeholders:
Trust and rapport are essential for building effective relationships with stakeholders. PMs and PMO leaders who are able to build trust and rapport with stakeholders are more likely to be successful in getting stakeholder buy-in and support for continuous improvement programs.
Manage conflict effectively:
Conflict is a natural part of any change focused project, and it can be especially challenging to manage that conflict in a continuous improvement programs. PMs and PMO leaders who are able to manage conflict effectively are more likely to be successful in resolving conflicts and keeping CiP initiatives on track.
Motivate team members:
Continuous improvement programs require a lot of hard work and dedication from team members. PMs and PMO leaders who are able to motivate team members are more likely to be successful in getting their buy-in and support for executing these programs.
Professional practice coaching is a great way to help PMs and the PMO managers develop their professional skills. Independent professional practice coaching can be a major advantage helping Project Managers and PMOs optimise their skill sets and help deliver a sense of assurance for Project Managers to more confidently conduct the "orchestra" for their own CiP projects. Specifically:
Helping PMs and PMO managers identify their EQ strengths and weaknesses in the live active project delivery environment:
A coach experienced in program management and the delivery of projects with higher emotional intelligence can help the PMs and PMO leaders to identify their EQ strengths and weaknesses as they apply to current delivery projects. This can be done through a variety of regular reviews and live case studies. cAs the PMs grow in awareness of their EQ strengths and weaknesses within the context of their current delivery programs challenges, they can start to develop plans to improve and more effectively apply their own EQ.
Providing the PMs and PMO leaders with tools and techniques for developing EQ:
A coach can provide the PM and PMO with tools and techniques to help improve their self-awareness, self-management, social awareness, and relationship management skills.
Helping the PMO to practise their EQ skills in a safe environment:
An external coach can help the PMs and PMO leaders to practise their applied EQ skills in a safe environment, through role-playing exercises, feedback sessions, and other activities. Practising EQ skills in a safe blame free environment can help the PMs and PMO leaders to become more comfortable using these skills in real-world situations.
Supporting the PMs and PMO leaders through the EQ development process:
An external coach provides encouragement, guidance, and feedback. Having the support of an external coach can help the PMs and PMO leaders to stay motivated and on track as they work to improve EQ within their active projects and programs.
An independent professional practice coach is a highly valuable way to develop the emotional intelligence of PMs and PMO leadership. By providing the tools, techniques, and support they need for best practice program management and real project delivery challenges, an external coach can help the PMs and PMO leaders to improve their EQ. They then become more effective in their project management role. Coaches are impartial third party who can provide objective feedback, guidance and mentoring. They can bring experience from working with other Programs and PMOs and can share insights and best practices. A Coaching initiative also has the major advantage of being tailored to individual PM and PMO leadership needs and goals.
Are you an enterprise leader, working on a Continuous Improvement CiP, who’s interested in improving the traditional coin toss of legacy CiP performance? Are you are a PM or PMO leader who’s interested in developing you and your team’s EQ? An external coaching program can be a valuable instrument for that professional development. When applied EQ is too often missing from projects and there’s interest in improving the quality and success of CiP activity program please contact Applied EQ Services to discuss bespoke online coaching, mentoring and consultancy services.
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