I get this question all the time- What are the top technical and people skills we should look for while hiring a Continuous Improvement / Business Process Management Consultant or a Consulting Firm?

As the response is broad, I will take them point wise. But, before heading to the skills of the consultant, let me begin with what are the success factors for achieving Continuous Improvement? There are three success factors namely- Choice of the Continuous Improvement methodology, its strategy design and flawless execution.
 
I won’t be exaggerating if I say, “Choosing the right Continuous Improvement methodology is the lifeline of your business- be it a small firm or a large multi-national corporation”.
 
As the consulting expert or the consulting firm usually recommends the best Continuous Improvement methodology for a company, selecting a right consulting expert therefore becomes key.
 
A Continuous Improvement consultant plays dual roles. Firstly, she /he advises the Continuous Improvement methodology a company must go in for. And secondly, she / he may be become the change leader for that campaign.
 
It is up to the company to select one individual who can wear dual hats, or they can get two separate individuals. Although, in my experience of two decades in this field, I believe that it is better to get one individual on board who will play dual roles, that is, advise on the methodology to be used as well as lead to bring-on the change.
 
When the Continuous Improvement project is large, a group of consultants may be needed to handle it well. But this consultant group must be led by one individual, who is the Principal Continuous Improvement Expert.
 
Usually I witness that Continuous Improvement projects in companies are ill-coordinated. The result of which is that several projects either fail or sometimes do not lift- off the ground. Too many cooks spoil the pudding is an old adage and this is very apt for projects too.
 
Another vital point to note is that companies run Continuous Improvement projects department wise. For example, Facility maintenance  may run a Continuous Improvement campaign in their department. Another campaign may be going in Manufacturing division or, yet another campaign may be happening in Supply Chain division etc. Each of these campaigns are led by individual consultants who are assigned for the project. And these consultants report-in to the Manager or Head of the respective department. In my view, this is wrong, because costs rise while rewards generated are few.
 
Also, many a times Continuous Improvement function is clubbed with Quality Management department. This is again wrong, because quality improvement or quality management is only a small part of Continuous Improvement campaign.
 
If a company is indeed serious with its Continuous Improvement initiative, then they must create a full-fledged Continuous Improvement department. Small companies can perhaps have it as a department of one individual, while larger companies can have bigger teams.
 
This Continuous Improvement department must identify improvement projects that will bring-in maximum rewards for the company. If pains in business operations are already known, then surely, they can be picked up as Continuous Improvement projects, but this selection must be done strategically and with a flawless execution road-map. The success of the Continuous Improvement project therefore lies with its Leader.

There are several criteria of a successful Continuous Improvement Leader. But here I have mentioned nine crucial skills of a highly effective Continuous Improvement consulting expert-

1. The consulting expert must have the ability to understand client’s business and be efficient at stakeholder management.
2. The consulting expert or firm should have an integrated and overall understanding of the industry sector, its verticals, peculiarities, regulations & legislation, product types, customer avenues and marketing geographies. Most importantly for companies, it is imperative to match ‘chemistry’ with the Expert rather than looking at ‘geometry’ of the Consulting firm.
3. The consulting expert must have an up-to-date knowledge of different continuous improvement or business process management methodologies. She/ he must be hands-on with applying those methodologies successfully.
4. The consulting expert must have a passion for creating a culture of Continuous Improvement  in your organization, to bring-forth the desired positive change within prescribed time, scope and budget.
5. The consulting expert must have the ability to speak up whenever top management is wrong.
6. The consulting expert must have the ability to explain complex ideas in simple words.
7. The consulting expert must have the ability to listen and must show openness to continuous learning.
8. The consulting expert must have high emotional quotient (EQ). She/ he must be patient, persistent and persuasive while bringing on and/or managing change.
9. Amnesia- This is the most vital criteria.The Continuous Improvement expert should forget all the good work she/he did with previous organizations- What worked there may not work at your workplace, as each company has its own set of business processes, people, organizational culture, office politics and associated problems as a result thereof. The continuous improvement expert should have a mindset of always ‘starting with a clean slate’.

Want to invite Shruti to speak at your organization or evaluate Continuous Improvement prospects for your business?

So far rising competition and changing customer demands have posed immense challenges to businesses. However, businesses today must deal with two additional problems namely- high rate of 'change' and irregular cash flow. 

There is little direct control a business has over change, market economy, competition or customer demand. But preventing a situation of irregular cash flow is hundred percent in the hands of the company.

As many as 80% of small businesses worldwide deal with irregular cash flow crisis on a daily basis. This can be completely avoided by installing a culture of Continuous Improvement in your company.

A culture of continuous improvement straight away means continuous business improvement, lower operational costs and higher profits.

But, for Continuous Improvement programs to generate faster ROI (return on investment), we must consider following four factors-

1. Employee engagement.
2. Communication strategy.
3. Employee training.
4. Choice of Continuous Improvement methodology.

Let's look at them one-by-one ...

Employee engagement-
One of the most important ways of developing culture of Continuous Improvement in an organization is to let the employees know their significance to the 'Continuous Improvement' goal.

​Adding an incentive to Continuous Improvement campaigns has often been found to raise employee morale. Incentives such as monetary rewards, flexible work timings, insurance, promotions, paid education, low-interest loans are usually appreciated by employees.

Next success factor is- Communication strategy.

Communication strategy-
Developing a culture of Continuous Improvement often relies on the Continuous Improvement change leader's ability to communicate regularly, precisely and authentically share ideas with employees.  

While designing communication strategy, it is necessary to be conscious that, everyone do not have the ability to communicate exactly what's in their mind. Regardless of the caliber, level of education or work cadre, people do have challenges expressing thoughts and feelings, and it is very human, nothing wrong with it.

Hence, continuous improvement change leaders and HR leaders must design communication strategy over a solid foundation of emotional quotient to empathize and anticipate employee concerns.

Also, change leaders must repeat their messages frequently. The '7 times rule' of branding also applies here.

The 7 times rule says that information must be brought in front of the audience at least seven times via multiple channels and at periodic frequency. Employee-communications must be repeated frequently, so that employees are often reminded of the objective underlying the continuous improvement campaign, and also how their contribution is vital to the success of the campaign.

Further, employees should know whom they can ask questions to; because it is vital that employees are encouraged to ask questions and feel comfortable asking them. 

Lastly, the communication strategy  must be modified from time-to-time as work-place realities change.

The third success factor is Employee training ...

Employee Training-
Continuous Improvement in an organization means that employees are constantly learning, improving and consistently contributing to the main goal of the company.

​In any company big or small, employee mix has various components- old hands, new hires, varied levels of intellect, analytical ability and memory. Therefore learning tools and techniques must be malleable and customized according to leaner's capabilities, only then it will give best rewards.

Another point to note is that, unlike previously, skills today have a short shelf life of 2-3 years. As technology advances or customer demands change, companies need to continuously reinvent themselves to stay afloat. Employees too must unlearn and reinvent themselves to stay relevant. And this can happen with continuously learning.

Therefore corporate learning and development strategy must focus on continuous re-skilling and up-skilling, so that your talent pool is always confident and job-ready.

The fourth success factor is Continuous Improvement methodology itself...

Choice of Continuous Improvement methodology -
​Continuous Improvement necessitates all individuals within the company to move in the same direction and meet goals in an organized manner. Using a variety of assessment and planning tools determine the speed and duration of change, operational effectiveness and sustained organizational excellence with the Continuous Improvement initiatives. 

There are over 18 different time-tested Continuous Improvement methodologies including- Lean, Kaizen, Six Sigma, ISO, Kanban etc. These Continuous Improvement methodologies are scientific in outlook, easy to implement and versatile- meaning they can be applied to any industry sector.

The choice of the continuous improvement methodology largely depends on the size of the business, work-place culture, product offerings, regions of operations, customer persona, cash-flow situation and operational pains of the organization. Hence, it is extremely important to understand ‘how to choose a continuous improvement methodology’ that is most beneficial for your business.

Selecting the right continuous improvement methodology is therefore, lifeline of your continuous improvement program.
​
Ensuring excellence in strategy design of all of the above four success factors and its execution, largely guarantees sustained success with continuous improvement aka business growth!

#ContinuousImprovementMethodology #ChangeLeader #BusinessImprovement #CommunicationStrategy #EmployeeEngagement #StrategicBusinessImprovement

When we think of innovation, we typically think of something new, something that has been modified to resolve an issue or to provide enhanced features and benefits. But it is important to remember that every once in a while, a new technology, an old problem and a big idea turn into an innovation. 
​
Above all, Innovation is about having an ‘innovative’ mindset- that is constantly looking at bettering the overall experience for the user, with respect to a product or service.

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#Innovation

Cost-savings and productivity improvement are two key elements of business at all times, more so in today's times.

Both cost-cutting and productivity improvement must be done as a structured well-designed continuous improvement campaign. Continuous Improvement is about having an ‘improvement’ mindset- that is constantly looking at bettering business process(es) and overall experience for the customer, with respect to a product or service.

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​#ContinuousImprovement   #Innovation

​In this battered economy (as a result of Covid-19 pandemic) when every penny counts even the smallest increase in revenue or reduction in expenses can have an impact on cost and ultimately on your company’s profitability.

The good news is that, a large-scale company overhaul is not necessary. By and large, in most cases, it has been observed that it is short, often done, and simple improvement steps improve the bottom-line.
 
However, to calculate, manage or reduce cost, a critical understanding of all the tasks or activities that generate such costs is essential.
 
Cost, in accounting language are of various types- fixed cost, variable cost, controllable cost, uncontrollable cost etc. But in Kaizen parlance, costs are basically of 2 types-

1. Obvious cost.
2. Hidden cost.

​Obvious cost as the name suggests are ‘obvious’ and cannot be eliminated, as they are incurred to run the business. For example- wages, rent, purchasing raw materials, payment made to others in the course of running the business, etc. Although ‘obvious’ cost cannot be eliminated, it can be controlled to a significantly large extent.
 
Hidden cost on the other hand are like a leaking faucet that drains out water from a storage tank. I would say that a ‘hidden’ cost situation is grave and should be a huge area of concern in any company- be it big or small.
 
‘Hidden’ costs if not eliminated can actually toss out a company’s balance sheet out of the window. ‘Hidden’ cost therefore must be completely eliminated- just fix it! 

​There are three primary categories of ‘hidden’ cost- 

1. Cost due to ‘Variability’
2. Cost due to ‘Waste’ and
3. Cost due to ‘Inflexibility’

 
Addressing these three categories will open-up numerous areas of opportunities for cost reduction.

And Kaizen methodology can be used to identify areas of opportunity for cost reduction that would ‘control’ the obvious cost and ‘fix’ hidden cost, find favorable solutions to sort out the cost-problems and sustain results.
 
But most businesses do cost-reduction ad-hoc. What do I mean by that? Let me narrate you an incident-
 
Imagine Quarter 1 results have come-in and you notice that profit figures are not as targeted, they have dipped. The reasons for this could be many, for example- the new product scheduled launch didn’t happen on time or a critical raw material’s procurement cost had suddenly risen due to a shortage or the manufacturing over heads became higher than what was budgeted, or sales didn’t happen as planned …

The cause factor(s) may be one or many, but the first or most-likely comment by decision-makers is- "We must contain costs” and then there's a hiring freeze!

​In my view this is an ad-hoc cost-reduction decision. 

In Lean Kaizen, Lean defines various types of wastes which create costs, while Kaizen provides the mechanism to address those wastes. By Kaizen-ing, one can reduce the ‘obvious’ costs and eliminate the ‘hidden’ cost.
 
However, to apply Lean Kaizen methodology accurately, it is vital to understand its underlying principles, advantages and implementation challenges. You may read more on Lean Kaizen here.
 
Is your organization cutting costs correctly?  To know more on how you can strategically cut costs at your workplace contact us for a free preliminary online consultation.

​#CostCutting #CostReduction #KaizenForCostReduction #LeanKaizen #BusinessImprovement  #StrategicCostReduction

Just-in-time (JIT) technique is usually applied to manufacturing and service functions of companies, but not to their R&D divisions. 

​Considering the vast benefits of JIT methodology, I recommended using it in R&D division of a Life science company (my client). This company had a major set back; consequently, had a severe cash-crunch and was looking for a better option to sustain business and avoid employee layoffs.

This project was accomplished few years ago. However, the learnings are relevant today perhaps more than ever before.

R&D departments of pharmaceuticals, vitamins & supplements, natural health products, cosmetics and personal product companies need a very large quantity of consumable items. Some of the consumable items are- raw materials, packing material, tools, machine spares etc.

Some of commonly used raw materials in life science R&Ds include- Active ingredients (such as bulk drug, herbal extract), additives (such as bulking agents, colors, flavors, perfumes, emulsifiers, solvents etc.), packing materials (such as tubes, bottles, caps, wads, aluminium foil, paper, glue), machine parts (viz. tablet punches, dies, chromatography columns).

These consumable items are extensively used during experimentation for new product development and testing. In fact, the R&D department cannot function at all if consumables are not provided.

In research-based life science companies and contract research organizations, consumables comprise of 20 – 45 % of their R&D budget. Therefore, any savings in consumable expenses help organizations to lower over-head costs big-time, and Just-in-time methodology does just that!

A four-step approach was taken for this project-

Step 1: The existing supply chain process was mapped, inventory demand-supply schedules reviewed and gaps in these processes were identified.

The objective was to re-design the supply chain process to include Just-in-time technique to lower R&D over-heads (without disturbing R&D output) and the savings generated thereof could be utilized for other needs of the business.

Step 2:  A supply chain process improvement strategy was designed.

Note that, there are several dos and don’ts prior to applying Just-in-time technique for process improvement or process design. One of such important to-dos, is to ensure all items being sourced comply to CQA (Critical Quality Attributes).

Step 3:  A core team comprising heads of R&D, Manufacturing, Quality, Regulatory and Procurement was formed.

Then all consumable raw materials were classified into- expensive, moderate and cheap items, based on their cost and availability. Vendors were approached to provide samples (of raw materials) for testing. Once test results proved compliance to CQA, the vendors were short-listed.

Step 4:  Just-in-time process was set up.

This also involved effective collaboration between R&D, resource planning and quality groups. Then, meetings were conducted with vendors to provide raw materials at negotiated price to R&D. Vendors for expensive raw materials were approached first, followed by those for moderate and cheaper items.

Note that-

• Depending on the size of the organization and the number of consumable items to be worked on, it might take from 2 to 8 weeks to fully set up Just-in-time in a company.
• Just-in-time methodology encourages sourcing from local or regional vendors rather than overseas. Should a company go for an overseas vendor, then make sure that vendor has a distribution warehouse situated locally or regionally.
• Savings from Just-in-time implementation are further augmented when R&D's follow Quality-by-Design (QbD) approach for product development.

Result Dashboard: 

1. Through flawless execution of Just-in-time technique, around 35% of R&D over-head cost was saved in the first year.
2. Besides lowering over-heads, Just-in-time also helped free-up warehouse capacities.
3. Continued implementation of Just-in-time technique maximized over-head savings up to around 80%.

#JustInTime  #ImproveOperatingEfficiency  #ContinueInnovation #ContinueProductDevelopmentInPandemic   #Covid19  #ImproveOperatingExcellence  #ProcessImprovement  #ProcessDesign

Today USFDA announced addition of QR Code to certain export certificates for food products. This unique QR code will allow easier verification of the authenticity of the export certificates. ​