Recruit, Reward, Retain – A Huge Challenge For UK Organisations

Many of our UK clients are finding it hard to recruit, reward and retain good people. Inflation is surging, household budgets are stretched, and the labour market is tight. Unusually, there are too many jobs chasing too few people. Flexible working, home working, hybrid working, four-day weeks, joining bonuses, and other innovations are just some of the “headline” ways that employers are trying to cope.

As consultants, we’re seeing the effects at first hand. More and more clients want us to provide resources they simply don’t have. We help them tackle new projects, coaching and mentoring their in-house staff. We provide concentrated part-time resource (the Operations Director that isn’t yet a full-time role). And we help them to develop a whole range of reward, recognition and incentive programmes.

Growing businesses often find that their payment and bonus systems become opaque, demotivating and no longer fit for purpose. In urgent cases, we can often recommend simple, transparent systems to relieve some of the pressure points. This buys time to follow up with a more nuanced and effective approach, yet still keeping it simple and transparent. Most importantly, the new systems need to be seen as fair, and reward the right actions and behaviours. Simple grade structures, payment for skills schemes, group productivity programmes, and individual performance reviews are all part of the arsenal! If you find your own organisation struggling with the “three R’s”, simply drop an email to info [at] nicholsonconsultancy [dot] com, and find out how we can help…

Simply Sustaining 5S

Many people find the first three stages of 5S fairly easy to do, but Sustaining 5S activities can be a real challenge. So here’s a simple approach you might find helpful:

Working with the people in each area, decide on a small number of things you really want to be better organised (the “vital few”).

Describe in simple words what good looks like. If you possibly can, phrase this as a simple “Yes / No” question, where “Yes” represents the desired outcome. Examples might be “All tools back in the correct places on the shadow board at the end of the shift?”, “All gangways clear of any obstruction?”, “Floor clear of any packaging materials?”.

Create a simple checklist for each area, listing these questions.

At agreed times (hourly, at end of shift, daily, weekly, etc). check the work area against the items on the checklist, giving each a “Yes” or “No” answer.

Record how many items have been checked, and how many of these reached the standard (a “Yes” answer). Calculate your score as the number of “hits” (items that were a “Yes”), divided by the number of checks carried out, then mutiply this by 100 to create a percentage score.

Set a target / desired level for the next period of time (eg “95% by March 2020”), and compare this with your current score.

Make the scores visible, tackle the reasons for any “No” results, recognise the team’s efforts and watch your 5S performance improve.

Periodically raise the standard – add new items to the list, make the standard more demanding, challenge the team to do better.

As always, please let us have your own thoughts, experiences and examples. And if you’d like some help in developing a sustainable approach to 5S, simply contact andrew.nicholson@improvemyfactory.com

Sustaining 5S - tackling S4 and S5

QCD is out of date – you need CxVAR

For decades now manufacturers have measured their performance in terms of Quality, Cost and Delivery. These days that’s no longer good enough. If you really want to raise your game here are some measures you need to be thinking about:

Cx – Customer Experience. The customer’s total life-time experience of your products, services and brand. Think customer journeys, Net Promoter Score, Fault-Free Years in Service and the like. Talk with them, partner with them, have the difficult conversations, grow old together.

Value-Add. This goes to the heart of what manufacturing is all about – taking a whole load of inputs and resources and turning them into something more valuable. Value-add per employee is a critical measure of productivity. At the plant level, it’s one of the “critical few” measures, and at a national level increasing productivity is the only real way to improve living standards.

Responsiveness. Simply delivering a product “on time” (which date exactly?) doesn’t really cut it. How agile and responsive are you to customer needs? Do you know exactly what’s important to your customer? Can you flex volumes, delivery times and specifications? Do you need to offer guaranteed lead-times, short lead-times or both?

If you’d like an up-to-date, independent review of your KPI’s and objectives, contact Andrew.Nicholson@ImproveMyFactory.com

The Number Eleven Motivator – “In the last six months, someone at work has talked to me about my progress”

This one really gets to the core of workplace motivation, since it covers some of our basic human needs –

  • the need to have objectives and goals – something to aim for
  • the need to feel that we’re making progress towards achieivng our goals
  • the need for regular feedback, to help us keep on track

Without these – aither at work or in our personal lives – it’s easy to drift and to lose motivation. Remember – “You are happy to the extent that you are in pursuit of worthy goals”.

Effective Leaders get to know their people and make the effort – however busy they are – for regular one-to-one discussions with each of them. Formally, this might be done every six months through an appraisal and review system, but more frequent one-to-one sessions (at least monthly) are perhaps even nore important.

Regular, honest, constructive feedback is vital to individual performance and motivation. In fact, most of us would rather have negative feedback than no feedback at all.

As well as reviewing performance against objectives, it’s also an opportunity to talk about career progression and to ensure that the employee’s idea of their future trajectory is realistic and generally fits with the needs of the organisation. In simple terms, we might benefit from some fast track superstars but most organisations also need a fair number of “steady Eddy’s” – committed, reliable people who always turn up on time and just get the job done.

… if you’d like to know more about objective-setting, effective feedback that works, appraisal, performance management or any other apsects of practical workplace leadership, contact Andrew.Nicholson@ImproveMyFactory.con

The Number Four Motivator – “In the last 7 days I have received recognition or praise for doing good work”

The vast majority of people like to do a job well, and they like to be recognised when they’ve done a good job.

Unfortunately it’s too easy to overlook this important act – we might feel that “they get paid for it so why do they need thanking as well”, or we might not feel comfortable giving praise and recognition.

Here are a few ways to make sure that we recognise people’s efforts effectively:

The recognition has to be appropriate for the individuals concerned. Some people would love to receive an award from the Chief Exec on stage in front of an audience of thousands. Other people would be horrified at the very thought of such a public display. Make sure that the type of recognition will be appreciated by the individual(s) concerned. The same rules apply as for a gift – show that you know the individual and that you know what they would value.

The recognition has to be genuine. You need to understand exactly what the good job was, and why it deserves recognition. And don’t overdo it, or do it automatically. A routine, unthinking “thank you” every day becomes meaningless – like the dreaded “Have a nice day!” that’s churned out automatically.

And finally – particularly when you want to recognise the efforts of a team rather than an individual – get creative and make it fun!

The Number Three Motivator – “At work I have the opportunity to do what I do best every day”

Most of us have experienced the enjoyment of doing easily something that we’re good at. And most of us know how frustrating it can be to keep on trying things that we struggle to do well or to do at all. But from a management point of view, we often want people to be flexible / multi-skilled, and we often want people to learn new skills. So how can we achive these objectives and still keep people motivated? Here are some thoughts:

Allow for the “learning curve”. When we learn we often take a while to get the hang of a new skill, and sometimes we make mistakes along the way. Managers and leaders need to make reasonable allowances for this – provide extra time and try to correct or prevent errors as quickly as possible. We also need to make sure that learners adopt the “One Best Way” and not pick up bad habits from other employees.

Catch people doing things right! Look for opportunities to give positive feedback, rather than only focusing on what needs to be done better. Try to “sandwich” each slice of negative feedback between at least two “slices” of positive feedback.

We often focus on people’s weaknesses / things that they find difficult, and we try to get them to do these things better. But don’t neglect the opportunity to help people improve the things that they’re already good at. Sometimes it’s a lot easier to go from “good” to “outstanding” than it is from “acceptable” to “good”.

Make learning fun – create some friendly competition, publish a league table, recognise and reward improvements, get your most epxerienced folk to run some “this is what effortless skill looks like” demos.

Be honest, keep it fair and lead by example. Balance the easy tasks and the difficult tasks, and spread them out  fairly. Make clear that we all have to do things that we don’t like or that we struggle with, and show people that that’s what you do every day, because even you are not quite perfect yet!

The Number One Motivator – “I know what is expected of me at work”

Expectations detemine outcomes, Expectations motivate us, Expectations keep us on track. So it’s no secret that the best organisations – and the most effective Leaders – are all over this.

So here are some simple tips – aimed here mainly at manufacturers.

Long-term: make sure everyone clearly undertands the common goals of the organisation and why you do what you do. Is there an answer to “Why am I here” and “What’s in it for me”?

Medium-term: spell out the three most important goals this year, this quarter. Back them up with SMART objectives for each and every team member (Specific, Measurable, Achievable, Relevant, Timescaled).

Short-term: provide simple visual “target and actual” measures in each workplace. Every team member needs to see for themselves what’s required and how well they are doing. At the end of each shift / day / week every team member should know – without waiting to be told – how well they’ve done, and what they need to focus on next time.

The Future’s Bright, The Future’s Lean – Part 2

Andrew Nicholson
By Andy Nicholson, Managing Director of Nicholson Consultancy

In my previous blog I suggested that many organisations have come to understand that their future success requires the marshalling of Purpose, People and Processes, to deliver value to the organisation, its customers and its stakeholders.

So let’s look at what this actually means in practice:

The purpose of a Lean organisation is to create and deliver real long-term value.

The technical side of this requires a deep understanding of customers and stakeholders and should make clear exactly how, why, when and where value is added.

For the Purpose element to work a common set of values and a vision need to be drawn up that people feel are worthwhile and that they can get behind.

The truly Lean organisation values and develops its people, treats everyone with respect, and demands excellence.

To ensure sustainable continuous improvement requires, what W Edwards Deming, many years ago, described as “Constancy of Purpose” – the discipline of doing the important stuff day after day after day.

When it comes to People, the first and most important step is to get the right people on the bus – people whose values and attitudes fit with those of the organisation.

I’m with the approach of Jack Welch, as CEO of General Electric, on this one – if managers don’t demonstrate those values, they need to be replaced, regardless of how well they “hit the numbers”.

Lean organisations know how to recruit and retain people with the right values, and they are expert at developing each and every employee to their fullest potential.
Such organisations aim to engage people in a greater purpose, they recognise and reward their contribution, and they train and empower them to do the right thing in their own work-flow.

When Henry Ford talked about “the machine that God built” and Jim Womack, Dan Jones, and Dan Roos, wrote “The Machine that Changed the World” they weren’t talking about the motor car itself, they were talking about the process that created the motor car.

From the outset, Ford and Toyota understood that the myriad tasks and activities in a manufacturing plant should work together smoothly and effectively like a well-oiled machine.

Lean organisations are obsessed with their value streams – the essential value-adding tasks by which they create and deliver value.

They actively manage their extended value streams – their supply chains – by partnering and working with their suppliers and customers.

All the time, their people are working to understand “exactly how is value added, how do we cut out the waste, how do we link the pieces together and improve flow?” Put simply, good processes deliver good results.

Last, but not least, pulling all of this together requires the right leadership – leaders who have the right values, who are passionate about Lean and who are in it for the long haul: the sort of people who work very hard to make things very simple.

Do we all have to fail before we can succeed?

The value of going Lean is easy to quantify: in forensically examining a firm that is experiencing problems, Lean experts can identify what is going wrong and suggest solutions for the workforce to put in place.

But what if it is a new company, that doesn’t yet need a solution?

At a recent summit from the Lean Enterprise Academy, Lean guru Jim Womack summed it up like this: “Is it possible for an organisation to start up Lean from Day One, or must an organisation grow until it becomes inefficient, and only then learn from its mistakes?”

This challenge helps us re-examine the Lean principles we use every day at Nicholson Consultancy and realise their value as independent tactics that are transferrable to a number of situations.

We might think that the simple answer is to learn from other people’s mistakes, but current thinking is that Lean is situational – we can transfer the skills, but we need to tailor our approach for each organisation and each unique set of circumstances.

The question of where Lean fits into a business strategy mirrors various conversations I’ve had recently with friends and colleagues who are business owners and entrepreneurs.

We’ve all made many mistakes over the years and most of us would like to think that we wouldn’t repeat them. But how do you get it right until you’ve had the experience of trying it and getting it wrong?

The challenge is to create a business that is Right First Time – and having done that to keep it on track so that it never needs major work. Of course, there will always be improvements to be made because the manufacturing landscape changes so often, but an appreciation of Lean strategies can be a solid foundation to build on.

This is an interesting approach that many Lean practitioners and their potential clients will have missed out on. Let’s get the message across that Lean is not only a repair option, it can also be one of the first things on the list when a new business is being planned.

Maybe we don’t have all the answers and maybe we can’t get everything perfectly right from Day One, but surely there’s more than enough experience and accumulated knowledge out there now to at least aim for “More Right than Wrong, Most of the Time!”

Not the snappiest of slogans, but maybe it’s what we should be aiming for.

Sheffield Forgemasters win Leadership and Strategy Award

Delighted to report that our client Sheffield Forgemasters won the Leadership and Strategy category at last night’s Manufacturer of the Year Awards ceremony at the ICC Birmingham. Congratulations and well done to Graham and the team!

Congratulations also to overall Award winner GE Aviation Wales.

http://www.themanufacturer.com/articles/ge-aviation-wales-reigns-supreme-at-record-awards-ceremony/