Monday, June 27, 2016

THE POWER OF WHY

Why is it so tough to get to the root of hard business problems?  We see breakdowns and problems every day. Somehow, we know there must be some way to solve and prevent them.  Everyone involved gets frustrated and confused at different levels.

In Eric Ries article, “To Get To The Root Of A Hard Problem, Just Ask"Why" Five Times”, he explains companies move too fast to correct mistakes and usually don’t react until those mistakes become a large enough to impede success for the company.  Another reason is because managers believe it’s not worth their time to deal with the small issues. 

However, as Ries points out, once you get to the point where you can’t ignore the problem, the best way to resolve it is to ask the "5 Why's".  Toyota has used this process very effectively. 

It’s good to call a time out and resolve problems at their roots.  It’s even better to have a disciplined and systematic way of dealing with nonstop issues.  In order to have them captured in a timely manner, the company's leadership needs to endorse open, honest and safe communications around reporting problems. Then employees will feel free to report issues and why they believe the issues exists.  Once issues are clear, good teamwork and accountability will help them to be resolved forever.  For more details about how to powerfully prevent and resolve issues in your company, go to EOS Worldwide.

Tuesday, June 21, 2016

THE DIFFERENCE BETWEEN A GREAT AND GOOD MANAGER

Surprisingly, many business owners don’t realize that great managers contribute much more to an organization then they are given credit for.  Sometimes all you have to do is some simple math to see what a great manager is worth.
 
Let’s say, for example, that a great manager’s output is 10% more than a very good manager’s. The support staff working under her direction also gives 10% more.  It’s like they put an extra person on staff without hiring anyone!  Mathematically, if you have 10 people working at 10% higher efficiency, that equates to 100% (10x10%), or 1 additional person.

Great managers prevent issues from coming up, or resolve them quickly.  Based on the example above, imagine you now have that extra person working and your company is dealing with five company issues per day.  Now there is more brain power, less pressure and more peacefully focused employees to resolve and prevent issues.  Eventually the average number of issues becomes lower. That frees up leaders do what’s critically important, like building sales and profits or exceeding customer expectations.

Get great leaders by reading books like Good to Great  or explore EOS Worldwide.