In German we have this expression - "Wer den Pfennig nicht ehrt, ist des Talers nicht wert"; basically saying, only when value you small change, you are worthy of the dollar bills. Did I get this right? In many efficiency improvement projects, companies deploy small focus teams that are working on the large improvements; within a few years they can achieve great improvement results. Why is this not enough? How can these initiatives excite the entire workforce? And do these central projects have a lasting impact?
In Southeast Asia we engaged in an energy efficiency project for about 15 factories. And, we took a different approach: we directly asked the frontline people where they see improvement potential. I clearly remember a few projects we celebrated together with the staff at the factories. One was the idea to change the switches in a large warehouse. Imagine a large warehouse, and whenever you enter it, there is one switch for all the lights. The team experienced this as a waste of energy and suggested multiple switches for the different sections in the warehouse. Does this have a million dollar impact on your business? Even we might consider this as a small improvement, we celebrated it because the behaviours is correct and we wanted to stimulate more of the same.
The next time this team walks past a idle running grinding plant, they will switch it off and will save significant energy costs. Based on over a hundred similar small projects, we were able to reduce the annual energy cost by a three digit million dollar figure. Plus, we created ownership, commitment and engagement from everyone working in our plants. This was an exciting journey.
A case study from Coca Cola in Sweden shows similar results - Improvement opportunities that are hard for managers to see. The study compared the improvement impact of a Six Sigma initiative with an idea system for continuous improvement. The sum of the small ideas in total generated 6 times more savings than the big projects.
A positive leadership engaging all the workforce to participate in the overall vision of the organisation will have significant and lasting effects on your bottom line. How will you implement this in your company?
Tim is a change practitioner in the area of innovation and excellence. He is working with teams to accelerate innovation, collaboration and agility.