You Can’t Manage What You Can’t See
Posted by Krista Sabol on Mar 3, 2015 in IMU Blog, OperationsYou Can’t Manage What You Can’t See
Written by David Lord
A System Thinking Approach to Running a Business
Interconnectedness means looking at the organization as a whole. It starts with the basic belief that every function within an organization is connected to everything else. By thinking in terms of systems, businesses get a better picture of the relationships between its parts, rather than just seeing the parts themselves. Businesses then have a better perspective for defining (and achieving) the actions that maximize both individual and organizational success. The overall effectiveness of a business improves dramatically when the entire system is examined, rather than just the individual parts.Overcoming Business Silo Mentality
Silo mentality is when a competitive structure and lack of communication prevents several departments or groups in an organization from sharing information or knowledge with others in the same company. A silo mentality reduces effectiveness and contributes to a failing corporate culture. Silo mentality leads to redundancies, poor communication, reduced trust and often pits one department or group against another.Competition within a business prevents positive results. The silo approach (where a business measures each function independently) focuses on improving efficiency within each individual silo. This makes it nearly impossible to pay attention to the leverage point where all areas of the business work together for the common good. A simple and effective framework to align every part of a business can remove silo mentality.
Making Work Visible
The way business works is not always apparent. Too often, workers make assumptions about how tasks are performed. By making work visible, employees have a shared view of the workplace. When employees see how the business works, they can discuss ideas on how to improve the performance of the business. Making work visible provides a mechanism for continuous improvement through system alignment and goal clarity. It helps to engage people in the process and improve communication and information sharing throughout the organization.Breaking Down Your Business
Visualization is a catalyst for obtaining system understanding. To visualize your business, you need to think about it in a structured way. Making work visible leads to personal involvement, communication, cooperation and coordination of effort as everyone feels part of the whole system.Visual Management
Visual Management is the practice of using information visualization techniques to manage work. The impact that visuals can have on quality, on-time delivery, cost and productivity is truly enormous. It helps create an environment that enhances employee commitment to the success of the organization by ensuring that the work environment and culture directly support the core values of that organization.Visual Management provides a structure for on-going business improvement through goal clarity, system alignment, improved communication and information sharing throughout the organization and engagement of people in the business.