Results

Embrace the Changes: Quality & Environmental Management Systems

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by Larry W. Sheppard, ISO 14001-2015 EMS & ISO 9001-2015 QMS Consultant

Companies currently certified to ISO 14001-2004 and ISO 9001-2008 must be re-certified to the revised standards by September 15th 2018 or risk the possibility of losing their certification.  The new standards did not add any new requirements; however, some of the existing requirements in the 2015 versions have significant changes. Transition for ISO 14001-2004 and ISO 9001-2008 certified companies should be easy to implement since they have an EMS/QMS base that meets most of the requirements of the 2015 version.

This is where the Alber Enterprise Center of The Ohio State University can assist your company during the transition to the new standards. We would be glad to meet with your management staff and present the new requirements in detail.

 Main changes in ISO 14001:2015 EMS

The new requirement is to understand the organization’s context has been incorporated to identify opportunities for the benefit of both the organization and the environment. Particular focus is on issues or changing circumstances related to the needs and expectations of interested parties (including regulatory requirements) and local, regional or global environmental conditions that can affect, or be affected by, the organization. Once identified as a priority, actions to mitigate adverse risk or exploit beneficial opportunities are integrated in the operational planning of the EMS.

 To ensure the success of the system, a new clause has been added that assigns specific responsibilities for those in leadership roles to promote environmental management within the organization.

The expectation on organizations has been expanded to commit to proactive initiatives to protect the environment from harm and degradation, consistent with the context of the organization. The revised text does not define ‘protect the environment’ but it notes that it can include prevention of pollution, sustainable resource use, climate change mitigation and adaptation, protection of biodiversity and ecosystems, etc. i.e. environmental performance.

There is a shift in emphasis with regard to continual improvement, from improving the management system to improving environmental performance to be consistent with the organization’s policy commitments.  In addition to the current requirement to manage environmental aspects associated with procured goods and service, organizations will need to extend its control and influence to the environmental impacts associated with product design and development to address each stage of the life cycle, i.e. acquisition of raw materials, design, production, transportation/delivery, use, end-of-life treatment and final disposal.

Main Changes in ISO 9001-2015 QMS

Major Differences in Terminology between ISO 9001- 2008 & ISO 9001-2015

 

ISO 9001-2008 ISO 9001-2015
Products Products and service
Exclusions Not used

(See Clause A.5 for clarification of applicability)
Management Representative Not used (Similar responsibilities and authorities are assigned but no requirement for a single management represented)
Documentation, quality manual, documented records Documented information
Work environment Environment for the operation of processes
Monitoring and measuring equipment Monitoring and measuring resources
Purchased product Externally provided product and services
Supplier External provider

 Documented Information has replaced the ISO 9001-2008 version need for the quality manuals and some procedures to define the documented QMS. Documented Information includes instructions, records of process performances, external provider’s performance, internal audits and management reviews etc.

As part of the continual improvement process risk base thinking was added to the revised standard. The concept of risk has always been implicit in ISO 9001 as preventive action. The 2015 revision makes it more explicit and builds it into the total QMS.

Building Customer Loyalty: 3 Ways to Move From Good to Excellent Customer Service

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Have you ever thought about the difference between good customer service and excellent customer service?  Most of us would agree that there is a difference, but does it really matter? According to a recent survey cited on customerthink.com, 86% of buyers said they will pay more for a better customer service experience. And 70% of buying experiences are based on how the customer feels they are being treated.

Providing good service will allow an organization to survive. But a commitment to excellent customer service goes beyond surviving – to building customer loyalty to create a healthy, thriving future.

True excellence is marked by an excellent customer experience (CX). The focus on providing excellent customer service encapsulates a simple, three-prong model.

Be Prepared. Being ready to serve the customer is the very foundation for excellence. If buying experiences are based on how the customer feels they are being treated, then it behooves organizations to spend some time getting to know their customers…what they value and what influences them, and ultimately, being proactive in anticipating their needs and problems.

In his book, Five Most Important Questions, Peter Drucker reminds us that our customers are never static. They are constantly changing, as well as their needs, wants, and expectations. Do the research and use customer analytics that make sense, not just satisfaction scores which only show customer satisfaction from the past.

Be Passionate. Being passionate encompasses taking the expertise (knowledge, skills, and abilities) of individuals in the organization and using it to create a shared-learning organization.  It is an organization in which customer service representatives (CSR’s) become experts, knowing their products and services, and how to do the ordinary, extraordinarily well.

In one study focusing on customer service loyalty, Harvard Business Review (HBR) found that 24% of repeat customer complaints stemmed from an emotional disconnect between the customer and the CSR. Specifically, this means the customer did not trust the answer given to them and/or they thought that the CSR was hiding something.

In order to meet customers’ constantly changing expectations and to provide an excellent CX, our representatives must be armed with interpersonal skills, training and a comprehensive knowledge which will allow them to respond more accurately and articulately, and to quickly find better solutions. Competence increases the customer’s confidence in the CSR and in the organization.

Be the Hero. Being the hero stems from the philosophy that every customer desires and deserves to be treated with respect and care.  Unfortunately, many organization miss the mark with this one! As representatives of an organization, we have the opportunity to make life better, easier, more convenient, and/or to create value in our customers’ lives through the products, services, and exchanges we offer.

According to the HBR article, the number one most important factor in customer loyalty is reducing customer effort. Long wait times, cumbersome paperwork, having to make repeated calls to solve a problem, or having to use multiple channels to get information are all frustrating to a customer. Organizations need to remove obstacles and get rid of things that make it hard for customers.

Being the hero not only involves removing obstacles but also taking every opportunity to add good stuff to the CX. Customers want quick, convenient transactions and products that are true to what is claimed. They want trustworthy representatives who can engage competently and respectfully whenever needed. The success of the CX is tied to the emotions of the experience. Help customers to feel important and valued, and let them know you care and appreciate their business. In doing so, they will walk away wanting to come back for more.

References

Dixon, Matthew, Karen Freeman, and Nicolas Toman.  Stop Trying to Delight Your Customers, Harvard Business Review

Drucker, Peter. Five Most Important Questions: Enduring Wisdom for Today’s Leaders, Wiley.

Jaiswal, Vivek. 8 Customer Experience Myths Busted, customerthink.com.

 

 

Five Leadership Hacks

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You know that with better leadership skills, your team could start performing at a whole new level.  Here are five ways to boost your team’s leadership skills today.

  1. Develop your leadership.

As a leader your job is to develop those around you.  Mary mentored and fostered new leaders in our organization on a regular basis.  Dozens of people she mentored went on to become leaders in our organization.  She was valuable because she created other leaders.  Be valuable too.

How do you develop your leaders?  Has your team had formal leadership training?  Our unique approach instills the five traits of exemplary leaders.  Make sure each of your leaders has the skills they need to lead.

  1. Know your people better.

Remember when the standard to meet with direct reports for formal performance reviews was once a year?  No more.  Now the guidance is at least once a month.  This does three things.  One, it builds a sound relationship with your team member.  Leadership is about relationship.  Two, it is a valuable chance for you to get regular, valuable feedback on your organization.  Finally, it gives them a regular update on their performance.  Tackle performance problems early.  Encourage high performers at every chance.  Here’s a good format for the 1 on 1:

  • What is going well?
  • What have you learned?
  • What will you change?
  • What are your next steps?
  1. Vision/Mission – again and again.

The best leaders never forget why they exist.  People hunger for meaning and purpose and a consistent reminder to your team vision and mission will remind them that what they do is significant.  Start every meeting answering the “why.”  Why are we meeting?  How does this meeting tie into our larger purpose?  Do this and they will be more inspired and fulfilled.  “Our meeting today is for (purpose)… which enables us to (mission/vision).”  Simon Sinek said it well, “Great leaders are able to inspire people to act; they give them a sense of purpose or belonging …”  Remind your team of the “why” – and inspire.

  1. Set clear expectations and follow-up.

Is your team working toward some measurable vital result?  We may have told them (or think we did). What is their understanding and what metrics are they working toward every day?  What gets measured gets improved (Drucker).  Is it sales, profit per transaction, repeat customers?  Ensure that your team has what they need and knock down any obstacles.  Are you serving them so that they can meet the expectations?

  1. Recognize results and desired behaviors.

Be the kind of leader who never stops finding the good in people and telling them.  It builds loyalty and fosters high performance.  We asked them to achieve it. Celebrate it.  Recognize everyday behaviors that will lead to results.  For example, long hours to meet a deadline, creative new approaches, serving the customer well, etc.  When was the last time you said it?  Do it today.

Do these five things regularly and watch your team take off!

Through the Fog

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This morning (Monday, Feb. 20th) I drove from my home to my office in Marion in very dense fog. As a matter fact, I had heard on the early news that there was a severe fog alert out for the morning. It has been a long time since I have driven in such dense fog. As I drove the back roads through the country, I realized that these are very familiar roads to me…I drive these roads several days each week. I know where all of the stop signs are, the curves and the valleys along the road. I know where to turn, where the speed limits change from 55, to 45 to 35. So, one might say, I could drive on auto pilot in this fog. However, I think we would all agree, that would not be a very wise thing to do. As we all know, things can change. Some areas as we are driving in the fog may be easier. It may not be as dense in certain areas and allows us to see a bit further ahead. At other times, there might be an obstacle in our way that we don’t see until the last minute, such as a deer crossing the road (which, fortunately, did not happen to me). The dense fog complicates this because it impairs our visibility. So, I found myself driving slower, being more intentional, more cautious and making sure I was aware of all of my surroundings.

This got me to thinking about the parallel for many organizations. Some organizations navigate very well through the fog. Others have a difficult time seeing what is ahead. Visibility is limited. There are obstacles in their way they don’t see. And this impacts their effectiveness, their employee engagement, turnover, the ability to attract and retain a qualified workforce and most likely, their overall bottom line.

Organizations need to have a plan when the fog rolls in. And there are times when that happens – suddenly and unexpectedly, whether it is due to outside forces (i.e. the economy) or internal forces (change in leadership, shift in supply and demand). How can organizations be strategic about navigating these treacherous roads? There are several things that can be done.

Begin with a mission and vision that serves as the foundation for all that you do. This is your organization’s lighthouse in the dense fog. It helps people see their way. Establish a long-term strategic goal and develop an action plan with S.M.A.R.T. goals. And then use it…refer to it…update and refine as you go along. Get input from your employees – the ones who are doing the work. You would be surprised how many great ideas they have – they just need to be asked and given the opportunity to share them.

Once the fog lifts and you are comfortably back ‘in the driver’s seat’ with clear visibility ahead, be sure to say thank you to those who helped get the organization through the fog…i.e. the challenging time. Begin to look ahead and plan for the next time the fog rolls in…because, as we all know from experience, it will.

7 Ways to Align Strategies Within your Organization

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vision_and_alignment-325090-editedDo you run your company, or business unit, like items on a checklist?

This could mean that the organization is not aligned and that you are generating waste.

“Great Performance is 1% Vision 99% Alignment” Jim Collins, author of Good to Great

Every organization or institution, for profit or non-profit, is required to achieve results.  The method of getting those results can be structured, or unstructured.

In most cases organizations may have a vision, yet manage by using a strong silo structure.  Every department has its goals and do the best to achieve the stated objective but activities may conflict with the work of other departments.

There is a certain level of waste as groups within organizations work against each other.

Norma Simons, President of Performance Innovation LLC and AEC Solution Partner

Norma Simons, President of Performance Innovation LLC and AEC Solution Partner

Can you achieve results?  Most definitely!!  Most companies and institutions achieve success for years with this model.

However, the problem becomes difficult when changes have to be made over a short period of time.  Such changes may include:

  • Radical changes in the economy
  • Mergers and acquisitions
  • Quick changes in existing customer requirements
  • New markets with new demands
  • The company hires new employees
  • Radical changes in the use of technology, etc.

Question: So how can you ensure that you change and still achieve organizational alignment?

Answer: Develop a Structured Business Operating System.

How can this be achieved?

  1. Vision Mission Values–Begin with a clear understanding of the vision, mission and values.  If they do not exist, then the management team should spend time to document them in a way that is clear and concise.
  2. Strategic Objectives–Document the strategic objectives of the organization as a whole.  Once this is done then this should be in a strategy map (a one page document summarizing the strategic objectives) so that it can be clearly communicated throughout the organization.
  3. Performance Measures (KPIs)– Based on the vision and strategic objectives top management should identify the top 10 key performance indicators (KPIs) that should be used to track performance.
  4. Standard Documentation–Each measurement should be placed on a run chart that shows performance over time.  A Pareto chart can be used to document the top areas that impact performance.  Problem solving teams should then identify the root cause of the performance and solutions that need to be in place for improvement.
  5. Deployment–The key performance measures identified by top management must be deployed in all areas of the organization.  This allows all employees to keep track of activities in each area and to be a part of problem solving activities.
  6. Review–The entire organization needs to have a systematic review process that focuses on key performance measures created in each area.  During the review process, teams evaluate the performance metric and the results of problem solving activity.
  7. Visual Management–The visual management system contains information on the key performance drivers in each area, and results of problem solving activity.  The system serves to communicate the progress of the company as it relates to key areas.

Every organization performs all these and more – so this is not new.  However it is the use of a structured process that will ensure that the organization can achieved expected results in a short time as well as promoting employee engagement.

At a recent luncheon for The Ohio State University Alber Enterprise Center (AEC), I was asked to deliver the following presentation.  Flip through the SlideShare “Aligning Strategies with Operations” to get a few ideas on how to achieve alignment.  

For more information about aligning your processes, contact us at 740-725-6325. 

Norma Simons is Lean Six Sigma Master Black Belt, president of Performance Innovation LLC, and an AEC Solution Partner.  Norma heads a team of qualified professionals in the areas of Lean and Six Sigma. Her success is attributed to her unique integration of performance improvement systems such as Lean, Six Sigma, Design for Six Sigma, quality management systems, business operating systems, and balanced scorecards that have enabled the effective execution of organizational strategy and, ultimately, bottom-line results.

Why We Love Lean Six Sigma and You Should Too: Get Started

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Norma Simons, President of Performance Innovation LLC and AEC Solution Partner

Norma Simons, President of Performance Innovation LLC and AEC Solution Partner

In today’s environment it is evident that the survival of organizations rests with their ability to innovate- to do things differently in order to grow.  In general we can consider two forms of innovation – radical innovation and incremental innovation.  Radical innovation can be considered as the ability to produce new products or services to the world that never appeared before – such as digital photography, Internet, Amazon, iPods, etc. Incremental innovation on the other hand can be thought of as new approaches, building on current products or processes to enhance performance.  In the end innovation of products, processes and services must add value to the customer.

Lean Six Sigma can be considered as an incremental innovative model that enables an organization to move beyond its traditional performance to new heights.

The figure below shows the definition of both concepts.

Lean and Six Sigma are complementary and if performed properly, represent a long-term model that can produce unprecedented results.

Lean and Six Sigma are complementary and if performed properly, represent a long-term model that can produce unprecedented results.

We Love Lean Six Sigma because it provides:

  1. Focus on the customer – helping each area of the organization to understand the value of their service.  This concept is fundamental as without an understanding of needs and requirements of internal and external customers, the work provided is non-value added.
  2. Focus on process improvement – this concept is fundamental to Lean Six Sigma, without being able to identify and define processes, conditions cannot improve.
  3. Opportunities for collaboration – applying the concepts opens opportunities for collaboration as individuals now use tools to communicate across departments and encourage problem solving.
  4. Constant and continuous drive for perfection – it creates the mindset of dissatisfaction with the status quo and the need to be dedicated to a culture of continuous improvement.
  5. Standard Training – it provides common tools and language and a structured methodology for problem solving.  There are different levels of training provided to different individuals depending on their role in the organization:  Champion, Green Belt, Black Belt.
  6. Structure for change- it provides a project based approach that allows an organization to identify and instill a discipline for project management with project reviews conducted with process owners, champions and senior management.
  7. A means to provide total employee involvement –  all individuals are involved as they provide input and support problem solving activities.
  8. Demonstrates bottom-line Business Results – the bottom-line impact of every project must be measured, reported and documented.

Overall, we love it because it lays a path from strategy to execution.  Many companies have a vision but are weak on execution.  Through the structure, training, organization of tools Lean Six Sigma provides a path for achieving required results.  In addition, it can be customized to any industry and any organization.

Please contact us to use the Lean Six Sigma assessment to diagnose current weaknesses and establish a strategy for improvement.