Continuous Improvement Culture
UK engine manufacturer
What was the problem?
Our client built great engines but customers saw them as arrogant and aloof – more interested in the technology than in their customers’ needs. Internally there were similar disconnects – engineers worked in technical silos, managers had fractious relations with the workforce and disputes were commonplace. When global competition started taking customers away, something had to be done and the CEO decided that a company-wide culture change was needed.
What did you do?
People at all levels needed to know what the current reality was so we collected quotes, stories, assessments and perceptions from all the stakeholders: customers, employees, managers, suppliers and community representatives. These impressions were fed back and discussed first with the top leadership team and then other groups to build acceptance of the need for change. We then designed a continuous improvement programme of workshops, training and coordinated improvement action which specifically met the needs of the company.
What happened?
The continuous improvement process was rolled out through the whole organisation starting with the top team. The commitment expected was considerable – up to ten days of a manager’s time – and several senior managers baulked at this. The CEO set the tone and the example by fixing the dates in everyone’s calendar and requiring 100% attendance. Facilitators were trained and coached to take all of the company’s 5000 people through the same learning process and it was not uncommon for shop floor facilitators to run training sessions which included senior management. This encouraged the feeling of “we are getting through this together”.
What was the outcome?
The workshops set the improvement priorities and the training and coaching mobilised teams to work on short term actions. Early wins quickly generated over £10m of cost savings making the whole programme self-financing in the first six months. Over 800 improvement teams drove tangible improvements through to specific customer needs e.g. the lead time for a large engine was reduced for 14 weeks to two and inventory turns were tripled. The cultural change was evident in the way previously different groups worked together and responsibility for continuous improvement became embedded at the lowest organisational level. As word of the dramatic change spread, shop floor workteams became accustomed to explaining their goals, targets and improvement actions to curious visitors.