Tuesday 20 September 2011

The Japanese model of success

 
The Japanese Model of Success
Written & brought to you by
Ken Crause – Business Transformation Coach.

The war in Japan had ended in chaos and destruction. Nothing could look bleaker for the Japanese. Their country had recently been bombed with an atomic bomb and life in Japan had become one of survival. How does one take a country in such ruin and turn it into the economic giant it has become?

It has little land base – it’s a small island country. It has minimal resources in terms of material things and was broke after spending so much on the war which ended in disaster. Their pride caused them to make the stupid mistake of trying to take on the giant America and they paid dearly for it. What did they have left? Well the only real resource they had left was people.

As manufacturing began to revive slowly because of lack of capital, products they produced soon earned the reputation of “Jap crap”. Things made in Japan were inferior in quality to American or European made. How would they survive and thrive? It is often in the place of desperation that we give up our notion of grandeur and pride. It is often at this place that we realize we don’t know it all and need help. This is where the Japanese found themselves.

But what of America? Well the bombing of Hiroshima and decisive end to the war caused Americans everywhere to be proud, believing they knew it all and needed nobody to make them better – they were the best. This same foolish attitude has shown up throughout history in many countries and empires – all of which ultimately lead to their demise. The same attitude has caused many great companies such as IBM to fall from their once place of leadership in their industry.

There was at that time an American by the name of Dr. W Edwards Deming. In 1950 Deming was a renowned quality control expert who General McArthur had commissioned to go to Japan to help improve things there since America itself was having trouble doing what it needed to do in the country they had just defeated. Nobody really gave Dr. Deming any serious consideration but the Japanese who were willing to learn now, did.

Dr. Deming devised 14 “Principles” of success which he faithfully taught the
business owners and government in Japan and soon from practicing these principles, the rise of Japan became meteoric and they soon became the country to be reckoned with in trade.
This lesson is not designed to cover the extent of what he taught them, but I would like to point two of those principles I consider vital to success.

“PRINCIPLES ARE THE RUDDERS THAT GUIDE OUR SHIPS THROUGH CALM AND STORMY SEAS, METHODS ARE SECONDARY. “

It is for this reason I am passionate about and teach fundamental principles of success and without being prideful in any way, I believe every business person would do well to seek to learn and implement success principles – many of which I teach.

One of the key principles Deming taught. I call it “SID. So what is SID? It’s an acronym for “Small Improvements Daily”. What Deming taught the Japanese to do is simply this.

1. Find a product or service that interests you.
2. See who is making the best product or offering the best service in the world in that area –
3. Work daily on finding ways to improve on it.

The Japanese soon became criticized for “copying” the American, British and German manufacturers, but that did not last long. Once they were able to duplicate them, they went about applying SID which they in fact called “Kaizen”, and a revolution soon took hold in Japan. Instead of greedily focusing on how to cut costs and make more profit, the Japanese focused on how to produce the best product and services in the world... period.

Years ago I had started a greeting card company and when I went to print my cards I learned something very interesting. Most printers in North America do a 10% over-run which is to cover off any mistakes or poor product – it happens in all manufacturing in North America. They then pass it on to us and we have to sort out the bad from the good.

The Japanese however do not do this. They sort the quality and do not permit anything inferior to leave their plant to a buyer. Their commitment to quality and improvement to this day still sets them apart from many. However, today successful companies around the globe are finally implementing this very basic yet profound principle.

So where are you at today with your business? Are you in as bad a shape as Japan was? Do you have as little resources at your disposal as they had? Zimbabwe, where I was born and raised currently has a 90% unemployment rate. They lack resources as badly as Japan did excepting one – people. This country can become a powerhouse just as easily as Japan did, if the government were to wake up there and bring in business teachers to teach these principles of success to their people instead of greedily bleeding every last penny they can for themselves and their friends. In fact many countries in Africa today suffer from the same ailment.

But what about you?
Why not commit yourself today to make “SID” a way of life for your business. Why not teach this to your staff and hold them accountable to look for ways they can improve what they do in your business daily.

A plant in nature does not grow overnight. It takes time, water and sun. By feeding your mind and the minds of your staff daily with positive and exciting stuff, you will cause yourself to grow and along with it you will grow your business – one small thing every day. The Bible says, “Do not despise the day of small beginnings” It’s usually the small things done consistently that either make or break a great business.

HOW DO YOU EAT AN ELEPHANT? – ONE MOUTHFUL AT A TIME.

Sometimes we become so overwhelmed at the huge job ahead of us. The goal seems so far away and so far out of reach. But if you will learn the lesson the Japanese did, making small improvements Daily (SID), in time you will find that you have risen to greatness and will remain a leader in the years to come. Make a difference and learn what the Japanese learned – commit to excellence through Small Improvements Daily. Focus on one thing at a time (each day) and consider how you might improve it - today.

The second principle Dr. Deming taught is equally as important. –
“Perfection is NOT optional”

For years I have observed what I always considered to be a very strange behaviour in education. That behaviour is how arbitrarily, passing marks are set for considering someone to pass a test or exam. Of particular concern to me is the fact that a doctor only has to get 70% right on his or her exams to pass.
Would you really want to be treated by someone who could be wrong 30% of the time?

When I took my training as a commercial helicopter pilot I was subjected to the same passing percentage. Yet, what it meant is that 30% of my knowledge or ability as a pilot could be wrong. Would you seriously want to fly with someone who could make a mistake as a pilot 30% of the time? Okay I got 81% so I could be wrong only 19% of the time.

PEOPLE WILL RISE TO WHATEVER STANDARD IS EXPECTED OF THEM

When South Africa changed to a black government, one of the things that they did was immediately lower the passing grade in all professions to allow more black people to pass and qualify as professionals. They did not even believe in themselves or that they could do as well or better than the whites did. Pretty sad isn’t it? From what I have learned they are not the only ones who have done this.

LOWERING STANDARDS OR “GOOD ENOUGH” IS A SURE PATH TO FAILURE AND DISASTER

Deming was a quality control expert and as such had taught manufacturers and other business people that if they wanted to succeed it was critical that they adopted immediately the attitude that the only acceptable standard is “perfect”; No defects whatsoever, no short cuts, no “good enough”.

Today a new phrase has taken root to motivate people to a higher standard. This started with the publication of a book entitled “Pursuit of Excellence” by Terry Orlick, a sports phsycologist.

There is a saying, “the devil is in the details”. Over the years I have observed that the difference between mediocre and excellence is the attention to details. The difference between the person who finishes first and the one who comes second is in the details. This is why SID – Small Improvements Daily is fundamental to attaining perfection and why without the application of both these principles you will simply never rise to greatness or success.

Walt Disney was a classical example of this. He paid so much attention to every detail of his productions that he was the best in all key elements of his productions – music, volume, color, speed transitions, story, characters, lesson etc. etc.
In order to pursue perfection it is a matter of attention to the details. So what is “good enough” for you?

When you buy a product are you okay with less than perfect? The truth is we all want the perfect “whatever” but we are not prepared ourselves to make the perfect “whatever”. The focus of many business failures has been money or profit rather than a commitment to make the best or do the best.

I wonder how much better a standard we could achieve – especially in areas like professions where a mistake could spell death or injury to someone else. What would happen if our schools or universities raised the bar or standard for passing? Is our goal to pass as many people as possible or is it to train the best to be the best?

I challenge everyone reading this to raise the bar or standards in your personal life and especially in your business. Your staff will rise to the level you expect of them. There have been teachers who have gone into schools where kids were failing miserably, raised the standard and inspired the students and seen their classes filled with 100% grade “A” students. It’s all a matter of what we accept as “good enough” and how committed we are to perfection.

Failure as we grow does happen, but we should never quit, only strive to do better next time.

PERFECTION IS NOT AN EXCUSE TO NOT TRY, IT IS THE GOALPOST WHICH WE STRIVE TO REACH.

Failure is only our aid to show us we need to improve. It is not an indicator that you are by nature useless or a failure. On the contrary the most successful people in life have usually failed more than anyone else. Failure means you are striving to be better and have successfully learned what does not work, so by all means embrace failure as a friend on your path to perfection.


Ken Crause – Business Transformation Coach
Email: ken@crauseco.com

Monday 12 September 2011

Expectations

Expectations & Satisfaction
Written & brought to you by
Ken Crause – Business Transformation Coach.


The objective every day you are open for business is to make your customers VERY HAPPY. Happy they came to your store. Happy with the deal they got. Happy with the way they were treated and happy with the product. Your first and primary job as a business person is to make your customers happy. If you do that, then they will make you happy also, by spending more money, shopping there more often and referring others to come shop there too.

Every customer that walks into your store comes with certain expectations; that you will be courteous, helpful, give them a good deal and show them that you care about them. They must FEEL that you care by the way you treat them. Shopping is supposed to be an enjoyable experience, not a chore. If however, their expectations are not met, then they will be dissatisfied and will leave disappointed and likely will never return to your store.

The difficulty with small business at times is that customers expect the same service and prices that they get from the “big” stores. Once somebody sets a new standard for customer service, it soon becomes expected of everyone. Don’t bother trying to fight it or argue that you are not.. “Walmart or whatever”. I figure that small businesspeople are more able to set the standards than large ones – who have just too much bureaucracy. Why not be the ones who set the new standards?

Most banks today offer better services because Credit Unions, who are much smaller have been the innovators and set the pace. Why not turn the tables on the “big guys”?

Your mission “should you choose to accept it”, is to have every person who walks into your business, leave very happy and satisfied. They must leave feeling appreciated and that their expectations were not only met but exceeded. They must leave feeling like they are now family and as family should be, welcome anytime.

So what practical things can you do to achieve this?
Here are few ideas to get you started making a list;
1.      Smile warmly and make each customer feel comfortable.
2.      Play soothing music “in the background” – it adds to the experience.
3.      If your product has no smell, then “freshen the air in the store so that it smells nice
4.      Make sure the temperature is “just right” Not too hot and not too cold. You won’t be able to please everyone but you can the majority. I hate shopping in a store that is freezing or cooking hot, don’t you?
5.      Make things easy to find and make sure prices are clearly marked.
6.      Find a way to always give them some sort of a deal – because they’re special. This is especially important when they don’t ask for it.
7.      Bend over backwards to help them when they need help – do not ignore them while you chat with a friend on the phone or someone else who is not a customer. Let them feel important to you.
8.      Train your staff to do the same things and watch to see they actually do – inspect what you expect.

Okay so this is a start to get you thinking – make sure you come up with other concrete ways to exceed expectations and you will be filling your bank account faster than you imagined.


Ken Crause – Business Transformation Coach

Friday 2 September 2011

Decisions, Decisions


Making decisions
Written & brought to you by
Ken Crause – Business Transformation Coach.

We all face dilemmas. Which house, spouse, trip, job, or dinner? Every day brings a new challenge and set of decisions that need to be made. Will we make the right choice? Some are major, such as the spouse. Others are minor and will have no long-lasting affect. But Benjamin Franklin, one of the founding fathers of the United States passed on a simple and logical way to eliminate some of the stress and struggle.
The idea is to condense many of the factors in a fairly complicated problem and turn them into one simple question. It offers one bottom line decision-making tool. If you examine any question and 45 percent of the evidence points to one side and 55 percent point to the other, that's still a rather difficult choice to make. But what about when the evidence is 75 percent for one side and 25 percent for the other? Is that a hard or an easy decision?

Benjamin Franklin was one of America’s earliest patriots, a skilled business man, a scientist, an inventor, a statesman, philosopher, a musician, and the country's first millionaire. With all that knowledge, he figured out how to make tough decisions in his spare time and so, here's his method. When Franklin had a major decision to make, he would examine the situation and make a list of all the factors favouring each of his potential options. Then based on all the information on his list, he would make his decision.
Because not all of the items are of equal value, he assigned a weighted number to each. It begins with a pro and con list. In other words a list of “for” and “against” any decision.

Take a house as an example.
What if there are two homes you are considering? House A and house B. Each has good and bad features, but some are worth more to you. So house A has a better view, which you give a higher point level. Suppose that 10 is the highest value for a view. So maybe house A scores a 9, and house B a 5 in the view area. But location is worth the most. So a perfect location is rated at 25 points. Kitchens are 8. Garages 5, and so forth. Rate each according to a scale and total each side. The one who scores the most wins.

The same is true for picking a place for dinner. The most important factor gets the highest value, like taste or location. It works well for choosing a new job. Look at the pros and cons, each listed along the page. Sometimes the pros are weak compared to the cons. Relocating may be a huge negative and gather the most points against the job. The higher score in this case might defeat the idea. It depends on what you are deciding.
It's a simple method in your arsenal of decision-making weapons and can easily be used to point you in the right direction. It allows you to see what is really important and what matters most. Ben Franklin was a smart man and I trust his judgment. After all, he helped found the United States of America and so, why not let him help you find the right answer?

QUEEN VICTORIA THE 1ST
Queen Victoria the 1st practiced a different method of decision making. When there were times where the decision was not clear (listing the pros and cons). In cases like this it is said she would literally “flip a coin” to choose. When asked how effective this was and if she ever regretted making a decision that way, she replied “never”. She went on to explain that regardless of how the coin landed SHE MADE SURE IT WAS THE RIGHT DECISION, by never considering the alternative again. She did not second guess the decision – it was final. No wonder these people rose to be some of the greatest leaders in the history of the world.

Now that you have some ideas on how to make good decisions, is there some decision you have been putting off making because you simply could not figure out what the right choice might be? Sit down right now and make a list of pros and cons for the decision you are facing. Then weigh which aspects are of most importance to you. Give each item a value based on that rating and then total them up. The decision should be clear. Above all DO NOT SECOND GUESS IT. Once the decision is made - close the book and move on with the decision making it the right decision.

Ken Crause – Business Transformation Coach
Email: ken@crauseco.com