Assessment, behaviours, KPI, organisation, people, book, system, team, KPIs, customer, assessing, thinking, journey, excellence, behavioural indicators, purpose, tool, key, world.
Welcome to episode 85 of the Enterprise Excellence Podcast. I am so pleased to welcome back Mr Chris Butterworth, one of our world's leaders in creating a sustainable continuous improvement culture. Today we continue on our chat last episode about his new book, with co-authors Peter Hines and Morgan Jones, called Why Bother. Why and how to assess your continuous improvement culture. Today we really delve into the part that leadership play in the assessment system and culture. We also chat about KBI's and KPI's and get into some juicy examples.
Two Minute Tip
For leaders or business improvement people, anyone listening to this podcast? What would be a two-minute tip you'd give them on where to start and how to keep moving forward in this regard?
I think, start with purpose. Start with why we want to do this. And then define customers. And then define ideal behaviours. Now you might say, well start with who is the customer? And then define the purpose. But that's a kind of conversation, you've got to talk about both almost together, but be clear on both I think is key. And then what are the behaviours that will deliver that purpose to the customer? And then think about what does the system need to look like to support those behaviours. We've got the system. What key behavioural indicators are we going to use to help us ensure we've got the ideal behaviours in place which will deliver the KPIs. So that's the key link. We're not just measuring key behavioural indicators, because they're a nice thing to do. Ultimately, we're measuring them because if we get those behaviours, we will get great outcomes. We will get great results. So KBIs are enablers for achieving the KPIs.
Yeah too true. I know we covered it in our previous episode together, but would you mind just giving our listeners an example of a KBI that may lead to a KPI goal?
Well, there are very simple KBIs, which could be yes or no. It could be like at a team level. You know, a really simple one. When I walked into one I saw had a list of names on the visual management board. And every time anyone was late for a huddle, they got a cross against their name. And if they had three crosses they had to buy the whole team a cake. Ah, and that's a KPI. It's good fun and they enjoyed doing it and it was just within them. No manager came in and said this is how you're going to do it. And actually, they stopped doing it after about three months because they didn't need it anymore. Because people were all on time to the meeting. So that's the thing with KBIs; are often short term. Put them in place to embed a particular behaviour. That's one example.
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Chris Butterworth is available on LinkedIn: https://www.linkedin.com/in/chris-butterworth/
See my 2 min tips on lead and lag measures - https://www.youtube.com/playlist?list=PLon8f_YYl8VyOyRRN2tj8GILrZCZ0imtJ
Why How What:
Chris mentioned that traditional Lean or Excellence assessments focus on the tools, and what the employees are using and doing. Chris mentioned the key is to understand the why, what the employees believe in relation to the work they are doing and behaviours they are exhibiting. The next important element is how they are doing the work, the system they are engaging with and how this is impacting their behaviour. Culture is about behaviours and behaviours are influenced either positively or negatively by the systems people are engaging with. These are the critical areas to build an excellence journey maturity assessment on rather than the tools and techniques they are using.
Find your few KBIs to support in line with the review.
Most organisations and teams measure KPIs, lagging measures or results. The key is to measure leading key behavioural measures or KBIs, the ideal behaviours you would see people and teams improve to achieve greater results. When KBIs are transparent, inspected regularly and improved results follow. Incorporating KBIs into your excellence journey enables a short terms PDCA improvement cycle to occur in line with the midterm journey assessment or review. This provides a powerful combination.
Thanks again for your time and knowledge Chris, thanks for helping us create a better future.