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By Chris R Deans

LEADERS WORK ON THE SYSTEM

The Art of Leader

February 2020

Leadership is working on the system while management is working in the system. But before we explore what that means and how leaders do it, let’s ensure we clearly understand what we mean by system.


A system can be defined as a collection of tools and processes organized to achieve a specific objective. Systems are seen everywhere work is done, whether in an office, on a factory floor, in a hospital emergency room or in a kindergarten classroom.Systems drive behavior. Sometimes this behavior is good –it is elegant, succinct, and dripping with value; sometimes itis not so good.

Consider stop-light cameras. City intersections often havered-yellow-green stoplights to control drivers’ behavior.Sometimes a driver will risk running a red light because she believes she won’t get caught. But if there are stop-light cameras present a driver probably won’t take that risk. The system with stop-light cameras is more refined than one without. And the driver’s behavior reflects this refinement.


All of us have experienced frustration with poorly designed systems - policies, rules and procedures that are incomprehensible and counterproductive. Workers often develop their own workarounds to bypass poorly designed systems. They may not know why certain policies and rules exist and they may not care because they are just trying to get the job done. But their workarounds, however well intended, can lead to confusion and unintended consequences: poor quality, increased risk and added cost.


Every day, businesses feel greater pressure to deliver. With poorly designed systems, employees struggle to deliver value to internal and external customers. A culture of ‘firefighting’ can ensue, with middle managers and frequently even senior leaders dragged into the daily workarounds. By 5:00pm, everyone may feel like heroes for solving the problem-du-jour and satisfying the customer today. But eventually everyone will dread contemplating the fires that will inevitably need to be extinguished tomorrow. There will be no end to this escalating cycle of waste and frustration. Good employees will burn out and look for better places to work; customers will look for more dependable suppliers.


This is where good leadership comes in. W. Edwards Deming said, “A bad system will beat a good person every time.” The point Deming is making is systems drive workers’ behavior. Bad systems drive bad behavior. Good systems drive good behavior. And excellent systems drive excellent behavior. Leaders should focus on creating excellent systems. They should work on the system. Leave expediting and firefighting to the managers; let them work in the system. That’s their job. As leaders create excellent systems, expediting and firefighting will stop. They will begin to see excellent results. A senior executive in Toyota, arguably the consistently best company of this century, said, “Brilliant [system] management is our strategy. We get brilliant results from average people managing brilliant [systems].” He went on to note, however, that, “our competitors often get average (or worse) results from brilliant people managing broken [systems].”


Where should leaders begin?


Step one is to delegate management tasks to the managers. This will be difficult to achieve in a firefighting culture, but it will be necessary for at least two reasons. First, leaders need to free up time to spend developing excellent systems. Second, leaders need to set an example through their behavior to create a new culture focused on problem solving and continuously improving instead of fighting fires.

Step two is to identify problems and use already well-documented problem-solving methods and techniques to identify root causes. Focus resources on resolving actual root causes and not merely addressing symptoms. There are many ways to find problems including value-stream mapping (which works just as well in an office as in a factory), employee suggestions, stakeholder feedback, customer complaints, and by simple observation with clear eyes and an open mind.


Step three is to repeat the problem-solving process over and over again. This is called continuous process improvement or, “kaizen”. Kaizen is a philosophy that comes from Japanese culture and its intent is to create small improvements literally every day. Over time small improvements accumulate into big changes that will be felt throughout the entire organization.

Leaders who work on the system will find their efforts greatly leverage the output of efficient, effective systems. Costs will decrease as waste is found and eliminated from value streams. Productivity and quality will increase. Safety will improve. Risk will be more manageable. Customers will be happier and will return over and over. Employees will have higher morale and feel greater pride knowing their efforts are delivering greater value to the stakeholders



Copyright ©2020 Chris R Deans all rights reserved