In my last column (WM July, p12) I ended with the comment that nine out of 10 problems are caused by weaknesses in management processes. This is an insight introduced by Deming who is credited with developing many of the basic improvement concepts we now take for granted such as first time quality.
Deming found the root cause of many defects to be a lack of management standards, or weak management of working methods. Put another way, the root cause of more than 90% of problems is that managers can't manage. Why is that?
In my experience, organisations that manage well do so because they have taken the time to identify and close 'gaps' in their management fabric. In the process, they gain an insight which allows them to put responsibility for the solution close to the problem. That way, problems are spotted quickly and dealt with before they grow. With that comes a commitment to engage the whole organisation with continuous improvement supported by real-time coaching as part of the management process.
This approach is characterised by the systematic removal of barriers between functions, allowing cross-functional learning. The benefits include improved communication, collaboration and faster decision making. The value is hard to measure directly, yet although ex-GE chief executive Jack Welch was rigorous about financial numbers, he was equally passionate about the link between breaking down functional barriers and delivering industry-leading performance.
In contrast the reactive management environment reinforces management silos where each function concentrates on delivering its own priorities. Here, much management time is spent dealing with symptoms of poor communication and the consequences of yesterday's problems – rather like driving while looking in the rear view mirror.
Good managers seek to break out of silo management by collaborating with the rest of the management team to create a common vision of the future business shape. They then work together to develop the capabilities the organisation needs to deliver that vision.
Not an easy step but an essential part of the recipe for lasting business (and career) success.