{"id":7940,"date":"2019-10-17T09:27:59","date_gmt":"2019-10-17T16:27:59","guid":{"rendered":"https:\/\/blog-prod.qad.com\/blog\/?p=7940"},"modified":"2019-11-12T09:22:12","modified_gmt":"2019-11-12T17:22:12","slug":"why-manufacturers-need-an-outcome-culture-pt1","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2019\/10\/why-manufacturers-need-an-outcome-culture-pt1","title":{"rendered":"Why Manufacturers Need an Outcome Culture (Pt. I)"},"content":{"rendered":"

[vc_row][vc_column][vc_single_image image=”7941″ img_size=”full”][vc_column_text]An outcome-based culture offers six major benefits. In this article, we explain why manufacturers should adopt an outcome culture.<\/span><\/i><\/p>\n

What is Workplace Culture?<\/span><\/h2>\n

It was <\/span>Peter Drucker<\/span><\/a> who told us, \u201cCulture eats strategy for breakfast.\u201d<\/span>\u00a0The phrase implies that we can develop a great strategy, but if the company\u2019s culture doesn\u2019t support that strategy, the strategy will fail. Culture will prevail.<\/span><\/p>\n

So, manufacturers need the right culture. They at least need a culture that supports their <\/span>strategy<\/span><\/a>. But what is culture? <\/span>Angela Duckworth<\/span><\/a>, in her best-selling book <\/span>Grit<\/span><\/i>, offers the following:<\/span><\/p>\n

At its core, a culture is defined by the shared norms and values of a group of people. In other words, a distinct culture exists any time a group of people are in consensus about how we do things around here and why.<\/span><\/i><\/p>\n

A manufacturer with a strong culture, both on the shop floor and in the back office, will act in a consistent manner. Staff know how they\u2019re expected to behave, and when unforeseen circumstances arise, the culture will determine how staff react.<\/span><\/p>\n

A Culture in Manufacturing<\/span><\/h2>\n

In manufacturing, the quality movement has long taught us that we need \u2018definable, repeatable processes\u2019. And few manufacturers doubt the need for strong processes. Great processes lie at the heart of great results such as minimizing cost and maximizing quality.<\/span><\/p>\n

But, there\u2019s a catch. If the message from management is \u2018you must always follow the defined process\u2019, then that will create a culture. People will learn that \u2018how we do things around here\u2019 is to follow the process, regardless of the results. If staff can show they followed the process, and something goes wrong, no one can blame them. The problem was in the process, not in the way they acted on it. It\u2019s not their fault.<\/span><\/p>\n

Is a \u2018Process\u2019 Culture a Bad Thing?<\/span><\/h2>\n

Relying on defined processes works well, until one of two things happens.<\/span><\/p>\n

First, something unforeseen happens during manufacturing. Processes might exist to deal with many exigencies, but not all. When the unexpected happens, a process culture will cause everything to halt. Because there\u2019s no process to follow. Unexpected stoppages increase costs and undermine quality.<\/span><\/p>\n

Second, a customer makes a non-standard request. Customers ask for things that aren\u2019t covered by standard processes. Perhaps they want a delivery timing or mix of products or transport methods that the manufacturer hadn\u2019t envisaged. If there\u2019s no process, staff will tell the customer their request isn\u2019t possible. And that might cause the customer to find a manufacturer with a more flexible culture.<\/span><\/p>\n

The Effects of Culture on Innovation\u00a0<\/span><\/h2>\n

Manufacturers believe in continuous improvement. They understand the need to constantly take cost out of the business. Or to constantly improve quality at the same cost.\u00a0<\/span><\/p>\n

If a manufacturer has a prescriptive culture, then <\/span>manufacturing innovation<\/span><\/a> will always be top-down. Staff will wait to be told how to do things and that limits the source of innovation. It also sends a message to staff that their ideas aren\u2019t valued. They should just do what they\u2019re told.<\/span><\/p>\n

This reinforces the culture of \u2018not my fault, I followed the process\u2019.<\/span><\/p>\n

The Pace of Change: Adapting in Business<\/span><\/h2>\n

Business is changing faster and faster, requiring manufacturers to adapt more and more quickly. If they don\u2019t adapt at least as fast as their competitors, they\u2019ll lose customers.\u00a0<\/span><\/p>\n

When it\u2019s time to adapt, manufacturers with a process culture must re-write their processes. But, designing and documenting processes is resource-intensive and slow. Someone needs to think through all standard processes and every contingency needed. They\u2019re usually busy people. They may not have time to consult and consider all possibilities. So, the new process suffers from hasty development. It may not be ideal, but it will have to do.<\/span><\/p>\n

Challenging Authority: Undermining Staff in the Work Environment<\/span><\/h2>\n

When a manufacturer launches a hasty process, staff will recognize it isn\u2019t the best approach and may delay support and\/or negatively affect adoption of the process. But, if the culture is \u2018follow the process\u2019, they\u2019ll adopt and fulfill the process requirements without supporting the decision, and that further ostracizes the staff from the manufacturer. They don\u2019t like following processes they know aren\u2019t the best approach.<\/span><\/p>\n

An Alternative Culture: Encourage Innovation and Support Adaptation<\/span><\/h2>\n

Manufacturers aren\u2019t going to move away from strong processes. In some industries such as pharmaceuticals, they must not only follow the process, but verify they followed it. In cases like this, definable, repeatable processes still underpin efficiency and quality.\u00a0<\/span><\/p>\n

We need a culture that recognizes the need to follow a process but can adapt when the need arises; a culture that encourages innovation at all levels and supports adaptation as the pace of business change grows.<\/span><\/p>\n

What is an Outcome Culture?<\/span><\/h2>\n

An outcome culture emphasizes clarity on what to achieve at each stage of business activity. We focus on the outcome rather than the process. Of course, manufacturers still need processes, but we add a layer above the processes. We define the outcome needed from each group of processes.\u00a0<\/span><\/p>\n

Advantages of an Outcome Culture<\/span><\/h2>\n

Providing clarity on the outcome from each group of processes has several major advantages:<\/span><\/p>\n

Problem Solving<\/b> \u2013 If there\u2019s a problem not covered by a standard process, staff can adapt. They have a context for deciding on necessary action. They know the outcome they need to achieve. The outcome becomes their primary focus. If there\u2019s no standard process, there\u2019s a good chance they\u2019ll find a way to achieve the outcome anyway.<\/span><\/p>\n

Customer Responsiveness<\/b> \u2013 Customer-facing staff try to get the customer what they want, when they want it. If they\u2019re measured and rewarded on how well they deliver this outcome, they\u2019re more likely to respond positively to non-standard requests. This increases the likelihood of more business from that customer.<\/span><\/p>\n

Innovation<\/b> \u2013 If there\u2019s clarity on their outcome, staff at all levels will observe ways to improve how the outcome is achieved. Management in a manufacturer with an outcome culture will welcome the suggestions. This increases the chance of improving effectiveness.<\/span><\/p>\n

Ability to Change<\/b> \u2013 If staff focus on an outcome, they will respond more positively to change that improves how they achieve their outcome.<\/span><\/p>\n

Less Administration and Overhead<\/b> \u2013 Designing and documenting processes is time-consuming and expensive. In a process culture, someone needs to imagine every reasonable contingency and write a process for each one. With an outcome culture, staff won\u2019t need as much guidance. They won\u2019t need a process for every possible situation.<\/span><\/p>\n

Positive Employee Experience<\/b> \u2013 Slavishly following a pre-defined process isn\u2019t rewarding. There isn\u2019t a great sense of purpose. Serving a business outcome provides a higher purpose, and the sense of purpose increases if there\u2019s a clear link between the outcome a staff member serves and the overall purpose of the company. Having a strong sense of purpose improves the employee experience. This increases discretionary effort and reduces turnover.<\/span><\/p>\n

Adopting an Outcome Culture<\/span><\/h2>\n

It\u2019s clear that manufacturers can achieve major benefits through adopting an outcome culture. Having clear communication and documentation of business processes, including each stage of business activity, is crucial. But, how can we establish the desired culture?<\/span><\/p>\n

Up Next:<\/i><\/b> In \u201cWhy Manufacturers Need an Outcome Culture (Pt. II)<\/a>,\u201d we\u2019ll offer simple methods to define and then support an outcome culture.<\/span><\/i>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_single_image image=”7941″ img_size=”full”][vc_column_text]An outcome-based culture offers six major benefits. In this article, we explain why manufacturers should adopt an outcome culture. What is Workplace Culture? It was Peter Drucker who told us, \u201cCulture eats strategy for breakfast.\u201d\u00a0The phrase implies that we can develop a great strategy, but if the company\u2019s culture doesn\u2019t support that strategy, […]<\/p>\n","protected":false},"author":87,"featured_media":7941,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[490,13,955,956,245,24,951,115,952,954,953,924,957],"class_list":["post-7940","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-change","tag-culture","tag-customer-responsiveness","tag-employee-experience","tag-innovation","tag-manufacturing","tag-outcome-culture","tag-outcomes","tag-pace-of-change","tag-problem-solving","tag-process-culture","tag-results","tag-staff"],"yoast_head":"\nWhy Manufacturers Need an Outcome Culture (Pt. 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