4 Stages towards Management Innovation

In my previous blog i wrote why we needed to innovate the management system. The word Management Innovation itself has wide definition. If we search about management innovation there are lot of methods or approaches to innovate the management system. I don't want to evaluate which one is good or not because every and each method have their own merits and demerits, the important part is how we apply and work it out in our business environment. However I would like to share my knowledges and experiences in 4 stages towards Management Innovation.

Innovating management system means that we need to create a paradigm shift in our management system drastically. In this process a lot of energies required and a lot challenges have to be faced. Management Innovation that I am heading to is whereby every person in the organization participates and take part in the process.The combination of Bottom-up activities and Top-down strategies must be well-planned to revitalize the whole organization.

1) Stage 1 : Awareness Innovation

First Stage is the stage to evoke awareness and share sense of crisis. This stage is the most important stage, we cannot go to next stage without clearing this particular stage. "Innovating" means "to change", therefore, first everyone must understand reason for the change. What will happen if we failed to change? The management site must deliver powerful message and visualize the aim of management innovation. For me the important key to succeed in the management innovation is by changing the mind of workers. Changing Mind means to change the workers' current comfort zone to a new comfort zone. Creating new comfort zone, we must have clear and powerful image of future vision status where our innovation process have already succeed. For example, by giving cooperation in reformation process every worker will earn more salary and bonus without having doing any overtime. 

What is comfort zone ?

The comfort zone is a behavioral state within which a person operates in an anxiety-neutral condition, using a limited set of behaviours to deliver a steady level of performance, usually without a sense of risk (White 2009).[1] A person's personality can be described by his or her comfort zones. Highly successful persons may routinely step outside their comfort zones, to accomplish what they wish. A comfort zone is a type of mental conditioning that causes a person to create and operate mental boundaries. Such boundaries create an unfounded sense of security.Like inertia, a person who has established a comfort zone in a particular axis of his or her life, will tend to stay within that zone without stepping outside of it. To step outside a person's comfort zone, they must experiment with new and different behaviors, and then experience the new and different responses that then occur within their environment.

From my experiences in order to accomplish this stage, I would like to suggest 5S method implementation in your organization. I will explain about 5S Philosophy and how to get start and have a successful 5S implementation in further session. 5S is a great concept to create the best working environment. 5S simplifies your work environment, reduces wastes and non-value activities while improving quality efficiency and safety. By applying 5S method we also can benchmark our workplace management level, workers awareness and problem solving abilities. 5S provides a higher qualities of life and self-esteem for everyone in the organization. 5S in first stage will be focusing on workplace appearance. In first stage we must unite all workers to face the challenges for next level.

2) Stage 2 : Business Process Innovation

Second stage also known as 5S Second stage is stage for innovating the business process in the company. After running the 5S (first stage) activities for certain period such as one year or so, workers will start to realize the need of management innovation. 5S will trained them in how to sense the problem, communicate with each other and solve them. Every section in organization will start to realize what is the real problem that they faced in their work. Second Stage is an important stage which is to clarify the mission of organization and eliminate [ムリ、ムラ、ムダ] in the business process. [ムリ、ムラ、ムダ] means "Unreasonableness, Inconsistency, Waste".

In Second Stage, every section will make "改善:KAIZEN" planning to solve their problems. In this stage the method like IE (Industrial Engineering), Lean Manufacturing (or the Toyota Production System TPS), and other kaizen method will be applied to solve the problem. I will explain it in future session. At same time, we will have to coach and create a basic path for building new corporation strategy. For this, we must first discuss about Sales Strategy, not all company have well-planned strategies. What I meant is most of them depend on past experiences and glory stories. I will explain in future session how to create Sales Strategy by first understanding client,market, competitor. I think it will be useful for SME companies.


3) Stage 3 :Organization Innovation
Organizational innovation refers to new ways work can be organized　and accomplished within an organization to encourage and promote competitive advantage. First and Second stages is the fundamental stage to revitalize the organization.　The companies that can clear these two stages, already have the abilities to compete in global market.　These two stages are based on bottom-up activities. Top-down strategies also an important factor to innovate the management systems. At the second stage, Management Layer would already noticed the strengths and weaknesses of the organization. They would also realized the elements and abilities needed to satisfy their clients as well as the market. Therefore, we will be able to reconstruct the organizations that have accomplished our management strategies. Organizational innovation encourages individuals to think independently and creatively in applying personal knowledge to organizational challenges. Therefore, organizational innovation requires a culture of innovation that supports new ideas, processes and generally new ways of "doing business".


4) Stage 4 :Management Innovation
The road to organizational innovation lies in the ability to impart new knowledge to company's employees and in the application of that knowledge. Knowledge should be used for new ways of thinking, and as a stepping stone to creativity and towards changes and innovations. New Organization will speed-up the process to synchronize with the market's needs. At this stage every organization will be able to create their own business model in order to survive the competition. At this stage the company is already able to establish Sales,Manufacturing,Supply Chain,Logistic and Quality Control Strategies.They will be able to explore their technologies and by combining it they will be able to create new domains for the business.  

[1]  Alasdair A. K. White "From Comfort Zone to Performance Management". 

Why do we have to innovate the managemant system ?

HAPPY NEW YEAR to all...May all your wishes come true.

As I have mentioned earlier in my previous article, in the globalization era, the globe is becoming smaller for business market. The pace of changes have become so rapid that it took a different type of firms to be dominant and marked entirely new era of business. Whether we realize it or not, each and every company compete directly or indirectly in global economy market.

The development in telecomunication technologies give us the facilities to get connected to anyone over the world, and also make it easier to transfer money or capital to any countries. The education system creates the generation that have their own will to move further, to own a car, house and have nice happy life. This is the basic need for most of the people now.

In Maslow's hierarchy of needs there is five stage of needs such as Physiological needs, Safety needs, Love and belonging, Esteem and Self-actualization. Maslow's hierarchy of needs is often portrayed in the shape of a pyramid, with the largest and most fundamental levels of needs at the bottom, and the need for self-actualization at the top. Let us think about people in the world, most of them moving towards upper level. Therefore these kind of needs create huge energy to think and work hard. For me these energies are the root for global competition. 

The boundaries of Developed Countries, Developing Countries, Third World Country is getting more fragile. Of course in the sense of economic activities there are clear definition to value each country`s level. However what I meant here is about gap in living standards in each country.In every country the gap between rich and poor getting wider. Even few years ago, China is the biggest labour market for production but now China itself already grown into a giant consumer market.

So no matter we are in Well Developed Countries or Developing Countries, without strategies and tactics to survive in global market we will be eliminated. Most companies even do not know who are their real competitors. Except some excellent companies, most companies are like sailing in dark night without possessing any compass. Therefore in global market we have unspecified large number of people or organization that will become our clients that will give us business chances and competitors that will become threat to our business.

So the point is the "People". No matter what theory we use, dont forget our clients, stock holders, workers, vendors are the "People". Most of people who read this sentence will say [Of course!], but in real business world it is not. In order to keep our existence in market we must create a management system that Synchronize with global market changes that means handling peoples` needs changes. Therefore basic is to understand fundamental of people needs and thoughts.

If I am a worker what I need in order to be happy in my life ?

What is the management system that will make me happy which at the same time having more money and time as well as having quality life with my family? As we all know there is no specific answer to that question.

There is time when some excellent manager or individual with great ideas make companies prosper. However the new era need speedy and multi-dimensional ideas that requires whole system element work as a team for it. Each system elements must have vision and clear mission to keep making profit. It is important to establish a system to make every person in your organization applying their brain (ability) to make companies prosper and in return they will be happy with their salary/bonus and proper holidays. It is a simple thing to say but really difficult to do.   

The Era of Change

In Darwin's Theory of Evolution there is an explaination about "Natural Selection". Natural selection is about the survival of the fit, not the fittest; or,if you prefer, the survival of those that are able to survive.

It's not just the strongest or the smartest of any particular species that survive to pass on their genes, but the strong and the smart; or the average; or even, in a lot of cases, the relatively puny and stupid. All that is required is that they are capable of getting by in whatever environment they find themselves in(*1).

The business environment has evolved from one of predictability and long-term planning to a new age defined by unpredictability and global competition,rampant change, faster flow of information and communication, increasing business complexity, and pervasive globalization. 

The pace of change has become so rapid that it took a different type of firms to be dominant and marked entirely new era of business. Today's growth era produces huge discontinuities, creates new industries and destroys old ones, and accelerates global economic growth in the process.

Two year ago (Sep 2008) after failure of Lehman (Lehman Shock) produced serious problems in credit markets not only in the U.S. but also in Japan. The crisis make Japan economy trapped into deflationary spiral. At same time, economic rising of China and South East Asia fasten the hollowing-out of the domestic manufacturing industry. Therefore stiff domestic competition occurs.

As I mentioned above about Darwin theory, even well-developed countries that possessed high technologies like Japan facing a tough new era of changes especially small-medium industries like us. We must focus our limited management resources to maintain our existence in manufacturing market. Therefore our mission now is to revitalize our organization in order to innovate the management. 

I will disscuss futher about the approaches and method to management innovation.     

1):http://www.speedysnail.com/pacific/evolving.html

Ishin-denshin & Shuhari

I also interested in Japanese Language, they have few sound pronounciation, so there will be a lot of words that will be pronounced the same ways. However the interesting part is how they use intonation to differentiate the meaning.

Since the Japanese strive for harmony and are group dependent, they rely on facial expression,
tone of voice and posture to tell them what someone feels. They often trust non-verbal messages more than the
spoken word as words can have several meanings.

"Ishin-denshin (Kanji: 以心伝心) "is a Japanese concept of communication through unspoken implication.The term is often used to describe nonverbal, mutual understanding that takes place between two people and is supposedly unique to the Japanese.[1]

This tendency can be repellent to Japanese workers, who practice "ishin-denshin" -- communication by the heart.This term is important in learning a technique from others. Most technique must be learn by watch and sense by own body.However this process sometime takes time and in business scenes it will interrupt with the standardizing of the work process.

Another term that i like is Shuhari (Kanji: 守破離)
Shuhari is a Japanese martial art concept, and describes the stages of learning to mastery.
It is sometimes applied to other Japanese disciplines.

Shuhari roughly translates to "first learn, then detach, and finally transcend."
Shu (守) "protect", "obey" — traditional wisdom — learning fundamentals, techniques, heuristics, proverbs
Ha (破) "detach", "digress" — breaking with tradition — detachment from the illusions of self
Ri (離) "leave", "separate" — transcendence — there are no techniques or proverbs, all moves are natural,
becoming one with spirit alone without clinging to forms; transcending the physical
[From Wikipedia]

References
[1] Pulvers, Roger. "Japanese betray some blinkered views of their foreign coworkers," Japan Times, July 4, 2010, p. 8.

My impression about Japan

When i was still studying in unversity i have a lot of chances to visit a lot of factories and companies to learn about management and production control system. I was lucky to have a good professor to give me chance to take part in problem solving.

I was really impressed with Japanese System in educating thier workers, their spirit in work,
how they make everything important even smallest part in the work is important in maintaining top quality.

Everybody knows about Japanese High Technologies. When I was in High School I watched a TV programme called Beyond 2000. It shows about bullet train and robot in Japan. I was so amazed with their technologies.Then I already decided that I want to study engineering in Japan. After staying for almost 12 years, now i can understand why they could achieve such a high speed economic developement after world war 2. Japan itself dont have nature resource for industrial like petroleum, steel, etc..(ofcourse they have some rear metal...) Therefore, they understand what they should have to keep them living by polishing the production technologies.

Japan have 3000 years of history that makes their society system really well-organized. The changes of climate (4 seasons) make them really susceptible to the time and enviroment changes.I was really suprised to see how Japanese being so sensitive with time. For example the Sinkansen (bullet train) schedule very complicated but always in time and never even late
even a minute. Even in private they will be really punctual, they will feel uncomfotable if we are late for a minute.They also very sensitive about spaces, Japan population is up to 1.2 billion, very limited space, therefore the roads and houses are designed with a limited and compact spaces. I respect their knowledge and techniques on how they use the limited space to create maximum comfort and appearance.

From my experience these culture make them really displine and always requesting changes for the life, that makes them motivated to challenge in improving the techniques and innovate the technologies.

Where there are lights, there will be shadows too. Japanese really hard working people, including me now, they will work late.The working system itself makes the employees stay late. To compare with my own country, they spend a lot time on work that makes them under a lot stress and pressure. Working enviroment here itself is very high compatative environment.

Japan's grim reputation as one of the world's suicide nations has been confirmed by statistics that show more than 30,000 people a year have taken their own lives since figures first began to rise in 1998.There a lot reasons for suicide but i personally think high compatitive society and unbalanced work environment are big factors for these phenomenon. Recently there is movement about [work life balance] , i think it is still a long way to solve this problem.