If your area in the company lives in the middle of chaos, where there is no routine and where you only solve problems, it is time for you to check out what Vicente Falconi, in his book "Daily Work Routine Management", has to teach you.
According to him, your company can operate in two situations. One of them is the abnormal one, in which no value is generated for the client, but costs for the company. The other is the normal operation, in which value is generated through the stability of processes.
You may also have had the feeling that when you leave the "normal" routine, you can't deliver as much result as before, right? Then read on to find out how to create a successful routine in your company!
The book is a basic guide for leaders to make improvements in their companies through the management of their operations.
The 9th edition of the book has 266 pages and is divided into four chapters, which present the four phases for achieving a good daily work routine management:
Graduated from Federal University of Minas Gerais (UFMG), Vicente Falconi is the greatest consultant in Brazil, some call him a living legend, and it was not by chance that he received this title.
Board member of Ambev and Gerdau, Falconi searched in Japan what was behind the business excellence of Japanese companies. After some years, he returned to Brazil, and applied with tremendous success here what he learned there, both in the public and private sectors.
Managers, directors, and people in any leadership position who want to learn how to create a successful routine for their work and the work of their subordinates.
Do you have no time to read now? Then download the free PDF and read wherever and whenever you want:
Have you ever wondered how good companies manage to generate constant results over many years, even if all their original staff have left and given way to completely new employees?
The answer is simple: these companies have solid routine management in place.
But what is it anyway? According to Vicente Falconi, in his book "Daily Work Routine Management", before we want to understand what routine management is all about, we have to understand what a company is.
A company is an organization that works to satisfy the needs of other people, or rather, to add value to them. Thus, its product is bought and it gets financial returns.
In order for the work to be performed, there are functions and there are positions in companies. Job is the name of your position, function is what you actually do. Among roles there are four types:
The first two are managerial and the last two are operational. According to Falconi, in a company, 90% of the activities are operational! It is clear then that if the company's operation is not good, it will not move forward, right?
Such functions operate in two ways: when everything is running normally, and when abnormalities (problems) occur. The normal operation generates value for the company, while the abnormal operation only generates costs.
The focus of the company, therefore, must be to eliminate the abnormalities and achieve this "normal operation", which generates value. Next we will look at how to do this.
According to Falconi:
"Managing is the act of seeking the causes (means) of the impossibility of achieving a goal (end), establishing countermeasures, putting together a plan of action, executing and standardizing in case of success."
Routine management is the means of ensuring that a company's operational functions run smoothly, or rather, function in a "normal" way, adding value. Its pillars are:
Falconi observes that the best way to start routine management is by implementing the 5S, because it guarantees an excellent work environment: organized, clean, disciplined, economical - essential factors for productivity.
Once the 5S is implemented, it is possible to attack the other fronts of routine management:
Let's take a look at each of these steps below.
"You only standardize what is necessary to ensure certain desired end result."
To manage any routine, standards are needed that indicate the procedures and goals for executing each job, allowing workers to take responsibility for their deliverables.
Such standards should be defined according to the actual experience that occurs in the workplace, and once defined, they should be disseminated through training to employees.
Two basic standardization tools are:
After having your procedures standardized and disseminated to employees through training, it is easier to identify and eliminate abnormalities, which are simply deviations that occur from normal operation.
Each function in the company has its role in the elimination of abnormalities:
Remember that every company has too many abnormalities, and that it is not possible to correct them all, and that a criterion is needed to prioritize them.
There is no management without measurement, agree? How will you identify deviations and problems in the company without monitoring?
To monitor the result of the processes you need to define control items, which are values that measure something quantitatively. There are control items to be maintained and others to be improved.
Remember to make a visual management of these control items, using standardized representations: very large charts, in a very visible place, can help with this.
The idea is that everyone can see, and that at a glance, they understand the information!
After ensuring that results remain stable, your main role as a manager is to improve results, or in other words, to beat goals. To do this, you must
Don't forget to include in the discussion all the people who can help, because with collaboration you take advantage of everyone's knowledge, and get better results.
Now that you have "cleaned house", it is time to lubricate one or another part that is making noise.
According to Vicente Falconi, in his book "Daily Work Routine Management", this phase consists of
To improve monitoring you must clearly define, within your area, the mission, the customers, your customers' needs, and from there the control items. This will avoid monitoring items that do not add value.
"Your company will only be competitive if your managements are competitive."
Another way to improve monitoring is by looking to see if someone else achieves better results than yours (within your company or outside of it).
Based on the benchmarking of your control items, set goals - remember that goals must be challenging to have the best solutions. Weak goals generate weak results.
Falconi notes that data from other companies is often accessible and you only have to look for it to find it.
According to Falconi, in order to improve you need to solve problems, that is, you need to beat goals.
To create a solid problem solving method in your company, it is necessary to master the PDCA method of improvement. This method consists of 4 steps:
To train your team in the method, choose the smallest problems in your area, and ask your teams (3 to 4 people) to apply the PDCA method to solve them.
Initially you won't know what problems your area has. So start by doing a shake-down with your whole team, that is, a survey of the problems in your area.
It is not possible to break down the method here, but some practical steps to run PDCA are:
We have already said that without a goal there is no management. But where do these goals come from? They come from the market, or rather, from the clients' demands.
When you define goals, remember to always align them with the board's goals, because they are the ones necessary for the company's survival.
Human potential is the greatest asset of any company, do you agree? So to make the most of it you need to make your team think, and there is no better way to do this than by teaching them to run the PDCA cycle
Another way to take advantage of the human potential is to manage the motivation of your team: set indicators and goals for this. An unmotivated team cannot deliver results.
Promote group activities, recognize the efforts of your team, fight for the company to reward them for this, giving higher salaries, for example, and be a friend to your employees, including in the family sphere!
Finally, never stop raising your employees' skills through lifelong training.
Falconi notes that extraordinary results of the past are no good for the future, and in order to achieve new extraordinary results, he asks for attention to the following points.
Always seek to achieve the absolute targets: zero rework, zero delays, zero inventory... eliminating the three sources of losses:
Remember, even the smallest problems must be tackled at some point, because the sum of them results in a big problem!
To implement disruptive improvements, constantly question whether they have arisen:
In parallel to managing disruptive improvements, never stop managing continuous improvements.
In "Great by Choice", Jim Collins and Morten T. Hansen show that the companies that survive in the marketplace are those with discipline, not necessarily those that are creative and visionary. The most successful companies are those that have remained more constant, with solid routine management!
Andrew Grove, in his book "High Output Management", teaches how to unite your employees into a highly productive team. To do this, he advocates that control items are a key tool, and must be well defined so that the team's efforts are oriented in the right direction.
Finally, in "Built to Last", Jim Collins and Jerry I. Porras, through their studies, came to the conclusion that durable companies are those that seek continuous improvement and have a solid ideology. Their focus is always on surpassing themselves, and not necessarily on beating the competition.
Routine management is what will guarantee the constancy of your company's results. To apply it you must keep in mind the four pillars to "clean the house":
After putting your house in order, improve your company's routine management through the internalization of the PDCA method by all your employees. This is an essential factor for your company's success!
We hope you enjoyed the summary! Be sure to give us feedback, it is very important to us.
If you are interested in the book, it is available for purchase by clicking on the image below.
And receive a weekly summary of the biggest best sellers to read and listen to whenever you want!