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March 19, 2015

Is It Time for Un-Change Management?

Summary:

While change management is important for innovation, so is "un-change management," which focuses on eliminating waste.

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Pull back on the reins for a moment and come to a complete stop. What do you see behind you? Probably a wake of both straight and winding roads… some intact, some obliterated, most somewhere in between. You probably see customers satisfied and dissatisfied at a number of different levels. Same with employees.

Now look ahead of you. What do you see? A yet-to-be-unfolded strategic plan? A vision? Goals? Innovation?

“Change management” is used to make the transition to doing things a new or different way. It’s a tool used to implement change required for forward movement, innovation, strategies, etc.

“Un-change management” refers to the need for organizations to let go of the unwavering focus on innovation and advancement and share some of the time and energy removing that which is not valued by the external customer or not required by law. In a word, we’ll refer to it simply as “waste.”

Waste unattended grows, at best, in parallel with your company’s growth. If you are pleased with your growth goals, ask yourself if you’re pleased with your simplicity goals. The ratio of waste to value should be reduced when you grow. Unbridled growth often leads to an increase in the waste-to-value ratio, and that isn’t realized until years later, mostly because all eyes are on growth. Companies then scramble, point fingers, place blame and cut costs without really understanding were the problem could have and should have been addressed in the first place.

Continuous improvement is more about elimination of waste than it is about doing anything new. It requires serious focus on work and asking why things are done. The goal is to arrive as close as possible to creating perfect flow in your business systems — where orders are placed, where product or service is made or conducted and where they are provided to the customer for consumption.

Clean out the garage (and keep it clean)

For companies that have never emphasized waste, large gains are made in a relatively short period after they introduce their system of elimination. After that, removal efforts continue to whittle away at midsized waste and so on until, finally, the mindset converts to innovation. I think we’d all agree that an innovative company with little waste is a valuable thing indeed.

The way companies manage waste has a profound impact on the way the company culture emerges. (See www.ThreeBellCurves.com and download the free whitepaper.) Employees want to work on things that matter, not waste. Customers want to pay for things of value. Keeping the price low requires the elimination of as much waste as possible.

Is your company ready to share some of its change management with “un”-change management? If you are, you will create more room for value without escalating costs.

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About the Author

Bernard Rosauer began working as president of the Wisconsin Compensation Rating Bureau in 2010 and is responsible for overall bureau functions. He has 26 years of property and casualty insurance industry experience working with both public and mutual insurance companies.

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