#bestpractise

Continuous improvement is so often swept under the rug! The part that it plays in an organisation is integral. If it is set up properly and the importance of this function is given an effective amount of representation across all levels of (and I hate to use this word, but I will) management with a budget to match it really can drive growth in:

The bottom line

Sales

Operational efficiency

Reduction in complexity

Increase in transparency

Continuous improvement can and should cover sales, process, technology, DevOps, systems, customer experience, operations, finance, team & organisational structure and even strategy to name a few.

So where should a continuous improvement team sit to get the right level of exposure?

Unfortunately, continuous improvement roles, do not enjoy as much of the limelight as projects and strategy based initiatives. But there is no reason that they should not.

The team could report directly into the COO, CIO or equivalent, with regular check-ins and updates on the problems that they are solving.

The work they have undertaken, are undertaking and about to undertake should be visible across your entity. People should be kept up to date and engaged with changes they are making, how they will affect them and when they will come into effect (front page of an intranet, regular communications etc).

What should a continuous improvement team look like? 

 If the team consists of an enthusiastic bunch of people that are passionate about making an organisation operate more efficiently with a skill set to match they would effectively operate as an internal audit team on steroids.

The team should be small in nature (if you are a big organisation then multiple smaller teams will do fine) that have a nice diverse range of skills from technologists through to accountants and sales people. 

They should be proactive and responsive to problems and issues across a wide range of areas

They should have a strong understanding of the organisational and technology architecture of your company (you don't have to be an architect)

There should be a balance of experience and new (without the new you won't uncover the why didn't I think of that moments)

Skill sets/background should include development, BI, data, sales, accountancy, operations but most importantly common sense.

They should have the ability, dynamism and confidence to talk all the way up, down and across an organisation(s)

Short and sharp documentation is key. Someone that weeds out the fluff and gets to the bottom of it all is a very strong candidate for your team

This team should not only act as a “doing” team but provide assistance as the continuous improvement discipline owners

They should have the intuition to challenge the current operating model and plug into and recommend on the target operating model that is being discussed and planned for at the executive level

The high-level backlog, work priority and budget should be managed by the executive responsible; during regular meetings that are short sharp and carry the same level of enthusiasm to making the strategic adjustments.

 Responsibility and budget to make a difference

The team will have the authority of the executive team, to review and act where issues reside. Mechanisms should be in place to identify problems with agility. Including reports, data models, and strategy documentation and mandates.

The team should take ownership of the target operating model, strategic adjustment documentation and SOP & repositories

They should have dotted lines into release cycles, technology teams, operational teams, project teams and sales business units.

Projects often tend to pick up the flack on small changes within systems, this approach is very tactical and often the documentation and changes get lost in between. Organisations should avoid this behaviour at all costs.

The continuous improvement budget should be something that is set annually, it should consist of 20% of the project budget, for your organisation (lots of these projects will go away if you create a backlog approach to prioritising the work to complete).

Empowering this team will better enable and prepare for the transitions and upgrades that will inevitably take place on your organisation’s road map. 

With that in mind, the budget set for this team can certainly be balanced and offset with benefits realised ($$).

If you are a CEO or leader that believes, continuous improvement is an operational and day to day item, you are missing a very strategic trick . 

Continuous improvement leads to realising the path that is to be laid ahead for any organisation if managed effectively.