By Winston P.
Ledet
The
Manufacturing Game
From a leadership
perspective we, at Ledet
Enterprises, think it is important to provide proper rewards
and recognition to succeed at improving organizational
performance. However, we think different rewards are important
in the different domains. Strangely enough, it appears that the
Reactive domain has the rewards built into the work itself. When
equipment breaks or won’t do the job, there is a lot of
satisfaction derived from the act of restoring the functionality
of the equipment. There is overtime for the hourly employees who
are needed to take the equipment down, restore the
functionality, and get it running again. These are the typical
“overtime heroes” who wrestle with the equipment and get “pats
on the back” from everyone because they were able to repair the
equipment and get it running again. There is innate value in
restoring equipment to serve the purpose it was intended to
serve. The problem with this mode of behavior is that it has
many hazards associated with it. The most obvious ones being the
risk of hurting people and the environment because of the
chaotic way things happen in the reactive mode. While this chaos
is stimulating and creates some excitement in life, it can
easily become overwhelming for employees. This basic mode of
operation is a fight between the equipment and people to see who
will win or lose with the equipment taking the initiative.
Therefore, the
motivation to go from the Reactive domain to the Planned domain
is to avoid the losses, waste, and hassle of the Reactive
domain. Planning behavior is basically a mode where the people
impose their will on the equipment through techniques that
anticipate the modes of failure and take action before the
failures can happen. This mode is not innately rewarding because
you can’t tell if the amount of planning you are doing is
enough. The outcome of perfect planning is that no failures
happen, but it is impossible to know when the planning is over
done because the consequence is that nothing happens. The
motivation to do something disappears when the memory of the
last failure fades. This causes the Planned domain to be rather
cyclical where the planning is improved to the point that the
failures are much smaller, and this leads to doing less planning
until something happens. In organizations where planning has
been successful, there are people with strong personalities
pushing the planning in order to impose their will on the
equipment. It is our experience that strong egos have to be fed.
Therefore, it is important to reward these people with things
that will pump up their self-esteem. Some monetary reward is
needed to compensate them for the overtime they are not getting
but more importantly, status must be awarded to sustain the
strength of these egos. People without status can’t impose their
will on the equipment, or on other people who are not motivated.
This is the domain where T-shirts, hats with logos, jackets, and
other status symbols are so important. Of course, if you want
this behavior to continue for 20 or 30 years, you have to find
ways to reward people for the same amount of time. Extra
T-shirts, baseball hats, etc. will not suffice as rewards, and
the recognition will have to extend to promotions or other power
giving status symbols. So the hazard associated with the Planned
domain is it can become boring and even high status can’t
provide the excitement that people need to enjoy life. If the
work becomes boring, people become complacent and quit doing the
tedious work it takes to prevent all failures. People
intuitively know that all failures are not predictable and
therefore even with an infinite amount of planning you could not
prevent every failure. The temptation then is to let some of the
planning go until something happens. It could take quite a bit
of time for something to happen to the equipment if planning has
been done well over the years. In the mean time the resources to
do the planning are gone and you have to start all over again.
This experience has led Dan Townsend, formerly at ARCO and
Valero and now Program Director at H.B. Zackry Construction and
Maintenance, to conclude that the Planned Domain is not as
stable a domain as the Reactive and Precision domains and has
led Vince Flynn, the leader of DuPont’s Corporate Maintenance
Leadership Team, to conclude that the Planned Domain is fragile.
Vince said that in his experience, in general, people are not
willing to keep up the systems that are necessary to stay in the
Planned domain. The discipline of Master Data maintenance is the
foundation for good planning, e.g. MRO Material Master Data,
Bills of Materials, Preventive Maintenance Plans and Task Lists.
We have seen instances where the Master Data resources are
eliminated and the CMMS system data becomes inaccurate, with the
result being lost productivity in the planning process. The
discipline of planning deteriorates until something bad happens,
like the maintenance costs reach some new unacceptable level,
and the process starts all over again. The basic process is that
people are imposing their will on the equipment by taking the
initiative early enough to avoid failures.
The question of what
rewards and recognition are necessary to get people to pursue
the Improved Precision Domain is a very intriguing one. The
first temptation is to conclude that creating a proper system to
sustain the improved performance is the key. There are many
cases to support the fact that people with great systems don’t
sustain the performance because of the reasons mentioned above.
The second temptation is to say that it is the process that is
key and rewards should be given to people for following the
right process in spite of the quality of the system they have to
use. It seems that the right question is, “How do you know if
people are using the proper process and how would you reward
them for it?” The answer seems to revolve around a point that
Mihaly Csikszentmihalyi recognized in his studies at the
University of Chicago and reported in his book Flow: The
Psychology of Optimal Experience. He defines optimal
experience as “those times when people report feelings of
concentration and deep enjoyment”. He concludes that people have
these experiences when they feel that they are serving a purpose
that they believe is important and right. Therefore, the rewards
in the Improved Precision domain should be embedded in the work
itself. In order to embed the reward in the work, the work
should be designed to accomplish a purpose that the worker
believes in. When we look at successful Action Teams, there are
certain themes that keep recurring. Many are improvements of
various kinds in lubrication, cleanliness and prevention. These
are themes that can motivate people. Many people want to work in
an organization that runs like “a well oiled machine” and
believe that, “a stitch in time saves nine”. The rewards here
should come in the form of good stories that make people feel
they are part of an organization that is making a difference in
the world, and they are proud of that. The theme of these
stories should be how certain people teamed up around some piece
of equipment to serve a purpose that is dear to them, and the
people took such good care of the equipment that the performance
was wonderful. The processes and systems for doing this should
not be the focus of the stories since creative people are able
to make poor systems and processes work