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Organizational Innovations for Modern Enterprise

8   Problem Solving

THE NEW WAY: When bad news arrives, examine the system for problems and make improvements.

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  The new way assumes that fault lies in the system, not in the individuals that work in the system. This assumption is based on the observation that different people will produce very similar results when placed in the same system. This is one reason why history repeats itself. When something goes wrong, the person at the center of the problem is actually a symptom. The fundamental cause of the problem is the system itself.
 
  If you are unsure of this last point, ask yourself, was the Exxon Valdez oil spill in Alaska the fault of the drunken captain, or did the entire crew fail to do what they should have done? Was Baring’s Bank bankrupted by one fast and lose trader, or was it the victim of its own inadequate checks and balances? To be sure, there is enough blame for the captain and the trader to take. But while blaming individuals is quick and easy, only a thoughtful restructuring of the responsibilities, rights and relationships of the actors in a system, will keep similar disasters from recurring in the future.
 
  This realization is an extremely important aspect of the new way. By laying blame in the system, the organization takes responsibility as a whole for their problems, rather than trying to scapegoat one person. Once a problem has revealed itself, the focus is put on designing the problem out of the system, so that it can never happen again, regardless of who is working there in the future. This is how error-proofing and problem-proofing are implemented through continuous, incremental improvement, or what the Japanese would call "Kaizen". (Continuous Improvement with the "Five Whys?") In this way, concrete improvements are made in the production systems of the new style company.
 
  When companies adopt this new way of handling problems, and employees trust in it, a very important phenomenon occurs. Previously hidden problems become uncovered, as employees roll back the rug, exposing all those things that were swept under it in the past. By offering formal amnesty after the fact, an organization can coax many of its skeletons out of the closet, so that they can be handled appropriately, and rest in peace forevermore. Ideally, fully empowered employees would become more responsible for their errors and take charge of rectifying problems, without the involvement of inspectors and auditors. Taken to the desirable extreme, this would end the need for rework and large quality holds. (Empowered Employees and Semi-Autonomous Work Teams)
 
  By making it standard policy to lay blame on the system, rather than on the individuals in the system, an organization can avoid the skeleton-crowding problem altogether. Any company seriously pursuing excellence must take this new way and make it standard practice. Consider this – how much closet space is there at your company for skeletons anyway?
 



 
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