Routine Standardization (Part 3 of 4)
Routine Standardization means that you have abandoned the typical approach. You are developing and implementing your own unique approach, which is unlike your competitor’s approach. Instead, you have your own proprietary system in place for doing what you do. I am reminded of Apple’s “differentiation strategy” summed up in the words “Think Different.” Apple has a generic strategy that is “broad differentiation” focusing on specific features that differentiate the company and its products from competitors. RS requires that you do the same thing.
Can a drywall business follow in Apple’s footsteps? Can you lay out an overall strategy, doing things different like Apple and UPS and any number of other great businesses? Can you discover new ways of doing old things? The answer is yes. Absolutely! In fact, if you intend to be anything other than mundane and ho-hum, you must.
I know of drywall companies that have developed their own unique way of doing business through Routine Standardization. Businesses like these continually pioneer and explore. They settle when they settle, until it’s time to move. In other words, when they determine a particular position on any activity, they are (for the time being) dug in. That is the way they do what they do on the whole, until they determine it’s time to move, change and or adjust. They are simultaneously close-minded and open-minded. They stick with their decisions; nevertheless, they remain open to change. They stay in that constant dichotomy.
Over time these companies become nearly unrecognizable when compared to the norms of their industry. They consistently evolve in some way, shape or form. New hires are confronted with a distinct difference when it comes to approach, strategy and company culture. New management, coming in from the outside (which is rare since they typically promote from within), are temporarily lost in a labyrinth of different ways of thinking and doing. If they are to survive, they adjust, or inevitably they are eliminated. Underneath, these companies have people who “think different” like Apple, and it’s apparent on the surface. The difference can be startling when compared to competitors. They do what others say can’t be done in ways that others rarely imagine.
One such company focuses on a proactive approach to the extent that their first department on site confirms with the customer any inspection dates, scrap and debris removal dates, completion date and the paint date. Beyond a myopic perspective on their department, the first department on site represents the entire organization. Their first objective is to tell the customer everything they need to know before they even have a chance to ask. Answering all the typical questions goes a long way toward putting the customer at ease and helping customers avoid the all too typical information chase and related stress, confusion or mistaken assumptions.
In order to schedule, the company has provided its representative with an AS (auto-scheduler), which automates the scheduling process, factoring weekends and holidays out and providing the rep with the key dates needed to complete the specific project. Prior to developing and utilizing that tool, occasional mistakes were made by counting holidays inadvertently and committing to shorter time frames. AS eliminates the potential for that to happen.
The dates are entered on a form called a CDW (completion date worksheet). The CDW lists the key increments of work needed to complete the project, and the critical path dates are entered for the specific tasks needed. Once the customer signs the CDW, they are provided a copy and another copy is sent back to the office. The office enters the information on a master schedule and forwards it, circulating it throughout the various departments companywide, alerting and notifying everyone that they have commenced work as an organization on a particular project. The schedule also shows what the respective dates are for each department to start and complete their portion. Accounts receivable is copied as well, allowing them to anticipate time frames for billing, speeding payment of receivables. A single group email notifies the department heads throughout the entire organization, prompting them to prepare and act.
Consequently, without a single phone call everyone involved is notified and standing by or, better yet, preparing to execute as flawlessly as possible. There are zero surprises. This puts both customer and company literally on the same page and quickly resolves any confusion regarding deadlines. Any dispute as to the agreed upon schedule is quickly resolved simply by referring to the signed CDW.
So then, how was this system developed and why? How well was it received? More importantly, how well does it work now that it has been fully implemented? As I understand it, it was a tough sell at the onset. There was the intimidation of making a commitment and putting it in writing, the discomfort in getting the customer to sign the document. These issues had to be overcome and done so in an environment where the system was unproven. I’ll get into the answers to those questions forthcoming. I think you’ll be impressed with the specifics.
We can do this. I can get this written, and you can get it read. But, will we? Together we can also share the progress of doing so. I can better learn to articulate the intended concept, and you can improve your organization, personally and professionally, by fully understanding, utilizing and advocating what you learn—if we both put forth the effort. However, I must ask a crucial question when it comes to this level of cooperation: Will we?
At times, writing, communicating well, determining relevant subject matter and conveying it succinctly isn’t easy. Reading the result of such effort and assimilating the written word can also be a chore. As for me, I’ve decided to do it anyway. How about you and your part? Are you up for it? At this point the question narrows to—Will you?
As we continue, it is with a single-minded purpose to fully provide an understanding of what’s needed to conceptualize content and provide value to you, the reader. And I have limited opportunity and so do you. I’m allowing us three more monthly columns on the subject of Routine Standardization, giving us a series of 10 columns. In between now and then, we must finish the intended goal and conclude. Failure to finish on my part is not an option. It defies my DNA and hopefully yours as well.
Before I can do so, I must be certain that I have offered up sufficient information to clearly communicate, review and drive the intended point home. Please pardon my emphatic insistence and my earnest summons, to you, the reader. We must be equally passionate and emphatic. Why? Because without such, we cannot fully communicate.
So then, by way of review, we have spent the last several articles exploring the notion that it is a wise business practice to implement RS. Early on I defined RS. I took the two words apart, defined each of them individually and combined them, defining the phrase. I followed by pointing out that management, must make decisions regarding the operational intricacies, develop best practices, SOP, clear path processes, time frames for tasks, and implement them. RS must also be developed through consensus with all stakeholders. Though you will not always attain unanimous agreement, once the decisions are made, there is no room for insubordination.
As the series continued to unfold, we took note of other companies outside our industry, titans on a global scale, the health care industry and their “specialized work routines,” then touched briefly on RS as it pertains to UPS and Apple, each of which have implemented and developed their own versions of RS thereby establishing themselves organizationally as household names and generating massive profits.
Most recently, I referred to a business in our industry that for the past several decades followed such a path. Utilizing RS, slowly but surely they developed a proactive approach at systematically producing a culture of both employees, practices and RS that served their organizations and their customers exceptionally well.
Over time, being busy about getting better, they have a history of happening upon deliberate discoveries, as well as one “accidental discovery” after another. I’ll define an “accidental discovery” as a product or practice that was inadvertently stumbled upon while actually pursuing solutions to other problems—problems that the business didn’t initially set out to solve.
Again, such discoveries were discovered by those in pursuit of products and or solutions, in some cases cures, other than what they ultimately found. And what they ultimately found was oftentimes significantly more valuable than the product, cure and/or solution behind the initial research. They were working on something and accidently discovered much more. This is an important concept. They were not just sitting on their laurels. They were in pursuit of improvements and in doing so, they got much more than they bargained for.
Think penicillin, the microwave, the pacemaker, the Slinky, Play-Doh (I’m dating myself) to name a few. Why, it is even said that a dog discovered Velcro. All were accidental discoveries. How about that little blue pill with big results and incalculable profits discovered by Pfizer about two decades ago? They were not out to find a remedy for ED, but they discovered an interesting reaction during the initial trials. Male patients didn’t want to give the surplus pills back. You can figure the rest out from there.
We do not have the time or space to elaborate further on this. Hopefully I’ve made the point and struck a chord of interest. Just Google “accidental discoveries or inventions.” It’s interesting. Understanding this will become increasingly more relevant as we continue.
By the way, if you’re paying attention to this series, you will recall that I made you a promise earlier in this series that I have not kept. My apologies, I will do so in a forthcoming article. I promise, for whatever that’s worth.
I want to stress that when you have a routine, you’re habitual. When you standardize, you are also habitual. Each of the words that make up the phrase “routine standardization” are somewhat redundant, and intentionally so. Adopting routine standardization means that you are in the habit of doing certain things certain ways and in certain time frames, and everyone—internally and externally—knows it.
Routine standardization takes the guesswork and decision-making out of the equation, which loosens the flow and develops predictability and certainty as to what the organization does at every juncture. Predictability in business is a wonderful thing, although at times a surprise (with a positive impact) can be wonderful as well. However, if I had to select one or the other, I would much prefer predictability when it comes to organizational activities.
We may set out with one thing in mind, but then we accidentally discover much more, or perhaps something altogether different but extremely beneficial.
Earlier I cited several examples of “accidental discoveries,” which are plentiful indeed. Our businesses aren’t, nor should they be an exception when it comes to this phenomena. It certainly wasn’t with the company I referred to. This particular company at the time did mostly residential drywall and, among other things, took pride in completing its work within the agreed upon time frame—consistently. They took the “schedule” extremely seriously. However, every so often the phone would ring and a customer would insist that they had agreed to complete the day before the company intended to complete. At that point, it was too late to rectify the situation. The customer’s schedule was disrupted and from the customer’s perspective, it was the drywall company’s fault.
This irked the drywall company’s management, who felt certain that based on jobsite management, the customer was wrong and the agreement was to complete the following day. So then, the drywall company’s upper management was intent on eliminating the possibility of this sort of confusion and the resulting blemish on its reputation in the future. But how?
This was the beginning of the “Completion Date Worksheet,” or CDW. Its sole function was to get a signed agreement between the customer and the company as proof as to what the completion date was. It actually began as two forms, one CDW for installation and one for finishing, paint ready. Each department would approach the superintendent and attempt to strike an agreement and then get the super’s signature.
This was something that was uncomfortable and semi-confrontational since neither the drywall company’s field management nor the superintendent were familiar with the process. It was awkward and took some prodding to get started. As is often the case, the key to implementation was upper management’s insistence on a particular path, long enough to outlast the very last pocket of resistance.
Since the drywall company was big on “anticipatory service,” over time the form fell naturally into place. It provided an opportunity early on for each department to interface with the customer and answer the typical questions, commit to the critical dates and prevent the customer from the all too often “information chase.” Each CDW for installation and or finishing listed the lot numbers to be completed, the start date, the inspection date, scrap date and completion date, and ultimately provided documentation of the agreement. Once signed, it was sent to the office.
The drywall company’s management quickly realized that the installation CDW could also be used to schedule the scrap truck, mud deliveries and to alert the finishing department. It didn’t take long to see that the CDW for the finishing department was equally useful when it came to scheduling the texture rig, etc. At that time, fax machines were all the rage, so they were immediately faxed upon receipt of the office to those departments.
I’ll interject this, since it fits so well. During this writing, I saw a documentary on TV. It was the story of Harry Coover, a research scientist for Kodak and his team of assistants that were working on a project intending to make jet cockpits stronger. As it turns out, when analyzing one of the thousands of compounds they experimented with, Coover inadvertently happened on what came to be known as “Super Glue.” At first, he was deeply troubled and very concerned about having ruined some equipment in the process. It had immediately stuck together and seemed inseparable. Ultimately, Coover patented one of the strongest adhesives known to man. Later they discovered multiple uses, eclipsing their initial amazement with much more than they had ever expected. Again, another accidental discovery underscoring the possibilities we all have as we search for improvements in our businesses.
