"Fix Everything" Fallacy

All companies have pain points. Here is one that is common:

Pain Point No. 8

• When you think… Have each department select its own improvement project to work on.
• Consider… 1) Most processes involve several departments, 2) Improvements done independently of other departments are sub-optimal for the entire company.
• Do… Consider the entire system or company when selecting improvement projects.

Some companies have gone so far as to hire dedicated improvement practitioners, with the mandate for each individual to save $xxx per year in order to keep their job. Then send them out to select their own projects.

This approach can result in counterproductive behavior;

• Localized savings, even at the expense of other departments or the company as a whole
• Once the annual financial goal is achieved, all other projects are held in reserve for the next employee review cycle
• Improvement efforts become about the justification, not improving the business
• Projects that improve the culture, morale, life balance, management practices/behavior, etc., etc., are not considered because they can not be quantified (or are very difficult to quantify) in hard savings
• Projects covering multiple years or multiple departments are ignored. The list goes on and on.

Note: I’ve seen projects squashed when the results embarrassed someone in power.

The ‘fix everything’ approach may not be the most economical. A balanced approach may be more difficult, but returns could be worth it.