In October, 2009, we discontinued shipment of the 3-ring-bound version of our policy and procedure manuals. It was a relatively easy decision, as more and more of our customers chose the downloadable version of our manuals over the binder. They were pleased to save on shipping and material costs. It also helped that we simplified the download process, thanks to invaluable customer feedback.

Prior to October, we began publishing most of our policies and procedures manuals in hardbound form, similar to a textbook, and made them available for sale through online retailers. So when we started receiving enquiries about “hard copy” versions of our manuals in recent weeks, we decided to offer the hardbound procedures books as add-ons.

You can now buy (for an additional $100 per) a hardbound procedure book as an add-on to nine of our policies and procedures manuals and the popular management  procedures bundles. The content of each hardbound book is identical to the MS-Word manual you download when you purchase it in electronic form.

To buy the hardbound books, simply choose the appropriate option (Download Only vs. Download + Hard Cover Book) when you place the product in your shopping cart.

Our goal is to ensure your satisfaction by providing the delivery option you desire. We won’t be selling the hardbound books as stand-alone products on our website, but they will continue to be available from online retailers like Amazon.com.

When was the last time you had to manage a “critical” project without the support of top management in word and deed? If it’s happened once, it’s happened too often.

Yet, this happens all the time with quality management systems. Quality management systems are commonly — and wrongly — viewed as a “necessary evil”. That is, your company’s top management feels a QMS project won’t have an immediate and positive effect on the bottom line but they’re going ahead with the project because “they’re making us do it!”

A customer may require its vendors (and maybe you’re one of them) to have an ISO-9001-certified QMS in place. Or, maybe you deal in a product or service that’s highly regulated, so you’re implementing a QMS only “because it’s the law.”

ATTITUDE

If your attitude is “we have to” instead of “we want to”, you may be setting up your QMS  to fail before you’ve begun.

Think about it. You always perform a task better when your heart and mind are in it, right?Isn’t the same true of your employees? If you’re not sold on the QMS as a win-win, your employees won’t be, either. And neither will the certification auditor.

Besides management having a poor attitude, there are other ways to sink your QMS project. Here are just a few:

• No development plan or one that’s insufficient
• Unrealistic expectations
• Lack of management support
• Poor communication
• Not enough resources
• Lack of user involvement

NO DEVELOPMENT PLAN

Just as with any other project, a QMS is more likely to yield desired results when a realistic plan is drawn up in advance. It’s just that simple: thorough project planning leads to a greater likelihood of success than relying on chance.

When you started your company, you drew up a detailed business plan before you went to borrow seed capital. True, the bank required you to have a business plan, but not because they just “felt like it”. They wanted you to succeed so they’d get their money back and so you’d become a regular customer.

The same is true of your QMS project — plan now for success, or pay dearly later.

UNREALISTIC EXPECTATIONS

Without bothering to put a plan together, top management will say, “We need a functional QMS in three months and we can spare one person from the staff to work on it.” It’s just a QMS, right? You only need a half-dozen procedures and a quality manual and you’re done, right?

WRONG! If you don’t do the research, you ensure that your expectations will NEVER be met. Realistic, achievable objectives come only from careful research and planning. If you don’t have a history of QMS projects, look at other projects.

Look at what other companies have done with their quality management systems. Ask around — maybe you know someone who’s been through the experience. The point is to have a clear idea of what you’re getting into and what to expect.

Next, we’ll look at four more reasons why QMS projects fail. In the meantime, I’d like your comments. Why do QMS projects fail? Why does any kind of project fail?

Thanks for your time.

I got a piece of spam today from “The Warrior Sales Academy”.  Two things immediately popped into my head.  One, they’re trivializing the unpleasant but sometimes necessary things soldiers do.  (You want to be a “warrior”?  Really?)

Two, we’re not in the Dark Ages.  Conciliation is preferable to confrontation.  Collaboration trumps the “pillage and plunder” mindset.  Selling is first and foremost about establishing – then building – healthy relationships.   What value do you give them in return for the money they give you?  Are you offering greater value than your competitors?  Are you always looking to improve?

Look at the quality management system process model, as depicted in ISO 9001:2008 (figure 1).  See where the customer is?

Here, the customer is the alpha and omega of the quality management system.  Organizations that implement quality management systems ensure customer satisfaction — they meet the customer’s requirements, and then some.

Contrast the ISO process model with the warrior process model (Figure 2):

Do you really expect to get – and keep – customers when you go after them like barbarians on Rome?  Look at what clause 1.1(b) of ISO 9001 says:

“This (standard) specifies requirements for a quality management system where an organization…aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable statutory and regulatory requirements.”

Seems pretty simple but as the saying goes, “If it was that simple, everyone would be doing it.”

So, what are you?  A warrior, or a builder?  If you’re not having any luck as a warrior, it’s probably time to take the ISO 9001 approach.

Process improvement is occurring at many organizations throughout the world.  Yet people constantly ask about how to get started.  How do you get your organization moving in a direction of continuous improvement?

First off, you have to have Management Commitment.  The obvious question, then, is how does top management show commitment to change and improvement? The answer is about inspirational leadership, it is about communication.  To be an inspirational leader, one needs to be a great communicator.  Management commitment takes both leadership and communication.

Second, it takes SMART Objectives.  Planning by management must result in clearly defined objectives that the organization can work towards.

Third, in order to achieve the SMART objectives, the organization will require operational Action Plans with accountability and responsibility for each action.  This means the Who-What-When is spelled out for proper execution.

Fourth, you will need a User Focus.  Defined customer requirements, an understanding of the voice-of-the-customer — your customer, and a method of constantly integrating your customer’s requirements into your processes.

Fifth, there has to be Profound Knowledge, which results in your ability to anticipate results.  Really understanding your customer, your markets, and your processes lead you to anticipating what your customer needs next.  How do you reach this state?

Sixth, you will need to learn and implement Management By Fact, which will lead you to profound knowledge.  Collect the facts from data, use the data to derive information, and obtain knowledge about your customers, markets and processes.

Seventh, in order to manage by fact, you will need the facts in the form of Real-Time Data.  Your processes will require increased visibility and transparency.  Real time data is needed to build a strong competitive advantage.  The longer the delay in getting data, the slower your reaction time is and the less competitive you become.

Eighth, with so much going on you will need a good Change Management System that can document and control all of these changes.  This will build on your system of management by fact and lead you to greater profound knowledge.

Ninth, Execution Audits, internal audits or process audits.  Either way you will require a system of monitoring to ensure that the system is working, that your change management system is effective, and that you are in fact achieving progress towards your SMART objectives.

Tenth, still unsure of where to start?  Then Continuous Learning is needed to build your knowledge management.  No improvement will take place unless knowledge is identified, acquired, shared, and used.  Training, learning and practice are crucial to build competence.

What are these Performance Improvement Drivers?

1. Management Commitment (Leadership & Communication)
2. SMART Objectives (Goals)
3. Action Plans (Accountability, Who-What-When)
4. User Focus (Customer, Employee, Supplier)
5. Profound Knowledge (Anticipates Results)
6. Management By Fact (Data, Information Knowledge))
7. Real-Time Data (Visibility)
8. Change Management System (Documentation & Control)
9. Execution Audits (Monitoring)
10. Continuous Learning (Improvement)

No matter how much you want to please your customers, you will not please every one.  That’s not news to anyone out there (I hope).  But, pleasing customers is especially difficult when there is no dialogue.

Again, not a breathtaking revelation.  It’s just that when I was recently given a rare opportunity by a customer, I wondered, among many things:

• Why is it that only dissatisfied customers get in touch?
• Why are their expectations often far outside the norm?
• What about the “silent majority”?  Why don’t they dialogue with us?

This particular customer — who I’ll call “Hans” (not his/her real name) — did not like that our policies and procedures manual did not contain a complete, up-to-date listing of every national law affecting or related to the subject matter of the manual.  He asked when our product had last been updated.  I replied that it was less than two years ago.

To Hans, this was unacceptable.  For what he paid, he should have received much more than he got, in his estimation.  If new laws were enacted in the last year and a half or so that could impact the way he does business, he needs to know about this.

While I agree in principle with his last statement, I pointed out several things working against us in that regard.  We have an international audience; the number of laws on any given subject must be in the thousands, if not millions, and countries are adding new laws all the time.

(NOTE: This is one reason why we feel international standards — like ISO 9001 — are critically important.  Every market you can think of (but especially food and health care) is heavily regulated in most countries.  ISO standards do a very good job of harmonizing laws around the world: that is, if a company complies with international standards like ISO 9001, it will very likely comply with relevant regulations, too.)

It is not possible for us to keep up with all the regulatory changes that go on around the world, so we defer to established authority.  And, we’re continually getting better with regard to international coverage.  For instance, in the Finance Policies and Procedures manual, we don’t just mention GAAP and leave it at that.  We also include reference to IFSB and explain its importance.  Rather than restate the applicable rules, regulations, guidelines, etc., we include links to some web sites.  (I invite you to check out a few legislative web sites.  If we tried to be all-inclusive, we might never get a product to market and if we did…imagine the shipping charges!)

We can’t possibly include everything on every subject covered in our manuals.  In fact, we caution purchasers in our manuals against assuming that our P&P manuals have everything they could possibly need.  That, and we caution them to have qualified legal counsel check their work prior to implementing and distributing it.

Finally, I told Hans we design our products to provide the greatest good for the greatest number.  It might be prohibitively expensive for many of our customers if we were to tailor the P&P manuals to their unique circumstances.  We can do that — and have done it — for companies on a for-hire basis.  Still, many companies, I suspect, purchase our products because they are a low-cost alternative and provide a solid framework for their unique circumstances and documentation requirements.  I closed by apologizing to Hans that our product could not meet all of his needs.

Now, it’s your turn.  What do you expect of our products?  Surely, there’s something you feel like we could be doing better…but what?

There are few people in the U.S. — and not a lot more around the world — who are unaware of the health care insurance crisis in this country.  The answer, for whatever reason, is as it always has been: let’s make a law!

But what kind of law?  ”Too many people are without health care insurance!”, cries one side.  ”We can’t have ‘socialized medicine’!”, cries the other side.

“We must seek compromise!”, cries a voice from the middle.  Politics is the art of compromise, right?  If compromise is “the art of dividing a cake in such a way that everyone believes that he or she has the biggest piece” (bonus points if you can guess who said that)…yes, I suppose politics could be an answer.

In reality, we know it is not.  We know that whoever writes the laws stands to gain the most if those laws are passed.  This is true not just of the USA, but of every country on the planet.

There is an effective solution out there that we seem to be conveniently overlooking.  That solution is ISO 9001, “Quality Management Systems-Requirements”.  According to the standard, key to an effective quality management system is meeting — or exceeding — customer requirements.  The product — in this case, health care insurance — must satisfy customer requirements above all.  The customer is so important that three clauses are devoted exclusively to the customer: clauses 5.2 (Customer Focus), 7.2 (Customer-Related Processes), and 8.2.1 (Customer Satisfaction).

And just who is the customer of health care insurance?  Well, who’s supposed to be reaping the benefits of the product?  There are two customers, actually…

• The people being insured, and
• The health care providers.

Who aren’t customers?  Pharmaceutical companies, medical equipment manufacturers, lawmakers, lobbyists, ad nauseam.  My advice to President Obama — and to any other world leader, for that matter — is to develop a health care system that complies with the requirements of ISO 9001, and ignore anyone and everyone who calls for legislation.  Don’t forget — the ones insisting that legislation is the answer are often the ones who stand to profit the most from it.

Whether you agree or not, let me know what you think.

We are currently in the midst of surveying our customer base for their opinions on how to improve our policies and procedures manuals, the bread-and-butter of our company.  We’re asking them questions like, ”Have you used the product?”, “What was your primary reason for purchasing it?”, “How satisfied are you?”, and “How do you manage (control) your documentation?”

Organizations usually buy our policy and procedure, or “PnP”, manuals for the content and structure they provide.  Think of policies and procedures as the plans and materials for erecting a modern office building: it’s easier for a builder to work from a set of plans, with the materials identified and laid out for the task, than it is to start “from scratch”.

There are several major differences between PnP manuals and buildings, however.  Thousands of years of accumulated wisdom, as well as enforcement of clear, strict building codes, ensure that adverse outcomes in construction (i.e., spontaneous building collapse) are unlikely to occur.  With policies and procedures, there is no strict code – and no laws of physics – to say the outcome must be “this” or “that”.

Companies are free to do what they wish with the plans and materials, somewhat like a child playing with Lego blocks.  There’s no rule set in stone that says, “You must use all the procedures we provide you.”  There is no governing body to tell you to implement the procedure exactly as it’s written, or to forever keep the document in the same format in which it came (i.e., Microsoft Word).  In fact, we encourage our customers to shape the policies and procedures we provide to their unique circumstances.

What do you do once they have the product?  We solicit your input from the moment we deliver the manual, but few actually take us up on the offer.  That is the main motive for our current research — what are you doing with our Policies and Procedures manuals?  More importantly, what can we do to make them better for you?

Now, I ask our readers who’ve yet to purchase one of our products, “What do you think?”  How do you develop and manage your policies and procedures?  How do you maintain them?  How do you communicate PnP to your workforce?  How do you ensure timeliness and availability?  How do you ensure cooperation?   How do you ensure VALUE?  And…given what you now know…what might you do differently?

PR: wait… I: wait… L: wait… LD: wait… I: wait… wait… Rank: wait… Traffic: wait… Price: wait… C: wait…

Seen hanging on an office wall:

Rule 1: Customer is always right.
Rule 2: If you think the customer is wrong, refer to rule 1.

In essence, this is not that different from what McDonald’s founder Ray Kroc said – “if you work just for money, you’ll never make it, but if you love what you’re doing and you always put the customer first, success will be yours.”

Some might argue that not all customers have high integrity and they will take advantage of your customer-centric attitudes. That may be true in rare instances, but if you have a product that the customer needs or wants, and if you have a business culture that focuses on maximizing customer satisfaction, the benefits far surpass the any small disadvantages.

I moved into a new house this past weekend. To help me move, I chose a local mover who was referred by one of my wife’s colleague. The mover came over to my previous dwelling, looked at what we had and gave us an estimate – a very competitive estimate. It seemed like he said “we’ll make you happy” after every sentence.

He meant every letter of what he said. He and his crew indeed made us very happy. They took very good care of our stuff, placed the furniture exactly where they belonged and stacked the boxes such that the lighter ones were always on top. They were thoroughly professional, yet took the time to share some jokes and stories with us.

I am sure lots of movers do the same things my mover did. That’s not the point. From the day we first talked about moving, my mover made it clear, not by his words but by his actions that we were all that mattered to him that day. It’s no surprise then, that he was very enthusiastically referred to us by my wife’s colleague. And, when I have to refer a mover to someone, I have a name clearly etched on my mind. As the advertising mastermind Bill Bernbach put it, “word of mouth is the best medium of all.”

Taking care of your customer, listening to them and acting on their best interest pays off. After all, the primary goal of any business is to provide goods or services to its customers. So why not treat such an important component with utmost priority?

PR: wait… I: wait… L: wait… LD: wait… I: wait… wait… Rank: wait… Traffic: wait… Price: wait… C: wait…

On June 1, 2009, GM officially declared what many of us had known for decades: it is unable to compete in the global marketplace.  The fact that it can’t even compete in the US market, where it got its start a century ago, shows how far the mighty can fall when they’re not paying attention.

There are many reasons for GM’s failure, including:

• Its sheer size and the attendant inefficiencies
• Corporate hubris (perhaps reflected in the famous statement, “What’s good for the country is good for General Motors, and vice versa.”)
• An outmoded business model

But perhaps most importantly:

• Lack of customer satisfaction.

ISO/TS 16949, the automotive quality standard similar to ISO 9001 and based in part on QS 9000 — a standard developed in part by GM — places a great emphasis on satisfying customer requirements.

Customer requirements are often fact-based (e.g., safety standards, legislation) but just as often, they’re based on perceptions.  A company can compile the most lengthy, detailed checklist of customer requirements yet miss a lot of important information when that checklist is not reexamined on an ongoing basis.  If that checklist becomes the “Commandments of Manufacturing”,  the company using it runs the greatest risk of all.  Ask GM.

This is a lesson every remaining business must take to heart.  So, ask yourself: When did you last have an open, honest discussion with your customers (maybe not all, but certainly your best ones) to see how they feel about your goods and services?  Do your customers consider your product – your company – useful and relevant?

When did you last reevaluate your definition of your target customer?  Do you use the “best” tools for getting and evaluating your customers’ perceptions?  Are you doing all you can to cultivate customer relationships?  To maintain them?  Are you making an effort to anticipate customers’ needs?  Are you listening?

Knowing your customer, or donor, in the not-for-profit world, helps executives set communication strategy, just as knowing the customer does in the for-profit world. Former Lutheran Hour Ministries chief executive Greg Lewis sought opportunities for increasing the organization’s donor base by better understanding their demographics and motivations, and then communicating to their interests.

As lay leader of LHM, the global outreach and fundraising organization of the Lutheran Church-Missouri Synod, Greg connected with a “strategic communications” firm that specialized in not-for-profit strategies and message development. The firm analyzed donor data to identify donors with more giving potential.

The agency identified donors in the data with potential to increase giving, grouped them demographically, and then interviewed some to develop donor personas. Ultimately, Greg arrived at a set of communication principles.

1. For example. Greg learned that while 78% of donors were Lutheran, the other 22% were more mission driven than affinity driven. The non-Lutheran group was primarily interested in mission-oriented information, such as education and health programs.
2. Demographic analysis also revealed that some wealthy donors were making regular, though small contributions, and represented an untapped well of giving.

With a better understanding of its donors, the Lutheran Hour Ministries crafted a communication strategy reinforcing donor’s knowledge that their generosity was making an impact.