Eliminate Bureaucracy to Speed Up Improvements by 20 Times

LIKE RUNNING WHILE WEARING COMBATand investors or to improve current investments.
BOOTS: Bureaucracy-Officialism, Red Tape, andI Love the Sound of Feet Leaving the Meeting
ProliferationIn the early 1990s, Sears hired the former chief
Organizations usually see themselves as smoothlyof logistics for the U.S. military effort following
coordinated operations, even when they are not.Iraq's invasion of Kuwait, William G. Pagonis. He
A baseball analogy can help us see the point. Earlyquickly halved the time it took to ship apparel
in the 20th century, the Chicago Cubs teamfrom suppliers to Sears' stores. Suppliers who
members Joe Tinkers, Johnny Evers, and Frankmissed deadlines were fined.
Chance were baseball's most celebratedAnother improvement focused on cutting back on
double-play combination. Joe Tinkers would scooptime executives spent in meetings. In a simple
up the ball at shortstop and wing it to Eversexpedient (reminiscent of those stand-up desks),
covering second base. Evers would touch the bagPagonis removed the chairs from meeting rooms.
or tag the runner sliding towards him, then snapThose in attendance got to the point quickly or
the ball to Frank Chance on first before theshut up entirely. His meetings rarely exceeded 15
batter arrived at the bag. "Tinkers to Evers tominutes. In the past, managers felt that they had
Chance" became part of American folk idiom.to speak up to earn their keep. Now they knew
I Like Companybetter and stopped wasting valuable time.
Most organizations start off in Tinkers to Evers toSTALLBUSTERS
Chance mode. But soon, more jobs are added toSpot Checking
perform the same amount of work. It's likeA high percentage of bureaucracy involves having
having all nine baseball players handle the baseballcheckers checking on checkers, a direction usually
after it's hit. Runners will be safe at second andchosen for the laudatory purpose of effectively
first when that happens.controlling the organization. Spot checking works
Why does this needless proliferation happen?almost as well and is a lot less expensive. To spot
Managers enjoy the prestige of having morecheck correctly, ask a statistician to help you
people reporting to them. Insecure managers willdesign a process to spot check. Rarely will you
use the bloated staff to cross-check for errorsneed to check more than a couple of thousand
so that the manager looks good in the monthlyincidents, even if you want to get a handle on
reports. Also, a manager's compensation usuallymillions of occasions.
reflects the size of the reporting staff. Building aStreamline Processes
bureaucracy is just another way for managers toIn lengthy processes, orders and offerings sit
reward themselves at the expense of thearound 99 percent of the time waiting for people
organization and its stakeholders. Of course,to do the next little bit. If you reduce how many
incompetent managers will also foolishly hire morepeople are involved, the process duration
people when tasks are left uncompleted due todramatically shortens. Cross-train people to do all
illness or temporary spikes in demand. But addingof the tasks that are needed at each important
excess people to a process is often about asstage, and you may take weeks out of the
helpful as having a marathon runner wear combatprocess.
boots.Map out how long each part of the process lasts
Hands Off!now and who does what. Alongside that lengthy
Many people in bureaucracies find job security inlist, lay out a way to reduce the steps, shorten
"owning" a piece of an important process. Let'selapsed time, and limit the number of people
say that this person has to check incoming ordersinvolved. If your organization is like most, you can
for errors. Well, all organizations depend onprobably create a 96 percent reduction in elapsed
incoming orders. Grab a piece of that process,time during the process.
and you'll be one of the last to see your jobToday, the elapsed time standard for processes
eliminated. Yet most of these order processesis very short ... often as little as a few minutes. In
can be automated. Customers can place ordersindustries where parts suppliers provide the goods
that are immediately sent to shipping.to their manufacturing customers "just in time"
Error-checking programs can prompt customers(just before the part is used), suppliers usually
to make corrections before the order is finalized.determine what and how to ship to the customer
If at First You Don't Succeed, Try, Try Againrather than waiting for an order. Billing and
Left unchecked, bureaucracies createpayment are usually tied to scanning incoming
redundancies that double or triple the workload ...packages.
and still fail. In part, failure results becauseGo for Massive Continuous Improvement of Your
eliminating the last scintilla of errors may cost asMost Important Tasks
much as eliminating the first 99.9 percent ofFor decades the mantra of many management
errors. More likely, however, is that theexperts has been "continuous improvement." But
bureaucracy is built up to make the bureaucratsthose experts were usually thinking about making
feel safer. New process designs rarely reflect1 percent improvements. We recommend instead
sophisticated knowledge of error-reductionthat you continuously seek 2,000 percent
methods. Rather, the designs allow seniorsolutions. You'll run rings about the usual continuous
bureaucrats to assign blame for errors to others.improvement people. The more frequently you
STALL ERASERSset goals and the higher those goals are, the
Standing Room Onlymore you'll learn and achieve. Get going at getting
At times, unorthodox methods are needed tobetter at your most important tasks!
help workers break out of their bad habits. AHere are questions to help you succeed with
venture capitalist noticed that his colleagues weremassive continuous improvement:
happy to sit at their desks drinking coffee and1. What should you be measuring?
filling out administrative reports. But money in2. How can you measure those areas?
venture capital comes from working with3. How often should improvement goals be set?
entrepreneurs. The venture capitalist's solution:Next, get on with eliminating bureaucracy . . . even
Buy stand-up desks. None of his colleagues wereif the source is your own irrational connection to
psychologically or physically able to stand at thoseapproving every detail personally!
desks all day. Usually, they headed for the field byCopyright 2007 Donald W.
mid-morning to round up prospective investments