Commentary: I have decided to expand the Operations Management series to include additional postings. With the theory and basics out-of-the-way, many readers expressed interest in how to implement such a concept practically. This posting returns to the base reason for initiating the series and discusses practical applications of the concept.
Implementing the Complex Adaptive Environment
The original post indicated a need for sustainable and adaptive operations. In order to achieve this objective the employment of complex adaptive systems was suggested. We combined the notion with Just-In-Time methods, information management and datawarehousing, and internetworking technologies in order to apply the concept in practical ways across an organization. However, there is a need to migrate away from standing organizational structures towards the complex adaptive culture. There are two approaches to migration; a design approach and a transitional approach. The design approach is generally for a new organization and I'll reserve that for another discussion. The transitional approach is the focus of this post.
Traditional programmatic transitions such as Agile, Just-In-Time, or lean and others of the like are a limited application to a specific operation kind. For example, Agile re-orders a operation to a production like project culture where sprints are really short production runs. This is terrific if the operation is suited for that kind of structure. However, nearly every operation can dove tail into complex adaptive systems architectures. This is because complex adaptive systems reflect natural systems. In the natural there are economies and efficiencies that are innate in all systems. Complex adaptive systems take advantage of that which is natural rather than contrived or forced fit. Therefore, tranistioning to a complex adaptive culture relies on finding the natural order within the operation. In essence, we are seeking the Qi or Chi for the organization.
Most organizational structures are the outcome of years of short lived management visions, good ideas, and adaptations to technology and various projects. Most members would recognize this as awkward processes or operations that just do not match up properly. These are often inddicated by stop gap measures that have been taken to bridge the situation and sustain the operations. The transitional approach is applicable when the objective and the current situation are far apart.
In the transitional approach, a housekeeping effort is undertaken to situate the organization for migration to a complex adaptive culture. The 5S methodology applies well with its sort, straighten, shine, standardize and sustain model. The big push early on is to streamline and standardize the operation as there is no sense in carrying over poor processes, practices, and extraneous information into the new order. This activity may standardize material names and product numbers, eliminate reports, and strengthen other reports. When completed redundancies, confused information, and other poor practices should be eliminated and the true operation should become more clear. Additionally, some services may already be situated in a complex adaptive manner. Logistical services and within Enterprise Resource Planning, ERP, environments some vendors may already be embedded and supportive of complex adaptive systems. These interfaces may need some minor adjustments for the transition as well.
The next phase of the migration requires closely grouped processes and activities to be organized both physically and virtually in a Just-In-Time manner. This is a U-shaped process cell in which raw materials and information is entered at one point then work is performed producing a output that are goods or services for the cell as well as intellectual capital. These products have, at least, a breakeven value equivalent to the cost of the work that went into them. Additional values for overhead and future cell development can also be assigned. As cells are formed, their information requirements become better known and the remaining organization can draw their needs from a known single source. The process of organizing nodes continues as the organizational tempo should remain unaffected since the activities and processes never really change. They just become more focused and connected. Nonetheless, I would expect some adjustment anxieties and resistance to change as the old system dissolves away. For instance, political strong holds, stove pipes, and power empires should fade but not without the human reaction to this cultural shift.
In time the organization will have held its processes constant but organized them into the nodes. These nodes may be a workcenter, a set of cubicals, or fully virtual. Once the nodal framework is in place then the organization begins to look at the infomration exchanges. There may be some ineffiencies and further consolidation to ensure that the information is well honed and single sourced. The organization should seek to map the information exchanges and understand the network. This will enable better management during times of expansion and contraction. Eventually, a virtual model of the business should be built and managed as a knowledge network.
Managing the network, would look at bottlenecks, capability, and capacity. Bottlenecks can be relieved by adding capacity or adjusting workflows. Overall, the nodal network should have emerged from the chaos of the older structure in a evolutionary manner bringing greater order to the operations.
The classic problems of power struggles, politics and empire building otherwise human interferences would be the greatest challenge to overcome. As petty as these activities are they pervasive and a reality in the workplace. Change and human management practices would need to be at the forefront of the effort. This is another discussion or post. The next post will look more closely at the nodes and network management.
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