Failure to Success in Trading

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Change Management Presentations - Why Your Analysis is Not Hitting Home

Having sat through dozens of presentations containing data and analysis, it never ceases to amaze me when consultants leave the interpretation of the data to the client. The implications are often that the audience, the CEO or board of directors, draw the wrong conclusions. To avoid this problem, consultants should make sure they explain what every piece of data and analysis means, and then make a call to action.

Recently I had a problem with my home broadband. The engineer studied the problem and told me that the signal from the satellite was hitting the router at the wrong angle. My response was simply "what?" I didn't have a clue what this meant, the implications for me nor what I should do to solve the problem.

The same often happens when consultants, managers or engineers are explaining data or analysis.

Here's an example, I recently heard a consultant tell a CEO that her call centre had 40% failure demand. Then the consultant moved on to the next point. Thankfully for him the CEO stopped the presentation and asked him what he was talking about.

The consultant eventually explained that 40% of the incoming calls were caused due to a failure of the organisation to do the right thing for the client, i.e. call targets causing customer service agents to end the call before the customer got what they wanted, so they'd call back. The implications were poor service and increasing cost. The targets had to be stopped. Now he had her attention, and she knew what to do. They both win.

Something every consultant needs to know is how to interpret data for senior managers. This means that every piece of analysis or information should be presented in such a way that there is no question about what it means and what action should be taken as a result.

Here's a simple process for your next presentation to make sure that your analysis hits the mark.

1. Write out every separate piece of analysis intended for use on a 3X5 card

2. On the reverse of the card write down in one paragraph

a. What the analysis means

b. The implications of the analysis

c. What action should be taken.

Here's an example of how this works from a presentation I did recently to a prosecutors office:

"My analysis shows that only 10% of those found guilty of a crime ever pay their fine in full, this means that they know the system doesn't work. Additionally you are losing £5 million every quarter in uncollected fines. I recommend you experiment with different sentences instead of just handing out fines."

Making your data and analysis understood is important for your client's change programme and your reputation. Remember: if they don't get your message, you won't get their business.

If you'd like to learn more about how to structure presentations that contain data, analysis or technical information get the first four steps of my system free here: First Four Steps

Stuart Corrigan is the Managing Director of Vanguard (Scotland) Ltd, a consultancy firm specializing in change management and service improvement.

Process Failure Modes and Effects Analysis (PFMEA) From the Process Flow to Production

PFMEA is a tried and tested approach to critique risk. Its purpose is simple, to identify potential failures, their consequences, the seriousness of the consequences and the reasons why they happen. Control methods are considered in two ways:

The first being activities in place which reduce the likelihood of the reasons for failure happening. The second being activities which tell you when a failure has occurred and thus enabling you to do something about it.

The overall purpose is to establish where the high risk areas are based on the current situation and then take action to reduce the risks. The approach taken and the timing of the task are instrumental to achieve maximum payback. When used correctly it is one of the singly most powerful quality tools available to companies. Process FMEA used in isolation like this is very thorough, but a missed opportunity to reap the full intended benefits of the document.

PFMEA strategy

Process Flow Diagram

The starting point is not the PFMEA but defining the process in the process flow diagram. Care must be taken here to select the correct wording and level of resolution. The output of process flow diagram must then be synchronised with the input to the PFMEA so that you critique the correct aspects of the process for risk.

PFMEA

You now compile your PFMEA in terms of failure modes, effects, severity of effects, causes of failure, prevention controls, occurrence, detection controls and their ranking followed by priority. At this stage it is still important to have recommended actions to reduce risk. However you now need to bring the PFMEA to life through the practical deployment of the content of the PFMEA to production. Primary data being the prevention controls to avoid failure and the detection controls to detect failure at the various stages of the process as defined in the process flow.

Production documents

It is essential that the primary data contained within the PFMEA is displayed at the point of use in plain view to the person who needs to know and act on the data. Failure to do this simple but necessary task will result in a company being exposed to the latent risk of a loss of process control, often resulting in customer complaints. Deployment typically is through the use of visual instructions located where the task takes place, sometimes the data flow is via the control plan (automotive sector), although this does depend of sector specific requirements.

Key points for consideration are:

Sufficient resolution of the process steps in the process flow diagram. The data contained in the process flow diagram is synchronised to the functional requirements column on the PFMEA. PFMEA is a true reflection of the current situation, as a living document. The prevention and detection controls defined in the PFMEA are communicated to the person carrying out that particular step of the process at the location where the task is undertaken. Appropriate reaction planning is identified at the process step location to clearly identify what to do if a failure is identified.
Summary

This article is intended to provide an overview of the necessary linkage of the PFMEA to achieve maximum benefit to a business who are considering the utilisation of PFMEA for the first time or are existing practitioners but don't believe they are reaping the true benefits that PFMEA can deliver.

Roger Thorpe has been an FMEA facilitator and consultant for 13 years. Many of his customers being tier 1 automotive manufacturers. For more information on PFMEA construction from an expert visit his website: http://www.fmea.org.uk

Manufacturing Insights: Failure Mode Effects Analysis (FMEA) [VHS]

This video was produced in cooperation with Robert Bosch Corporation in Farmington Hills, Michigan. The program is an introduction to the quality methodology Failure Mode Effects Analysis (FMEA). As every new product is being designed, most manufacturing companies are developing FMEA documents to reduce the risk of product failures. In addition, quality standards like ISO9000 and QS9000 require an FMEA on all new products. To shorten development cycles, many different experts are involved in the design and testing phases of new products. After viewing this tape, every person on your design team will have a good understanding of the importance of risk reduction and how the FMEA will keep track of these responsibilities. This video was design to quickly bring all the team members up to speed on how the FMEA methods and procedures will impact them. Learning Objectives: A general understanding of why companies do FMEAs; What is the difference between a product and a! process risk?; What can companies do to minimize risks?; See how FMEA documents track responsibilities to reduce risks; How an FMEA is used within Robert Bosch Corporation.

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Why It Is Important to Perform Weaknesses Analysis

Every organization should perform a weaknesses analysis in order to let them keep track of their resources and weak points. By being aware of your weak points, you will have plenty of time to find solutions and resolve internal problems right away. Do you know why some companies meet their downfall in such a short span of time despite having performed every single sophisticated analysis that they could ever think of? That is because even though they conducted a weaknesses analysis, they never put enough attention to it. They only focused on the "weakness" that is relevant to their company's profitability. Still not clear?

Like man, no company is perfect. Each has its own flaws but what's important is to not only resolve those flaws, but use them as a stimulator of the organization to do better. When you conduct a weaknesses analysis, make sure that you won't be focusing on the profitability weakness alone. Even the smallest things, like department fights, a broken generator or the cries of the maintenance personnel should be heard and resolved. Remember that every tiny piece that composes an organization could spark and start a fire. That fire is failure.

Of course, not just because you conducted a weaknesses analysis necessarily mean that all your internal problems will be solved. Prioritization is the key. Rank what is the biggest weakness of the company and evaluate them one by one based on importance. Don't take me wrong, everything is important, but let us deny the fact that there are some things that cannot be resolved in one day. The point of a weaknesses analysis is to keep you aware of these flaws and weak points so that if ever in time you will get enough resources to resolve each, you will know which one should be given attention to first.

Now, I mentioned that you must try to turn these weaknesses as a drive to make you push through further which is the exact concept of weaknesses analysis. That is absolutely true. Imagine in real life where there was a wimpy kid that used to be teased so much when he was younger. Instead of dwelling into his weakness, he decided to hit the gym, participate in sports and eventually got himself healthy. Now, he is prepared to face the world as it is because he performed his own weaknesses analysis subconsciously. That is exactly what you need to do with your company. You think you lack some technological resources? Improve your service through manpower in order for you to attract more customers and clients. When you have enough budgets, invest into technological advancement. Weaknesses analysis is not developed to bring a company down, but to bring it up and give it the determination to strive better in order to fill its gaps.

Despite many ways to conduct weaknesses analysis, the most recommended one is through the use of the SWOT strategic planning tool. In SWOT, not only will you be able to evaluate your company's strengths, threats and opportunities, but it will also help you reflect on to your own weaknesses as a leader, as personnel or as a company in whole.

If you are interested in weaknesses analysis, check this web-site to learn more about swots analysis weaknesses.

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Fantastic Failure

Oh no! It's another one of those "F" words and there is definitely a negative connotation here. What does it mean to fail? Just what is failure?

The dictionary says that failure is an instance, person or thing that proves unsuccessful; a nonperformance of something due, required or expected.

We've set the mark, written the outline, followed a plan for achievement and it never happens. We call this failure.

Did you know that our brain doesn't recognize failure or success? It's true. Man has programmed and attached the ideas of good and bad to these concepts so we've learned how to think in regard to these terms.

The word failure is associated with and can call forth feelings such as disappointment, regret, shame, doom, loss, guilt, blame, anger, sadness, despair, etc. Are these feelings helpful? If they can motivate us to try again, the answer is yes.

However, some people will go to great strides to avoid and protect themselves from failure by taking the path of life with the fewest challenges. For them, the thought of experiencing failure and all its feelings is just too much. It's the old saying "nothing ventured, nothing gained" or lost.

Some people will dive in headfirst and be fearless, their determination outweighing all else. Should they fail to arrive at the expected result, they give up and seek to try something else. They try many things once, but fail each time. They never stop to learn why each project failed. They play that superficial blame game. The problem is if the expected result is never achieved, over time, a sense of hopelessness can become their housemate.

However, some people will look back at the completed process and offer analysis in the form of questions. They will seek to learn from the experience and apply that information to future attempts. They even offer this same analysis when they succeed in order to unlock and record the systems that proved successful.

These are the people that reach the plateau of success and achievement. They know hitting the mark on the first try may not be possible, but with as much preparation as possible, they go for it anyway. The hills and valleys of their path show many pieces of value and once the journey ends without the expected result, they decided to ask tough questions and shine light on the process.

Perhaps reeducation is needed on this word failure. Set backs and challenges are not necessarily failures. Remember this phrase: "Failure becomes knowledge when asked the right questions."

What are some of the questions we can ask that will change the meaning of failure in our endeavors?

1. What did we learn about this plan or process?

2. What lesson(s) can be seen?

3. How will we use this information in the future?

Turning failure into a learning experience or teaching moment is the surest way to stomp out the negative associations we have attached to the word.

Who starts out and wins the first time? Not everyone. Of those that do, who wins every time? Not many.

Each project has its own particular rules and regulations, its own distinct effect and will undoubtedly touch many aspects of the whole design we've set for our life. Missing the mark is merely a time to learn and prepare for the next deep end in which we decide to dive.

Let's throw out the aspects of disappointment and regret in relation to failure. Regardless of what we assign as a loss to the project, the information we need to succeed is tucked inside the completed process. We have merely to seek it out, unravel its mystery and make adjustments.

Let's release the stigma of fear or dread attached to failure. Let's embrace its arrival when it knocks on our door. Let's ask it to come in, enjoy dinner together and talk about the process over coffee. We'll find that failure's wisdom is revealing under the right atmosphere and mindset.

We all know, or know of someone who has tried once and failed. As a result, they have given up and voluntarily walked into the cage of existence they call their life until the end arrives. Their once bright twinkle has dulled and all but vanished simply because they could not get past the stigma they associated with the word failure.

Is this you? If so, change your mind and you'll change your life. Replace the meaning of the word failure today.

Failure will now mean a learning experience, a teaching moment that leads to success, a map of the short cut to where you want to be. It's another beneficial stage in the evolution of our journey here on earth.

Failure is now a worthwhile treasure of information that is helpful to our success. It's pertinent, relevant and sits waiting to be of service.

It's a choice to make this inquiry, but it's extremely important that we make it because herein lies the answer, the fix, the conclusion, the value or the idea. Herein lies the next piece of our journey. Which way will we take? Will it be stepping into the cage of existence or the road to success?

Failure is fantastic and will be one of our great teachers throughout life. Though our meeting may minimize through time based on our application of the wisdom imparted, failure will never cease to whisper its secrets when asked.

Debi A. Davis, co-author of Train The Transcriber, a General Business Transcriber Training Course written by transcribers, for future transcribers. Learn how to be on top of your game by downloading her popular, free E-series, '21 Transcriber Tips in 21 Days' available at http://www.TrainTheTranscriber.com