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Development of people is the basis of the company's efficiency

The production system is one of the main elements of the activity of any company. The rationally developed system allows the company to achieve significant success in the field of efficiency improvement: to improve product quality, to reduce costs, to respond in a timely manner to market changes, and to increase the competitiveness of products and the enterprise.

The idea of production system development at Russian enterprises is spreading rapidly. Many enterprises have already achieved success in this area. However, there are several problems and constraints that companies face with this development.

As a rule, at the first stage of the process, the enterprise gets a positive economic effect. For the first year, this effect can reach up to 2% of the company's operating costs. However, a year after the transformation kick-off, many companies note a decline in positive dynamics, the development of the production system continues, but the effect is not so obvious. Over time, the rate of these changes will shift, but the direction (growth or fall) in almost 100% of cases will remain constant.

What determines this direction? For this, the term "survival rate" is often used. The survival criterion is applied to the tools and techniques of the production system to determine their effectiveness and applicability in the conditions of an enterprise. One of the main factors of survival is the work of line managers and the infrastructure. Let's take a closer look at the issue of interaction between managers and subordinates in the aspect of the development of the production system.

The experience of many managers proves that effective management of an organization is possible only if the loyalties of employees, their positive attitude to the changes occurring in the company, and the team’s focus on continuous improvement are ensured. Managers also realize that to achieve positive results, it is necessary to change not only the management system, but also its own behavioral model to personnel. But the pattern of interaction between management and subordinates, developed in the enterprise, is often a serious obstacle to change.

For example, it is extremely common for managers to spend more than 70% of their time working with documents, creating reports, filling out applications and official notes, and going through many other formal procedures. As a result, only a small part of the leader's time remains for real work with people and ensuring the activity of the site. The rest is spent on daily struggles against the bureaucratic dragon.

If you apply an external supplier-client scheme to the enterprise's internal processes, you can see that the time resource is spent on executing the client's requests to the top-level management. This ignores the request from the direct subordinates - the clients from the bottom. This situation contributes to the formation of a stable opinion among the employees that they do not participate fully in the production process, their ideas are not considered, and the manager should not be distracted by minor problems. Simultaneously, there is a separation from reality and from the leader, when solutions and tasks do not adapt to the level of employees, but are simply broadcast "from the top". This inevitably leads to the "snowball effect" - an increase in the scale and number of unresolved problems that require much more resources to eliminate them.

Such a behavioral pattern of the manager is found at almost every enterprise. For changes to be successfully implemented, it is necessary to prepare a team, involving the line organization as much as possible and instilling a new management model. One of the effective tools for this is the behavioral model of the leader, which helps to develop leadership abilities, and structures and formalizes the basic principles of interaction with personnel such as:

  • Personal responsibility for their actions and decisions
  • Involvement in the process, constant participation in work activities, communication with subordinates (~ 50% of the time)
  • Allocation of time and resources for professional and personal development of people
  • Proactive position to changes

No less important is the professional development and motivation of employees. The constant process of people's development is an integral part of the production system. The largest Russian enterprises proved in practice that investing resources in the development of the team and involving employees in systematic problem solving create tangible results, such as reduction of operating costs, longer equipment life, improved product quality, and others.

A tool that allows you to develop and motivate employees is "coaching".

Coaching has several objectives:

The first and basic one is building an open relationship between the leader and the subordinate, increasing confidence. With two-way communication, the manager is fully aware of operational issues and problems, and knows the strong and weak points of employees. This allows him to evaluate objectively and use the talents of people rationally. A constant dialogue between the manager and the staff is necessary to create a reliable team that can solve production problems effectively and support the company's initiatives.

The second task is the development of professional skills. Traditional or technical mentoring can develop technical skills. Example: Training on bearing pressing. The mentor shows how to do it, and then controls the operation step by step, and answers questions.

However, the development of technical skills is not enough. For this purpose, coaching is used, which helps to reveal one's own potential and to instill self-development skills. In this case, the coach asks questions that allows the person to get to the method of problem solving. As a result, the employee acquires the habit of using the available knowledge and skills independently.

During a coaching session at the PS implementation at one of the Russian enterprises, one of the leaders was told that not all the tasks were performed by his employees, even when it seemed that the task was understandable. After going through a series of questions with the coach, they could distribute his personnel to understand who could easily perform tasks and identify development areas for each of the employees. This allowed further distribution of tasks more correctly, considering the level and qualifications of employees, which, in turn, significantly increased the effectiveness of their actions.

It is important that the analysis of the situation and the subsequent work was conducted independently by the manager, and that he assumed full responsibility for the decisions. Further, the adopted decisions were implemented quickly and without external assistance. This is the third objective of coaching - development of process involvement and the adoption of personal responsibility for the decisions and results.

Using the coaching methodology, specialists develop the habit of the organization's employees to develop and to find the resources and information necessary for production problem solving and to achieve results in situations that seemed hopeless previously.

Development of independence, competence, and acceptance of personal responsibility by employees encourages managers to improve the quality of their own work and to serve as a behavioral model for subordinates.

Measures aimed at increasing the level of changes require the manager to invest considerable efforts and time. Development of the right habits of management and subordinates is a complex but necessary process. Creation of a favorable situation in the team, establishment of a dialogue with employees, and active participation of managers in the implementation process is the basis for the successful development of the production system in the enterprise, and, therefore, the steady growth of efficiency and profitability of the company.