Technology, Change And Process Capabilities

Vince Poscente in his book, The Age of Speed (2008), pointed out that "we actually can do more in a given time than we could even five years ago. Therefore, the expectations we face to produce faster are often valid." The idea presented here is revealing, yet at the same time so well understood by everyone. No one can argue the fact that we can do more, faster, because of technology. In many cases we buy the latest technological tools to increase productivity and increase profits. We buy the technology and then proudly sit back and wait for the benefits to materialize. Unfortunately, more often than not, production value remains stagnate or increases only marginally. This causes leadership severe disappointment and fosters a mistrust of technology, or at least the salesman!

Is the technology not working? No, more than likely the technology is capable of increasing productivity, while reducing cost, just as the salesman pitched. The salesman is not selling bogus solutions. It is likely to be your internal processes. You buy new technology to produce faster, but you deploy it in the confines of old processes. Any new technology requires a review of existing processes. If you do not harness the capabilities of the technology and transform the process to utilize them, you will essentially negate any efficiency.

Processes should be viewed as dynamic and able to be modified to meet new circumstances. Let's say the current process is only capable of producing 10 completed units in a day (purchase orders, widgets or whatever). You buy technology that allows a portion of that process to double its productivity to 20 units a day. Outside of that portion you have problems. Doubling the workload of the other portions of the process may not be possible; it may only create a huge bottleneck because the rest of the process is only geared for 10 products a day. Sure you improved a portion of the process, doubled it in fact. What good does that do if it only creates a bottle neck in portions of the process still geared towards 10 units a day? None; it only adds cost and frustration.

Knowing that the new technologies can double production means the rest of the process has to be studied. You have to determine the production capability of the entire process to know the true benefit and cost of the new technologies. Maybe you find that the rest of the process, with minor tweaks, can sustain a production capability of 15 units a day. While you will have to curtail the technology and produce only 15 units a day, versus 20 units a day, there will be no bottlenecks. You will increase production by 50%. Not bad for a starter. You had to invest a little more time, but it surely saved you money and produced less stress for everyone involved. The bottom line is technology can bring improvements, but without processes capable of utilizing the gained efficiencies it matters little.