When studying organizations and their control systems, it may be easy to load the structure into a PDCA-queue. PDCA equals Plan – Do – Check – Act. The company motto, vision statement, mission statement, handbook and annual profit plan, (budget) are all part of the Plan. The controlling areas are focused in both functional and the key areas; Profit, Personnel. Production, Sales and Quality are DO on the PDCA. The monthly reports, sales, quality, P&L and quality are the checksThe PDCA is known as the Deming Cycle. The steps in each successive PDCA cycle are:
Establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals). By establishing output expectations, the completeness and accuracy of the spec is also a part of the targeted improvement. When possible start on a small scale to test possible effects.
Implement the plan, execute the process, make the product. Collect data for charting and analysis in the following “CHECK” and “ACT” steps.
Study the actual results (measured and collected in “DO” above) and compare against the expected results (targets or goals from the “PLAN”) to ascertain any differences. Look for deviation in implementation from the plan and also look for the appropriateness and completeness of the plan to enable the execution, i.e., “Do”. Charting data can make this much easier to see trends over several PDCA cycles and in order to convert the collected data into information. Information is what you need for the next step “ACT”.
Request corrective actions on significant differences between actual and planned results. Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. When a pass through these four steps does not result in the need to improve, the scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of the cycle, or attention needs to be placed in a different stage of the process. (Wikipedia)
A recent piece on Customer Service suggested Obsess over the beginning and ending of the customer interaction. In talent management on boarding and exit planning are equally important. Family Businesses need to focus on boarding and separation plans. Some experts discuss Exit planning as the preparation for the exit of an entrepreneur from his company. Sometimes this occurs during a sale, to increase shareholder value.
Family Businesses need to focus on a process. They need metrics and commit to metrics and working the issues. PDCA is a tool for Family Businesses. Talent Management is an important piece of organizational development. OD is a deliberately planned, organization-wide effort to increase effectiveness and/or efficiency and/or to enable the team to achieve its strategic goals.