Reference no: EM132853676

Unleashing the Constraints of Structure

Lean Six Sigma is a methodology that relies on a collaborative team effort to improve an organisation's performance by systematically removing wasteful activities and inefficient work behaviour, as outlined in a book by Michael George titled Lean Six Sigma: Combining Six Sigma Quality with Lean Speed. According to a number of studies around this methodology, only a small percentage of workplace activity yields any significant value for an employer. One of the reasons for this can be a fragmented corporate structure comprised of 'busy fools' who appear industrious but in reality accomplish very little. So, it is refreshing to find a manager who understands the importance of structure when it comes to getting results.

David Cooke heads up the Australian operations of the Tokyo-based technology company Konica Minolta. As the company's first locally born executive in Australia, he was given freedom to make some changes. His first move when he took over was to convert the previous managing director's expansive office overlooking the Sydney CBD into a communal staff lounge. He then relocated his office alongside the lunchroom so he could engage with staff more easily. This move was more than a superficial change: it signalled that a less hierarchical culture was now the modus operandi.

Next, Cooke tore down walls to make the entire office open-plan, and relocated the human resources department to a more accessible location to give a sense of transparency. The general managers of human resources, finance and information technology left the company as Cooke rationalised the number of departments reporting to him in order to gain greater integration.

As part of the move towards more open communications between management and staff, Cooke began providing staff with a detailed monthly financial report. Another change in the workplace arrangements signifying greater flexibility was the introduction of days off for staff to enable them to support nominated non-profit organisations.

While Cooke recognises there are many good aspects about the Japanese corporate culture, it is very taskoriented. His view is that less hierarchical organisational structures increase employee engagement, leading to improvements in customer service and financial results. In his first 12 months in the job, the financial indicators were already improving. Says Cooke, 'If you get treated like a number by your employer, why are you going to go the extra mile for its customers?'

Class Discussion:

1. Discuss the reasons why Cooke tore down walls to make the entire office open-plan.

2. What are the benefits of an open-plan?

3. What are the benefits of a constrained structure?

4. What type of workspace would you prefer and how does that link back to your personality type?

References: 'Do you have "busy fools" dominating your workplace?', HC Online, 14 June 2014, www.hcamag.com. Bailey, M 2014, 'Why Konica Minolta's boss tore down his HR department's wall', BRW, 1 October. George, ML 2002, Lean Six Sigma: Combining Six Sigma Quality with Lean Speed, McGraw-Hill, New York.