Daily Management and Experimentation in a Crisis

In these times of crisis, everything seems to be in a constant state of change. In small businesses and huge corporations, in individual processes, at workstations and across operations, all our assumptions and habits are being challenged. The only thing we know for sure is that nothing is certain. 

In this context, it is natural to initially focus our resources and efforts on surviving — the most human reaction. For many, this means stopping our planning activities, postponing decisions, halting operations, canceling purchase orders, laying people off en masse and so on. For some (probably few) of you, the “new normal” is bringing the opportunity to accelerate growth, hire people, and buy more or new materials or services. 

Regardless of which group you belong to, it is obvious that adjusting to this completely new situation is something everyone needs to do and is doing right now. With this in mind, I believe we should all ask ourselves a few questions: 

• What are the most important tools and techniques we need right now? 
• What is the right mindset to face this crisis? 

In my opinion, Daily Management is by far the most important process you need to focus on, because it provides the clarity you need to make the most important business decisions based on facts and data — rather than assumptions and emotions. Depending on where you are in your lean journey, your Daily Management system may need to be adjusted and strengthened, or rethought if what you have is not robust enough, or even introduced from scratch.

As for mindset, I suggest putting experimentation at the heart of your work — as a way of turning each day into a new experiment. 

But what does this mean in practical terms? What do we need to do now? 

Most organizations have probably already created a crisis management process at different levels of the organization (some may even be using a “war room” — or obeya, a term that seems more appropriate than ever right now). This process probably runs daily and has proved, not surprisingly, to be very chaotic at times. This is completely normal, especially given the exceptional circumstances. 

If your company already has a structured Daily Management system, it is very likely that the strategy connected to it will have to be substantially revised, since the current month (and probably the next ones) will be very different from what we imagined some time ago, when the plans were made. In light of these new developments, it may be necessary to revisit your Daily Management routines. 

In a typical Daily Management process, when we look at the PDCA learning cycle, the plan and do phases are defined mainly by the strategy and the strategic objectives. And what is done every day to get there is represented by the C (check) and the A (act). Right now, because of the current uncertainty and instability, it may be necessary to review our strategic objectives on a daily basis (that is, a new P-D every day), which, of course, would call for a different response (a new C-A every day). You may have to do a full PDCA cycle every day — sometimes more than one a day, even on an hourly basis. 

As you work on your planning phase, you should know that you will have to make decisions with limited available information, under circumstances that are continually changing and often in a very stressful context. You will need to answer the question “what problem are we trying to solve?” more quickly than ever, because tomorrow a completely new problem may arise. 

Another precondition for being able to effectively meet the needs of the business at this critical time is to align as much as possible the three main levels of Daily Management — strategic, managerial and operational — by implementing a solid complementary strategy. 

Another challenge — especially for organizations that have not yet mastered the use of Daily Management — is doing all this remotely, since lockdowns around the world are forcing most of us to stay home and work from there. These companies will have to learn quickly, perhaps relying on user-friendly software that simulates the same dynamics as a face-to-face Daily Management meeting using simple visual management tools. You will need to adapt the digital solution to your needs in order to enable the flow of critical information throughout the company and effectively track actions and expected results (actual vs. expected). 

Organizations — especially those that have not yet embraced lean thinking — will necessarily have to change their mindset, regardless of whether or not their people accept the change and whether or not they have the ability to make quick adjustments. We need to understand that, in the face of an emergency like the Covid-19 pandemic, we need much shorter learning cycles, at least daily. Until recently, this could give a company a competitive advantage; now, it is a matter of survival. Of course, there is a good chance that you will make mistakes every day too; however, the very fact that the next day you will be back will allow you to adjust, learn and move on to the next experiment. After all, this is the kind of learning speed every organization should strive for. 

Of course, when the dust finally settles and the new normal emerges, a major reassessment of your overall strategy will also be necessary. It may be very different from what it has been until now, to reflect the changes in market conditions. Demand will probably fluctuate for some time, which will force you to set a new takt time and possibly revise your budget as well. Until that moment comes, take care of your people — they are essential to your future — and support their physical and mental health — by, respectively, providing a safe work environment and protecting their jobs. 

Remember: what we do today will make your company better tomorrow, whatever situation we find ourselves in. It is our obligation to do everything we can to make it better than ever.