Total quality management (TQM) is a strategy that perfectly fits into the culture and lifestyle of the Japanese who are known for their meticulousness, diligence, and customer-centric approach. The concept aims to achieve excellence in all areas of an organization’s operations. TQM is a holistic approach that focuses on satisfying customer needs through continuous improvement of processes and products, involving all employees of the company. Such an approach has the potential to ensure the long-term success of the company.

Key principles of total quality management (TQM)

Japanese companies such as Toyota, Sony, and Honda have achieved significant success in global markets by focusing on improving their products and processes. They have implemented key principles of total quality management in their day-to-day operations, which are outlined below.

1. Customer focus

TQM puts the customer first – it focuses on understanding and, above all, satisfying the customer’s needs and expectations. It means that an organization focuses on studying what is important to its customers and then adapting the products or services it creates to those findings.

2. Continual efforts

TQM promotes the concept of continuous improvement, which means that an organization strives to continually improve its processes, products, and services by analyzing, identifying areas for improvement, and making appropriate changes. It uses a variety of tools and techniques, such as Kaizen, Six Sigma, and Lean Management, to identify and eliminate errors, waste, or emerging problems.

3. Employee involvement

In TQM, all employees of an organization are involved in the process of improving products and services. However, companies not only encourage active participation but also listen to employees’ ideas and promote their initiative.

4. Data analysis

In TQM, organizations focus on collecting and analyzing data to make decisions based on evidence rather than intuition.

5. Partnering with suppliers

TQM promotes building lasting relationships with suppliers and striving for excellence throughout the entire supply chain.

6. Error prevention

TQM emphasizes the prevention of errors and problems, which is more effective and less costly than repairing the consequences.

7. Quality standards and certification

As part of TQM, organizations often strive to meet certain standards and apply for various certifications ( e.g. ISO).

Why to implement total quality management (TQM)?

Above all, total quality management leads to greater customer satisfaction because it focuses on delivering products and services that meet or exceed their expectations, and this is the main reason why organizations implement it. But this is not the only benefit that comes with such a decision. Other positive effects include:

• Enhanced competitiveness – through improvement, an organization becomes more competitive in the marketplace. This is because customers are more likely to choose companies that offer quality products or services, which can lead to an increase in market share,
• Cost reduction – TQM can help reduce errors, eliminate waste, and optimize efficiency, resulting in lower production and customer service costs in the long run,
• Greater employee motivation – TQM involves all employees in the improvement process. Employees who see that their opinions count are more motivated to work for the organization,
• Certifications – Implementing TQM often leads to meeting certain standards and obtaining certifications, which can facilitate access to new markets or secure further business partnerships.

Summary

Total quality management can be implemented in two different ways – some organizations create dedicated teams to introduce such a strategy, while others integrate it into their existing systems. Regardless of the implementation method, TQM requires the involvement of all employees, which can still be a challenge in some countries, especially due to resistance to change. However, the benefits like increased customer satisfaction, improved competitiveness, or cost reductions, have the potential to outweigh the significant implementation costs. For this reason, it’s worth taking a look at this Japanese approach and trying to incorporate it into your daily operations.

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Fast-tracking is a project management technique that involves reducing the duration of a project by working on particular tasks in parallel. In practice, this means that tasks that are not logically related are performed simultaneously. This is the opposite of the traditional approach where they are done sequentially – one task begins after the previous one has been completed. The goal of this method is to accelerate the achievement of project goals by eliminating or reducing delays caused by sequential execution of tasks. You can fast-track a project in two ways:

• by starting a task just before the completion of a previous task that is related to it,
• by increasing the resources or the number of people who are working on a task to speed up the implementation.

The benefits of fast-tracking

One of the main advantages of using this technique is undoubtedly the reduction of project duration, which is especially useful when a project has a tight deadline. This method also ensures better use of resources – performing some tasks simultaneously reduces the need to wait for others to be completed. What’s more, fast-tracking allows for faster achievement of key project deliverables, which can be important when those deliverables are needed to meet other business objectives. This method can be applied to projects in different industries or fields (including construction, marketing, IT, etc.).

Does fast-tracking have any drawbacks?

Although fast-tracking has many advantages, it can carry some risks, such as conflicts between team members or management difficulties that can arise when tasks are performed simultaneously. As a result, the cost of a project may grow, for example, due to the need to hire new people or enhance the resources. Also, the number of errors may increase, affecting the quality of the developed product or service. At the same time, this method reduces flexibility in planning and carrying out the project – simultaneous execution of tasks may leave little margin for adjusting to changes during the project.

How to use fast-tracking?

Fast-tracking can be an effective strategy when you are pressed for time or when you need to shorten the project schedule (for example, in construction projects where any delays generate high costs). However, a few key principles should be followed to ensure that this project management technique produces the desired results. The most important of them we outline below.

• Selection of tasks – not all tasks can be completed using this technique. For this reason, it is necessary to thoroughly understand the dependencies between various tasks and stages of the project and to eliminate those that need to wait for the completion of others.
• Risk assessment – for the reasons outlined above, it is necessary to perform a careful risk analysis and to determine whether using this technique is fully justified.
• Monitoring and controlling – it is necessary to monitor the project’s progress and communicate with the project team to ensure that activities performed simultaneously don’t cause unwanted conflicts or delays.

Summary

In projects where time is a key factor, fast-tracking can prove to be an invaluable strategy, speeding up the delivery date of the intended result, which will undoubtedly satisfy the target audience. However, it should be used with caution to avoid, firstly, increasing costs and, secondly, compromising the quality of the project. For this reason, before you apply this technique, decide which tasks can be performed simultaneously. Then plan them accordingly and continuously monitor their progress to minimize potential negative consequences.

Whether you decide to use the fast-tracking method or the sequential approach, ż­ˇ˘k8Ć콢Ěü will support you all the way through. The system offers numerous features such as Kanban boards, to-do lists, contact databases, calendars, and more. Try ż­ˇ˘k8Ć콢Ěü for free!

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The eat the frog technique is a time management method that involves doing the most difficult and unpleasant task first in the day. This concept is based on the idea that putting off difficult tasks only makes things worse – because the longer we postpone a task, the more it scares us and the harder it is to get on with it, especially when there is less and less time left. In contrast, completing a difficult task at the very beginning of the day gives us a sense of satisfaction and motivation to continue working because “the worst is over”. It is believed that this technique is an effective way to increase productivity and improve the efficiency of our work.

When to use the eat the frog method?

As this technique is highly versatile, it can be applied in various areas of life. When it comes to private life, it may refer to chores like ironing, cleaning the bathroom, or washing the fridge – according to the concept in question, we should start with the least liked or most time-consuming activity. Things are no different in professional life when, for example, a project we have to put a lot of time and effort into is on our to-do list. What tasks will be your “frog to eat” will depend on your position and personality.

Key principles of the eat the frog technique

In his book, Brian Tracy points out that putting off difficult tasks can lead to stress, inefficiency, and a lack of job satisfaction. Starting the day by completing the most difficult task, on the other hand, can give us a sense of accomplishment and motivation to continue working, and even self-satisfaction since we “ate that frog.” To successfully implement the technique he describes, follow the steps outlined below.

Create a to-do list

At the very beginning of the day, write down all your responsibilities and mark each one as “easy,” “moderate,” or “difficult. Difficult tasks can include those that are the most important as well as those that are simply time-consuming. They can also include boring tasks that you don’t want to do because you don’t enjoy doing them and those that require deep focus and concentration.

You can prepare such a to-do list in ż­ˇ˘k8Ć콢Ěü – a project and team management tool. You can give tasks statuses (available in the system or modified according to your needs) and priorities, as well as set deadlines for their completion.

Start your day by completing the hardest task

Choose the task that has the greatest impact on your goals and is the most difficult, and then start doing it first thing in the morning when you are the most productive. Don’t try to do other tasks at the same time – focus on this task until you finish it. It may take longer than you expected to complete this task – but don’t give up and keep working on it until it’s done. Also, remember to avoid distractions. Turn off notifications, minimize browser tabs, and mute your phone so you can focus on it fully. Also, if you have the opportunity, say no to requests for help, and don’t talk to anyone until you’ve completed the task.

Reward yourself

When you have completed the most difficult task on your list, take a break to feel fully satisfied. You can also reward yourself in other ways – both at work (coffee with a teammate) and outside of work. Rewarding yourself is important because it helps reinforce positive habits and motivates you to complete more difficult tasks. In particular, it encourages you to maintain a high level of productivity and to keep striving to achieve your goals.

Eat the frog technique – summary

The eat the frog technique is a powerful tool for managing your time and increasing your productivity. Its main idea is to prioritize the most important tasks and get them done at the very beginning of the day so that you have more control over your responsibilities and avoid the procrastination that often leads to stress and delays. It’s also important to remember that this method is just one tool among several other strategies and choosing the right techniques depends on each person’s needs and goals. Ultimately, effective task management requires experimenting with different approaches and selecting those that work best for an individual’s work style.

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They can, but they don’t have to. It all depends on your attitude. If you’re listening to podcasts when you’re not ready and open to change, and you are going to dismiss the advice you hear by saying “It’s not going to work anyway”, then listening to a podcast won’t add anything to your life. It will be just a bunch of words that will frustrate you rather than motivate you.

The podcast itself is not a magic disk that, when played, makes miracles happen and everything takes care of itself. It is merely a trigger to motivate you to work on yourself and to give you the knowledge you may be searching for. What you do with it is up to you. Changing habits is not easy or quick. It takes time, consistency, and a lot of work. So if you’re listening to yet another podcast and hoping that change will happen in your life, unfortunately, it doesn’t work that way.

However, it is also not completely meaningless. Sometimes it’s just the inspiration you need to see that you can do things differently and that it’s possible. Valuable podcasts are hosted by successful people who have gone all the way, who may be ahead of you, and who share their experiences. All the knowledge is given to you on a silver platter, and you can pick and choose what you want to take away.

Podcasts to help you become a better leader

Craig Groeschel Leadership Podcast

Each episode explores a different aspect of leadership. You’ll find interesting and inspiring insights here, and you’ll learn lessons you can use to transform yourself. This podcast is not just about theory, but also about practical ways to deal with the day-to-day life of a leader. In this series, you will also meet experienced leaders who have achieved success and will share their experiences with you.

Inspiring Leadership with Jonathan Bowman-Perks MBE

The host of this podcast is Jonathan Bowman-Perks, a former British Army officer, CEO trainer, and motivational speaker. The latter is strongly reflected in the mission of the podcast. The following episodes are stories of people sharing their experiences and failures. These stories are full of inspiration and show that no matter where you start, you have a chance to get where you want to be. Of course, there are also a lot of practical tips and advice on how to get there.

The Frame of Mind Coaching Podcast

This is a podcast where we can see how a change in perspective and thinking affects the achievement of planned goals. The hosts of this podcast are a mother and daughter, which is an interesting combination and allows us to see different ways of perceiving the same issue. The episodes are not just theoretical reflections but also interviews with interesting people who have achieved their success. During the conversation with them, not only their behavior but also their attitude, which according to the authors, is of great importance when it comes to achieving success, is explored.

Coaching for Leaders

The tagline of this series is: Leaders aren’t born, they’re made. In the episodes, you will find many inspiring stories that show that being a leader is not an innate talent, but hard work that can take you to the top. All through casual, but interesting and inspiring conversations with successful people. You’ll find top-level tips on the subject of leadership, as well as details that will help you in everyday work-related activities, such as public speaking or talking to employees.

The EntreLeadership Podcast

Whatever you lead can only grow when you do. It’s a truth that Ramsey Network professes and one that seems to make sense. It’s what he tries to prove in each episode of the podcast, where he shares his 30 years of experience as a CEO. The formula of the podcast is quite interesting as the host talks to people who call with their issues. This shows us that there is a way out of every situation and allows us to see how others perceive problems and find solutions. The most interesting thing is that the presenter is not afraid to call a spade a spade and gives strong but necessary answers.

Leadership podcasts – summary

The role of a leader is not an easy one, as when you choose to be a leader, you take responsibility for others. However, if you want to make a difference, the only person you can really influence is you. No change will happen unless you start working on yourself. Podcasts are a powerful source of knowledge and inspiration, but it’s up to you to use them to grow and work on yourself.

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What is an operations strategy?

An operations strategy is a document that defines how a company is going to achieve its short-term goals and how it will allocate its resources. For example, suppose an organization wants to increase sales by 10% over the next two years. In that case, it may decide to implement a project to launch a new product – which is specified in the operations strategy. It may also indicate that this project must be completed within one year so that a company can achieve its revenue growth. A well-developed strategy should include the following elements:

• Goal – set according to the SMART methodology, i.e. it should be measurable, achievable, realistic, and time-bound,
• Action plan – tasks that must be carried out to achieve the set goal,
• Resources – they may include people, equipment, financial resources, or necessary technology,
• Procedures – the way an organization will manage its resources,
• Assessment and control – how an organization will monitor progress and make necessary adjustments.

What are the benefits of implementing an operations strategy?

An operations strategy is an integral part of a company’s business plan, which means it should be consistent with it. Only in this way can it bring the expected results, such as streamlining and optimizing a company’s day-to-day operations. It ensures more efficient use of resources and reduction of waste. What is more, it can help an organization gain a competitive edge in the market. Improving the quality of products or services, reducing delivery times, and responding to market changes more flexibly all help a company compete more effectively.

The impact on projects

An operations strategy is inextricably linked to the projects that are implemented in a company since it is the projects that are tools for achieving the goals identified in it. Thus, the impact on the projects in an organization can be seen in several areas:

• Project prioritization – an operations strategy determines which projects are the most important and should be implemented first,
• Compliance with goals – it ensures that changes made to processes and other activities are consistent with both short-term and long-term goals, and modifies or eliminates those that do not contribute to their achievement,
• Resource management – an operations strategy helps allocate people, money, and other resources to projects in the most efficient way (reducing potential waste),
• Monitoring progress – it identifies the key performance indicators (KPIs) used in projects to monitor progress toward the set goal and adjust activities when necessary.

Summary

Undoubtedly, the development of an operations strategy is a company’s primary responsibility, helping to achieve its short-term goals. The actions taken will depend on an organization, its market situation, internal procedures, and development plans. Regardless of these factors, however, each company should use a comprehensive tool like ż­ˇ˘k8Ć콢Ěü to streamline its processes. Implementing ż­ˇ˘k8Ć콢Ěü will certainly make it easier to attain both short-term and long-term goals.

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Six Sigma is an effective quality management method that uses data and statistical analysis to improve processes and eliminate defects. It focuses on continuous process improvement to achieve the highest possible quality of products and services. The method is used for streamlining manufacturing processes, reducing the time of delivery, or improving the quality of customer service.

The history of 6 Sigma dates back to the 1980s’, when Bill Smith from Motorola, developed this method to improve the quality of products. Since then, it has gained more popularity and has been introduced in several organizations around the world. The methodology assumes that processes can be improved by identifying and eliminating the causes of errors and reducing the variability of processes.

How does Six Sigma differ from other methodologies?

6 Sigma differs from other quality management methods, such as Lean or Total Quality Management, primarily in its approach to data analysis and statistics. It puts a heavy emphasis on eliminating errors and reducing the variability of processes, which allows companies to provide high-quality products and services. What is more, it applies the DMAIC process, which enables a systematic approach to problem-solving and process improvement.

Stages and principles of 6 Sigma

As mentioned above, 6 Sigma is based on the so-called DMAIC cycle that consists of five stages:

• Define – defining the problem, objectives, and scope of the project,
• Measure – collecting data concerning the process and identifying key quality metrics,
• Analyze – analyzing data to identify the causes of errors and areas for improvement,
• Improve – developing and implementing solutions aiming to streamline processes and eliminate errors,
• Control – monitoring the processes and maintaining the obtained results at the right level.

Each of these stages takes a systematic approach to improving processes and eliminating errors. The framework places emphasis on continuous improvement, reducing waste, and focusing on customers’ needs. The DMAIC process enables the effective implementation of 6 Sigma and the achievement of quality goals in the organization. It’s also worthwhile to mention the six principles of 6 Sigma that constitute a philosophy of this method. These are as follows:

• Customer focus
• Data-driven approach
• Process excellence
• Ongoing improvement
• Quality management

Roles and team structure in Six Sigma

In 6 Sigma projects, team members can play various roles. The most important ones are the following:

• Green Belts – people who have basic knowledge about the Six Sigma methodology. They help implement the project and participate in the improvement process.
• Black Belts – experts on Six Sigma who lead projects and train other team members. Black Belts know the Six Sigma methodology and tools inside out.
• Master Black Belts – people responsible for Six Sigma strategy and the development of the Six Sigma program in an organization. Master Black Belts oversee the implementation of projects and support management in making decisions on quality.

The structure of the team is based on the hierarchy of roles and cooperation between them, which allows for effective quality management and project implementation.

Applications of Six Sigma

6 Sigma is a method that aims to improve the quality of processes and can be applied in various industries and sectors. Let’s take a look at its practical applications:

• Improving the quality of manufacturing processes, for example, reducing the number of defective products, shortening the production time, and increasing the repeatability of processes.
• Streamlining business processes, such as order management, customer service, or logistics,
• Implementing projects to improve processes in the services sector, for example, improving the quality of customer service, shortening delivery time, or increasing customer satisfaction.

Analyzing the impact of implementing 6 Sigma projects allows companies to evaluate the effectiveness of this methodology and identify areas for further improvement.

Tools and techniques in Six Sigma

6 Sigma uses various tools and techniques. The most important of them include:

• Statistical data analysis – to identify causes of errors and areas for improvement,
• Ishikawa diagram – to analyze the causes of errors and identify possible solutions,
• Process mapping – to understand the structure of processes and identify areas for improvement,
• Six Sigma calculator – a tool for calculating quality metrics such as a Sigma level or DPMO (defects per million opportunities),
• Lean Six Sigma tools – such as 5S, SMED, or Kanban, which support the improvement process and the elimination of waste.

Using these tools and techniques in practice allows companies to effectively implement the Six Sigma method and achieve quality goals.

Integrating Six Sigma and Lean

It’s also worthwhile to mention Lean Six Sigma which combines the assumptions of 6 Sigma with Lean philosophy, as well as focuses on eliminating waste and constant process improvement. Lean Six Sigma allows for even more effective quality management thanks to integrating the tools and techniques of these two methodologies.

Tools and principles in Lean Six Sigma

Lean Six Sigma applies principles and tools specific to the 6 Sigma methodology as well as those stemming from the Lean philosophy. Its key principles and tools include:

• DMAIC – a process improvement method based on five steps: Define, Measure, Analyze, Improve, and Control,
• 5S – a workplace management system that helps maintain order and efficiency,
• SMED – a method for reducing machine and equipment changeover time, leading to increased production efficiency,
• Kanban – a production management system based on visualizing processes and reducing work in progress,
• Statistical data analysis – to identify causes of errors and areas for improvement.

Comparing 6 Sigma, Lean, and Kanban

The 6 Sigma, Lean, and Kanban methodologies have their unique characteristics and benefits that make them applicable in different contexts. When comparing these three methods, the following differences can be spotted:

• 6 Sigma focuses on reducing defects and errors in processes using statistical methods of data analysis and the DMAIC approach.
• Lean focuses on eliminating waste and streamlining processes using tools such as 5S, SMED, and Value Added.
• Kanban is a production management system that focuses on visualizing processes and reducing work-in-process, resulting in greater efficiency and flexibility.

In practice, many organizations decide to combine these methods, creating hybrid quality management systems, such as Lean Six Sigma, which integrate the advantages of each method and achieve even better results when it comes to improving processes.

The benefits of implementing 6 Sigma

Implementing Six Sigma brings many benefits to an organization, regardless of its size or industry. The value of Six Sigma may vary depending on the specifics of your company, but some universal aspects are worth considering.

Improving the quality of processes

Six Sigma helps improve the quality of processes by using statistical methods of data analysis and the DMAIC approach. This allows organizations to identify the causes of errors and eliminate them. As a result, quality management processes become more efficient and they can achieve a higher level of improvement. Examples of process improvement using the 6 Sigma method include:

• reducing the number of defective products,
• reducing the execution time,
• increasing production efficiency,
• enhancing the quality of services.

Reducing costs and eliminating errors

By implementing Six Sigma, the costs associated with defective products or services are significantly reduced, which translates into savings for the organization. For example, 6 Sigma helps:

• reduce the number of complaints,
• lower the costs associated with production downtime,
• improve the efficiency of the production process.

Enhancing customer satisfaction

Customer satisfaction is one of the most important aspects of implementing 6 Sigma. By improving process quality, reducing costs, and eliminating defects, organizations can better meet their customers’ needs. As a result, customer satisfaction increases, which translates into greater loyalty and long-term business relationships. Examples of using 6 Sigma to improve customer satisfaction include:

• reducing lead times,
• improving product and service quality,
• matching the offer to customer needs,
• increasing flexibility in customer service.

Six Sigma certification and training

If you’re wondering how to get started with 6 Sigma, the answer is simple: with training and certification. Below, we’ll discuss the Six Sigma training and certification process, outline different levels of certification, and give you tips on how to start your adventure with Six Sigma.

Six Sigma offers various levels of certification to gain knowledge and skills related to the methodology. These include:

• White Belt – a basic level, introducing the concepts of 6 Sigma,
• Yellow Belt – an intermediate level, covering the basic tools and techniques used in Six Sigma,
• Green Belt – an advanced level, where participants learn to conduct Six Sigma projects and apply more advanced tools,
• Black Belt – the most advanced level, where participants gain skills in managing large-scale Six Sigma projects and leading teams.

The certification process starts with special training courses, which include theory, practical exercises, and a final exam. After passing the exam, participants receive the relevant Green Belt, Yellow Belt, White Belt, or Black Belt certificate. When choosing the right course, pay attention to:

• the trainers’ experience and skills,
• a training program and its thematic scope,
• the form of training (on-site, online, mixed),
• participants’ opinions and references.

It’s also worth checking whether the course includes the exam and is accredited by relevant organizations, such as the International Association for Six Sigma Certification (IASSC) or the American Society for Quality (ASQ).Remember to learn the basics of this methodology and understand how it can help improve the quality of your organization’s processes. Then, attend the course to gain the relevant knowledge and skills. Once certified, it’s also important to practice 6 Sigma at work, applying the knowledge you’ve gained to lead projects and improve processes.

Summary

In today’s article, we discussed the 6 Sigma methodology, its key elements, stages, and principles. We also presented practical applications of 6 Sigma, as well as tools and techniques used in this methodology. We compared it with other management methods, such as Lean and Kanban.

We highlighted the benefits of implementing 6 Sigma, like improving the quality of processes, reducing costs, eliminating errors, and enhancing customer satisfaction. Finally, we have outlined the 6 Sigma training and certification process and provided some tips on how to get started with 6 Sigma. We hope that this article will help you understand the essence of this methodology and put it into practice.

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What are business overheads?

Overheads (also called indirect or operating expenses) refer to ongoing expenses that a company incurs as part of its day-to-day operations, but which are not directly related to producing a specific product or providing a specific service. Thus, these are the expenses that the company must cover regardless of the level of production or sales. They primarily include:

• rent or lease payments (rent or lease of office space, warehouses or other facilities),
• utilities (expenses for electricity, water, gas and other utilities required for business operations),
• salaries and benefits for administrative staff (paid to employees with HR or finance functions),
• Insurance (both mandatory and voluntary),
• office supplies and equipment (expenses for office equipment, computers, printers, scanners and other equipment needed for daily operations),
• taxes and licenses (e.g., property tax)
• depreciation (the gradual decrease in the value of assets over time, which is taken into account in financial statements),
• maintenance and repair (receivables related to the repair of equipment, machinery and appliances),
• legal and accounting fees.

4 ways to reduce overhead costs

Effective management of overhead costs is crucial to maintaining a company’s profitability, especially in times of less stable economic conditions. For this reason, companies are looking for ways to reduce these expenses – but without negatively impacting operations or the quality of products and services. The best of these, which may yield the expected results in 2023, are presented below.

1. Negotiate arrangements with suppliers

The first way to reduce overhead costs is to negotiate arrangements with your existing suppliers (e.g., accounting services, materials, legal services, etc.), which may take time and effort but has the potential to yield significant savings for your business. When deciding to do this, define the specific goals you would like to achieve during negotiations (e.g., lower prices, longer payment terms or discounts for bulk purchases) and what you can offer in return. Also look for cheaper suppliers by comparing offers available on the market (in terms of price, quality, payment and delivery terms, as well as the history of cooperation). The deals you find can be an argument for existing suppliers to lower their prices to keep you.

2. Outsource selected processes

Outsourcing involves outsourcing certain tasks or processes to outside companies that are specialized in those areas (such as accounting, customer service, marketing, recruiting, IT or manufacturing). It can help reduce overhead costs by eliminating the need to hire and train internal staff, as well as purchase and maintain equipment or infrastructure. If you want to use this method, you should start by identifying processes or tasks in your company that can be outsourced – that is, those involving significant expenses or requiring specialized knowledge.

3. Conduct a financial audit

Another way to cut back is to have a financial audit performed by someone who specializes in this area. While this process is usually used to express an opinion on the accuracy of the financial statements, it can also be a tool to understand the sources of income and expenses. Thus, it will also allow you to assess whether all overhead costs are necessary and reasonable. As a next step, it will, in turn, be possible to look for areas for improvement – not only in reducing them but also in increasing the company’s profitability through other means.

4. Use a single comprehensive tool

Instead of paying, usually in the form of a subscription for multiple tools, look for an alternative that offers all (or most) of the features your business needs. One such solution is ż­ˇ˘k8Ć콢Ěü, a powerful system for managing projects and teams. In addition to breaking down project tasks and assigning specific users to them, you can also carry out the recruitment process (ATS system), build your contact databases (CRM), manage your calendar and to-do list, control inventory, prepare quotes for clients, issue invoices and keep track of receipts and expenses. Discover the possibilities of ż­ˇ˘k8Ć콢Ěü with the free version!

Overhead costs – summary

Reducing overhead costs, contrary to appearances, does not necessarily mean cuts that negatively affect the operation of a company or organization – a better term in this context is undoubtedly “necessary optimization of expenses.” After all, the goal of any business is to find ways to save money while maintaining or improving the quality of products or services. The first step to do this is undoubtedly a thorough analysis of revenues and expenses, which will identify areas where savings should or can be sought. This can be followed by determining which of the ways (including those mentioned above) the company decides on – depending on its needs and capabilities.

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Regardless of the type of work and the industry, motivational quotes may play an important role in the workplace. By finding inspiration in them, your team members can improve their commitment, creativity, and focus, which will allow them to go beyond their limits and achieve better results. Remember, however, to expose them to inspiring words every day, so:

• put them on a special board in a visible place,
• use them in team meetings (e.g., in presentations and brainstorming sessions),
• send them by email to your employees,
• put them on their computer screens.

Examples of motivational quotes

You can look for inspiration in films, books, literature, and the Internet. In fact, in any industry or area of life, you will find people who have emphasized the role of teamwork in the pursuit of development and achieving common goals. Here are five examples of motivational quotes that are worth remembering:

“Talent wins games but teamwork and intelligence wins championships.”

This motivational quote says that talent alone may not be enough to overcome obstacles or outrun your competitors. It is the ability of team members to work together, communicate effectively, and understand each other’s strengths and weaknesses that makes them work as one group and win championships rather than individual games.

“It’s amazing what you can accomplish when you do not care who gets the credit,” – Harry S. Truman, American politician and 33rd President of the United States

By using these words, you can remind your teammates to focus on collaboration rather than on individual rewards. In this way, the team can exceed its expectations and achieve satisfactory results. The essence of this quote is also about enjoying joint achievements, and not competing with each other.

“The strength of the team is each individual member. The strength of each member is the team.” – Phil Jackson, American basketball player

These words, on the one hand, emphasize the importance of individual strengths – knowledge, skills, and experience – in achieving collective success. On the other hand, they suggest that it’s the team that supports each of its members in their quest to develop their talents and competencies. This motivational quote accentuates the need to recognize and capitalize on the team’s diversity and build a culture of mutual respect.

“It takes two flints to make a fire.” – Louisa May Alcott, American writer

This motivational quote reminds us that it takes combined efforts, skills, and ideas to produce meaningful results – just as it takes two flints to make a fire. Each team member brings their own unique strengths and expertise to the table, and when they come together, their collective energy and synergy create a powerful force that drives success. By using these words, you encourage your colleagues to value each other’s contributions, support each other, and work harmoniously toward common goals.

„If you want to go fast, go alone, and if you want to go far, go together.” – an African proverb

The last of the mentioned motivational quotes is an African proverb that should be every leader’s and team member’s motto. It reminds us that collaboration and mutual support allow us to overcome our limitations (weaknesses). It is the synergy achieved through the clash of individual team members that leads us to success.

Summary

On a whiteboard in the office, in a daily email, or during a presentation – motivational quotes can be like fuel to our employees giving them the energy to overcome difficulties, face challenges, and achieve common goals. Using inspirational quotes in everyday work also often helps to increase employees’ enthusiasm and commitment and positively influence their performance.

You can also use the check-in feature to send inspirational sentences to your employees. On a specific day and time, your team will receive automated messages. In addition to traditional progress checks, you can also use this feature to send motivational quotes. Try ż­ˇ˘k8Ć콢Ěü for free.

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What is McClelland’s theory of needs?

In 1960, David McClelland developed a theory by which every person has the same set of needs that motivate them. Depending on previous achievements and aspirations, the level of these needs may vary for each employee, but usually one of them predominates. These needs are as follows:

• need for achievement
• need for affiliation
• need for power

Need for achievement

Achievement-driven employees want to grow and learn. They are ready for challenges and complex tasks that require them to work harder. They are highly determined and task-oriented, and completing a task motivates them the most. They crave recognition and praise for their accomplishments. Such employees should be getting ambitious but realistic tasks. Otherwise, we can achieve the opposite effect.

The biggest problem, then, is selecting the right project so that it’s neither too easy nor too challenging for them. Managers should also monitor the development of these employees, as they are constantly growing and acquiring new skills, and tasks that were challenging for them a short time ago may become too easy after a while.

Achievement-driven employees eagerly listen to valuable feedback and are open to constructive criticism, thanks to which they can spot their weaknesses and improve their performance. However, they prefer to rely on themselves and usually want to work independently rather than in a group.

Making rational decisions and never biting more than they can chew may be both their advantage and disadvantage. The most important task of a manager, then, is recognizing their abilities and offering them the right positions. They are ambitious and achieve the set goals, but they don’t like taking risks. Therefore, they make great lower-level managers, where the most important thing is to pursue entrusted tasks professionally and work efficiently.

Need for affiliation

Affiliation-driven employees want to feel that they are part of a team. They want to be included in the community at all costs and often go with the general opinion, even if they don’t fully agree with it. Interpersonal relationships are vital to them, and they consistently seek to nurture their connections with others. They prefer cooperation to competition, and they put the good of the team over their own.

They are employees who enjoy the company’s accomplishments and care about a good atmosphere. From this perspective, they may seem like ideal managers or leaders who pay attention to the individuals within the team and excel at uniting a group of people. In this respect, they are indeed empathetic and supportive. However, people with a strong need for affiliation may struggle with conducting disciplinary conversations or addressing errors when they arise.

Need for power

These employees have a strong desire for control and like to influence their environment. They have no problem taking responsibility for tasks assigned to them or giving orders to people, even if the situation requires them to take some risks. They thrive in such an environment, as it drives them to keep going. They enjoy competition, attaining the set goals is important to them, and they are constantly climbing the career ladder.

Although this combination of traits is often seen as negative, it can actually benefit the whole organization in some situations. With this leadership style, the company grows and reaches its goals, while managers aren’t afraid to take the necessary risks.

What motivates employees in McCLelland’s theory?

McCLelland’s theory suggests that each of us, regardless of gender, upbringing, or culture, has three motivating factors, with one being dominant. Depending on which one prevails, employers adapt their motivation techniques. Such a personalized approach is crucial, as every team is different and consists of people with various personalities.

As a manager in McCLelland’s theory, you need to know what motivates a particular employee, what praise will encourage them to be more productive, and what to avoid not to get the opposite effect. How to determine, then, which of these factors prevails and choose the right motivational system? Perhaps the following overview will be helpful to you.

Achievement-driven employees:

• set out ambitious, but realistic goals,
• are not risk-takers, and they look before they leap,
• prefer working individually to working in a team,
• value feedback, even if it’s negative.

Affiliation-driven employees:

• want to belong to a group and this is what motivates them,
• prefer collaboration to competition,
• often go with the general opinion, even though they sometimes disagree with it,
• like a stable and friendly environment.

Power-driven employees:

• want to control and influence other people,
• aren’t afraid of conflict and like to win arguments,
• like to work autonomously and often aspire to leadership roles.

As you can see, this set of qualities can be both an opportunity and a threat. It all depends on how the employee is managed, and whether the manager uses the right motivational techniques and provides a suitable work environment.

What truly motivates people?

McCLelland’s theory suggests that to assign an employee to a particular group, you need to get to know them and listen to what they have to say. In this way, you will get a lot of valuable information that will help you motivate them properly. Employees aren’t always eager to talk directly about what they don’t like, but by analyzing their behavior, or reaction to change, you can get all the information you need.

Identifying the factors that motivate a particular employee will help you set the right goals for them, give you an idea of how to give them feedback, and show you what truly drives them. Ultimately, however, the greatest benefit will be increasing their productivity, which will contribute to the overall success of the company.

Deciphering what employees want and identifying their dominant needs is just the beginning. It is also important to implement a tailored communication plan and change the work environment or the way tasks are assigned. Let’s take a look at some motivational tools that work well with employees driven by different needs.

Motivating your team based on their needs

Motivational tools for achievement-driven employees

• demanding tasks and training,
• greater responsibility and autonomy,
• flexible working hours,
• rewards and recognition.

Motivational tools for affiliation-driven employees

• stable and positive work environment,
• team-building meetings,
• teamwork,
• rewards.

Motivational tools for power-driven employees

• a clear career path with well-defined goals,
• financial rewards, commissions,
• greater autonomy with each new success,
• competition in a team.

How to use McClelland’s theory?

McClelland’s theory can be applied in several ways. For example, HR professionals can use it in their recruitment processes. It can be also helpful when communicating with a given employee, setting out career paths, and mixing groups of employees to create diverse teams. McClelland’s theory shows that every employee can have various desires, and discovering them is the key to increasing their productivity and the company’s overall success.

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The sunk cost fallacy, also known as the Concorde effect, is a cognitive error that is about making decisions based on money, resources, or effort already invested in a given project, instead of rationally assessing the future benefits. In practice, this means that people are afraid of losing what they’ve already invested, and continue erroneous actions (often subconsciously) even though all the evidence suggests that further investments are simply unprofitable. In this respect, Richard Thaler, an American economist, formulated three hypotheses:

1. the more costs incurred, the more effort you make to save the project,
2. suspending the project is less painful than resigning from it whatsoever,
3. over time, the project is finally depreciated or canceled, regardless of the invested money.

Examples of the sunk cost fallacy

The sunk cost fallacy can be noticed in various aspects of everyday life – both personal and professional. Let’s take a closer look at some examples:

• Business – a company that has already invested a lot of money and time in a particular project that doesn’t bring the expected results, may continue to work on it despite a lack of real prospects of its success (not to ‘lose’ the money that has been already invested).
• Education – a person who spent many years getting an education in the chosen field may be willing to continue working in a position that doesn’t bring them any satisfaction (simply because they have already spent a lot of time and other resources on learning),
• Personal relationships – people may stay in toxic or unsupportive relationships as they fear ‘losing’ time spent with a particular person.
• Financial investments – investors may continue to invest their resources in slipping stocks or unprofitable projects as they have previously invested a lot of money in them, and they don’t want to waste it.
• Politics – policymakers may continue to implement projects that don’t deliver the expected results just because significant public funds have been already spent on them.

Why is the sunk cost fallacy harmful?

Sticking to unprofitable projects simply because we have already invested our resources in them may lead to greater time and financial losses. However, these are not the only consequences that are associated with this cognitive error.

Such decisions are based on irrational convictions rather than on actual data, facts, and analyses, and make us feel uncomfortable, frustrated, and stressed. When it comes to business, the sunk cost fallacy may block new opportunities, which can sometimes lead to decision-making mistakes.

How do we avoid the sunk cost fallacy?

Although the sunk cost fallacy is a subconscious feeling, it’s possible to combat it. However, it’s necessary to take a realistic approach to decision-making. You may, for example:

• conduct a rational analysis of the benefits and invested resources,
• define goals accurately,
• allocate resources thoughtfully,
• accept the incurred losses,
• ask your coworkers, mentors, and experts for feedback to help you remain objective,
• continuously search for alternative solutions,
• prepare a contingency plan in case of failure, which will help you make a decision to cancel a project and keep calm.

Combat the sunk cost fallacy with ż­ˇ˘k8Ć콢Ěü

Using ż­ˇ˘k8Ć콢Ěü at work, you can minimize the risk of falling into the sunk cost trap at the very planning phase. Start with setting your project’s budget, estimate the time you will need to finish it and impose its deadline.

In ż­ˇ˘k8Ć콢Ěü, you can also use the check-in feature, thanks to which you can ask repetitive questions to your team, for example, about their work progress. With check-ins, you no longer have to send updates manually – just decide when and how often they should be delivered to your teammates.

You can also avoid the sunk cost fallacy by being up-to-date with your team’s work. A transparent Kanban board, whose sections and statuses can be adapted to your working style, will make it a lot easier. What’s more, you can share the Kanban board with external individuals, which will let you get their feedback.

Summary

We strive to be cost-effective both in our personal and professional lives. That’s why we need to be aware that our decisions can sometimes be influenced by the sunk cost fallacy. We should try to mitigate this effect by taking alternative options, asking critical questions, conducting rational analyses, and getting external opinions.

We can achieve better results, in line with our expectations and goals, by making conscious decisions and walking away from unprofitable investments. However, this will undoubtedly require a great deal of courage and the ability to keep our emotions in check, which we should constantly work on.

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What is Root cause analysis?

Root cause analysis is a widely employed tool that works not only in a variety of fields (from engineering to healthcare, medicine and business to manufacturing or quality management), but sometimes can also come in handy in our daily lives. Root cause analysis is an approach that through its systematic process leads to identifying the basis of problems, incidents and failures that have both already occurred and are potential.

Making use of it comes as the consequence of thinking that actions focused on this aspect – that is, the real essence of the difficulty – is usually because it is more effective than simply reacting to symptoms that may reappear some time later.

Benefits of Root cause analysis

The main benefit associated with root cause analysis is the prevention of recurrence, which becomes possible precisely by removing the reasons why issues and failures happen. This improves the quality of the products, services or processes offered, reduces the costs incurred and ensures more optimal use of resources. However, this is not the only positive result of adopting this technique – among additional benefits we can mention:

• Better risk management – root cause analysis helps understand what factors can lead to problems, enabling more effective risk management for both one-time projects and day-to-day operations,
• Increased safety – In sectors such as industry, medicine or transportation, RCA helps to identify hazards (the substrate of accidents), which increases the level of safety,
• Improve customer satisfaction – By eliminating the reasons for complaints or grievances, the customer’s relationship with our brand improves.

Objectives of root cause analysis

It might seem that the overriding goal of root cause analysis is to understand the actual reason behind the issue or failure that occurred, which stands in opposition to focusing only on the immediate symptoms and taking corrective action. However, we should stress that such action is only a manifestation of the use of the tool described. This is because RCA aims – through specific steps – to identify areas for improvements, leading to an increase in efficiency, quality of undertaken steps as well and speed of occurring processes.

Thus, adopting Root cause analysis supports the continuous improvement of products, services or processes, which is expected to bring a positive result for all stakeholders (employees, customers, business partners, etc.).

How to carry out the RCA?

How should the RCA process be carried out to make sure it produces the expected results? The best way is to follow these steps:

1. Identify the problem – choose a specific problem, incident or failure that you want to investigate, and then describe exactly what happened and what the effects were.
2. Gather data – use reports, documentation, records, witness testimony and other available sources to get a complete picture of the situation.
3. Identify potential causes – focus on identifying all factors that may have caused the problem (e.g., with an Ishikawa diagram). Remember that some of these may be hidden or not obvious.
4. Test potential causes – Once potential causes are identified, they should get tested to confirm or rule out their involvement in the matter
5. Identify the root – find the reason behind the failure that matters most (i.e., has the worst effects).
6. Implement corrective actions – based on the identified reasons, develop specific corrective actions that will reduce or eliminate the risk of recurrence of the problem. Once you have implemented them, remember to evaluate their effectiveness, and stay flexible (as corrective actions may need to be adjusted as new information becomes available).

If you are not sure what’s truly the source of the difficulty, you can ask your employees for their opinion. A project and team management system, ż­ˇ˘k8Ć콢Ěü, will help you maintain open communication. With the check-ins feature, you can send an automatic message to all (or selected) members of your team asking them to respond to a given topic. You can also set these as regular notifications (e.g., on certain days and times). In this way, you will gain a broader perspective on a given problem and learn about the potential reasons behind it from other people’s perspectives.

Root cause analysis – summary

If you are looking for a way to improve quality, efficiency, safety or customer satisfaction within the products or services you offer, root cause analysis should suit you fine. However, you must humbly accept that RCA is not a magical medicine that makes all problems vanish. Nonetheless, applying the principles of the Root cause analysis to find out the basis of certain issue significantly increases the chances that you will succeed and achieve your business goals. What’s more, don’t forget that RCA ensures the troubling matters to occur less frequently (or be eliminated), which always comes as good news to all involved parties.

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Hawthorne effect research

Hawthorne’s original research was a series of tests that would ultimately lead to improved worker productivity and optimized production at Western Electric’s Illinois plant near Chicago. The research began around 1924 and was completed five years later.

One of the main objectives of this research was to study the changing conditions on the impact of worker productivity, mainly lighting. The company wanted to see if reducing or increasing the intensity of light at a worker’s workstation would affect improving the productivity of a given worker. While this was the core of the research, lighting was not the only variable tested. Variables such as work breaks, length of the workday and salary motivation were also tested. The research also included interviews with employees, during which they were able to speak freely about their concerns or complaints about work.

The results of this research were quite surprising. It turned out that productivity increased with any change in conditions, regardless of whether it meant an improvement or worsening of working conditions for a given worker. This may seem irrational, but productivity increased even when the workplace lighting was reduced to candles, and also when the workers had no break at all.

Specialists interpreting the results of the study noticed an interesting correlation.When interest was focused on a given employee, his or her productivity increased, while it decreased immediately after the study. According to this interpretation, productivity was independent of external factors such as a change in illumination, but of the interest and direct attention of researchers and supervisors focused on the worker in question at the time of the survey.

The tests conducted at the time were a kind of breakthrough. It was primarily about the assumptions and approach of the employees themselves. Researchers, when analyzing the obtained data, noticed that socio-psychological factors have a huge impact on employees and are often more important to them than salary incentives. This study became a breakthrough in the approach to the employee as a human being and resulted in putting this as the primary objective when setting management strategies.

What is the Hawthorne effect?

The term “Hawthorne effect” was invented by Henry A. Landsberg, who in 1958 analyzed the results of earlier tests on Hawthorne employees. His observations boiled down to the notion that temporary improvements in employee performance resulted from the fact that they knew they were observed while working.

Is the Hawthorne effect real?

The term is widely known and reproduced in many industry books. Moreover, it is taught in business schools and management or sociology courses. At first impression, the phrase seems apt and sensible, including in today’s reality. Suppose a manager announces a competition for employee of the week and also announces that during this time he or she will keep a closer eye on employees as they work. Due to the Hawthorne effect, during this time the employees’ efficiency should increase together with their interest in performing duties.

It may also turn out that more people will also perform additional duties and be willing to stay after work. Their productivity will probably drop as soon as the competition is over. Looking at the Hawthorne effect from this perspective, it seems that its assumptions are accurate and make sense.

However, recent scientific studies have begun to question the validity and authenticity of the tests conducted at the time, meaning that the basis of the Hawthorne effect assumption may have been false. The fact that the entire study focused on a single group of five women is cited as the main flaw in the assumption.

For this study, they were moved from a noisy common room to an individual room, where conditions were better and it was considerably quieter. During the study, they also had access to a supervisor who was helpful, friendly and tolerant – the complete opposite of the foreman in the common room. Working in this room was also associated with better pay, which probably also had an impact on improving productivity.

This is a subject that is still undergoing research and analysis, and researchers are getting rather divergent results that can neither fully confirm nor exclude the theory. Thus, we can assume that the Hawthorne effect does indeed occur, but not always and not in all circumstances. Still, it is possible to distinguish characteristic elements, which include:

• Awareness of being watched
• Innovative situations that deviate from the routine
• Changes carried out during the study
• Improved relationships and greater attention to employees

These circumstances certainly affect the results of the tests received and the very behavior of the employees during the tests.

Whether or not the Hawthorne effect is real is still a topic of debate. Researchers believe that such a phenomenon may indeed occur, yet its constituents have not been established. Moreover, it is not entirely clear why it occurs or what ultimate impact it has on employees.

While the topic is still unresolved, we should acknowledge the positive change it has brought like the focus on the employee as well as the underestimated role of the psychological and social aspects at work. We can learn a few things from each assumption that may help in developing better ways of handling the management of the organization.

How can a leader take advantage of the Hawthorne effect in today’s organization?

Informing employees that they are supervised or watched will not work in the long run and certainly will not increase their long-term productivity. Of course, it all depends on the individual – in some, it may cause rebellion and make them feel isolated, while in others it may create a greater sense of responsibility and motivate them to work more efficiently.

Nevertheless, there are better ways to take the basics of the Hawthorne effect assumption and translate them into today’s organizational management circumstances.

Listen to your employees

The analysis of the research indicated that employee productivity increased when employees felt they were listened to. Leading a team is not only about implementing your plan but also about listening to what team members have to say. Often, listening to them is not only a matter of raising their sense of importance but also an opportunity to get a different point of view and gain interesting ideas for development.

Nowadays, employees are driven not only by economic factors, but also by emotional ones, and friendly management that is willing to listen to and positively motivate employees is one of the key elements that influences job satisfaction and thus increased productivity.

Observe with sensitivity

Here it is necessary to find a balance between monitoring and actual observation. Employees hate when they know someone is watching and supervising them all day. On the other hand, they don’t like it when management completely disregards them and doesn’t monitor their performance. Then they feel that their work has no meaning, and their motivation decreases. It is therefore necessary to find the right balance between these two extremes.

The ż­ˇ˘k8Ć콢Ěü tool will help you observe your employees (without putting pressure on them at the same time). The system is expanded with many handy features, such as:

• Kanban boards – you can plan the execution of the project, distribute tasks to your employees and track the progress of the work in real-time,
• Time logging and timesheet – each member can log the time they spent on a given task, and then you, as the leader, can track these results in the timesheet and react if you notice sudden deviations,
• Check-ins– this feature of automatically asking repetitive questions, allows you to get ongoing feedback from your employees, learn about their insights and problems, and reassure them that their opinion is important to you.

Try ż­ˇ˘k8Ć콢Ěü in your organization for free and experience the full capabilities of this system.

Pay attention to the environment and social relations

The experiment originally conducted showed that group selection made a huge difference. Ladies who worked in a small room under better conditions established friendly relations and a common bond, which also had an impact on improving productivity. The atmosphere is something that is of great importance when working, and we often forget about it. Therefore a leader should observe employees and skillfully select teams so they can positively influence each other.

To boost productivity as a leader, make sure there is proper communication within the team. Make everyone feel that they can freely express their opinion or views, and ensure that there are no disputes between employees.

Get rid of monotony

One of the elements the researchers saw as having an impact on the results of the study at the time was the element of innovation. Performing repetitive tasks can, over time, create a feeling of boredom, which hinders the sense of purpose and productivity.

As a leader, you need to ensure that every employee feels that their work is meaningful. Even if changing the duties themselves is not possible, you can make sure that some other elements add to workplace dynamics. One interesting idea is to introduce workshops, training sessions or other creative activities, even fun ones.

Identify clear paths for development

What influences employee motivation is not always related only to improved pay or interpersonal relations. Some employees are most motivated by the opportunity to further develop and climb the career ladder. This is especially true for those who have already reached a certain level and are considered talents within the company.

Retaining such people can get difficult if they do not see the potential for further development. Therefore, a good way to do this is to introduce career plans that would clearly define the next steps of a given employee’s development within the company.

Hawthorne effect – summary

Intelligent observation, or perhaps it would be better to say smart supervision or monitoring, is just one element in improving employee performance. The leader needs to become part of the team and stay close to the employees so that they feel taken care of. Interpersonal relationships within the team are also decisive, though there are ultimately other factors that affect productivity as well like .

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