Applying Genchi Genbutsu to Even Complex Industries

For the last two weeks, we’ve been looking at Genchi Genbutsu, one of the building blocks of continuous improvement that is part of the thirteen pillars of the Toyota Production System for manufacturing cars.  The Japanese term means “go and see for yourself”.  “Genchi” means actual place, while “Genbutsu” means actual thing. It was established to empower people to solve the problem by seeing the issue for themselves.

The objective of the Genchi Genbutsu principle is to emphasize the importance of being on the job site where actual work is happening in order to fully understand the processes, examine the working environment, and determine what is wasteful, inefficient or ineffective.  It is a good practice because managers who have done Gemba Walks can advise the best possible solution immediately when problems arise. 

The Universal Applicability of Genchi Genbutsu and Gemba Walks

In September 1956, US President Dwight D. Eisenhower delivered a speech at Bradley University in which he said “Farming looks mighty easy when your plow is a pencil, and you’re a thousand miles from the corn field.”  He was talking about the relationship between government and farmers, but he could just as easily been referring to the relationship between leadership and employees in any industry.  In essence, he was saying that from a distance, any problem can seem easy to solve.  Anyone who is removed from the workspace cannot fully understand the workplace and therefore cannot solve problems.  It is not until you step into the worker’s shoes — walk a mile in their boots, see what they see and hear what they hear — that it is possible to truly understand the daily challenges faced and think about how best to fix them. 

Unveiling the Power of Genchi Genbutsu and Gemba Walks

There is an old saying that “seeing is believing.”  But for Japanese business leaders, seeing is not focused on whether information should be trusted and believed but instead on fully grasping and comprehending what is being communicated.  For them, “seeing is understanding”.  This idea that one must see for oneself in order to understand lies at the core of a philosophy called Genchi Genbutsu used by many major Japanese companies to solve problems. 

According to Genchi Genbutsu, a business leader must visit a jobsite to comprehend and validate information that might have otherwise been presented in a report offering theories and opinions.  The phrase means “go and see the actual place” or in American vernacular “see for yourself.”  While it started in Lean manufacturing, it has expanded and is now utilized in many industries.  It has been used successfully by US business leaders to improve quality, reduce inefficiency and boost productivity. 

How we look at and think about things matters a lot.  Our thoughts make a HUGE difference in our attitude, energy, creativity and enthusiasm.  And, in business, one’s perspective can either overlook a problem or shed light on solving it.  It can cause someone to do the same-old same-old or spark an epiphany.  One’s perspective – the way the person looks at a task — can avoid change or it can lead to a break-through idea. 

Business is not always exciting.  Between peak moments – landing a big client, forging an important partnership, expanding into a new market or launching a new line of business – there are many tasks that are just ordinary and routine.  Payroll.  Bookkeeping.  Inventory.   Filing.  Office maintenance.  Budgeting.  Project Management.  Logistics.  From entry level clerks to C-Suite executives, everyone has tasks on their plate that are tedious and dreary.  Routine creeps into practically every business, making even the most exciting ventures feel stagnant.

White Glove Service vs Consumer Advocacy Groups and Complaint Forums

There is a general trend of declining customer service satisfaction in the US.  White Glove service is becoming extinct.  This decline can be attributed to several factors, including:

• Increased reliance on automation: The rise of chatbots and self-service options has reduced human interaction and personalized service.
• Staffing shortages and employee burnout: Many businesses have struggled to staff up during and after the pandemic, leading to longer wait times and overworked employees.
• Focus on cost-cutting: Companies may be prioritizing profit over customer satisfaction, leading to cuts in training and support for customer service representatives.

Delivering the Velvet Touch

In the age of convenience, instant gratification, apps and online shopping carts, standing out from the crowd takes more than just a competitive price tag, techy gimmick or polite employees. Consumers today crave authentic interactions and exceptional experiences.  That is where White Glove service comes in. This term, evoking images of meticulous care and personalized attention, goes beyond smiles, on-time delivery of products or services and general satisfaction.  It’s about exceeding expectations and creating lasting positive memories.

Millennials and Zellennials are all in search of the next billion-dollar idea.  Entrepreneurs want to build the next ‘better mousetrap.’  With the rise of AI, the search is on for the next “Big Idea.”  The next Unicorn. The next App.  There is a race to make a product or deliver a service faster, easier, smarter, cheaper, etc. But what if the next “Big Thing” is just the same old thing but with much better service?  Here is the truth that no one wants to talk about… there is a customer service leak and it has spread to all industries.  Hospitality.  Aviation.  Insurance.  Healthcare.  Property Management.  Banking.  Law.  Accounting.  No industry is exempt.

It’s the start of 2024.  You made a list of resolutions.  You wrote out personal, professional and/or business goals.  You sketched out a plan of action.  And determined company leaders have set out to tackle a big hairy audacious goal.   Also known as a BHAG, a big hairy audacious goal is a term referring to a clear and compelling target that an organization tries to reach.  It was coined in Jim Collins and Jerry Poras’ book Built to Last: Successful Habits of Visionary Companies.  Like many resolutions and best laid plans, ‘Big Goals’ are ambitious and in the back of your mind, perhaps even thought to be unrealistic and unachievable.  However, as the Bannister Effect demonstrates, often the biggest limiting factor in achieving a Big Goal is thinking that it can’t be done.  So, what is the Bannister Effect and what does it teach about setting and achieving goals?

It’s January and the pressure to make and keep resolutions is strong.  People resolve to tackle big dreams and even bigger ideas.  But success is typically predicated on execution.  A plan is useless without follow through.  Ideas are cheap but execution is expensive.  Talk is plentiful but action is scarce.  There is often a painful execution gap.   It haunts every ambitious entrepreneur and driven professional. While brimming with ideas and bursting with potential, the chasm between conception and completion stretches wide. Brilliant plans gather dust.  Promising projects linger in limbo.  The fruits of ambition rot on the vine of inaction.