Out of the Crisis.Org

[Louis Altazan]

When I first began trying to apply Dr. Deming’s philosophy to my business, my biggest question was, “How do I get started?” I had read, attended classes and seen examples of success. I was all ready to transform my company, but didn’t have a clue where to start.

Today it seems ironic, re-reading my notes from that time. I had so much information that I couldn’t decide what to do. Normally people fail to act because of a lack of information. Here I was, with the entire philosophy before me and could not apply it.

Looking back, where I started would have no effect, as long as I started. Not understanding this prevented me from starting at all and cost me valuable time. Thankfully, I eventually did start and persisted. Doing so was the single best thing I ever did for myself.

I feel certain there may be others in this position today. For them I will outline my beginning steps, in the hope they too may get started.

1. Point one is imperative to everything that is to follow. I began by reading it and trying to fully understand what it meant. From there I sat down and decided what I would do and more importantly, what I would no longer do.
   
2. Next I tried to express, in writing, what the true aim of my company was. This was almost impossible for me. Ten years in business and I didn’t have a clue what I was trying to accomplish. I could write all sorts of flowery dogma, but could not put into words what I was trying to do. How could my staff possibly know what they were trying to do?
   
3. Eventually I did state my aim. A bit wordy and not perfect, but I had a workable document. Over the years I have tried to refine and shorten it. For then there was a document I could use to make decisions.
   
4. I knew it would be difficult and I would likely backslide. To help prevent this, I set up a means to hold myself accountable. I shared the document with everyone in the company. I also asked to be told anytime I failed to act as stated.
   
5. With my staff, we drew up five commitments.
   1. Always truthful in dealing with clients and one another.
      
   2. Not release vehicle to client until technician is satisfied they have done a good job.
      
   3. Cooperation and helping others is more important than accomplishing individual goals.
      
   4. On completion of work ahead of plan, optimize the time gained to the benefit of all.
      
   5. Understand different client’s needs and expectations.
   
   
6. I agreed, when a decision needed to be made, it would be made in accordance with long-term strategy. This included purchases of parts, supplies, tooling, equipment, hiring decisions, resolving disputes with clients and everything else in the business.

From there the other points began to appear to me as tools. Ways to accomplish my aim. For example, incentives. They could not produce the long-term results I needed. Instead I needed a non-manipulative method of paying people. My job was to enable folks to do their best, not coerce them to produce activity.

Purchasing OEM scan tools was less expensive than aftermarket tools that were priced lower, viewed over the long term and in light of my aim. These produced overall lowest cost.

Investing in my staff made perfect sense in light of my long-term aim. Retaining well trained people that enjoyed their work represented overall lowest cost.

Loss leaders made no sense as long-term strategy. Instead I had to build value into my service, that could be consistently sustained forever. I must produce overall lowest cost for clients. This required a more fair method of billing.

Relationships with staff, clients and vendors could not be manipulative or anything less than in everyone’s best interest. Taking advantage of a life-long partner makes no sense. Instead work with them to correct waste and constantly improve. This produced overall lowest cost.

_________________
Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA

[keith]

Louis,
This was exactly what I've been asking for. I'm in the same position. I have an abundance of information but I don't know what to do with it. I know it'll be a slow process, but beginning and continuing are the two important things that I see from your beginnings. Also another thing I see is accountability! It's easy to backslide if you're not held accountable. Thanks!

_________________
Keith White
Owner
Whites Auto Service
Tifton, GA, USA

[Louis Altazan]