I was first introduced to the idea of visual management while attending the EO/MIT Entrepreneurial Masters Program (EMP). At the time, my company had experienced rapid growth, and I was dealing with the typical issues associated with fast-growing companies. We were struggling to deliver the quality of service for which we were known. And the more we grew, the less we were able to control and predict.
It was then, sitting on the lawn at the Endicott House at MIT, that I learned the importance of implementing visual systems in the business. Visual management is any system, process or tool that provides real-time information and feedback about the status of the organization, departments and job functions. I think of it as the organizational nervous system that connects employees to the critical activities needed to achieve the goals of the business.
Visual management is also what many entrepreneurs refer to as KPI's (Key Performance Indicators). These systems can take on a number of different forms— from sophisticated database applications to simple white boards mounted on a conference room wall. Over the years, I've learned what does and doesn’t work through a tremendous amount of trial and error. Think of a visual management system as the scoreboard for your business. At a minimum, it should communicate the following:
- What are the goals the organization, department or job function is trying to achieve?
- What are the key measures or units of work?
- How are we performing in relation to our goals?
What prevents us from reaching our goals?
And, most importantly ... what are we doing to contribute to reaching our goals?
Today’s competitive environment is forcing organizations to look at all of their systems and processes and search for any competitive advantage possible. When entrepreneurs increase the flow of information across their organization, employees will have better information that they can act on more quickly.