TEI 143: Organization performance improvement for product managers – with Adam Cohen

Summary: Product managers can create a better organization<br> Product management is the economic engine of society. It drives value creation. Without products, whether they be a tangible item like consumer goods, such as toothpaste, a service such as Uber, a checking account, or any other product form, the economic system we enjoy would not exist. It is through innovation — the creation of new products — that value is created for customers and for organizations. Because of that, your role contributing to product and innovation is vital to not just your organization but to society.<br> While your role is critical in this value creation, it also gives you unique insights into your organization — insights that equip you for an even larger role if you wish. This role is creating a more valuable organization. You can go from building better products to building a better organization. Phrases like organizational improvement, performance improvement, quality management, and performance excellence are used to describe such transformations.<br> My guest has been helping organizations make performance improvements for many years. He seeks to inspire and lead people and organizations to achieve organizational excellence. And don’t think this is just about improving the bottom line — organizational excellence is creating a positive work environment along with being a responsible contributor to the community. His name is Adam Cohen. I hope you enjoy the discussion and learning how product managers and innovators can have a larger role in organizational performance.<br> <br> Summary of some concepts discussed<br> <br> * [3:19] What does it mean for organizations to improve their performance? When most organizations talk about performance improvement, they are really talking about the bottom line. This is how they can make or save money. However, there is much more to real performance improvement, which is called performance excellence. This is an integrated approach focused on the value provided to all stakeholders, including the customers, employees, community, environment, etc. It requires an aligned approach between elements that are top-down (strategy, vision, objectives), bottom-up (product, customer feedback, employee feedback), and processes in the middle. It means creating a system that improves the way the entire organization works.<br> <br>  <br> <br> * [8:58] What is an example of an organization that pursued performance excellence? OMI was a business unit of CH2M, a large engineering construction company. OMI operated water and wastewater systems for municipalities. The journey towards performance excellence resulted in many changes. Before starting the journey, revenue was $300,000 and grew to $300M. Of the many changes along the way, one was the way people were able to innovate and improve the way they worked. The concept of employee empowerment was integrated into day-to-day work. Leaders sought ideas from frontline employees and worked with them to innovate. An emphasis was placed on day-to-day innovation, change, and improvement. Customers became more invested in the organization over time. They participated in annual meetings and shared how the changes made benefited them. During the journey, the organization’s overhead rate remained below 10%. The performance transformation was made possible by how employees were empowered. Employees had a clear understanding of the organization’s strategy and the capability to act upon it. They knew how their individual work contributed to the overall strategy. Together, this created many engaged and motivated employees and made for a better work environment.<br> <br>  <br> <br> * [17:07] What are the characteristics of product managers who should be involved in organization performance excellence? The ones that are most effective have a product or product line focus but also have a strategic view.