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March 26, 2008
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The Robert E. Nolan Company is an operations and technology consulting firm specializing in the insurance industry. For 35 years, we have helped insurance companies redesign processes and apply technology to improve service, quality,
productivity, and costs.

Our staff members are all senior industry experts with 15+ years in the industry. Visit www.renolan.com to download our insurance industry studies, white papers, and client success stories.


The Unsqueaky Wheel Might Need
the Grease
By Hayden Jones
Managing Consultant
hayden_jones@renolan.com

A history major in college, I was privileged to have Dr. Serf, the department chairman, as one of my professors. In one class on American history, we discussed the pioneers and the difficulties they faced each day as they trekked west. After walking and riding all day, they would stop at night to eat and rest. The children would gather firewood, the women would cook, and the men would tend to the stock and prepare for the next day's travel.

The men would pull out buckets of some slimy goo and use it to grease the wagon wheels. They greased the wheels each evening, even though the wheels were not squeaking. They did this not to fix a known problem, but to prevent a serious problem from occurring at a most inconvenient time—imagine a wheel falling off or breaking while trying to outrun a buffalo stampede or an Indian attack.

In today's work environment, I often hear management questioning why we consultants want to look at a process when it's "running so well." Having spent 22 years in operations, I can understand the question. In most organizations, the front-line, second-line, and often third-line managers spend most of their day dealing with crises. With broader spans of control and, many times, a lack of technical knowledge about what their people actually do, they have only enough time and desire to address problems at hand—not look for others. The old adage "It's hard to drain the swamp when you're up to your butt in alligators" seems to apply.

Just like those pioneers who crossed the plains, we need today to think in terms of preventive rather than reactive management. Manufacturing has recognized the need to keep the production line moving; not only that preventive maintenance is necessary, but it is more cost-effective than waiting for something to break and shutting down the line when it's least convenient. For some reason, the service industry seems to have ignored the concept of preventive maintenance. Now you ask, "What can I do when I have so many problems to fix every day?" Since I like to make lists, here is my list of things you can do to prevent the wheels from falling off at a most inopportune time:

Addressing the Unsqueaky Wheel…

  1. Don't try to look at everything at once. This leads to overload and, soon, nothing gets done. Try picking one well-running process each month and look at it a
    little each day.

  2. Prioritize-decide which process will be reviewed first:
  • How many widgets do we run through this process each year?
  • How often do we use this process (hourly, daily, weekly, monthly)?
  • How many of my people (hand-offs) are involved in the process?

Remember, the larger the volume, the more frequently used, and the more people involved in the process, the greater the likelihood of big problems when things go wrong.

  1. Don't do it all yourself. Enlist the aid of your people, your peers, and if appropriate, your customers. They will often hear a squeaky wheel long before it comes to your attention. Often, they can offer solutions to future problems.

  2. Develop a list of key indicators, both good and bad, that will help identify a change in the process:
  • The time it takes to produce a widget
  • The number of customer service calls received about a process
  • The ratio of widgets produced per employee
  • The cost per widget
  • The volume and age of the backlog

These indicators will often clue you into a developing problem before it becomes a crisis.

  1. Don't wait for major problems before you ask a consultant to review your operation. They have no vested interest in your operation other than to provide you with information that will help you fix the broken wheels, and they will also identify the unsqueaky wheels that will become problems if not addressed.

We take preventive action every day. We paint houses before the wood rots, get our cars serviced to prevent breakdowns, and submit to flu shots. Why not apply the same practice to our professional lives? Now, go grease some unsqueaky wheels. You never know when the buffalo will come.