Operational Execution: When the end is only the beginning

Constant change

As I've depicted in my Business Operating System model, the innermost core for all phases is the Plan-Do-Study (or Check)-Act cycle, PDSA or PDCA, whichever you prefer, as the differences are subtle.

This method is a cornerstone of continuous improvement in business and personal development. When applied correctly, this simple yet powerful framework can drive incremental change and lead to exceptional results. It provides a systematic, iterative process for achieving better quality and performance, making it applicable to nearly every facet of life - from business operations to personal habits.

A Brief History of PDSA

Dr. Walter Shewhart initially introduced the PDSA cycle in the 1920s. Shewhart, a physicist and statistician working at Bell Labs, first introduced the concept of a “plan-do-check” cycle to help manufacturers improve product quality. Decades later, Dr. W. Edwards Deming (yes, another physicist) 😊 expanded upon Shewhart’s concept in the mid-20th century. Deming introduced the “Study” stage, forming what we now know as the PDSA cycle. Both often are referred to as the Shewhart or Shewhart/Deming cycle. Deming’s emphasis on statistical methods for quality control and his contributions to Japan’s post-war industrial revival cemented the importance of PDSA in operational excellence.

The PDSA cycle is a foundational principle in many modern frameworks, including Lean, Six Sigma, Total Productive Maintenance (TPM), and broader Process Improvement initiatives. These methodologies emphasize eliminating waste, improving processes, reducing variation, and optimizing performance, all of which align closely with the continuous feedback loop established by PDSA.

The Four Stages of the PDSA Cycle

The PDSA cycle is divided into four key stages: Plan, Do, Study (Check), and Act. Each phase is critical in driving improvement by promoting reflection, adaptation, and real-time learning.

1. Plan

The first stage is Plan, which focuses on identifying a problem, setting clear objectives, and formulating an action plan. This stage requires a deep understanding of the current state and an analysis of potential improvements. During the planning phase, businesses and individuals must ask themselves: What is the desired outcome? What changes can be made to achieve this outcome? What resources are needed? I wrote about this in the article on Tactics.

Operational Execution: How the battle is won

In a business context, the Plan phase often involves creating a roadmap for a project, developing a hypothesis, and identifying key performance indicators (KPIs) to measure success. This phase is critical because it sets the foundation for all future actions. It’s essential to be specific about the problem and the goals to ensure that subsequent actions will lead to meaningful change.

Too often, we are urged to rush in and fix a problem. How frequently does that result fail or not deliver the improvement because we haven't taken the time to understand the situation? Although most people are action-oriented, there is a time and a place for reflection and understanding.

2. Do

The next stage, Do, is where the plan is implemented. This phase involves implementing the proposed changes on a small scale or in a controlled environment. The Do phase requires careful execution and monitoring to follow the plan as closely as possible.

This could involve rolling out a new process, piloting a product, or testing a new strategy in a limited scope. Maintaining flexibility and capturing as much data as possible is vital in the Do phase. This way, when it’s time to reflect in the next phase, you understand how the changes played out in practice.

3. Study (Check)

Once the plan is executed, the Study (or Check) phase requires a deep analysis of the results. To clarify the difference between the two words,

• Study Phase (PDSA): This phase focuses on deep analysis and learning. It involves closely examining the results of the "Do" phase, comparing outcomes to predictions, and uncovering insights. Dr. Deming emphasized that "Study" is about refining theories, understanding variations, and using data to gain knowledge for improvement.

• Check Phase (PDCA): In contrast, the "Check" phase is more straightforward, focusing on verification. It involves checking whether the expected outcomes were achieved, typically with a narrower scope of analysis compared to "Study."

  
  

Even though there is a subtle difference, I often use the two terms interchangeably. In my experience, the in-depth review of the data and outcomes is essential to determine if the change has the desired effect.

There are many key questions to be asked here. Did the change produce the desired results? What worked well? What didn’t? This phase involves critically examining the data, drawing insights, and identifying patterns that help explain why specific outcomes were (or weren't) achieved.

The Study phase uses metrics and KPIs, and yes, control charts, to assess whether the improvement succeeded. If the changes don’t yield the expected results, it’s time to determine what went wrong and why. Techniques such as root cause analysis, 5 why's or Pareto analysis can be used in this stage to uncover deeper insights and guide future decisions.

4. Act

The final stage of the PDSA cycle is Act, where the entire concept of continuity and progress really appears. Without it, the whole cycle would stop, as if there were a start and end point. In this phase, decisions are made based on the insights gathered during the Study phase. If the change has succeeded, the improvement should be standardized and implemented on a larger scale. If the results were unsatisfactory, adjustments should be made, and the cycle should begin again. Yes, right back to Plan!

The Act phase may involve scaling a successful project or revising a business process. If changes don’t work as expected, adjusting the plan and running another cycle to test new hypotheses is essential. This continuous refinement ensures that improvements keep driving the business forward.

The Applicability of PDSA in Business

While PDSA originated in quality control and manufacturing, it applies to virtually every aspect of business and even personal change. Whether you’re improving customer satisfaction, refining product quality, or even developing better personal habits, the cycle provides a methodical way to achieve improvement.

In business, frameworks such as Lean, Six Sigma, Total Productive Maintenance (TPM), and Process Mining all embrace the principles of PDSA. Each methodology focuses on identifying inefficiencies, reducing waste, and constantly improving through small, incremental changes. In Lean, for example, PDSA drives continuous flow and eliminates waste. Six Sigma uses PDSA (or, truly, an adjusted version called DMAIC) to reduce process defects and variation. TPM applies PDSA to improve equipment uptime and reliability. PDSA is a core concept for all of these methods.

Beyond the key PDSA cycle for Operational Execution, this cycle also benefits all the phases of a business operating system and a company. Whether it's making choices in Strategy Creation, selecting the right goals in Strategy Deployment, or choosing the correct development and training path as an employee, the PDSA cycle can benefit all aspects of decision-making and improvement.

Operational Execution and Key Elements for Success

The Operational Execution phase of any business or improvement effort is critical. During this phase, change happens, and PDSA is an invaluable tool for ensuring that change is purposeful, sustainable, and effective.

To best implement PDSA for success, businesses and individuals should:

1. Clearly Define the Problem and Objectives: The Plan phase should be thorough, ensuring a clear understanding of the current situation and the desired outcomes. Use data, observations, and other tools to ensure the plan has the best chance for success. The tools of Lean, Six Sigma, and others are most likely to have the most significant benefits here and during the Study phase.

2. Ensure Effective Execution: During the Do phase, discipline is essential for following the plan and collecting data accurately.

3. Continuously Analyze Results: Data should be rigorously analyzed in the Study phase, with clear action items defined for improvement. Here is where many of the tools of various continuous improvement frameworks come into play. Refer to any article or book on these tools for guidance on the most applicable, realizing it will vary based on the process being revised.

4. Refine and Scale: Finally, the Act phase requires decision-making to standardize successful changes or return to the drawing board if things don’t work.

The behaviour that underlines the success of this process is as important as, if not more important than, the steps and the framework. Resilience and innovation being top amongst them. If a particular set of actions fails, look at it discerningly, learn from it, and try something different. While perfection might not be attainable, giving up is even worse. Unless there has been a dramatic shift in the company's focus, if something is worth improving, it's essential to see it through.

Likewise, be creative in your thinking. Often, the most significant results are achieved only by trying something unusual or daring. The PDSA cycle is all about improvement and learning. It is an iterative, continual cycle. Just as we expect ourselves as individuals to be constantly learning and hopefully improving, so should our focus be on the business we are trying to lead and support.

Finally, one quick sidebar. I've mentioned a few times how the PDSA cycle applies equally to business and personal life. Let me expand on that for a moment.

The PDSA cycle offers a structured approach to personal growth and habit formation. For instance, when setting a New Year's resolution to exercise more (Plan), you might decide to go to the gym three times a week for 30 minutes. After a month (Do), you would evaluate how well you stuck to your plan, noting any challenges or successes (Study). Based on this reflection, you might adjust your plan for the next month, perhaps increasing the frequency or trying a different type of exercise if you found the initial routine unengaging (Act). This iterative process of planning, acting, studying the results, and adjusting your approach allows for continuous improvement and makes achieving personal goals more manageable and sustainable.

I suspect, when we look at it this way, compared to business, we probably don't put as much effort into the Plan phase as we should. Could that be a reason for the tendency for resolutions to fail? Hmmm, possibly that, or potentially, that trait called resiliency. I'll leave that as my parting thought for the sidebar.

In conclusion, following the PDSA cycle can help businesses achieve continuous improvement, refine processes, and foster a culture of excellence. Similarly, individuals can leverage PDSA for personal development, helping them make sustained progress toward their goals. In both cases, the key to success is to embrace the iterative nature of the cycle, learning from each round and constantly striving for improvement.