Technovation, 14( 1) (1994) 17-29

Rediscovering continuous
improvement
J. Bessant, S. Caffyn, J. Gilbert, R. Harding and S. Webb
Cenfre for Business Research, The Business School, University of Brighton, Falmer,
Brighton BN 1 9PH, UK

Abstract

Continuous improvement (CI) is increasingly being seen as an important complement to more

radical, step-change forms of innovation. In essence, it involves a company-wide process of
enabling a continuing stream of focused incremental innovation. It has found particular
application in recent years in the area of quality improvement, but the principle can be applied
to many other. divisions of business performance.
Although simple to define, the achievement of such CI activity and its maintenance over the
long term is a major source of difficulty. This paper reports on research in this area and
highlights key areas within CI which need to be addressed.

1. Introduction although recent attention has brought the spotlight

During the past decade there has been growing
interest in the concept of continuous incremental
innovation as a route towards improvement of
various aspects of manufacturing. Although much
of this is related to continuous improvement
(CI) as a key element in quality management
programmes, there is a growing recognition of its
application in other areas such as flexibility, cost
reduction, inter-firm relations and support process
improvement [l-3].
The rapid diffusion of the concept owes much
to the fact that CI has a number of attractions,
not least its low cost nature. Whilst certainly not
cost-free, CI does not require expensive capital
investment or specialized knowledge and thus has
a low entry barrier to smaller scale enterprises. It
is a simple concept, easily understood at an
intuitive level, and it is also a very old one;
back to bear on it, examples can be found of
formal CI programmes dating back at least to the
mid-19th century [4]. At its heart is the simple
principle of incremental modification and adap-
tation which, arguably, stems from basic human
curiosity and a desire to improve things.
Despite its attractions, evidence suggests that
CI often fails, or fails to take root in organizations
which try to implement it. Arguably, this is a
problem of design and management of CI systems;
this paper reports on research aimed at improving
our understanding of the process and how it might
be successfully managed. It presents a number of
propositions and an organizing framework which
can be used as an aid to mapping, evaluating and
improving CI activities.

Technovation Vol. 14 No. 1 0166-4972/94/US$O7.00 0 1994 Elsevier Science Ltd 17

J. Bessant et al.
2. The nature of continuous
improvement
In its simplest form CI can be defined as a
company-wide process of focused and continuous
incremental innovation. Its mainspring is incremen-
tal innovation-small step, high frequency, short
cycles of change which taken alone have little
impact but in cumulative form can make a signifi-
cant contribution to performance. Innovation stud-
ies have tended to concentrate on larger increments
of novelty (not least because of the difficulties of
studying incremental change over time) but there
are some studies, such as Hollander’s of DuPont’s
rayon plants or Enos’s of improvements in catalytic
cracking in the petroleum industry, which provide
a detailed research underpinning for this view [5,
61.
Although incremental innovation is a naturally
occurring phenomenon insofar as people will
always try and make minor improvements, its
impact is rarely felt unless this pattern of incremen-
tal change takes place consistently over a period
of time and is focused towards a particular object.
A good example of CI is in the widely-known
learning curve effect where incremental improve-
ments are focused around getting a new piece of
equipment to perform well, or in de-bottlenecking
a new process. However, learning curve effects,
as Bell points out, are not automatic but require
suitable organization conditions to enable exper-
iment and learning to take place [7]. They are
also associated with adapting to major changes
(such as introducing new products or processes)
and, as such, represent occasional specific bursts
of CI rather then a sustained long-term pattern of
incremental innovation applied across the spectrum
of an organization’s activities. In this they can
perhaps be seen as a subset of full CI.
There are a number of examples of such broadly
focused and sustained CI programmes dating back
at least to the 19th century; Schroeder and
Robinson give a review of experiences in early CI
programmes [4]. The most recent examples relate
particularly to the total quality management area,
and derive from Japanese experience of major
18
improvements in quality, flexibility and cost
reduction performance associated with sustained
incremental innovation [3, 8, 91.
3. Experience of continuous
improvement
As indicated above, CI is a simple concept and
one with considerable attractions due to its low
entry barriers. The potential benefits from such
programmes are clear; if mechanisms can be found
to unleash the ‘hundred-headed brain’ and to tap
into the creativity of a large number of people
working on the same basic problem set, then
significant improvement is possible. Evidence from
individual case studies and from industry-level
reviews bears this out; sustained CI can have a
major impact on performance while requiring little
in the way of capital investment [lO-131.
But, despite its apparent simplicity, CI is not
always successful and is particularly hard to sustain
in the long term. There is widespread evidence of
organizations which have tried to introduce formal
CI programmes and which have either failed to
get them off the ground successfully or have
seen their programmes fall away after an initial
honeymoon period. Since CI by definition requires
a sustained period of time before its impact can
really be felt, this means that little benefit emerges
from such programmes.
As with many current prescriptions for organiza-
tional improvement, there is the danger of raising
expectations about ‘magic bullet’ type solutions,
panaceas which will quickly and painlessly solve
an organization’s problems. CI is a powerful tool
and one which unlocks a neglected source of
organizational innovation, but its successful
implementation depends upon the creation of an
enabling context within the organization.
4. Organizing for successful Cl
Analysis of CI experiences reported in the
literature, and in case studies carried out during
Technovation Vol. 14 No. 1

a continuing UK-based research programme [14],
suggests that a number of organizational factors
are influential. These can be summarized as
follows.
4.1. Cl needs a clear strategic framework
The essence of CI programmes is a long-term
sustained and focused process of incremental
improvement, and this is unlikely to take place
without some clear underlying purpose or target.
To take a simple analogy, it is possible to row
across the Atlantic, making the journey via a
lengthy series of small strokes; however, the
success of the expedition depends upon knowing
clearly the ultimate destination, otherwise much
of the effort could be dissipated. Further, it is not
sufficient simply for the leader of such an
expedition to have this knowledge; it needs to be
communicated to the crew so that they can mobilize
their own individual efforts towards a clear goal.
Setting clear strategic targets and communicating
them across the organization is thus a prerequisite
for CI success; the absence of such direction can
lead to a lack of focus within Ci and, over time,
a lack of motivation as people reflect that their
efforts do not seem to be getting anywhere.
Analysis of successful cases suggests that they have
often been driven by some form of crisis within
the organization-threat of closure or a sudden
unexpected loss which has the effect of uniting all
the staff within the organization and concentrating
attention and efforts on focused and targeted
innovation to escape the problem [ll, 13, 151.
Strategic goals of this sort do not need to be
tightly specified, but they do need to be clearly
understood in terms of their implications for the
survival and success of the organization as a whole.
Thus Japanese success in CI has, been based mainly
on a clear understanding of the importance of
waste reduction and building in quality at source;
the actual ways in which such improvements can
be made. are myriad, but the overall target is
clear and clearly communicated. There is also a
motivational aspect to this; as Watanabe points
out, the driving force behind Japanese CI is
Technovation Vol. 14 No. 1
Rediscovering continuous improvement
primarily self-interest which workers see as being
best served by improving the fortunes of the
company [ 161.
The implications of this for the management of
CI programmes are twofold. First, organizations
need to know where they are going-to develop
a clear strategy which identifies the key success
parameters (such as order-winning criteria) in
manufacturing strategy [ 17]-and second, they
need to ensure this is effectively communicated to
all employees.
4.2. Cl needs managing strategically
Closely linked to the above theme, CI pro-
grammes need careful planning and monito~ng.
A military analogy may be useful here again: CI
is not about a small team mission but about
managing an army over a sustained period of time.
As such it needs careful planning in terms of
overall direction and short-term tactical objectives,
resourcing and supplying the troops with food and
equipment, issuing briefings on progress so far
and orders which set out the next set of objectives,
etc. It also needs regular inputs of a morale-
boosting kind to encourage and motivate.
The problem with many CI programmes is that
they begin well but then tail off; much of this
difficulty appears due to a lack of long-term
maintenance and strategic management. Goals
need to be restated regularly and progress toward
them monitored and reviewed on a regular basis.
Commitment from senior management should not
be confined to building and communicating the
vision at the start but should extend to long-term
steering and guiding of the programme.
Two enabling mechanisms appear useful in this
connection. First is the use of regular milestones
as short-term targets within a broader and longer-
term CI programme; energy and enthusiasm can
be mobilized periodically in ‘sprints’ towards these
targets as an adjunct to the slower progress of
the main programme. The analogy of military
campaigns or focused offensives with clear tactical
objectives within the context of a larger and longer
war is relevant here. However, the danger is that
19
J. Bessant et al.
momentum is lost when the short-term target
objective is achieved; it is also necessary to set
new goals on a regular basis.
The second enabling mechanism is the use of
measurement and display routines. Clearly, CI
momentum will quickly fall off if people receive
no feedback about how far they have gone, how
far they have to go, what their efforts have
contributed, and so on. Measurements relating to
both the long-term goals and the short-term targets
within them can have a powerful motivating effect,
but they must be clearly understood, presented in
a meaningful format and regularly updated.
In addition to providing information and motiv-
ation through goal setting, there is also a need to
resource CI programmes through regular inputs
of training and infrastructure development. To
pick up our military analogy again, it is necessary
to resupply and reinforce an army on the move
on a regular basis, otherwise its morale and
enthusiasm suffer and its ability to operate effec-
tively is weakened. Successful CI companies appear
to invest regularly in training (for example, in
the use of CI tools, facilitation skills etc.), in
infrastructure (team building, CI rooms and equip-
ment, facilitation etc.), in communication (via
displays, newsletters, briefings) and so on.
Although often presented as a low-cost solution,
CI requires investment in coordination and resourc-
ing of this kind; the corollary to the above is that
CI tends to succeed at the level of effective
coordination. If this is organization wide, the
programme can have a significant impact. If, by
contrast, it is confined to one or two small groups
or areas, the impact is likely to be much less.
4.3. Cl needs an underlying supportive
culture
CI is an organization-wide process and its success
will depend upon becoming part of the way of
life-the pattern of shared beliefs, values and
behavioural norms-of that organization. Without
such a cultural underpinning, it will be difficult
for CI programmes to take root and their long-
20
term survival will be inhibited by a lack of
behavioural reinforcement.
There appear to be at least three core cultural
beliefs which are important in enabling CI to
flourish. The first is a belief in the value of small-
step incremental innovation; there is something of
a clash here with traditional Western values which
tend to emphasize the role of formal science and
technology and which set great store by major
innovative leaps forward. As Kit-ton points out,
creativity is a resource possessed by all human
beings, but it tends to be valued only where it is
expressed in novel, frame-breaking form by what
he terms ‘innovators’. This is to neglect the
powerful contribution which could be offered by
‘adaptive creativity’ and the relative ease with
which incremental innovations generated in this
mode can be absorbed by the organization [ 181.
The second belief relates to the view that
everyone has creative potential which could be
brought to bear. Peters makes the telling point
that individuals who work in small, repetitive tasks
in which nothing is demanded of them beyond
providing a pair of hands for a particular operation
can, in their leisure time, demonstrate an enormous
repertoire of creative and organizing ability-in
painting, music, theatre, organizing scout troops,
DIY, etc. [19] What stops this potential being
used is very often the implicit belief that the
individual has nothing to contribute. In part this
derives from the Taylorist school of organization
design which was predicated on the belief that
there is one best way of accomplishing a task;
workers should not be encouraged to think or
suggest changes because this would lead to devi-
ations from the planned best way and a decline
in efficiency [20]. There is a growing recognition
of the limitations of this deeply embedded belief,
but its pervasiveness can often restrict the effective-
ness of CI programmes.
The third cultural value of importance concerns
the organization’s attitude to mistakes. CI by its
nature involves experiment and is unlikely to thrive
in a culture in which mistakes are discouraged and
people expect to be blamed for them. Building
a learning organization which encourages
Technovation Vol. 14 No. 1

experimentation and accepts the risks of failure
as part of this process is a critical step in developing
a CI culture [21-231.
4.4. Cl needs an enabling infrastructure
Since much of the above cultural change reflects
particular ways of organizing and operating, it is
not surprising that successful CI appears to require
supporting infrastructure in the organization. There
are two components to this, a general context
within which CI can thrive and develop and a
specific CI-enabling infrastructure.
In the case of the former the issue is making
the CI values explicit through an organizational
framework-the artefacts of the underlying set of
cultural values. Thus organizational structures
which emphasize tall hierarchies, one way, top-
down communications, little lateral communi-
cation, centralized decision-making etc. are
unlikely to be appropriate for much CI activity
which depends on local autonomy and
empowerment and where the sharing of learning
and experience requires effective and wide-ranging
communications. It is important, however, to
recognize that there are no blueprints for the
‘right’ organization form for CI; it is very much a
matter of adapting both organization and CI
programme to suit each other. Certainly there are
examples of loosely structured, organic organiza-
tions which place high value on employee involve-
ment and participation; not surprisingly these tend
to be associated with CI [19, 241. But there are
also cases where relatively tight control and
traditional ‘Fordist’ structures appear to enable at
least a partially successful CI programme [25].
The pattern appears to be a contingency model
in which the ,shape and form of the CI programme
needs to be matched to the organizational infra-
structure; arguably, the further from the Fordist
model an organization shifts the more degrees of
freedom there are for encouraging employee
involvement in CI. Detailed discussion of the
relevant dimensions of organizational change are
beyond the scope of this paper (but see Bessant
er al. [26]); however, key areas are likely to
Technovation Vol. 14 No. 1
Rediscovering continuous improvement
be the extent of devolution of autonomy, the
communication and decision-making processes, the
level of teamworking and, within teams, of flexible
and multiskilled working, and the degree of
integration in interfunctional relations. In addition,
the approach to training is likely to be important
since CI implies a revaluation and development
of human resources.
Beyond this contextual infrastructure there is a
need for specific vehicles to enable CI within the
organization. Experience suggests that there is no
single vehicle but a range, from small-scale local
CI initiatives through to company-wide, long-term
programmes, with variation in the degree of
involvement, the duration of the activity, and the
level of facilitation. Examples include suggestion
schemes, problem-solving teams, company-wide
campaigns and individual problem-solving activi-
ties. To be successful, organizations need to
identify which vehicles they will use in their CI
programmes and to ensure they are regularly
maintained and supported-for example, through
inputs of training or facilitation or with suitable
tools. There is also evidence to suggest that a
pluralistic model, employing more than one type
of vehicle or changing the emphasis on different
types of vehicle, is a better strategy than concentrat-
ing on a single type.
4.5. Cl needs managing as a process
As with other types of innovation, CI needs to
be managed as a process rather than a single
event. In particular it involves a learning cycle,
moving from identification, through exploration
and selection of improvement suggestions to
implementation and review. A typical and widely
used example is the Deming wheel-plan, do,
check, act-but many other variants are in use.
The significance of this is twofold: First, it is
important to recognize the different characteristics
of each stage in the cycle and to support-via
facilitation, tools etc.-each of these. Second, it
is important to ensure the cycle is complete in
order to enable the next cycle; a common point
of failure of CI programmes is that ideas may be
21
J. Bessant et al.
generated but they are not implemented. Without
such closure of the cycle, there can be no
reinforcement of the process and the motivation
begins to fade. The aim is to create a virtuous
circle, self-amplifying so that successful and visible
action leads on to motivation for further sugges-
tions. The converse is also true; failure to
implement (or to manage the idea-rejection process
carefully) will lead to a self-damping circle and
quickly lose momentum in the CI programme.
4.6. Cl requires a supporting toolkit
Although CI activities can take place on a
spontaneous basis, there is little doubt that such
activity can be enhanced and diffused more widely
across the organization through the use of suitable
supporting tools. These need various degrees of
support in terms of training and facilitation in
order to ensure their effective application; there
is also some evidence that training in tools should
be followed closely by on-line application rather
than treated as theoretical ideas. CI tools can be
applied across the whole of the problem-solving
cycle, from problem finding and definition through
exploration and solution generation to selection
and implementation; one of the important skills
in facilitation is to match tools to the task in hand.
Although the repertoire of available tools is large
and growing, most of these represent variations on
some basic themes and it is possible for organiza-
tions to operate successful Cl programmes with a
minimum toolset. Common tools include problem-
finding aids such as Pareto analysis, check sheets
and cause-and-effect diagrams, while brainstorming
remains a robust and extensively used problem-
solving aid. More sophisticated tools tend to be
used less frequently and often require some prior
experience of CI or basic statistical skills. However,
the advantage of such tools is that they enable CI
groups to tackle increasingly complex and difficult
problems and thus support the long-term mainte-
nance of momentum.
22
5. A model framework for successful Cl
The above propositions reflect what we believe
are the characteristics of successful organizations
implementing and maintaining CI programmes.
However, their interconnection should be stressed;
it is not sufficient to enable some of the above.
For example, to provide a sophisticated toolset
and facilitation without clear strategic direction or
in an unsupporting organizational context is likely
to result in limited success and long-term abandon-
ment of the programme. CI certainly offers con-
siderable attractions in terms of its low cost, the
easy absorption of solutions identified and the
unlocking of underused potential within the organi-
zation. But its successful exploitation requires
careful management across a broad front; it should
not be a fashion idea but one which becomes a
key feature of the organization in the long term.
This requires attention to each of the above
elements, together with a meta-level process which
enables the organization to review and adapt its
CI programme-effectively a continuous improve-
ment cycle for CI itself.
Within each of the above elements there is a
wide range of action which can enable or inhibit
CI. This opens up the possibility of creating some
form of diagnostic or benchmark against which
firms can measure and monitor performance rela-
tive to good CI practice.
6. Case examples
Using the above framework, we can begin to
examine the Cl programmes in place or under
development within organizations. The cases pre-
sented here are companies from various sectors,
of varying size and at different stages in their CI
programmes; as such, they provide some indication
of both the richness of variations on the basic CI
theme and the common problems. By exploring
their experiences against the model framework
outlined above, it is possible to provide a map of
CI and to suggest where further development
might be explored. Within our research programme
Technovation Vol. 14 No. 1

this approach has been used to enable more
effective networking, by identifying areas of rela-
tive strengths and weaknesses within organizations.
6.1. Case 1
Case 1 is a medium sized engineering firm, a
subsidiary of a large group. It experienced extensive
strategic change during the early part of the 198Os,
with restructuring and organization along cellular
manufacturing lines. Following the initial turnar-
ound phase the firm embarked on a CI programme
which has enabled progress to be maintained
across a broad front. The programme is located
in the context of a clearly articulated manufacturing
strategy which is derived from benchmarking
against major competitors; the plan is communi-
cated and discussed regularly via a series of cascade
and team briefings, and awareness among the
workforce tends to be highly developed. Major
strategic priorities remain quality, flexibility, lead
time reduction and inventory saving.
The underlying culture of the company changed
markedly during a crisis period prior to the
restructuring in the early 1980s. The threat of
closure and the need for taking a radical alternative
route forward enabled many of the old values and
beliefs to be challenged and replaced by a pattern
in which individual flexibility, team responsibility
and devolution of responsibility to such teams
have become dominant. Symbols of a divided ‘us
and them’ culture, such as separate canteen
facilities and reserved car parking spaces, have
been eliminated and much of the status gap
associated with different payment systems, multiple
levels in the hierarchy and high division of labour
has been closed. Communication remains a high
priority within the firm and a variety of channels
are in use to try and create a suitable infrastructure
in which to locate the Cl activities.
The CI infrastructure is supported by a strong
commitment to training and staff development; all
problem-solving teams receive at least two days’
formal training in the basic process and a ‘starter’
set of CI tools. The process is further supported
by two full-time facilitators who were shop-floor
Technovation Vol. 14 No. 1
Rediscovering continuous improvement
personnel seconded full-time to the CI programme
and trained with additional inputs to help teams
get started and to maintain momentum. Initial CI
activity was based around resolving the problems
immediately associated with the turnaround pro-
gramme, and there are still task force programmes
in operation which involve company-wide attacks
on key strategic problem areas. This company-
wide activity was followed by the setting up of
PIGS-process improvement groups based on cell
teams tackling major issues through a sustained
CI attack on the contributing problems. PIGS are
usually led by cell team leaders or supervisors and
membership is essentially cross-functional, bringing
together people affected by the chosen problem
plus co-opted experts as appropriate. The current
situation is that 16 PIGS have successfully con-
cluded their projects and a further 12 are currently
running; the CI programme is now moving to a
further phase involving individual-level activities.
The process has operated on problems identified
by management who then set tasks for PIGS to
work on; however, part of the shift to individual-
level work will involve more local problem selection
and solving. PIG problems are carefully selected
under advice from the quality manager who
helps define boundaries and thus enhances the
probability of success. PIG members are sent for
two days’ training in the ‘seven basic tools’ for
quality management; prior to starting, the factory
manager gives the group a ‘pep talk’ to motivate
and demonstrate commitment to the CI pro-
gramme. The PIG members then discuss and
collect relevant data prior to a 2-day analysis
activity off-site which helps define the project,
identify gaps in data, and so on. The preparation
phase concludes with a presentation back to the
factory manager followed by start-up; PIG activities
usually take up l-2 hours per week and have a
project life of 6-9 months. During this period
there are no formal rules of operation and PIGS
are entirely self-managed; the only requirement is
a regular presentation to the site management
team every 68 weeks.
On completion of the project, the PIG prepares
a detailed presentation including analysis, benefits
23
J. Bessant et al.
etc. which is made to senior management. Their
contribution is recognized in a formal lunch to
which senior managers, customers and other guests
are invited and at which the project is informally
discussed. At that presentation team members
receive a personalized leather folder containing
details of the project together with a certificate
acknowledging their contribution; there is, how-
ever, no direct financial reward for suggestions.
(The company does operate a suggestion scheme
tied to financial rewards, but there is little uptake
of this option.) Story boards detailing the groups’
activities are prepared and displayed in the factory
foyer, and the details are also covered in the
company newspaper.
Benefits arising from PIG activities include
quality improvements, material savings, break-
down reductions and other productivity gains; the
15 PIG projects which had been completed up to
1992 resulted in savings to the company of over
f0.5 million.
Although successful, the CI process still has a
number of problems to address. One of these is
limitations on facilitation; despite having two full-
time facilitators there is still a limit on the number
of projects that can operate at any time. Top
management support is also important to the
success of the programme. but with each group
requiring an input of, on average, a half-day per
fortnight there are concerns about the demands
on management support time. This has prompted
moves towards more individual, self-directed and
self-motivated activities.
6.2. Case 2
This is a large firm in the food and drink sector
which set up a sophisticated greenfield operation
in the late 1980s. using advanced plant and
equipment. Considerable emphasis was placed
upon staff selection and training prior to the
opening of the plant, and the principles of multi-
skilling and teamworking were embedded in the
overall design. Since start-up a variety of CI
activities have been in place, aimed at bringing
performance up to design specification and then
24
enhancing it further through incremental inno-
vation.
The strategic framework for CI is well developed,
with extensive monitoring and review against a set
of key performance indicators; in addition, CI
momentum is maintained via a series of campaigns
which focus attention and activity around a core
theme such as zero defects. These initiatives are
driven and owned by senior management and
widely publicized and discussed; the key indicators
are displayed to give a sense of progress towards
targets. However, there is no senior individual
with responsibility for coordinating CI, nor is there
a formal CI process; the approach is essentially
implicit, although it could be argued that it was
‘designed in’ when the original plant was set up.
This model appears to work; there are currently
about 40 projects running across a workforce of
around 250.
The culture is strongly based on participation
and elimination of divisions; there are no separate
facilities (car park, canteen, etc.) for different
grades of staff, and everyone on site wears a
standard company uniform. There is a strong sense
of the value of human resources within the
firm, and the problem-solving participation of all
employees is encouraged: in part this relates again
to the extensive preparatory work on selecion
and training made before the plant started up,
Operators are involved in all aspects of CI and
this extends to improvement activities within the
supply chain as well as the plant; their regular
participation at problem-solving meetings helps
maintain a sense of ownership and commitment.
Recognition and acknowledgment of employee
suggestions takes place through various communi-
cation channels (such as the company newspaper),
and successful projects are prominently displayed.
There is little vertical structure (only four levels
from plant manager to shop floor) and much of
the operation is in the hands of shift teams who
are responsible for all aspects of the operation of
the highly automated plant. The payment system
is based on an annual hours agreement rather
than hourly or weekly pay, and all employees
receive the same package of fringe benefits. One
Technovation Vol. 14 No. 1

of the strongest ways in which the message that
suggestions are valued is communicated is through
a focused achievement reward system. Although
there is no formal bonus system and the company
does not pay directly for suggestions, it does share
the profits resulting from innovativeness across
the plant through a scheme involving clearly set
and monitored targets. Once these have been
achieved, any extra savings or profits which accrue
are split equally. with half going to the staff and
half to the company; this provides a powerful
financial incentive to CI.
Emphasis continues to be given to training and
human resource development and opportunities
exist for continuous upgrading of skills and flexi-
bility. In addition the company provides an open
learning facility in which employees can study a
wide range of work- and non-work-related topics.
In terms of specific infrastructure for CI, there
are no formal vehicles in operation within this
plant; this reflects the implicit, organic approach
which was designed in from the outset. Whilst this
has worked well in the past and is reinforced
through regular campaigns and through the strong
team structure of operations, there is some concern
about the need to promote and manage CI in a
more formal sense, and a suggestion scheme is
being set up within the context of the latest
campaign. By the same token, the operating
process for CI is implicit rather than formally taught
or spelt out within the organization. Although some
techniques such as brainstorming were introduced
during the start-up training phase and have become
part of the culture, few CI tools are in use and
there is no formal training programme to support
and develop these.
CI activities within case 2 have been very
successful; estimates suggest a total of nearly f2
million savings achieved in this way since the plant
opened in the late 1980s. Operating performance
has also improved drastically, moving up to and
now exceeding original design specifications; this
pattern of incremental innovation implies consider-
able technological learning, and in some cases the
modifications to plant and equipment are of
sufficient impact to interest machinery suppliers
Technovation Vol. 14 No. 1
Rediscovering continuous improvement
who now use the plant as a development and
prototyping opportunity.
On the down side, the organic nature of the CI
programme may make it increasingly vulnerable.
As the initial effects of the start-up training and
development become diluted and as the pressures
on operations and output increase, there is a
danger that CI-related support gets squeezed out-
for example, through less training or through less
time for CI work. The lack of a formal process
makes it easy to neglect key stages such as
acknowledgment and feedback on ideas and there
is thus a risk of losing the commitment and
enthusiasm which is the mainspring of CI in the
company at present. Consequently some formaliz-
ation of the CI system might be an important
developmental stage for this company.
6.3. Case 3
This case concerns a medium-sized firm
operating in the electrical industry; its main
activities are design and assembly of bought-in
components. As with case 1, the company went
through a crisis in the mid-1980s which resulted
in a number of turnaround activities and created
a framework in which the current CI programme
is operating. This involved its takeover by a
large, multi-national group and led to considerable
investment in refurbishment (approximately f4
million was spent over a three-year period in
equipment, new buildings and improved layout).
The next stage of activity involved emphasis on
human resource development, and considerable
attention was paid to setting up personnel functions
and communication systems-effectively changing
the culture from a top-down to a more participative
model. As part of this process the multinational
parent introduced a major total quality campaign,
and a major awareness and training initiative
began which led to most of the staff at the firm
receiving some basic training. Strategic targets for
CI activity within this TQ programme included
zero product defects and service errors, a 10%
cost reduction annually and 100% on-time delivery.
This group-wide initiative was not an instant
25
J. Bessant et al.
success within the firm; although awareness and
training took place, there was little activity on
which to hang it and it has taken a further period
of time to absorb the idea and develop a local
programme. This has been further complicated by
another change of ownership, which led to a
period of uncertainty during which progress on CI
was slowed; however, there is now a clear company-
level strategy for the business which includes a
formal commitment to CI goals.
The infrastructure is broadly supportive of CI,
with a relatively flat hierarchy and with a clear
communications process involving team briefings
down to the shop floor. There is senior manage-
ment commitment to the ideas of CI and a formal
coordinator (the personnel manager) has assumed
responsibility for its development across the com-
pany. There is also a formal CI infrastructure for
the process, with a senior-management quality
council responsible for identifying problem areas
and allocating resources and a sponsor to enable
team-based problem-solving work. This top-down
initiative is the main focus at present, although
some bottom-up projects of a smaller and more
individual nature are also under way. Investments
have been made in training teams working on
problems in tools and their application and in
developing facilitators to support the teams; having
gone through a process of training everyone, the
company now prefers what it terms ‘just-in-time’
training which gives the team the skills they need
for immediate application to the problem in hand.
As part of this widespread training activity the
company has familiarity with a wide range of tools
for CI; although in practice those used represent
a small set of basic techniques, there is an
awareness of many sophisticated tools and some
of these are in use in particular areas such
as design. CI activities follow a company-wide
problem-solving process model which was part of
the original group initiative.
The process has worked well in some areas,
notably the shop floor and warehousing areas, but
the application of CI in other parts of the
organization is still patchy. This reflects the
relatively early stage in the development of a
26
formal programme and the need to build a
supporting culture; the successes elsewhere in the
plant are of considerable assistance in spreading
this message and in demonstrating the feasibility
and financial value of such activities. As a CI
programme in its early stages, there are clearly
gaps and areas of concern; for example, the
emphasis at present in the process is on problem-
solving, with problem selection being done by
senior management (in part to ensure successful
outcomes) and with little attention being paid to
recognition and acknowledgment or implemen-
tation of ideas. The cross-functional nature of
many of the core problem issues represents another
area for further development of the CI programme,
and some work is now going on to create special
teams to tackle these issues on a company-wide
basis.
6.4. Case 4
The final case illustration is at a much earlier
stage of development in its CI activities. It is a
small firm in the construction industry and has
been operating in very traditional fashion with an
extensive hierarchy and with a ‘hire and fire’
employment policy. There is no tradition of
shopfloor involvement or participation in problem-
solving, and the firm has in previous years sought
productivity and quality gains through external
consultants introducing new schemes for work
organization, etc. These have tended to have little
effect and the company is now trying to pass
down the responsibility and initiative for problem-
solving; early experience has been positive although
there is, not surprisingly, considerable suspicion
about this attempted change in the culture.
In structural terms, the company is now trying
to change its policy in terms of training, communi-
cations and overall participation. It has begun to
invest heavily in training, building up a skill profile
of its workforce and developing this through a
variety of routes; one by-product has been a
gradual reduction in what was a high level of
labour turnover. In communications the traditional
joint consultative committee has broadened its
Technovation Vol. 14 No. 1

membership from three to five shopfloor represen-
tatives plus three managers and has increased the
frequency of its meetings. The committee has also
introduced a newsletter in which details of company
performance and other project-related information
is conveyed.
The specific mechanisms which the company is
using to enable CI are task forces, of which two
have so far been set up. These are cross-functional
teams with the remit of tackling some of the most
serious problems identified by management; they
have undertaken responsibility for data collection
and analysis and for recommending improvements.
The first task force, working on the design
and drawing office area, was able to make 30
recommendations, many of which have been suc-
cessfully implemented. They have been given some
training, although it is likely that more formal
inputs of tools and facilitation would help further
development.
At present the process is in its early and
formative stages; most of the efforts are needed
to ensure that cultural change is in place and seen
to be more than just another fashion. Further
expansion of the programme will require formaliz-
ation in terms of a clear CI strategy, training in
tools and facilitation and the establishment of a
recognized and widely understood problem-solving
process.
7. Concluding discussion
The preceding examples indicate a wide variety
of CI activity and experience and demonstrate the
need for a planned and wide-ranging approach
to implementing and maintaining improvement
programmes. They are not overnight successes-
indeed, even long-established programmes such as
case 1 still require modification and development
and have weak spots-but instead represent long-
term strategic developments of organizational capa-
bility.
Arguably, the model proposed in this paper
offers a framework against which to map or
benchmark various activities within CI programmes
Technovation Vol. 14 No. 1
Rediscovering continuous improvement
and to use the resulting diagnosis as an aid to
further development. In order to be useful in this
direction it will be necessary to expand each of
the relevant dimensions of the model to include a
number of measures of performance-such as
the amount and nature of training given, the
effectiveness of communication systems or the
extent of formal commitment from senior manage-
ment in terms of hours spent. This should help
focus interventions and enable the continuous
improvement of the CI process within organiza-
tions.
Continuous improvement is attactive because of
its low-cost characteristics and because it represents
a way of tapping the considerable under-utilized
potential across the workforce. Innovations emerg-
ing from such a programme also have the merit
of being easily absorbed by the organization, not
least because there is a high level of ‘ownership’
of the ideas and an underlying commitment to
making them work. Examples, like those given
above, of successful CI activity are increasingly
emerging and there is much to commend CI as a
viable strategy in its own right and as a complement
to more radical forms of innovation; in this
connection it is of particular relevance to smaller
enterprises and those in developing countries [27,
281.
Despite its apparent simplicity, making CI work
is a complex, organization-wide task; it requires,
as the foregoing suggests, a high level of commit-
ment and a supportive organizational context.
Progress along the road to CI may appear slow
and demanding of considerable efforts but, as an
increasing number of organizations are discovering,
learning to mobilize and manage change in this
way may go beyond the mobilization of a continuing
stream of problem-solving incremental innovations.
Insofar as it requires an evolving and adaptive
organization based upon high levels of participation
and the ability to cope with continuous change, it
may represent the key capability necessary for
effectively dealing with the uncertainty of the
1990s environment.
27
J. Bessant et al.

References 1. nm, manu~acrunng xraregy. Macmillan, Lonaon,

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A. Robinson, Continuous Improvement in Oper- 18 M. Kirton, Adaptors and innovators. Human
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D. Schroeder and A. Robinson, America’s most Harper & Row, New York, 1931.
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7 R.M. Bell and D. Scott-Kemmis, The Mythology of ation of British Industry. Blackwell’s, Oxford, 1992.
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ProfessorJohn Bessant is a
12 A. Melcher et al., Standard maintaining and continu- former chemical engineer
ous improvement systems; experiences and compari- and research fellow at the
sons. Znterfaces, 20(3) (1990) 24-40. Technology Policy Unit,
13 H. Sirkin and G. Stalk, Fix the process, not the Aston University. He has
problem. Harvard Business Review (July/August been working in the area
of innovation and technology
1990) 26-33. management for the past 15
14 J. Bessant, J. Burnell, R. Harding and S. Webb, years. He is the author of six
Helping UK industry achieve competitive advantage books and over 40 articles
through continuous improvement. Industry and in this field, and has been
Higher Education (Sept. 1992) 185-189. involved in lecturing and con-
sultancy work in over 20
15 Japanese Management Association, Canon Prb-
countries. Professor Bessant
duction System: Creative Involvement of the Total is currently Deputy Head of
Workforce. Productivity Press, Cambridge, MA, the Centre for Business Research University of Brighton
1987, 230 pp. Business School, where he was instrumental in developing and
16 S. Watanabe, Work organisation, technical progress running the industry-based MSc programme in the Management
of Technology. He also acts as Project Leader on the CIRCA
and culture. In: D. Foray and C. Freeman (eds.),
continuous improvement project.
Technology and the Wealth of Nations. Frances
Pinter, London, 1993, 353-372.

28 Technovation Vol. 14 No. 1

 Rediscovering continuous improvement

Sarah Caffyn has been of flexible manufacturing cells at Leyland-Daf and employees’
researching continuous attitude to work. -
improvement (CI) as a mem-
ber of the CIRCA* project
team since August 1992. Dr Rebecca Harding is cur-
Before joining the CIRCA rently a senior lecturer in
project Sarah worked for a Business Economics at the
leading multi-media training University of Brighton, UK.
company, designing and writ- Her research background is
ing courses for clients such in technology strategy and
as BP International, PA Con- innovation management,
sulting and the Ford Motor particularly within a Euro-
Co. Ltd. She had previously pean comparative context.
worked in the publishing Publications include Conti-
industry, marketing scientific nuify and Change (de Gru-
and technical books and journals. yter, forthcoming) and An
Introduction to Economics
for Business (Routledge,
forthcoming).

Stephen Webb was employed

at the Centre for Business
Research, University of
Brighton Business School, as
a Research Fellow on the
CIRCA (Continuous
Improvement: Research for
Competitive Advantage)
project under the DTI’s
MOPS initiative until Nov-
ember 1992. Currently he
is working in the area of
continuous improvement
* The CIRCA (Continuous Improvement Research for Com- within the systems planning
petitive Advantage) project has been researching continuous department of Opel in Germ-
improvement in UK industry since January 1992. any.

Technovation Vol. 14 No. 1 29