Do you know the word “individualization”? Some of you may know this if you are someone who keeps in mind the efficiency and improvement of their work every day.
Personalization refers to a state in which only a specific person knows information about a job, and it can be said that people other than the specific person do not know how to perform the task. If individualization continues, tasks cannot be generalized and tasks cannot be carried out by anyone other than a specific person.As a result, this becomes the cause of many business issues, such as a decline in quality and the inability to develop human resources. Many companies are facing similar challenges.
In this article, we will explain the overview of personalization, the reasons why it occurs, the disadvantages it causes, and points to overcome. If you are looking to develop your business, whether it is an existing one or a new one, please read this article and use it as an opportunity to develop your own business.
What is personalization?
Many people involved in business may have heard of it, but some may think, “I know the words, but it’s difficult to explain.” First, I will explain the meaning and overview.
A situation where only specific people know about business information
Personalization refers to a situation in which only specific people have control over business information. Since information about work is not shared with anyone other than specific people, there is a risk that work will not proceed when the person is absent.
This situation is often seen in companies that do not share information or create manuals, or do not provide sufficient training and education, and it is a factor that prevents management from achieving sustainable growth. Managers tend to think, “I want my employees to think about it and implement it,” but company employees feel anxious and dissatisfied, thinking, “How should we proceed if information is not shared?” Masu.
In addition, if a certain task is carried out by a small number of people, if that employee suddenly takes time off, he or she may not be able to handle the task, or if the task is delegated to another employee, the quality will drop significantly. Failure to take action can cause significant damage to a company’s operations.
Antonym is standardization
The antonym of individualization is “standardization.” Standardization can also be translated as “optimization,” and it refers to a state in which everyone in the company knows the information and process for a specific task, and everyone can work on it in the same way.
Standardization makes it possible to provide products and services of the same quality, and allows work to be carried out without interruption even in the event of a sudden absence or resignation of a person in charge. Companies that have standardization have visualized the processes of each business and have systems in place for training, etc., so they can quickly understand the content and get started on their work.
Causes of personalization
Companies that experience personalization may suffer significant damage, such as deterioration in business performance and a decline in the quality of products provided to customers. To resolve it, you must first understand the cause. Here I will explain why this occurs.
Highly specialized in work
If the work is highly specialized and requires specialized knowledge and skills, there is a risk of individualization. When a person is highly specialized, it takes a lot of time to acquire knowledge and skills, and it becomes a burden for the company to share information and provide education. As a result, there are many cases where the transfer of skills, knowledge, and know-how is postponed, and as a result, information sharing and education are not carried out, and only a small number of people are able to carry out the work. It’s a huge burden on the small number of people running the business, and if a small number of employees suddenly disappear, it will be very difficult to proceed.
Neglecting to create a manual
It is also common for companies to neglect creating manuals. If there is no manual in place regarding the correct procedure and coordination with other departments, employees will work in a state where they do not know anything. Originally, in the business world, emphasis was placed on the idea that “you can learn by observing work.” This awareness is not wrong, but not all workers in the world can carry out their work smoothly with this awareness. It is extremely important to consider the needs of everyone in the company and create manuals that can be quickly understood and systems that allow for smooth work.
Without a manual, we would have to work our way from a state of not knowing anything. In such a situation, it is difficult to “improve business results as quickly as possible” and “link to results”, and understand that it is the management’s responsibility if they do not lead to business results.
Too busy to share information
Focusing too much on sales and new orders, leaving each employee busy with various tasks and unable to share information, can lead to individualization. These are often seen in departments/companies and startup companies that suffer from chronic labor shortages.
If the person in charge of sharing information and creating manuals is busy doing the work at hand, it will be difficult to share information with others. Many companies think that “Currently, we are busy dealing with projects that are directly linked to sales, so it is difficult to share information and provide education,” but this situation only leads to a tendency to become more individualized.
A company culture that highly values individualized work
If the company culture is strongly focused on individual results, some companies may give high marks to individualized work.
Personalization is a very big problem for companies because there is no one who can replace the person in charge, but some employees who perform such work are highly regarded because there is no replacement. In some cases, they may even feel better about their condition because they are able to obtain it.
Additionally, there are companies whose corporate culture makes it difficult to evaluate the creation of manuals. This is because creating manuals and sharing information is not considered to directly lead to business results. In the short term, this will not lead to business results, but in the long term, all employees within the company will be able to work together in the same way, which may ultimately lead to great results. However, managers who do not have a long-term perspective do not evaluate them and consider them “unproductive.” Such an evaluation tendency will lead to further individualization.
No mechanism in place to encourage information sharing
Another major factor is the lack of a mechanism to encourage information sharing. Even if you try to share information within your company, it will be difficult to do so effectively unless a sharing mechanism is in place. Furthermore, even if systems are in place, if they are not efficient, the amount of man-hours required to share information may increase, leading to a situation similar to overwork.
6 disadvantages of personalization
As work becomes dependent on individuals, companies and managers face significant disadvantages and risks. Here we will explain six disadvantages.
Business black box
If left unaddressed, personalization can lead to a black box. Black boxing refers to the loss of understanding of business processes, as if the business were being carried out inside a black box. When it becomes a black box, the number of people who can carry out the work is limited, so if that person suddenly becomes absent, the work will come to a halt.
Additionally, if the process of execution is not visible, there is a risk that fraud may occur. A situation where there is only one person who can do the work can lead to a situation where “even if you commit fraud, it won’t be discovered” or “even if you make a serious mistake, you can cover it up.” Companies will not be able to make appropriate decisions because they will not know what kind of work they are doing.
It becomes impossible to maintain the quality of work
If work becomes individualized, there is a risk that the quality of products and services will deteriorate. If only the person in charge knows the work information, and another employee is working on it, it will be impossible to tell if there is a mistake or error in the work process. As a result, quality cannot be maintained.
Furthermore, if only the person in charge knows the work details, other employees will not be able to judge the quality of the work or evaluate the quality of the final deliverables. As a result, there may be cases where appropriate business improvements cannot be made and quality deteriorates before you know it. Failure to maintain quality can lead to a decline in customer satisfaction, which can result in significant damage to a company’s management.
Loss of know-how due to leave of absence or retirement
If the person in charge suddenly takes a leave of absence or retires, there is a high possibility that the know-how will be lost in the work that has become individualized. For example, if a person in charge suddenly becomes ill and is hospitalized for a long period of time, the reproducibility of the work will be reduced because no one has the process or know-how for that work. As a result, this know-how may be lost. The knowledge and know-how that employees have cultivated through their work can become an asset to a company. However, if it is lost without being shared, it should be seen as a huge loss.
The burden is biased towards certain employees
When tasks become individualized, the burden is disproportionately placed on the employee in charge of that task. This may lead to a situation where the person in charge is forced to perform tasks that cannot be performed by other employees, leading to a heavy burden such as increased overtime or having to work on holidays. The company may think that it would be good if the work progresses, but it is also possible that the person in charge may become dissatisfied with the situation or become physically ill due to long working hours. will need to be addressed.
In recent years, many companies have faced problems such as overtime work beyond what is required by law and work overload to the point where they are unable to take proper days off. If you do not create this kind of environment, you need to be careful as there is a risk of compliance violations and violations of labor laws, which will ultimately lead to a decline in your company’s image.
Difficult to properly evaluate
When the details of work are only known to specific employees, it is difficult for superiors to judge whether the work is being done well, and it is difficult to carry out appropriate work schedules. Since it is not possible to judge the quality of work or the level of growth from before, it is not possible to perform accurate personnel evaluations. If you are unable to conduct proper evaluations, your employees will likely become dissatisfied. Another major concern is that it is not possible to make appropriate management decisions because it is not possible to make decisions regarding the system, such as whether the number of people in a department is appropriate for the workload.
Know-how is not accumulated in companies/organizations
The know-how that employees have cultivated through their work can become an asset to a company. Sharing this know-how within the company will greatly contribute to the development of the company. However, if this information is not shared, the know-how will not be accumulated within the company or organization. Even if only certain people know how to proceed with the work, key points, and details, and the person in charge has an excellent track record or results, it will not be possible to maintain reproducibility if it is not shared. If the person in charge retires, their excellent know-how will be lost. It is also conceivable that you will not be able to continue doing business with customers who were attracted to your know-how, which will ultimately lead to major losses for your company.
In particular, what tasks should not be made personal?
Prevention and countermeasures are necessary for tasks that are expected to become dependent on individual employees in the future, or that have already become dependent on individual employees. From here, I will explain the tasks that should be particularly avoided.
Back office operations
Back-office operations are tasks that include creating an environment in which internal employees can perform their tasks smoothly, creating systems for running a business in a healthy manner, and completing administrative procedures. Specifically, it refers to operations such as human resources, accounting/finance, legal affairs, general affairs, and general affairs. These operations support the core of corporate management, so the quality of the operations may depend only on a specific employee, or all employees may not understand the details of the operations. The situation is very problematic. In particular, stable business progress is required, as processing of contracts and invoices, payment management, etc. can affect customer trust.
Customer support and project progress work
When dealing with customers and progressing projects, if employees influence the way they respond or progress, there is a risk of giving a negative impression to customers. If each employee has a different way of proceeding or what they say, it can lead to a loss of customer trust and have a negative impact on progress management. Care must be taken as there is a risk that this may ultimately lead to project delays or failure.
Incident response work
Incident response refers to systematic efforts that include responding to and preventing IT threats such as cyber attacks, security breaches, and server downtime. By properly handling incidents, it is possible to avoid all kinds of risks for a company, but when a problem like this occurs, the initial response is extremely important. If the initial response changes depending on the person in charge, the situation may worsen or lead to further damage. In order to minimize damage, create a manual for how to respond to troubles and security incidents, and make sure all staff follow the manual.
Points to eliminate individualization
Although individualization has a huge disadvantage for companies, there are a few points you need to keep in mind in order to overcome it. From here, I will explain the points to eliminate personalization.
Understand tasks that are individualized and identify areas for improvement
It is important to understand which tasks within the company are assigned to individual employees. Let’s visualize the work content and flow, understand the reasons why it is individualized, and identify areas for improvement. Please refer to the following points to check whether the work is dependent on the individual.
Distribute work responsibilities
When work responsibilities are concentrated on a specific employee, there is an increase in information that other people cannot understand, and there is a possibility that only that specific employee can perform the job. If responsibilities and burdens are concentrated, it will be difficult for those around you to notice if an accident occurs, and you will end up trying to resolve it on your own, which will take a long time, and ultimately there is a risk that it will have a negative impact on the company’s reputation.
Understand the scope of responsibility for work, and try to delegate authority to other employees as much as possible, or assign multiple people to be in charge. By having multiple people responsible for work, you can create a system that allows work to be carried out smoothly even in the absence of a specific person.
Simplify business processes
Personalization does not occur in tasks that anyone can understand, but it often occurs in complex tasks. Therefore, it is thought that simplifying the business structure will eliminate the problem of individualization. Let’s review the process from the perspective of “Is there a process that can be simplified?” and try to make the process as simple as possible.
Also, if there are any tools that can be used to simplify things, we recommend using them. There are cases where using tools can reduce the number of steps at once. However, while it is useful to have a variety of tools, in some cases, having too many tools can make it difficult to remember how to use them. It is important to keep the process as simple as possible.
Creating/updating manuals
Creating and updating business manuals is extremely important. When creating a manual, be sure to create one that will allow the work to be performed at a certain level or higher, no matter who is in charge. You can create something that is easier to understand if you include not only the details of the procedure, but also technical terminology and the storage location of related files. In addition, it is a good idea to create one that matches your characteristics, such as one that uses not only text, but also diagrams, illustrations, photographs, and videos.
Additionally, even if a manual already exists, review it from the perspective of “Can all employees do their work using this manual?” and revise it as necessary. If the work can only be done by people with a certain level of skill, there is a risk that it will become individualized again. If you find any points for improvement or better information during your work, write them down in the manual from time to time, and review the content regularly to create even higher quality products. People tend to feel that it is difficult to create a manual for highly specialized work, but creating a manual precisely because it is difficult can lead to an increase in the professionalism of the company or organization as a whole, which can greatly improve business performance.
Utilization of IT tools
Utilizing IT tools is also very effective. IT can be extremely useful in visualizing processes and streamlining information sharing. For example, it can be used in the following situations.
Utilizing advanced digital technology is an area of DX (digital transformation) that has the potential to fundamentally transform business processes. By using IT tools, it will be possible to efficiently improve business efficiency.
Benefits of standardizing operations
There are many benefits for companies when work is standardized, everyone understands the work contents and how to proceed, and everyone can work on the work in the same way. Here we will explain the benefits of standardization.
Maintaining and improving quality
Standardization helps maintain or improve service quality at a certain level. Efforts to improve quality require a system that can objectively evaluate where and what kind of problems exist in the process, and what improvements are needed to make it better. Promoting standardization will reveal business issues that have not surfaced in the past, leading to the maintenance and improvement of quality.
Leads to increased operational efficiency
It also has a significant impact on operational efficiency. By having multiple people understand the work details, it becomes easier to discover issues that the person in charge alone did not notice, which can lead to improved efficiency.
In addition, when tasks become individualized, the burden is disproportionately placed on the employees in charge of those tasks, which can lead to burdens such as excessive overtime or having to work on holidays. As standardization progresses, it will lead to solving problems in the working environment and improve the ease of working for employees.
Able to respond even when an employee is absent or resigns
By creating a situation in which anyone can work on a specific task in the same way, you can respond even when an employee is absent or resigns. Even when an employee is absent, other people can refer to manuals and continue working. Even when there is a personnel change or reassignment, the handover will proceed smoothly. By standardizing your business, you can prepare for the risk of employee retirement or taking leave of absence, and you will have fewer headaches when it comes to securing human resources.
Know-how is accumulated within the company
In an individualized state, know-how and information are known only to specific employees and are not shared with others. However, by promoting standardization, companies and organizations can accumulate know-how rather than relying on specific employees. Companies can share the know-how they have accumulated throughout the company, raising the level of the company as a whole and helping new employees understand the business smoothly.
By spreading know-how and information throughout the company, it is possible to improve the skills of the entire company, improving productivity and making it easier to generate profits. This could be a major point for further development of the company.
summary
In this article, we have explained the overview of personalization, the reasons why it occurs, the disadvantages it causes, and points to overcome. A situation in which only certain people can carry out work has the potential to deteriorate work efficiency and quality, and is a management issue that must be resolved as soon as possible. If you do not take any action thinking, “There are currently no problems in terms of performance, so it’s okay,” and you don’t take any action, this could lead to big losses in the future. It may be difficult to solve the problem all at once, but let’s start with what we can do, such as visualizing business processes and introducing IT tools. As a business owner, you must take responsibility for managing your company’s future potential, operational efficiency, and working environment. Eliminate individualization in a way that suits your company and use it as an opportunity for further development.