Operational Governance Knowledge Flashcards No. 15/19

PDCA (Plan-Do-Check-Act)

From the Operational Governance flashcard deck; today this discipline goes by BizOps. The original card is republished here as a field note.

01 What is it

A schematic illustration to convey the principle of improving things through measurement — the circular shape conveying the notion of continual improvement.

It is the best-known version of several similar ideas that evolved during the XX century. PDCA has influenced many business frameworks and standards, including Lean, ISO 9001, and Agile.

02 When is it useful

  • When you need a very simple way of asking for — or explaining the idea of — measurement-based improvement.
  • When you want to model a simple cycle of pilot testing and ensuing implementation.

03 How to use it

Clearly define what each letter really implies for your team or company — it is a common source of confusion, and there is no real “down to earth” consistency in the available literature.

Then categorize the steps or milestones of your initiative under each of the labels of the acronym.

04 The PDCA cycle

  1. 1PlanDocument a sequence of steps expected to achieve a specific goal.
  2. 2DoTake the steps in accordance with the plan.
  3. 3CheckAnalyze the performance and outcomes to identify adjustments.
  4. 4ActContinue executing — this time including the adjustments.

↺ continual improvement

05 PDCA, applied three ways

PDCA applied to a finite initiative

  • Plan: document a sequence of steps to be taken with the expectation of achieving a specific goal.
  • Do: take the steps in accordance with the plan (perform, or execute, the plan).
  • Check: analyze the performance and outcomes of the Do phase to identify adjustments needed to improve the current execution.
  • Act: continue executing the plan — but this time including the adjustments recommended in the Check phase.

PDCA applied to an iterative process

  • Plan: document the sequence of steps that constitute the process.
  • Do: take the steps in accordance with the plan (execute the process).
  • Check: analyze process performance to identify adjustments necessary to improve the current execution.
  • Act: continue executing the process, including the adjustments from the Check phase.
  • Plan again: re-engineer the process by documenting a new and improved sequence of steps, derived from the lessons learned in the previous run. Do; Check; Act; and around.

PDCA applied to a pilot-conditioned implementation

  • Plan: document a sequence of steps expected to achieve a specific goal, and the threshold of acceptability for the result of a test.
  • Do: perform a test in a limited scope, but representative enough to validate the hypotheses to a degree of reliability.
  • Check: analyze the test’s outcome to determine viability at scale.
  • Act: permanently implement the planned initiative if viability was deemed acceptable in the Check phase.

06 Common pitfalls

  • It is NOT a methodology or detailed framework. It is an aid for communicating certain notions — don’t try to use it to fully model a very complex system.
  • “Do” and “Act” are very similar words. Make sure everyone understands the difference.
  • “Do” and “Act” should not include analyses and reviews. They are about action.

07 References and resources

Warning from the original card: the publicly available literature is very superficial and inconsistent, especially when it comes to implementing this as a useful tool.