To remain competitive in today’s fast paced business world, you must provide more than a paycheck to your employees. In addition, you must foster a work environment that allows for maximum productivity. Creating a work environment that is well managed and efficient is vital to the ongoing success of your organization. In fact, your work environment can become one of your key bottom-line assets. Today’s work environment is far more complicated than in years past - new technology, balancing life goals, health concerns, safety, security, and more educated employees with divergent goals. These, of course, must be reconciled with increasing pressure on companies to perform better and faster. Building a strong work environment can lead to increased business performance when two concepts are implemented – "5 S’s" and relationship management.

The 5 S’s, first coined by Hiroyuki Hirano in his book 5 Pillars of the Visual Workplace, describe a system for improving quality, minimizing the chance for mistakes, and enhancing the business environment. His system encompasses a five-step process which is implemented in a logical order. It can take anywhere from a few months to two years to fully implement. After implementation, it provides a framework for continuous improvement.

The first S is seiri, which is translated to mean sorting or structure. It drives organization within your company and encourages removing all unnecessary items from the immediate workplace. Separate the unneeded from the needed. The process is known as "red tagging." All non-essential items receive a red tag and are moved to a central storage area. The tagged items are then evaluated for need and stored according to their priority. This process frees up important workspace and allows for greater focus on the task at hand.

The second S is seiton, which is translated to mean set in order or systematize. This drives the neatness and retrieval of stored items. It is driven by such questions as: What items and materials do I need to perform my task; How many others within the organization need this same item; How quickly do I need it; Where should it be stored for maximum accessibility?

The third S represents seiso, which means shine or cleanliness. It is critical that all work areas be thoroughly cleaned on a regular basis. Employees really do take pride in their work area. Create a work environment where cleanliness is emphasized and you will undoubtedly experience an improvement in quality. Employees will begin to take greater ownership in the maintenance of their corresponding equipment and service responsibilities.

The fourth S is seiketsu or standardize. Here the emphasis is on the daily application of the first three S’s. Best practices are implemented and employees are expected to adhere to the ongoing implementation of an orderly environment.

The final S is shitsuke, which translates to sustain or discipline. Naturally, the tendency will be to regress into old habits once the newness of any system is implemented. Your greatest return will be in committing to this step. Once your new environment has been established, accept nothing less than adherence to the new standard.

The benefits from enacting the 5 S’s are better efficiency, greater organization, and higher employee morale. While a plan such as this is difficult to implement, your probability for success will increase by adhering to the following three steps: gain buy-in from top management, promote the new program, and train all employees.

Once you have provided an optimum workplace, turn your attention to more effective relationship management. Three simple strategies can be utilized to improve employee relationships with each other and with management – creating an ownership culture, maximizing information exchange, and offering flexible and creative benefits.

Action Step:
Improve employee relationships by keeping them informed and by offering creative and flexible benefits.Your ownership culture begins with treating employees as a valuable component of the organization. A common employee complaint revolves around a lack of understanding as to the business objectives. As the old adage goes, "Your actions speak so loudly, I cannot hear what you are saying." Self-managed work teams are a great way to foster an ownership culture. These teams operate on a daily basis without direct supervision. Many of the previously made management decisions are shifted to the team. These include such tasks as scheduling, training, and performance assessment.

Keep employees up-to-date with as much relevant information as possible. Information provides the impetus for them to improve and reach a higher standard. Strive to: support decisions of your staff, provide clear directives, be vulnerable, delegate effectively, and provide adequate resources.

Learn to give effective feedback and constructive criticism that has a purpose. Try the following model: frame your comments around the specific performance in question rather than addressing ancillary issues; your comments must be timely; identify some positive aspect of their performance; and provide suggestions for improvement.

"If it is very painful for you to criticize your friends, you are safe in doing it. But if you take the slightest pleasure in it, that is the time to hold your tongue."
- Alice Miller

Offer as many creative and flexible employee benefits as possible such as: flexible hours, telecommuting, fitness center memberships, bonus programs, employee referral programs, mentoring programs, business cards for all employees, and conflict resolution services.

While compensation is important to creating and maintaining a successful work environment, employers are now realizing that it is simply not enough. Today’s employees are looking for more. They want to understand clearly what the expectations are and how they are performing. They also need a regular dose of praise. A better work environment will lead to increased business performance and easier attraction of talent.

* 5 Pillars of the Visual Workplace: The Sourcebook for 5s Implementation, Hiroyuki Hirano, 1995

Mark Jordan is Managing Partner of VERCOR. Mark brings a unique, multi-disciplined approach to the mergers and acquisitions arena by drawing on his advanced tax strategies, estate, and financial markets knowledge. He also holds an MBA, BS in Business Administration, and numerous designations.