$1million reduction in waste – by focusing on measurable results
- An organization’s culture was process heavy – focusing on how the end goal was reached rather than the goal itself. This had to change with a shifting business environment, the organization needed to be more agile.
- It was a difficult challenge as the leaders of the organization had been very successful by planning things out and monitoring milestones rather than actions.
- The opportunity to start making this shift came during the annual planning process with a new VP leading the organization. Defining the critical measures that would measure effective implementation of the plan was tough.
- The vision was to shift the regular leadership team meetings to be exclusively on these outcome measures.
- Working with peers on the leadership team a framework was developed. The two day planning session was focused on developing measures and leadership team members assigned to complete individual measure development and begin implementing.
- The agenda of the leadership team meetings was changed in the following year to focus on this balanced scorecard. An overview was presented at the start of the meeting and anything that was “red” was reported on by measure owners and actions taken discussed with the leadership team.
- Through the year this idea started to come to life as success measures were defined and implemented. One example of measures was capturing the number of Lean Sigma ideas that were implemented and what the benefits were.
- The focus of the leadership team became clearer – what was delivered and the business was impacted by focusing on the outcomes that were achieved (and recognizing the individuals and team responsible) and those that were not (by finding the root causes and fixing the issue).
- Several outcomes were tracked in the first year. One example was the lean sigma measures. By the end of the year a stretch target was agreed –and at the midpoint of following year it looked like this stretch would be achieved despite what had looked like an improbable goal just six months previously.
- This led to a more efficient annual planning process focused on setting targets for the scorecard
- Comment from the VP “You did me the ultimate service on many occasions by making me look good when, if left to my own devices things would have not gone so well (including the leadership team meetings)”