Maybe you’ve never actually said it out-loud. Maybe it’s just been one of those things that nags at your mind while you’re showering or during your morning and evening commutes.
Maybe you even have struggled with admitting to yourself—let alone openly, in a company meeting—that this is, and has been, a problem for several years. It might be that you’ve struggled with this matter—nearly in silence—for a decade or longer.
What is this nagging question?
Well, the question varies a bit, but it usually comes down to something along these lines:
WHY? Why, when we have spent our most precious resources of our time, our energy and our cash, do we still fail to make long-lasting and significant improvements to our bottom-line? We don’t scrimp on talent, and we’ve expended huge effort from time to time, but nothing seems to last.
Strategy starts at the top. We all know that.
But, your company’s ability to effectively implement strategy is entirely dependent upon its ability to fully align internal resources so that they are all focused on the top-level goals established in the strategy.
Most—in fact, almost all—organizations fail at this task!
Competing initiatives, like improvement efforts that are focused on one department or a single function, drain away time, energies and money. Programs, like the purchase and implementation of new technologies, may also consume vital resources while the programs themselves have never been effectively linked in measurable ways to the company’s overall strategies.
Investment decisions are often made in a fragmented way—investing in an “improvement” in this department or that function in the vague—and, frequently, vain—hope that it will in some mysterious way contribute effectively to substantive bottom-line improvements.
Because the inter-dependencies across silos and functions are seldom fully comprehended, improvements in one silo or function are too frequently negated by unanticipated effects in other silos and functions after the time, energy and money have already been spent.
In order to hit new inventory target levels, stock-outs and manufacturing delays increase. Manufacturing and purchasing cost targets are finally achieved, but quality falls below acceptable limits and the ability to deliver on-time declines, too. Key products for crucial customers are hitting their targets while the other 80 percent of products and customers suffer and sales are lost.
Agreement on the need
If you are like most folks, you and your whole management team agree that what is desperately needed is a system of metrics (KPIs) that encourage appropriate local actions while being fully in-synch with corporate strategic goals and that actually deliver consistent bottom-line results.
While there is much agreement on the need, most companies have spent years and years struggling to find such metrics and guidelines. So, they keep re-trying the same things they have already tried dozens of time before, hoping beyond hope for different outcomes this time around.
This is real insanity: doing the same things over and over again, but hoping for different results.
The only way to break out of this cycle is to radically change your thinking.
Why should you expected radically different results from doing the same things that you—and everyone else—has been doing and trying for the last dozen or more years?
If you are going to keep doing the same things, you are going to keep getting the same (mediocre) results.
What you need is a new way to think, and we can help with that. Changing what you look at will change what you see, and changing what you see will change what you measure. And, changing what you measure will change how people act. And changing how people act may dramatically improve your bottom-line now, and in the future.
Contact us with your questions.