How do you monitor operational performance during times of rapid growth?
Develop measurement systems to track real-time status; do not simply rely on lagging financial indicators. By measuring key performance indicators you can make adjustments on the production floor sooner instead of waiting for a monthly or quarterly report. Make sure your measurements are driving the right behaviors for cost, delivery and quality. Do not get caught up in perfecting a measurement system prior to implementation due to variations or difficulty in acquiring data. The worst thing is to not measure, because learning and improvements will then be delayed. Experiment with your measurement system; just make sure you properly evaluate and modify it to drive improvements.
How do executives develop employees while meeting the operational challenges of growth?
If you have a work force that is ingrained in how things have always been done, you need to shatter that paradigm to transform operations and capitalize on existing opportunities in the market. Tell employees that adapting is essential in realizing the full growth potential for both them and the company. Build momentum for implementing change by realizing quick wins that increase employees’ confidence in the new way of operating.
Reward employees for driving change. Develop a system of reward and recognition for the behaviors that you seek, including being held accountable for outcomes, the ability to adapt and contributing new ideas to sustain improvements. Most employee engagements are driven not so much by monetary rewards but by being allowed to contribute to success. People want to work for a company that is not going to settle for second best and will continue to get better and leave them with a good feeling about long-term potential.
What are mistakes executives often make involving operational improvement initiatives?
One of the biggest incorrect assumptions leaders make is thinking that operational improvement is a single event rather than a collective mindset and continual process. Be sure you are investing in people’s ongoing skills and knowledge of lean principles through continual training; do not make it just a one-time expenditure.
Another mistake is spending too much time trying to develop the ideal solution. Overengineering the ‘perfect’ system keeps you from taking action. Instead, have an exchange of ideas that starts with rapid implementation and is followed by an evaluation, which allows for any necessary adjustments.
Kevin Linehan is a project manager at Definity Partners. Reach him at (866) 520-2003 or [email protected].