Properly integrated management systems are the most important tool that a CEO has for aligning an organization and creating a culture of accountability and continuous improvement. Management systems help all management levels plan, execute, report and improve their area of responsibility in accordance with the CEO’s strategic direction.
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When we studied organizations and how management reacted to off-schedule conditions or variances from their plan, we noticed that results that came relatively close to an objective were generally considered “good enough.”
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If you put some smart people in a room and ask them to look closely at your processes and systems, they will figure out better ways to do things.
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When we bring new consultants on board, they usually don’t see opportunity when we ask them to observe a functional process. We have to teach them what to look for — and then train them how to watch the process objectively.
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A basic objective of many improvement programs is to figure out how to improve planning. The idea is that if you can plan better, you won’t end up scrambling as much when it comes to actually executing the plan.
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Every manager needs to assess their resource requirements, so they can have the right number of people they need to get work done while also being as productive as possible.
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Financial managers are often skeptical when they hear people claim that their projects have generated, or will generate, substantial financial benefit. There is often a long legacy of projects or investments that were based on some type of ROI.
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One of the great heartbreaks of performance improvement is to generate legitimate gains in productivity, but then discover that they have had no material impact on an organization’s financial results.
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To meaningfully impact financial results, performance improvement needs to sustain. Performance improvement projects, by design, jump performance from one level to another.
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One of the more common complaints we hear about consultants and internal improvement projects is that the savings that are promised or reported never really hit the financial statements.
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