Why CEOs struggle to align their organizations

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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The origin of “R2”

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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The art of seeing opportunity

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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The problem and need for savings evaluations

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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Productivity improvement with no benefit

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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Why results don’t always sustain

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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But where are the actual savings?

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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