New Data – New Questions: Management’s Link to Higher Profit and Faster Change
Companies view optimization mostly as an investment exercise – new equipment and systems that will improve tonnage and reduce cost just because they are installed and being operated/maintained by the workforce. It is important to recognize that these assets don’t come with barriers that prevent optimization from occurring – the barriers reside in the management system and culture and are caused by weak or non-existent links to optimization efforts. Understanding and removing the barriers to optimization will strengthen the links between equipment/systems, the management system and the culture.
To build these links, it is important to consider a 3rd set of data, one that does not appear on the general ledger or in the budget. This set of data reflects “the best” effort and can be higher or lower than budget. This set of data is strategically selected by management and enables the connection to decision-making, communications and culture. Amazing things happen to performance and culture when 3 sets of data are used to drive performance. The management team and the workforce ask new questions about performance, problems and opportunity. Change happens faster, so much faster that you must experience the speed to appreciate it.