Organizational Performance Metrics

 

ORGANIZATIONAL PERFORMANCE METRICS


Most organizations grow organically without stopping at key platforms and reconstructing the organization for operational and communication efficiency. Also, part of organizational efficiency and communication is visible metrics properly focused.

 

Organizational Performance Metrics Case Studies


The Red Safety Cone

SOS was engaged by a client who was under contract to saw and fill millions of feet of highway joints in Arkansas. Its best performance was below that anticipated during the bidding process. After repeated efforts to meet production rates, the contractor determined that the estimator had errored in the bidding performance for the project, and prepared for a six figure loss on the project. The owner contacted Strategic SOS for a strategy session to manage the loss.

Once on board, SOS spent one day at the administration office reviewing the past efforts of the project, the metrics, and the management. SOS then flew down and watched the crews for a day. At the beginning of the shift the following day, SOS told the crew that there was a cone on the side of the roadway – which was 30% farther than they had ever reached before – and if the crew reached the cone by shift-end, they would all get a steak dinner, compliments of SOS. The crew made the cone 45 minutes prior to shift-end. Thereafter, the contractor utilized a visible target for their production metric on their jobs, and through this very simple yet powerful solution, the contractor was able to satisfy its performance costs under the contract. The project came in as bid.

 

The Management Directives

A company was not competitive in its industry and its processes were not efficient. SOS was hired to assist with getting the company to perform in the top quadrant of its industry. SOS identified and categorized over 300 areas of inefficiency and areas that were below best practices. SOS then set up a budget for each area and a company in-house team for each area. The company management then directed those teams and is in the process to bring the company up to industry best practices.