EOM CHALLENGE: MD | CEO | Senior Managers, do you do this?
- Andrew James
- Feb 2, 2020
- 2 min read
Updated: May 30, 2020
Can you believe it, January 2020 is done and dusted.
Now, let me guess, first thing on Monday morning the 3rd of February, you, and your leadership team are all running reports for last months results.
You know the ones, Revenue / Profit / Margin / DIFOT / OWR / TRIFR......... they go on, and then you all get busy creating management reports to justify the result.
One issue, these are ALL last months results, I challenge you all to explain how looking and justifying last months results will drive and deliver this months results.
It won't, SIMPLE!
It's like driving your car looking in the rear-view mirror. You have this BIG windshield to see whats coming, you are able to see what lies ahead and take pre-emptive action. You are able to make informed decisions when you are looking straight ahead through the big windshield, how do you do that when you are looking at a result you can no longer influence? You aren't able too.
Reviewing KPIs are essential, but being fixated on justifying them is not. Your teams should be fixated and focused on the inputs they are committing to that will change the result.
To utilise OHS as an example, you focus on the lead measure not the lag measures to ensure your team members go home safe each and everyday. Reporting on lag measures such as LTIs / MTIs / TRIFR will not make your teams go home safer, simple.
Focusing on LEAD measure will! Tool Box Talks, Walk the Talks, pre-start warm-ups, 5's will change behaviour, influence and educate your teams regarding the importance of safety, thus impacting on the amount of injuries that will occur and ultimately TRIFR.
Now, why don't your sales team / supply chain teams do exactly the same? Focus on what WILL influence the result, not justifying the result!
As a past senior manager leading large teams in ASX listed companies where this rear-view mirror approach is ingrained, I knew there was a better way, so I created the Rule of 3 - Complexity Made Simple.
It provides focus and disciple on LEAD measure for both Sales and Supply Chain teams and will deliver results!
Andrew James
M: 0400 371 557
in: https://www.linkedin.com/company/31166443
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