Situation

Our client worked with us to improve managerial skills to identify, analyze and remediate on-the-job performance problems and consistently implement operating principles and objectives. A continual evaluation of leadership competency and performance provided an ongoing feedback and development opportunity to keep managers’ skills sharp, ensuring sustainability of financial and operational improvements.

Advisian’s work began with two separate analysis diagnostics: a Leadership Effectiveness Assessment and an Organization Effectiveness Survey. The assessments identified several areas for improving management skills and also identified available operational improvements through enhanced management capabilities.

Findings

The project, in which Advisian partnered with the client in both design and implementation, focused on five critical areas of opportunity:
  • Delivering management training (through a Resource Management Laboratory)
  • Implementing sustainable operational changes
  • Implementing on-the-floor management coaching for managers
  • Implementing a comprehensive Execution Control System (ECSSM)
  • Implementing a client-driven Sustainability Audit process

Actions

Management skills were addressed in a Resource Management Laboratory Workshop attended by operations managers. The goal of the workshop was to increase operating efficiency and profitability. This was achieved by improving the managers’ abilities to respond to both the demands of their job and the needs of the company. The result was the development and execution of a 10-module, 40-hour Leadership Development Program.

While leadership development was the initial focus, the client also recognized the need to improve the performance of other important aspects of its business, including the redesign of Operations’ processes and establishing Key Performance Indicators (KPIs), establishing and implementing Best Practices, establishing clear roles and responsibilities, setting quantifiable and measurable goals and objectives, and developing management tools and systems to help implement and sustain the changes in management skills and behaviors.

Several initiatives were undertaken to design, implement, and sustain process and system improvements in shop-floor operating performance, which were now possible due to the changes in management skill and behavior. Among these were On-The-Floor Coaching, ECSSM and Sustainability.

Results

Advisian exceeded the deliverables initially established with the client. Profitability improved, productivity increased, and management had better control over plant operations:
  • Seventy-five percent reduction in annualized hidden lost time: $4.5 million
  • Increased sales potential: $7 million
  • Potential savings in Cost of Goods Sold: $2million
The project confirmed that there were critical personnel decisions that needed to be made, enabling the client to act on them effectively and quickly.