Ahead of the 18th Annual OPEX Week: Business Transformation Summit, the PEX Network interviewed Rick Hepp, Executive Director, Operational Excellence, Bristol-Myers Squibb and Gerry McCool, Senior Director, Organizational Effectiveness, Jabil. Below is my take on a few of their key points on the topic of “Driving Business Performance and Organizational Effectiveness”. To read the full interview, click here >> Full Interview
Make data visible
Data is critical to better business decisions when aligned with strategy. In fact, all organizational efforts must be geared towards a few focused initiatives to have a chance at competitiveness and success. One way to measure progress against strategic objectives is to diligently measure and report relevant metrics. In Hepp’s words:
Recognize that it’s not about gathering the data; it’s having the data available to make better business decisions.
It is important to minimize the amount of resources and time needed to extract that data and reallocate it to data analysis. The latter is what is needed in order to r
eadily identify initiatives that are going off course. As data analysis is a precursor to im
provement efforts, appropriate resources should be focused on reading, analyzing and interpreting data.
Share the data at all levels of an organization
For an organization to be successful, the culture should focus on transparency and data driven decision making. Indeed, sharing relevant metrics at all levels of the organization is critical to success. At the leadership level, reported data is output based and directly tied to strategic initiatives. At the ‘operations’ level, the data is more process based, meaningful to front line employees and actionable. Process data is also tied to strategic initiatives, although this may not be as obvious as with output metrics. The network of data connects the various parts of an organization and is aligned with business direction and goals.
Merge KPI’s and KBI’s
Transparency of information positively impacts employee engagement, and causes them to participate more readily in improvement efforts. McCool says:
[At Jabil,] we …work hard to enable a culture of employee innovation and continuous improvement.
An organization is significantly more productive when employees are satisfied with their job. Employee behavior is referred to by Hepp as the Key Behavioral Indicators (KBI’s). In his view, a business is much more successful when linking up Key Performance Indicators to KBI’s. Only then, are target goals achieved and sustained over time. Processes and people drive business metrics.
If you would like to hear more from Hepp and McCool as well as other great speakers on the topic of Business transformation, consider attending the OPEX Week: Business Transformation World Summit, 23-27 January 2017, Orlando, FL. The 2017 OPEX Week is offering workshops, Interactive Discussion Groups and sessions covering topics such as: Business Transformation, Customer Centricity, Innovation, RPA&I, Data Analytics, Agile, Leadership and Culture. Find out more >> OPEX Agenda