Why a Change in Business Requires a Change in Behavior

3 Critical Elements in Change Management

Enhancing the Management Performance System to increase visibility to the factors impacting project margin erosion throughout all operational business units.?

Each year, our client manages hundreds of projects across 9 Strategic Business Units. The company is driven by their vision of Building Partnerships, values that guide them to always Do the Right Thing and a strategy to Deliver Excellence.

“Carpedia has pushed our company in a more data-focused direction. We have established an Executive

Dashboard and monthly project review process to track key metrics, enabling our leaders to concisely report the status of their business units in a way that has not before been possible. Perhaps most importantly, this process is changing the “conversation” among our leaders from simply reporting numbers to identifying and discussing variances – a welcome change in our management behavior.”

Results????= Process + Performance + People

Steps

1. How will success be measured?
2. What metrics need to be moved?
3. What’s the baseline for how things currently stand?
4. Who will oversee the task of implementing change?
5. Who needs to sign off at each critical stage?
6. Who will be responsible for implementation?
7. What discrete steps and actions will the project include?
8. What falls outside of the project scope?

The Challenge

The challenge was to identify opportunities within various processes and the management system where project margins were being impacted. In January 2017, Carpedia was engaged for 40 weeks to deliver an estimated potential benefit of $2.8M.

While it’s important to have a structured approach, the plan should also account for any unknowns or roadblocks that could arise during the implementation process and would require agility and flexibility to overcome and Implement the Changes.

Results

As of February 2018, the business is confident in an incremental 17% improvement in gross margin.

Improvements were driven by method changes that were implemented in each of the focus areas.

• Utilizing historical cost data from previous projects to create conceptual budgets resulting in estimator hours being reinvested into the business.
• Optimizing the buy-out process to include more rigor and structure which includes having targets and a visible method for measurement.
• Enhancing the Project Review process to occur monthly, using a standard agenda and set of tools to conduct the meeting.
• Developing new tools for project resource planning to identify if the plan was not in line with the estimate.
• Implementing a new resource management dashboard to highlight when project resources were being ‘burned’ at an unacceptable rate.

Overall improvements to the Management Performance System included:

• Developing a business management calendar to set the cadence that aligns all business performance meetings.
• Implementing an Executive Dashboard to give SBU Leaders visibility to performance of key metrics on a monthly basis.
• Creating a method change scorecard to provide visibility to which SBUs were adhering to the changes and how much savings they were contributing.
• In addition, an infrastructure was developed to drive accountability, sustainability and continuous improvement.
• An Executive Sponsor was selected to own and oversee the method changes.
• A full-time Sustainability Manager role was developed to provide support.

Carpedia International Corp.

Carpedia is a tactical resource used by high performance organizations interested in step change performance improvement. With no capital investment required and using only the assets already deployed, our teams are imbedded within an organization fulltime to get the job done on predetermined timelines and cost. We do not write reports. We help our clients physically implement measurable improvements in their product, process, systems, and behaviors. By providing them with our methodology, skills, and tools we help them improve their operating cash flows. Carpedia works with leading companies in many industries including healthcare, finance, manufacturing, food and beverage, software development, retail, hospitality, and logistics.

www.carpedia.com

For more information please reach out to Andrew Rush, Executive Vice President of Operations. [email protected]