Balanced Scorecard
All companies have existing performance measures. Are these compatible with a Lean environment? Would they be counteractive to a Lean implementation, promoting the wrong behaviours?
What about the reward and recognition system? What behaviours are encouraged by individual performance objectives? Is there anything in there to encourage teamwork or problem-solving? What is the impact on performance measured of an operator stopping the line to resolve an issue? And do annual objectives encourage managers to "get out on the Gemba" supporting their teams, or are they too tied down by variance analyses on which they are judged at the end of the month?
Lean Business France can help you review your performance measures so that they are aligned with the behaviours you are trying to encourage. We would expect that :
- at the top level, you are given an almost equal importance to the five main categories : Quality, Cost, Delivery, Safety and Morale - if one is given preference over the others, this is the one that the lower part of the organisation will focus on.
- you would develop the capability of implementing short-term measures for specific issues for the time it takes to resolve the problem.
- the efficiency of value-stream processes be measured, and that the targets encourage process improvement,
- the objectives are 'SMART' (Specific, Measurable, Action-oriented, Realistic, Time-Based).
People are the key to Lean implementation success, and people at all levels of the organisation respond best to whatever criteria they are judged on. Contact us at contact@leanbusiness.fr for a review of your own Balanced Scorecard and its coherence with your Lean objectives.