Comment: Improving is easy, isn’t it?
-Ian Walsh, Managing Director, Intent Group. I was recently asked, ‘why are there so few world class companies?’ This is a very good question: there aren’t that many globally and there are even fewer in New Zealand. Before we can answer that question however, there are other questions we might consider first, such as ‘what is world class and how do you define it?’ This question doesn’t get to the nub of the issue though; it’s more a question of measurement. The more relevant question is ‘what makes it so difficult to drive improvement and become a world class company?’ It’s not like there aren’t a few companies trying to get better. So, what separates the ones who are making progress from the ones who are not? There’s been extensive research over decades on this. As I’ve mentioned in previous articles ‘What gets measured gets managed’ and ‘It’s all in the data’, better performing companies have well-defined measurement of performance throughout the business with a balance of leading and lagging indicators, and they are able to analyse this data to provide the right information in the right format in a timely manner. However, while these performance measuring systems are necessary for world class performance, these alone are not sufficient to make a company world class. This is akin to trying to climb Everest after having had some climbing lessons and bought the right gear. To make the ascent you will need more. Research shows better performing companies have improvement structures, multi-tiered meetings which connect and align the organisation to supercharge improvement. ‘We have those!’ I hear you say, as many clients in the past have noted. Many companies have beginning of day, end of day, daily management meetings and such like. However, some of these meetings are nothing better than […]