Business processes that you rely on are as much assets to your organization as the physical ones you maintain for production. It appears the hot Enterprise Asset Management topics are all focused on operational excellence, business transformation and process optimization. How are organizations re-evaluating continuous improvement and the impact of digitalization to transform their businesses and focus on value creation?
To investigate these discussion points we asked Chris Wheeler, Cohesive Solutions’ Propel Lab Services leader. Chris is our February Employee Spotlight, he currently has a front row seat to all things EAM, and he shares his views on performance management.
Where did your career with Asset Management and Operational Excellence begin? How do the two build off each other (EAM + Performance Management) and what is the importance of them co-existing in the business together?
My career in EAM began on a manufacturing floor working in Quality Assurance supporting Department of Defense contracts producing statistical QC production analysis required by MIL-SPEC. I was hired by IBM due to my manufacturing background shortly before the acquisition of MRO software (the creator of Maximo for those who were not around in those days). Having spent 10 years implementing Maximo around the world, all too often I observed the re-implementation of existing process as part of sun-setting older legacy systems. Establishing performance expectations were an afterthought of most implementations. This was concerning, how can we unambiguously measure performance improvements correlated to these large system integrations? I now have the opportunity to focus on a solid methodology and enabling technologies to resolve the overall performance paradigm for our clients. My role at Cohesive is very rewarding as it allows me to help clients make healthy business improvements.
As a subject matter expert in the field of EAM and operational improvement, what are some exciting trends that you see in the enterprise performance management area and operational excellence space?
A key trend all my clients share is the transition to an Objective-Driven approach as part of adopting Performance Management. There is growing concentration around bridging the gap between strategy and execution. I heard someone recently comment on where most organization’s strategic plans end up – “in the desk drawer of course.” It is fun taking part in breathing life into that strategy, and as clients learn that one transformation idea works, they are inspired to seek more.
What types of improvements are you seeing in those organizations that make performance management and operational excellence a priority?
I see a culture shift occurring from top to bottom in organizations that share the common thread of Performance Management. One client changed the way they evaluate and prioritize potential initiatives to require performance measurement as part of its consideration for execution. Ten minutes of every staff meeting is dedicated to performance management. They also communicate the performance of key business processes to all employees, KPIs are displayed on their intranet site and around the offices on flat panel displays that will soon include Propel content.
Do you have any tips for success in the implementation of a performance management and operational excellence strategy?
I think Stacey Barr sums it up pretty well in her “Why Your KPIs Still Suck” – it’s all about the approach; GET A METHODOLOGY. Our methodology follows a four-phased approach that is accomplished within two to four weeks, covering;
- Strategic Planning / Alignment
- Operational Improvement
I advocate a methodology that allows organizations to remain agile in their activities surrounding configuration and operational improvement, yet laser focused on time-to-value. In this manner, leaders can continue and evolve initiatives and objectives.
Numbers do not lie, what are some positive results you see impacting organizations today?
One of our clients is experiencing a 19.3% improvement in year over year planned to unplanned work, a 14.69% improvement in year over year scheduled compliance and a 31.02% improvement in year over year PM compliance. The take away is to realize at the onset of this journey that improvement does not occur overnight. It’s a lasting commitment to operational excellence that is constantly evaluated to ensure your goals are aligned with your operations.
The growing concentration on bridging the gap between strategy and execution leads organizations to an emphasis on Performance Management. Propel Performance Management was designed for organizations to draw a line of sight between strategic objectives and every day activities, using metrics and KPIs to monitor, manage, track, and analyze an organization's initiatives in real time to manage outcomes and achieve operational excellence.