show me the metrics from change management 2014

SHOW ME THE METRICS TURNING BEHAVIOR INTO COLD, HARD DATA

JEFF NEVENHOVEN SENIOR CONSULTANT

LIFE CYCLE ENGINEERING, INC.

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SHOW ME THE METRICS

Behaviors

Metrics

Data

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LEARNING OBJECTIVES

•  Translating general or broad stated behavior changes into measurable actions

•  Making the connection between behaviors & key performance indicators

•  Measuring behavior change

4

CHANGE

Project X

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THE BUSINESS DRIVER

6

CHANGE SPECIFICS

Job / Role Realignment

Organiza6onal Restructure

Standard Work

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THE DESIRED OUTCOME

Reduced Opera6ng Cost

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Iden6fying & measuring the new behaviors needed

to aFain the desired business

results

THE 1ST CHALLENGE

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What? Who? How? KPIs? Results? Step 2

Define the change

(s)

Step 4

Define how people will

function differently

Step 3 Define who will be required to

change

Step 1

Define the Outcomes &

Benefits

Step 5

Define key performance indicators to

monitor progress

Re-Structure

Job / Role Alignment

Standard Work

Planners / Schedulers

Front Line Employees

Supervisors

Managers

Lower Operating Cost

Increased

Throughput

Increased Revenue

Schedule Compliance

Overtime

Rework

Backlog

CHANGE OUTCOME MAPPING BEGINNING WITH THE END IN MIND

Collaboration

Coordination

Disciplined

Leadership

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Define the change

(s)

Step 4




change

Step 1


Benefits

Step 5


monitor progress

Re-Structure


Standard Work

Planners Schedulers

CHANGE OUTCOME MAPPING

Discipline


Increase

Throughput

Increased Revenue

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CHANGE TRANSLATION

•  Discipline? – Standard Work Adherence

•  Follow standardized process •  Utilize planning systems & tools

–  Job / Role Compliance •  Develop Job Plans & Schedules, not:

–  Supervising Employees –  Troubleshooting Problems –  Procuring & Delivering Materials

Planner Scheduler

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Backlog

#’s Job Plans

#’s Bill of Materials

Estimation Accuracy


Define the change

(s)

Step 4




change

Step 1


Benefits

Step 5


monitor progress

Re-Structure


Standard Work

Planners Schedulers


Discipline


Increase

Throughput

Increased Revenue

Role Specific Measures

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Define the change

(s)

Step 4




change

Step 1


Benefits

Step 5


monitor progress

Re-Structure


Standard Work

Planners / Schedulers

Front Line Employees

Supervisors

Managers


Increased

Throughput

Increased Revenue

Schedule Compliance

Overtime

Rework

Backlog


Collaboration

Coordination

Discipline

Leadership

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BEHAVIOR / RESULTS CONNECTION

People

Behaviors

Individual KPIs

Departmental KPIs

Business Results

Planners & Schedulers

Discipline

Collabora5on

Coordina5on

Es5ma5on

Accuracy

# BOMs

# Job Plans

Schedule

Compliance

Rework

Over5me

Backlog

Improved Throughput Lower Opera5ng Cost Increased Revenue

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Assessing if employees were making the change and impac6ng the

KPIs

THE 2ND CHALLENGE

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ROI OF CHANGE MANAGEMENT

© Prosci. All Rights Reserved. Used With Permission. www.change-‐management.com

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ROI OF CHANGE MANAGEMENT •  The human factors that determine _inancial return or ROI – Speed of adoption

•  How quickly are people up and running on the new systems, processes and job roles?

– Ultimate Utilization •  How many employees (of the total population) are demonstrating “buy-‐in” and are using the new solution?

– Pro_iciency •  How well are individuals performing compared to the level expected in the design of the change?


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ROI OF CHANGE MANAGEMENT


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MEASURING CHANGE -‐ PURPOSE

•  Auditing Tool – Would Identify

• When and where the changes were being applied

•  How many employees were applying the changes

•  How well employees were applying the changes

Adop6on

U6liza6on

Proficiency

ROI of Change

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MEASURING CHANGE -‐ DESIGN

•  The Audit Tool – De_ined Key Behaviors

•  Based on Standard Work

– De_ined Who •  Areas, Groups & Individuals

– De_ined How & When •  Observation, Documentation & Data Review

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MEASURING CHANGE -‐ SCORING

1 = Behavior not evident 2 = Behavior is being applied inconsistently or by only a few employees 3 = Behavior is applied consistently by multiple employees but requires reinforcement 4 = Behavior is applied by all employees without reinforcement 5 = Behavior is valued & owned

*Red or low scoring areas iden5fied poten5al areas of resistance and or

implementa5on issues

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Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6Work ID Process 2 3 3 4 5 5 2 3 3 4 4 5Planning Process 2 3 3 4 5 5 2 3 3 4 4 5Scheduling Process 2 3 3 4 5 5 2 3 3 4 4 5Execution Process 2 3 3 4 5 5 2 3 3 4 4 5Closeout Process 2 3 3 4 5 5 2 3 3 4 4 5E/Break-in Process 2 3 3 4 5 5 2 3 3 4 4 5


Area D

Area BEvaluation Summary

Evaluation Summary Area C

Area A

MEASURING CHANGE -‐ RESULTS

•  Ideal Results – The ROI would begin to be realized upon implementation as employees adopted and applied the changes

– As employees become ef_icient and effective with the changes the associated KPIs would improve

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•  Actual Results – Change was adopted almost immediately in all areas

– Employee utilization and pro_iciency varied considerably

– Change resistance was easily identi_iable

– Auditing identi_ied solution design _laws



Area D



Area A

*The Audit Results provided insight on where addi5onal change management

coaching was required

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Business Management Baseline 6 Month Rx Target M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 YTD

1 55.0% 65.0% 75.0% 56.0% 56.0% 57.0% 58.0% 60.0% 65.0% 66.0% 70.0% 70.0% 79.0% 80.0% 85.0% 57.3%

2 65.0% 75.0% 85.0% 66.0% 66.0% 67.0% 70.0% 72.0% 74.0% 76.0% 80.0% 77.0% 81.0% 83.0% 82.0% 74.5%

3 $5.00 $4.75 $4.00 $5.00 $4.95 $4.93 $4.92 $4.90 $4.80 $4.50 $4.73 $4.50 $4.35 $4.30 $4.00 $4.66

4 $5.00 $2.50 $2.45 $5.00 $4.85 $4.88 $4.60 $3.00 $3.00 $2.85 $2.85 $2.85 $2.80 $2.50 $2.50 $3.47

5 $6.00 $6.00 $5.40 $6.00 $6.00 $5.95 $5.95 $5.75 $5.75 $5.75 $5.55 $5.55 $5.60 $5.40 $5.40 $5.72

6 67.0% 75.0% 99.0% 69.0% 70.0% 72.0% 75.0% 74.0% 74.0% 75.0% 75.0% 76.0% 77.0% 78.0% 80.0% 74.6%

7 5.0 2.5 1.0 5.0 4.5 4.0 3.0 2.0 2.0 2.5 2.3 2.4 2.0 2.0 1.8 2.8

8 $5.00 $2.50 $1.00 5.00 5.00 4.50 4.25 3.75 3.25 2.75 2.25 2.00 2.00 2.00 1.75 3.21

9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

10 0.0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

11 $50.00 $45.00 $40.00 $50.00 $50.00 $45.00 $45.00 $45.00 $42.00 $42.00 $43.00 $43.00 $42.00 $40.00 $40.00 $43.92

12 $50.00 $40.00 $32.00 $50.00 $35.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $34.00 $35.42

13 50.0% 75.0% 75.0% 50.0% 60.0% 60.0% 65.0% 60.0% 70.0% 70.0% 72.0% 75.0% 75.0% 75.0% 75.0% 67.3%

14 50.0% 65.0% 75.0% 55.0% 55.0% 65.0% 65.0% 76.0% 76.0% 76.0% 77.0% 76.0% 76.0% 76.0% 76.0% 70.8%

15 50.0% 65.0% 75.0% 55.0% 55.0% 60.0% 60.0% 60.0% 62.0% 62.0% 63.0% 65.0% 70.0% 72.0% 75.0% 63.3%

16 50.0% 65.0% 75.0% 59.0% 56.0% 56.0% 66.0% 66.0% 60.0% 60.0% 66.0% 68.0% 68.0% 70.0% 71.0% 63.8%

17 30.0% 15.0% 10.0% 30.0% 30.0% 30.0% 30.0% 15.0% 15.0% 15.0% 15.0% 15.0% 10.0% 10.0% 10.0% 18.8%

18 $50.00 $25.00 $23.00 $25.00 $25.00 $26.00 $24.00 $23.00 $23.00 $22.00 $22.00 $24.00 $24.00 $22.00 $23.00 $23.58

19 $100.00 $75.00 $50.00 $100.00 $90.00 $75.00 $70.00 $60.00 $59.00 $57.00 $52.00 $53.00 $50.00 $49.00 $50.00 $63.75

20 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

21 $50.00 $45.00 $35.00 $44.00 $44.00 $43.00 $40.00 $37.00 $36.00 $37.00 $35.00 $35.00 $36.00 $35.00 $35.00 $38.08

22 $50.00 $45.00 $35.00 $50.00 $49.00 $48.00 $47.00 $46.00 $45.00 $42.00 $40.00 $38.00 $35.00 $35.00 $36.00 $42.58

23 50.0% 60.0% 75.0% 55.0% 56.0% 56.0% 58.0% 60.0% 62.0% 64.0% 66.0% 70.0% 72.0% 75.0% 75.0% 64.1%

24 50.0% 60.0% 75.0% 65.0% 65.0% 65.0% 68.0% 70.0% 74.0% 75.0% 75.0% 77.0% 78.0% 73.0% 75.0% 71.7%

25 50.0% 25.0% 20.0% 55.0% 55.0% 55.0% 44.0% 55.0% 33.0% 33.0% 33.0% 33.0% 22.0% 22.0% 22.0% 38.5%

26 20.0% 45.0% 55.0% 40.0% 45.0% 44.0% 43.0% 50.0% 50.0% 53.0% 50.0% 55.0% 54.0% 54.0% 55.0% 49.4%

27 30.0% 20.0% 10.0% 28.0% 27.0% 29.0% 24.0% 20.0% 22.0% 20.0% 15.0% 12.0% 10.0% 11.0% 10.0% 19.0%

28 $1.00 $0.75 $0.55 $0.90 $0.90 $0.85 $0.88 $0.80 $0.70 $0.65 $0.55 $0.55 $0.53 $0.55 $0.50 $0.68

29 5.0 3.0 1.0 5.0 5.0 4.0 4.0 3.0 3.0 3.0 2.0 2.0 1.0 1.0 1.0 2.7

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Safety - Workers Comp Cost ($/Worker)

Total MRO Inventory Value ($/Unit Produced)

Maintenance Overtime (% Total Labor Cost)

Workforce Effectiveness (Labor Hours/Unit)

Maintenance Excellence

Direct Material Cost ($Unit Produced)

Direct Labor Cost ($/Unit Produced)

Production Overtime (% Total Labor Cost)

Direct Maintenance Work (% Total Payroll Hours)

Schedule Compliance (% Actual vs. Plan)

Yield (%/Total Units Produced)

Production Rate (%/Design or Sustainable Rate)

Operations ExcellenceTotal Production Cost ($/Unit Produced)

PM/PdM Compliance (% Actual vs. Plan)

Emergency Work (% Total Maintenance Work)

Total Maintenance Cost ($/Unit Produced)

Stock-Outs (#/Month)

Maintenance Variable Cost ($/Unit)

Schedule Compliance (% Actual vs. Plan)

Overall Equipment Effectiveness (OEE)

Asset Utilization (AU)

Production Variable Cost ($/Unit Produced)

Safety - Total Case Incident Rate (#/200K)

Executive Dashboard

Variable Cost ($/Unit)

Fixed Cost ($/Unit)

Delivery Compliance (%Plan)

Cost of Goods Sold (COGS) ($/Unit)


Audit Results Were Reflected in the Plant

Dashboard



Area D



Area A

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IN REVIEW

As Behaviors Change

Performance Changes

Results are Realized

Leading Indicators

Lagging Indicators

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IN REVIEW

•  Success Factors – Drill Down When De_ining Behaviors

– Establish “Standards” That Can Be Observed

– Ensure Behaviors Link to Individual and/or Departmental KPIs

– Ensure KPIs Rollup to Business Results

•  Challenges – Global / Mul5-‐Site Change

– Limited Audi5ng Resources

– Subjec5vity or Bias by Auditors

COMMENTS OR QUESTIONS?

show me the metrics from change management 2014

Education

change management

monitor progress

step 2 define

step 4 define

schedule compliance

rights reserved

outcomes amp

unit produced