At some point, paper tools, spreadsheets, and even simple software solutions are not enough to run your enterprise. When you reach that inflection point, you need to manage your business growth with a more sophisticated solution. That’s not to say that many of the habits that got you where you are today aren’t still relevant; in fact, the 3 Rockefeller Habits (the Quarterly Rock, the Right Data, and the Right Meeting Rhythms) are important for companies of any size. As your company grows, you just need a better way to track and standardize those habits across the enterprise.
Mergers and Acquisitions (M&A) are not for the faint of heart. Any CEO who has navigated those waters will tell you it is a tremendous challenge to blend cultures, systems, processes and teams successfully. The statistic is 70-90% of M&A's fail -- that's a scary number! Instead of focusing on that metric, let's talk about numbers we should be measuring around M&A.
Every acquisition deal starts with an incredible amount of due diligence. Are the cultures and values compatible? Do the product lines and customer bases support each other? Do the numbers work and take us down a path of growth? Ultimately, if the deal goes through, benefits have been seen by both parties. Now, it's up to the newly-merged company to both preserve the current value of the organization and meet growth projections. It's a delicate balance.
The body has four main vital signs that doctors use all around the world to determine the condition of a patient. The four vital signs are body temperature, pulse rate, respiration (breathing) rate and blood pressure. These are measurements of the basic functions that keep you alive. They need to be functioning properly in order for anything else to work, including your brain! These metrics are just four of the hundreds of potential measurements that a doctor could use to assess the health of a patient. However, the four vital signs are the most important elements of a patient’s current state of health. Once the vital signs are stable, the doctor can begin to diagnose the long-term treatment of the patient, but they don’t do that until they know the vital signs have stabilized. Do you know the vital signs for your company's success at achieving its strategic plan and key business objectives?
Because Rhythm strategy execution software acts as a framework for pulling together into one single system many improvement initiatives and management tools that are popular among manufacturing companies, many of our most successful clients come from the manufacturing industry. One area that our clients come to us for help with is determining the right manufacturing KPIs (Key Performance Indicators) for their manufacturing metrics dashboard to drive performance. Some production managers are not sure where to start, and many are measuring so many things that their manufacturing metrics are just noise, not driving action or change to drive your operating efficiency and product planning KPIs.
Manufacturing KPI Examples
One of the most important components of the Rhythm Systems, the Think-Plan-Do methodology is to implement a planning rhythm that includes the next level of management. Taking Think-Plan-Do to operational teams creates alignment to the company plan and helps each team get focused on the next 90 days. But, how can that help teams that need to work together? How do you get two different operational teams to work together, not only in a positive way, but in a way that produces maximum impact on results and creates synergy between teams?