Startling… Improved Throughput — 2020 vs. 2019 — With More to Follow…!

By Sid Chadwick, Chadwick Consulting, Inc. – 10/23/2020 Published in American Printer


Quarterly Performance Reviews between our Members, by the numbers, were undeniable…significant improvements in ‘Revenue per employee hour worked’ (including  ‘Value-Added Dollars Produced — per employee hour worked’ – for some)…..were exceeding historical norms….”….Quarterly CEO Peer Group Reviews


INTRODUCTION:

Individual P & L’s were reviewed at recent CEO Peer Group Zoom

Conference Calls. One member after another — compared their 2020 vs. 2019 numbers – including how they got there…and what they were working to improve. Almost without exception — one member after another — reported lower employment, with equal-to-higher revenues per employee — in 2020 vs. 2019.


For several, profitability – also – was surprisingly — UP….!


Yet — no two CEO’s – had achieved their results – with the exact same strategies. “Different paths” — for achieving improved performance — were occurring — while also being shared — exported — and adopted – as similar and recognizable opportunities…. appeared.

(Which is understandable….as they each have different equipment configuration, different intellectually gifted personnel, and different customer mixes.)


Going forward, there are predictable opportunities to measure, and report — “Value-added Dollars Produced – per – Employee Hour Worked” — 2020 vs. 2019.


Such a performance chart should, immediately — and over time, show the curve —moving up — on an X-Y graph — leading to improving margins.


SUMMARY:

In the July-August 2020 issue of the Harvard Business Review, an article titled, Harnessing Everyday Genius, lays out multiple examples of recognizable companies — that have given front-line teams — authority to improve what they are to accomplish.


In one of our Plant Managers’ Peer Group Zoom Conference Calls, one member was heard to say, “It’s amazing… what someone can see — as an opportunity to improve — who doesn’t do that job on a regular basis when given the opportunity to observe and comment.”


Our Peer Groups are not only sharing innovative ideas on a frequent basis. They are also sharing innovation results, improved production capacity, new materials and resources, new equipment and processes, personnel – and even customers’ orders — when the opportunity requires that action.


In effect, as The Wall Street Journal reports — in our country’s “Trial by Covid-19” – that larger organizations are performing at higher, sustainable levels than smaller organizations.

Our Peer Groups are performing — not as individual organizations with 40 to 200 employees – but from a distance — as a single organization — at multiple locations — with 1,100 – 1,500+ employees — frequently sharing ideas, suggestions, resources, equipment, new processes — and even personnel.


Peer Groups should operate with well-prepared Agendas, substantive discussions, occasional speakers, continuity, accountability — and substantive Reports — from discussions. All should be focused on serving and delivering improved differentiation — and value — especially to vertical customer markets — you are already positioned to serve.

Our world is moving fast. Innovation and creativity that improve — each organization’s performance — is – at its best – an attitude that’s relentlessly hungry for performance improvement – and not just something that’s “nice to do”.


I do not believe everything today I believed yesterday…I wonder…will I believe everything tomorrow…. I believed today.”……….Mathew Arnold

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