Rapid Performance Evaluation – Speed Matters
Rapid Performance Evaluation: Standard Work for Identifying Operational Performance Gaps
Kaufman Global helps clients solve complex problems and drive fundamental improvement. We engage when people and process collide – places where expertise and leverage can speed results. Even when an organization knows there is a problem, understanding operational performance, getting to solutions and knowing which levers to adjust can often benefit from outside perspective.
Over the past few years, we’ve observed that clients want answers faster than ever before. And while it could be that “time is money,” it seems to us that it’s more related to the frenetic pace of, well, everything these days. Headlines and “apps” often don’t dig deep enough and the “Ready, Fire, Aim” approach has great potential for missteps.
To meet the demand for fast but thorough answers, we devised an innovative method for quickly getting to the heart of the matter – operationally and organizationally. Our Rapid Performance Evaluation (RPE) uses a standard work approach to cut the time required for credible solutions to about a day. How, you ask?
Instead of only identifying and prioritizing process problems, the RPE delivers tangible feedback and scores that can be used to immediately take action to improve. The RPE:
- Provides a comparison against well-defined standards and benchmarks
- Ensures the leadership team is aligned on the issues
- Establishes specific and prioritized things to work on now
- Engages the organization out of the gate, reducing rework and improving data fidelity 10x
- Is fast and agile – minimizing disruptions. Getting accurate info doesn’t have to take weeks
The process begins by on-boarding the team and communicating with site leadership. It ends with a report to same. Core attributes of the Rapid Performance Evaluation are noted below.
Visit the Gemba
The gemba is the place work is done. It’s the shop floor, the office, the warehouse, the lab or the medical unit. It embodies the concept of “Go look, go see” and is a vital step in collecting information for analysis. We’ve found it helpful to review immediately before the visit what we’re trying to “see”, so we use a standard set of definitions to focus our attention. For example, in an office environment one thing we look for is communication between functions. In a factory we want to understand how material is moved (pushed or pulled) and stored (inventory) from one location to the next. Lots of paperwork is not needed for reference. Our optics have been adjusted ahead of time so the visit to the gemba can be for observation and understanding. We need to keep our eyes and ears open.
Template Driven for Simplicity
Templates are used to compare existing practices to best known practices. With the RPE, simple but proven definitions and an intuitive measurement system make it easy to get everyone on the same page when it comes to scores and ratings. We look at factors that correlate to overall performance, such as quality systems, teamwork, continuous improvement capability and material and information flow. The correlation factors provide a big-picture view and point to overarching or systemic causes affecting performance.
For more discrete aspects of the operation, we use the Kaufman Global 20 Keys ® to evaluate 20 critical elements that affect efficiency and effectiveness. For each key, the tool ranks the current level of performance using a 5-point scale where 1 is “Traditional” and 5 is “Currently Invincible”. Levels are described simply so the requirements for achieving the next level of performance are easily understood. The 20 Keys dig a little deeper than the correlation factors by identifying and prioritizing specific things to work on.
Alignment Speeds Change
No matter how good the templates and rating systems are, they don’t account for the human factor. Opinions matter. During the course of the visit we interview key leaders and stakeholders. This usually means functional heads who have valuable insights and who will play a critical role in any changes moving forward. We start to see how much (or little) agreement there is about the underlying issues. This is an area where being external to the organization is a key advantage. Functions are typically protective of their turf. Outsiders can ask more probing questions. If there is a significant difference between what we hear from the leaders and what we see on the ground, we sometimes opt to survey the organization. This can help identify broader organizational issues.
Balance Speed and Accuracy
The RPE is done with a small joint team comprised of Kaufman Global and the client. Since the method is standard, well defined, intuitive, and template driven, training for the client participants can be completed at the start of the day. The real benefit of this simplicity becomes clear at the end of the day when scoring begins. After we’ve completed the tour and interviews, we individually rate and rank based on our personal observations. Then, we come together to discuss and negotiate consensus results. The evaluation is better because it consolidates multiple views, experiences and vantage points and compares actual performance against intuitive and easy to understand benchmarks.
Results
Any operation can be assessed for performance quickly if the method considers all of the output requirements and integrates change management approaches. The RPE gives leaders rational ratings of performance, a clear understanding of organizational challenges and confidence that they’re spending energy in the right places.
Find an example of the approach and results here: Rapid Performance Evaluation (RPE) Case Study: Automotive Electronics.
