Balanced Scorecard Project
A multi-hospital healthcare network had developed a strong business strategy but did not have good enterprise-wide metrics in place. Additionally at the executive level there was no consensus around the key “business drivers.”
We reviewed all pertinent strategic planning documentation including the business strategy, E-scan, internal capabilities assessment, and strategic initiatives. Key stakeholders were then interviewed to identify what functionality they desired from the scorecard and which business systems would be linked to the scorecard (Human Resources, financial forecasting, budgeting, etc.). We developed a balanced scorecard, a set of business analytics tools, a communication strategy, and rollout plan in less than two months.
The balanced scorecard has become widely accepted across the management team. The scorecard was cascaded down to each function and tightly linked to key HR practices such as performance management, compensation, and recognition programs.
A post mortem was completed and the following benefits were attributed to the project; 1) Leading indicators considerably improved managements ability to forecast performance and take actions to proactively improve results when performance gaps were identified, 2) Overall the organization improved goal attainment by 22%, and 3) Employees better understood how they contributed to the overall organizational results.
Completing an Organization Assessment of a Global Research, Development, and Engineering (RD&E) Function
A large multi-national consumer products company was not meeting its organic growth target, new products were over budget, late, and not realizing the revenue targets specified in the business case. The senior management team engaged us to conduct an organization review of the RD&E organization structure and new product development process.
A very comprehensive organization assessment was completed that addressed over 15 different dimensions such as:
- R&D alignment to the overall business
- R&D technology
- R&D business model/structure
- R&D leadership capability
- R&D new product development process
Data was collected via interviews, structured workshops, a review of key archival documents (process documentation, organization charts, etc.) and a structured survey. Baselines were identified and compared to our proprietary database of R&D best practices. Recommendations were crafted to significantly improve the new product development process, and restructure the RD&E function to better serve its internal/external customers.
Revisions to the new product development process and work team structure reduced the new product development cycle time by 22%. Organizational structure modifications reduced headcount by 16% and operating costs by $22MM annually.
Reengineering & Self Directed Work Team Project
A ceramic manufacturing plant was interested in looking for new ways to improve operational efficiency, be more responsive to market changes, and be more nimble. The senior management team also wanted to modify the culture to minimize a functional silo mentality, promote calculated risk taking, continual learning, responsibility, and high dedication to excellence.
Our scope of work included the design of self directed work teams that included the delayering of management levels. Teams were responsible for an entire product/customer from cradle to grave. Our scope of work also included the reeningeering of several work processes, training to up-skill the workforce, alignment of HR practices to support behavior/culture change and modification of the plant layout to facilitate teams. A skill based pay reward system was rolled out to recognize individuals for learning/applying new skills and demonstrating desired behaviors on the job.
This plant became the highest performing plant in NA. Benefits included:
- A 29% reduction in the cycle time of order to fulfilment
- Operating costs decreased by 18%
- Quality improved by 12%
- Overall headcount was reduced by 19% and the Supervisor level was completely eliminated
Development of High Performance Work Teams Project
A $2 billion specialty chemical manufacturer had excessively high operating costs, quality was inconsistent, productivity was below the industry average, and market responsiveness was poor.
A readiness assessment was conducted to identify gaps between their strategy and people systems, processes and technology. Following establishment of an internal steering committee, work was redesigned at several plants to focus on optimizing their core processes. High performance work teams were established, processes were redesigned to enhance efficiency, and new enabling technology was purchased and installed. Emphasis was placed on addressing the many change management issues such as stakeholder engagement, communications, culture change, and the modification of appropriate HR practices.
Improvements were realized particularly at the plant level. In one plant within three months over $700,000 in cost savings were realized, over $50,000 in new revenues were generated, cycle time of the supply chain process was reduced by 28%, and customer service improved 21%.
Human Resources Transformation Project
A $5BB+ global information services company wanted to transform its HR function from a tactical and administrative role to a much more strategic and consultative role. CCG was engaged to complete an assessment of the HR function, develop a transformation roadmap, and provide consulting assistance to evolve the Human Resources function.
Our approach utilized CCG’s proprietary HR best practices data base to compare the current capabilities of the HR function to world class HR functions. The asssessment included over 15 different assessment dimensions such as; 1) Alignment of HR to the overall business, 2) HR leadership effectiveness, 3) HR service offerings, 4) Time on task, 4) strategic resource allocation, 5) HR process effectiveness, 6, HR service delivery model, 7) HR enabling technology, 8) HR staff competencies, and several others.
Performance capability gaps were prioritized and a roadmap was both developed and executed to improve the traction and perceived value add of the HR function.
Customer satisfaction levels increased by 65%, cycle time and cost of key processes such as talent acquisition were considerably reduced, HR operating costs decreased by 22%, and HR’s perceived value (as measured by a survey) increased 78%.
A $500MM manufacturing company that was part of a global conglomerate wanted to enhance their strategic planning capabilities. Although quite successful, historically they did financial forecasting in lieu of strategic planning. CCG was engaged to develop and roll-out a strategic planning process, supporting data collection/analysis tools, and use that process to develop a multi-year strategic plan.
We interviewed the senior team to identify and reach concensus around the discrete decisions they wanted to make as an outgrowth of their planning process.
A strategic planning process was developed that tightly aligned with the corporate requirements and included an envornmental scan, internal capabilities analysis, key success factors, identification of growth platforms, identification of strategies, tactics, and strategic initiatives, and a balanced scorecard. All supporting data collection and decision support templates were also included within scope.
Listed below are the beneftis realized:
- Revenues increased at end of year 1 by 16%
- Profitability increased by 13%
- Improved strategic alignment of each function to the overall business plan
- Enhanced staff understanding and commitment to the business plan
- Better resource allocation/utilization
An SBU within a multi-national financial services company provided IT/data cleansing services to institutional clients was not meeting its revenue goals, was experiencing very poor customer satisfaction, and was not executing the delivery of its core services from a timeliness and cost standpoint. CCG was engaged to identify the root causes, recommend actions, and roll-out approved solutions.
Our project started with a review of appropriate and readily available information which included the SBU business plan and dashboard, historical management reports, customer feedback, best practices from related functions outside the organization, etc. This was augmented with interviews of the SBU leadership team, focus groups with staff, interviewing key customers, and interviewing interrelated internal functions. We completed a performance gap analysis and concluded the key gaps were 1) poor alignment of the SBU business plan with the overall corporate strategy, 2) the business model/structure were responsible for poor service delivery, and 3) some of the key leaders were in the wrong roles.
We identified alternative structures, helped the leadership team select and fully design a new structure, and implement the new structure. Scope of work included organization/job design, alignment of HR practices, talent retention/exiting, education, change management, and leadership coaching
Headcount was reduced by 19%, operating costs decreased by 24%, backlog was reduced by 72%, and customer satisfaction improved by 59%.
Change Management Project
A global manufacturer of steel products made a decision to implement Workday’s cloud based Human Resources and Finance modules. In the past this organization had a spotty track record in being able to implement IT initiatives where many of the projects were late, over budget, and had low realization of targeted benefits.
The scope of work included developing an overall project scorecard, establishing the PMO, streamlining manual processes that needed to connect to the Workday solution, stakeholder engagement/communications, commitment planning, modifying organization structure, and delivering non technical training. Additionally we aligned appropriate HR practices to facilitate behavior/culture change, and coached various levels of leadership.
The annual total cost of ownership for the Workday solutions was 24% lower than PeopleSoft, Workday’s business process framework and internet based user interface encouraged employees to self-serve, reducing per-transaction costs by 28% and Workday’s reporting and analytics provided considerably enhanced decision support capability.