![]() To realize the program’s full set of initiatives, companies should select prioritization criteria that reflect their program’s business goals. Our research found that initiatives in which employees contribute to development are 3.4 times more likely to be successful. For example, to support “reinforcing product strengths,” the carmaker defined three areas-electric vehicle strategy, quality improvement and car architecture renewal-and engaged employees to develop initiatives that address each area. The executive team should identify a concrete set of initiatives to sustain each thematic area. For example, the carmaker distilled performance and health efforts into four thematic areas: improving profitability and efficiency, revitalizing the brand, reinforcing product strengths, and promoting global growth and sourcing. Management should begin by identifying the organization’s guiding principles for achieving its business goals. In such instances, the order in which a company tackles its initiatives is crucial.Īs leaders develop a portfolio of initiatives to improve performance and health, they can follow a process to prioritize opportunities and investments for maximum impact. Many struggling companies face the same challenge: how to combine performance and health while building momentum for a turnaround. The assessment reinforced that the carmaker needed to address organizational health-its underlying culture, mindsets and behaviors-if it hoped to return to prominence. When the survey placed the company in the third quartile, the new CEO remarked, “We’re not healthy-but at least we are not dead!”Ĭlearly, a standard performance improvement playbook wouldn’t be sufficient to achieve this lofty target. The owners first conducted an Organizational Health Index survey to assess the carmaker’s starting point and challenges. A new ownership team acquired the carmaker and set an ambitious goal: become the world’s most progressive luxury car brand. Sales and production standards had declined, and the brand had lost its distinction in the market. Performance improvement programs are much the same as recipes, but since companies must address a multitude of variables to boost productivity, success can be significantly more difficult to achieve.Ĭonsider one global luxury car manufacturer that was mired in a cycle of poor performance. August 26, 2019In cooking, whether you are a master chef or novice, the sequence is crucial.
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