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A Sure Way of Reducing Operational Cost: "Eat Your Own Dog Food!"

By Vantage Agora Subscribe to RSS | June 6th 2012 | Views:

"What????!!!" We are surprised if this was your reaction reading this title. From our collective experience of over 100 years of operational management, it is very clear that in order to manage, grow, and keep operations (Delivery or Operations or Back Office, whatever you want to call it) the "C" level people of the organization have to measure themselves and their bonuses based on the same Key Result Area (KRA) as the rest of the organization. "Huh!!!!! Now this is even more twisted" you say "How can the COO have the same performance measure or KRA as a individual contributor?" It is really straight forward.

A well-structured Key Result Area (KRA) for an organization in most services companies for delivery is 'Time' and 'Quality' on all projects. "Great!" you say, "But how do I split this up as I go down the rank?" Here is the solution. Most services companies run on projects on daily delivery or monthly delivery cycles. Make sure that every day, every, week, every month all your projects measure to expected 'Timely' and 'Quality' delivery.

"Sounds good, but how do I do that?"

The best way to measure these key metrics is through a well defined dashboard that works top down and is customized to your KRA. This software should be able to drill down each level and make sure that you have visibility into timely delivery and quality delivery of the project.

This is where you come to "Eat your own dog food". "C" level (CXO, VP, etc) people in the organization are the biggest culprits of NOT using the dashboard. Follow the discipline of reading and managing your organization ONLY through the dashboard. Measure your employees and teams on the KRA's in the dashboard. If you do not have this discipline of measuring yourself and your organization on the same dashboard that is used to measure your organization, you will never get them to execute your strategies to success!

This is all you need to run your company to operational success! Contact us if you need help in using dashboards to improve your operations. We can help you execute your strategies to success!

Vantage Agora - About Author:
Harsha Chaturvedi (COO and Founder, Vantage Agora)

As a founder of Vantage Agora, Harsha has been instrumental in the growth of the company since its inception.Harsha has over 20+ years of experience in consulting, running and helping companies and their supply chains worldwide. His work with many companies, has made him a "turnaround expert". Harsha has four worldwide patents in the area of supply chain management.

He holds an MBA from Southern Methodist University (SMD), Dallas, a masters in Computer Science from Louisiana State University (LSU) Baton Rogue, and a bachelors in Engineering from Bangalore University.

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