Newsletters

Optimising financial processes

Posted on:

“NO problem IS a problem – Share the RED”


A number of different, but related, ideas collided in my head this week.

A great article entitled “Don’t Allow Problems to be Hidden; They’re Jewels” resonated with a series of recent discussions where, I am delighted to report, executives are ignoring “watermelon KPI reporting” to focus instead on “Show Me The RED”.

This is GREAT news.

Business processes will always have problems.

We need to encourage and reward for identifying and providing visibility to these process problems.

To assert there is “NO problem” IS itself the problem.

We all know that KPIs get “gamed” in so many ways to deliver good news as far as possible.

It is common for people to hide problems so they don’t “get in trouble.”

Whether it is creating an excuse to eliminate the worst of the process experiences to make performance look better, or measuring the wrong thing and missing the outcome.

“All the KPI reports are “green” but our customers are unhappy, our suppliers are unhappy and our people are unhappy. What’s going wrong?” is a conversation I have had numerous times.

The key to success is in focusing on the priority process problems that need repair. This is the fuel for continuous improvement (CI) efforts and the very essence of performance management itself.

This change of mindset is described in this great article by Ralph Keller and you can read it here . . .

It is a 5 minute read but give yourself 10 minutes to digest and contemplate afterwards!

If we can create an environment where “RED” is no longer “DEAD”, and instead is the focus of constructive attention and discussion, all of our business processes will benefit, Continuous Improvement (CI) with thrive and we will all be happier in our working lives!

Thanks for reading . . . .