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Strategic Asset Management Inc. (SAMI), founded in 1996, has spent many years researching the Performance Culture
The Performance Culture model has since proven to have a remarkable capacity to: Identify obstructive issues Implement sustainable improvements, and Provide significant financial returns for those companies that utilize it
This presentation describes why the Performance Culture may be the answer to your organizations issues
Creating the Performance Culture
The Performance Culture
A proprietary series of models, tools and methodologies launched in 2012 that provides a unique approach to organizational improvement
The specific path to Performance Culture varies for each company but typically includes:
Organizational alignment initiatives Personnel development Efficiency enhancements Optimized cost structures Increased production volumes
Benefits of a Performance Culture include: Enhanced productivity A motivated workforce Higher employee satisfaction Improved asset reliability Reduced waste Increased efficiencies A safer work environment
…and an excellent Financial Return
The Performance Culture Rationale
You must first understand the drivers of your Company’s performance…
Performance Causes
Performance ResultsBEHAVIORS
• Leadership
• Training & Development
• Communication
• Performance Management
PRACTICES
• Business Processes
• Work Management Processes
• Production Processes
• Work Methods
EQUIPMENTAVAILABILITY
• Preventive and Predictive Maintenance
• Tools (RCM, RCA, Statistical Analysis)
• Equipment Condition
• Focused Reliability Improvement
PRODUCTIONRELIABILITY
• Process Control
• Loss Mapping
• Predictable Supply Chain
“Fixing your Performance Causes (Behaviors & Practices) is the ONLY way to sustainably improve your Performance Results (Equipment Availably & Production Reliability)!”
Performance Culture Domains Purpose, People , Predictability ,
Performance Enabling domains (Purpose and People)
focus on leadership and organizational development
Benefit domains (Predictability and Performance) focus on elements which drive the financial results of the enterprise
Performance Culture Model
The 4 Domains:Performance, PeoplePredictability, Purpose
Developing Ownership
Performance Culture Plan
IMPLEMENTATIONContinuous Improvement
Loop
SAMI’s Performance Culture Process Develops Ownership
and Advocacy
Performance Culture Planning identifies path to Success
Keys activities to creating a Performance
Culture
1. Baseline Evaluation
2. Design and Definition
3. Behavioral Coaching
4. Information Management
Baseline Evaluation Purpose - to understand the magnitude
of the financial opportunity and the specific gaps
Approach - data-driven evaluation performed to focus on the current execution of business processes, supporting behaviors, and overall performance
Outcomes - definition of the stable cultural state and resulting levels of performance
The Performance Culture Model
*Baseline example is from actual client data measured 2014
Performance Culture Baseline*
Performance Culture Model
Design & Definition Purpose - design detailed business
processes and define the supporting behaviors required to sustain a new level of performance
Approach – engage the organization to develop ownership of the changes
Outcomes enhanced business processes recognition of functional
interdependencies defined measurement and reporting understanding of new behaviors, and recognition that new performance levels
are achievable
Improving One Step at a Time
Key Building Blocks of Change
Behavioral Coaching The journey to sustainable behavioral
change is a function of time, discipline and leadership
Purpose – embed the new processes and behaviors
Approach - coaching begins with specific and detailed training on the new behaviors and the respective business processes
Outcomes – new levels of sustainable performance
ABIL
ITY
TO C
HAN
GE
TIME
UNDERSTANDING
AWARENESS
BUY IN
COMMITMENT
ADVOCACYThe progression of Change
Cultural Change – is a Progression of Behavioral Changes
Culture Determines your Results!Your behaviors and practices determine your uptime, and overall production reliability…the holy grail of manufacturing.
The Progressionof BehavioralChanges
Information Management Organizations need comprehensive
information management systems to understand performance variations
Purpose – install adequate information management systems
Approach – define processes and behaviors and configure supporting IM accordingly
Outcomes – timely information available to manage continuous improvement
Critical aspect of implementation - measurement of behaviors and sustainability gaps
APEX™ Performance Tracker
PERFORMANCE CULTURE
0 6
6
0
X=PERFORMANCE METRICS
Y=BE
HAV
IORS
HIGH PERFORMANCE
LOW PERFORMANCE
UNSUSTAINABLE
SUSTAINABLE
ASSET 1ASSET 2
Quarter 1
Quarter 2
Quarter 3
Quarter 4
A SAMI Proprietary Tool Tracks Behaviors and Key Performance Indicators
Focuses on Desired Behaviors Measures Functional Behaviors Measures Key Performance Indicators
Trends Performance Levels Over Time Measures Sustainability of Culture Change
APEX™ Tracks Behaviors &KPIs
Benefits of the Performance Culture
Benefits of the Performance Culture
Systemically Improved Production and Loss Reduction
High Equipment Availability Reduced Waste and Expense High Product Quality Predictable Production Levels Intimate Knowledge of Process and
Equipment Condition High Levels of Ownership, Accountability and
Cooperation Minimized Conflicts Among Competing
Interests Safe, Satisfying and Productive Work
Environment
Sequence of Performance Culture Creation Process
Conduct PC Evaluation
Score PC Evaluation
Determine Gaps
Develop Gap Closure Plans
Execute Gap Closure Plans Coach
Performance Improvements
Re-Evaluate
Why Does This Approach Work? Fully aligned executive and operating leadership
Operating leadership designs and owns the plan—SAMI facilitates development and execution
Business case is so strong, this becomes number one initiative for many engagements
Other pre-existing initiatives often get combined into project
SAP WMS Integrated Planning Behavior-Based Safety Contractor Management Maintenance Work Management System reliability engineering
Engages everyone from Top Management to the Shop Floor
An Approach that Really does Work
Your only path to sustainable performance improvement is by focusing on your behaviors and processes, which are the causes that drive performance!
The challenges of implementing the Performance Culture are many and difficult, but the benefits are well worth the effort
Conclusion
