3. Definition A performance chain is the things, people, and ideas that have to move from the moment you trigger demand to the time you have cash in the bank.
4. Four lenses to measure the health of any performance chain Speed Predictability Flexibility Leverage
6. Performance chain lens: Speed Increase the velocity of all core processes. Examples: cycle time, time to market, days cash outstanding.
7. Performance chain lens: Predictability Quality and repeatability of external and internal processes. Examples: records accuracy, process yield, customer satisfaction.
8. Performance chain lens: Flexibility Reduce the time to convert processes to meet dynamic customer demands. Examples: changeover, segment customization.
9. Performance chain lens: Leverage Do more with existing resources and capital assets. Examples: overall equipment effectiveness, inventory turns, utilization.
10. Performance chain lenses Applying these four lenses as a system improves productivity enterprise-wide. Increase the velocity of all core processes. Examples: cycle time, time to market, days cash outstanding. Speed Quality and repeatability of external and internal processes. Examples: records accuracy, process yield, customer satisfaction. Predictability Reduce the time to convert processes to meet dynamic customer demands. Examples: changeover, segment customization. Flexibility Do more with existing resources and capital assets.Examples: overall equipment effectiveness, inventory turns, utilization. Leverage
15. CASE STUDY: FY11 savings (Goal $100M) $119M Total Savings Value Stream Transformational work and benefits across the performance chain Post-Sales Lead-to-Quote 1 Quote-to-Source 2 Source-to-Fulfill 3 $119M Total Savings Category Fulfill-to-Cash 4 Post-Sales 5 Other 6
16. Performance chain viewof project contributions Post-Sales Fulfill-to-Cash Source-to-Fulfill Quote-to-Source Lead-to-Quote 7 Projects Contributing $38M in improvements 6 Projects Contributing $24M in improvements 4 Projects Contributing $5M in improvements 7 Projects Contributing $20M in improvements 9 Projects Contributing $31M in improvements
18. Top performing leaders… will see and act on the whole performance chain.
19. Manage the whole performance chain by starting with what customers ask of you Speed Run like a cheetah Predictability Develop the memory of an elephant Flexibility Be like a monkey Leverage Move that rubber tree
20. THANK YOU Can you see the whole and mine the meaningful?