We helped the client plan and execute two waves of operating changes that improved efficiency and added more than $400 million to the bottom line in 10 months (exceeding the client's target of $300 million in 12 months).
However, full recovery would clearly require even more. Together, we set a new target of achieving $1 billion of improvements. The first two waves had captured the easier opportunities so reaching the $1 billion goal would mean transforming fundamental aspects of company operations.
For example, discussions with the general manager at one of the mines identified truck utilization as a prime target for transformation. We worked closely with front-line employees to pinpoint issues with efficient truck utilization, such as delays in delivering loads and excessive waiting time, and set improvement goals.
Defining and implementing appropriate Key Performance Indicators (KPIs) was critical. Success required setting the right performance objectives at every level of the organization. We defined specific objectives related to the overall goal of improving truck utilization that fell within the operating scope of employees at each level. As a result, people could see the impact of their contributions and track their progress.
Using the KPIs to influence performance required coaching clients from the executive level to the front line. We helped executives and managers learn to ask the right questions about progress and to develop an environment where their people felt empowered to take action and course correct, as required. We coached front-line supervisors on conducting motivational pre-start meetings that set clear targets for the day, engaging with their teams in the field in insightful but supportive ways, and acting on team suggestions.