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Why is it that catastrophes always wait to happen until you are out of the building?
Max was GM of a local Manufacturing Plant for an international company.
Two years ago, he took control of the Georgia plant and rapidly turned it from bleeding red to solid black profitability.
With the plant on the road in a positive direction, he expected his management team to handle daily operations. His plan was to stay focused on growth.
It didn’t happen.
Max is an able leader. He had surrounded himself with a team he was sure would succeed. But every time he left a subordinate in charge, something unexpected – and expensive – happened: increased scrap, late shipments, reduced production. In a 6-month period, he was away three times, and three times there were costly problems.
Max wanted the progress they had made to be sustainable without his constant attention. He began to think that his hand-picked leadership team just didn’t have what it takes.
Does this sound all too familiar? |
Leaders who hesitate to make decisions reduce productivity and magnify losses.
Max achieved his Return on Investment with the 4% increase in gross margin during the first 3 months. However, he was also interested in sustainable return.
Max believed that the leadership process improved the decision making skills of his team.
Assigning a mere 5% productivity increase each year (2 hours per week) to the changes his team made, the Return on Investment is
254%
Run the numbers
This was an investment that kept increasing profits for Max’s plant. |
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PowerStep Small steps for today that power big change
Delegate one responsibility you have never been comfortable delegating before. Whether large or small, stretch your comfort level. But be sure to limit the risk and monitor the process not the results. Notice your own reactions. Remember, it is a learning experience for you as well!
Example: Max put the PowerStep principle into practice. One of his team leaders, Jean, had mentioned a new setup idea that she had. This time Max walked out to the machine with her and they discussed the details. He wasn’t sure it would work but saw the possibilities.
They agreed to try her idea on a short production run, without a fixed deadline. They mapped out the process including a contingency plan if it did not work. Max stayed in his office while Jean followed the plan!
It worked! Now, with a few changes, Jean has implemented her full plan. The plan reduced setup time for that machine by one fourth – and increased production output by 6%.
It’s not just mistakes that are costly. Hesitation to act goes right to your bottom line. |
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Cultivate Leadership Bench Strength to Maintain Your Edge
In this economy, it takes more than a single leader to keep an organization competitive and innovative. Organizations with a depth of experienced talent are able to increase their competitive edge with quick, innovative responses to changing trends.
Developing new leaders to increase bench strength is critical. Yet It can’t be at the expense of your current position.
The only way to create innovative leaders |
