PHASE 1 OF THE TURNAROUND : Building The Foundation
Jim Burton set about analyzing the business with an emphasis on quick wins that would contribute to developing the long-term “execution” foundation. * He was dealing with seasoned industry veterans, each with deaply held beliefs and paradigms about the business – how it had been and should be run. In an effort to build confidence and gain acceptance among his senior peers ( it had to be an incremental approach) * With encouragement and support of the owner, burton first formed an executive committee of nine, including the five business unit. The objective in forming executives committee was to begin decentralizing the decision making process away from the two owner. ( The owners not actively participate in committee sessions, but would instead attend summary reviews, at the conclusion of each meeting, to provide counsel and advice ) * He was to transform the company and build the sustainable growth platform the owner wanted Identifying and Understanding Value Creating Processes
Burton focused on its execution and on helping Norton Lilly’s executives understand the key processes that enabled good strategy execution and value creation. * Burton first launced process mapping in the linier group, which operated in eight different US offices * At the time, the liner division offered a fragmented mix of services across its eight location, with each location performing some activities more effectively than other location and all location failing to provide adequate service in some regard * By late 2007, mapping the key processes involved in delivering each type of service had helped management and employee understanding of processes led to improved process standardization, end administrative procedures that duplicated work, improved costumer satisfaction, and penalties * By the end of 2007, Burton had assigned responbility for achieving KPI goals to individual managers and supervisor overseeing specific value creating process within the liner division Implementing a Balanced Scorecard Performance Measurement System Accompanying the KPI’s rollout was a balanced scorecard, wich further focused managerial employees attention on the performace of value creating process. Metrics included in the balance scorecard system used at Norton Lilly included process KPI’s. costumer satisfaction and financial performa...