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If you want to change the culture in your organisation focus on the behaviours, no big shock really but what if I said there is a good chance that your own measures or business metrics are fighting against your efforts to grow your culture and improve behaviours?
We worked with a company who said that "Quality in Everything" they do is a major cultural belief for them. They used OEE (Overall Equipment Effectiveness) as a major performance measurement, this is essentially a measurement of how well you are using your resources. They set a target for the year of 0.36 or 36%+. Now OEE is made up of three parts and measured from 0% to 100% for each section, and is usually defined as:
The belief was that a higher OEE number would contribute to the desire to have a high-performance, quality 1st culture. In a drive to meet the target numbers however, there was a major focus from the leaders to "get more out". To do this, teams just turned up the machine speed and focused on improving change overs. The results looked great on the reporting, they quickly were hitting 0.37 (37%), a huge step on from the 0.28 they started with (85% is world class).
Remember OEE is made of 3 parts, Availability x Performance x Quality …. their numbers here were:
0.77 (Availability) x0.96 (Performance) x0.5 (Quality) = 0.37Production Output was 2310 acceptable units
So, it beat the target, good change overs and blistering speed got them there, but look at their quality, 50% of what they make doesn't meet specification! Out of every 100 items they made 50 were either scrap of needed work done to them - The behaviour here was meet the number at all costs certainly not "Quality in Everything"
Now the line is running longer and only 6 out of every 100 units need to have some form of remedial work done, certainly still room for improvement but much better than where they started.
The focus on living the "Quality In Everything" gave higher output but it had other, almost immediate, effects:
As a leader you need to give serious thought about the measurements you sent in place. Wrong, or poorly implemented measurements do drive the wrong behaviours just to reach a target. Before you lock down your measure think about how it could be twisted, how does it line up with creating & supporting a culture and how it could put people in conflict with it.
A drive for numbers only does only 1 thing, sooner or later, it sends the numbers down.
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