A constructive After Action Review of cost and performance seeks to understand the actual results and drive action that leads to improvement. As such it is an active forum where discussion is encouraged and new ideas sought. This is very, very different from simply provided a report that is merely a one-way communication. In fact it is probably the case that many reports are never read and are simply noted as complete in compliance with requirements.
<script data-ad-client="ca-pub-3199160694160451" async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>The First Commandment Sets the Climate
Thou shall not attack or defend past practice. We will assume the best of team subordinates and recognize that past practice often reflected knowledge at that point in time. Now we know more than we did then and want to upgrade our performance. Attacking the bearer of bad news is simply not constructive. The subordinate with the problem is probably the most knowledgeable person to fix it and we want to fix the problem rather than concentrate on fixing blame.
It goes without saying that if bad news is not attacked, then it doesn’t need to be defended. Bad news can be hidden or obscured by the presenter. This is a waste of effort and a missed opportunity to improve.
The Second Commandment Defines the Goal of a CMO
Thou shall always seek better ways to operate. Improvement is always possible: even if in small ways. Cost managed organizations have built a culture of continuous improvement. Cumulative average learning curve theory proposes a continuous rate of improvement with every doubling of experience. It surprises me that many organizations have never sought improvement.
The Third Commandment Provides Additional Motivation
Sharing in the benefits of improvements is an important motivator: especially in government organizations. I have seen the case where higher headquarters take all the savings to spend elsewhere. Sometimes savings even go to the most inefficient peer organizations. This is terribly demotivating.
As an analogy consider the case where you were asked to take a second job that was going to be taxed at 100%. Why would you do that? There is nothing in it for you. The same applies to the practice of placing a 100% tax on one organization’s savings to give to another. It is a poor practice.
Every organization has unfunded ideas for spending. These ideas are often very creative and impactful but are unfunded because of legacy programs and practices. CMOs harvest savings from those marginal, and often unneeded, programs and practices and fund new and better programs.
The Forth Commandment Defines the Leader’s Responsibilities
There are only two responsibilities of managers and leaders whether the presented or the reviewer at the after action review. The first is to understand the cost information well enough to be able to explain what has caused changes. In my research I have seen many managers who had never done this. As long as the budget wasn’t being overspent they had no reason to look into cost performance results. They are often surprised when they start to understand the financial aspects of their operations.
The second key responsibility is to drive the never ending quest for continuous improvement initiatives. This signal reinforces the culture of continuous improvement and is often as simple as asking subordinates for ideas.
<script data-ad-client="ca-pub-3199160694160451" async src="https://pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
Commenti