04 Dec Unit 8_MT437_Discussion response
13842Respond or elaborate to discussion post below:
The misalignment in KPIs with strategy often drives the wrong behaviors that lower service levels, erodes quality, and increases cost (Bowersox et al, 2023). Moreover, creating incentives that focus solely on individual activity as opposed to team outcomes will also impact strategy. To avoid these pitfalls, firms must redefine their KPIs to target outcomes metrics and create a rewards system based on those metrics. Furthermore, they must ensure that the right processes are used to identify gaps in KPI measurements and train staff accordingly to meet their targets.
When gaps do occur in KPI measurement, the best approaches to identifying the problem and the fix includes DMAIC, fishbone diagram, and 5 Whys. With DMAIC, the firm can structure the problem, fishbone diagram to list the likely cause of the problem, and 5 Why to identify the root cause. Afterwards, the organization can structure a plan to make a combination of quick wins, while building up to long-term structural changes by making strategic investments based on the insights gathered.
To ensure flexibility in a firm’s operations during volatile demand, it is important that employees are crossed-trained. This will allow the company to allocate and redeploy labor in times of crisis or scalability quickly and with minimal disruption. While this approach might increase the firm’s training cost in the short term, this will also reduce it vulnerability as shifts in the supply chain requires more dynamic staffing to enable service levels to remain stable.
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