Results
Clients have realized a 100% payback of the consulting costs within two to four months following project completion.
The 1st Year:
15% - 40%
Employee Productivity Improvement
5% - 30%
Cost Productivity Improvement
20% - 60%
Product Quality Improvement
15% to 40% Employee Productivity Improvement
Client after client, plan after plan, industry after industry, (with very rare exception) reveals that the Key Performance Indicator (KPI) with the largest dollar improvement to shareholders and employees is EMPLOYEE PRODUCTIVITY. The improvements are significant and rapid.
Employee productivity improvements, classically measured by output per paid hour worked of all employees in the company, speaks to the unrealized, untapped and upside potential in all companies. It also speaks to the power of financially motivating employees to achieve new levels of excellence. Although we frequently see 15% to 40% improvements in employee productivity, we have seen sustained employee productivity improvements, in a few clients, skyrocket to 60%.
20% to 60% Product Quality Improvement
In some companies the importance of product quality reigns supreme as the dominant performance factor. In the manufacturing sector your customers’ product quality requirements are forever, and rapidly, increasing. It is common for companies to dramatically improve their product quality when it becomes a Key Performance Indicator that is measured, communicated and rewarded. Some companies have achieved a 90% improvement over a 6 – 7 year window.
Incentive Pay (Gainsharing) Results
A well-designed Incentive Pay System (a Gainsharing Model) begins to change the way employees think and perform when they can reasonably achieve 6% to 7% of their base pay as an incentive payout. It is very common for our clients’ employees to earn incentive pay in the range of 7% to 20% of base pay.
The most significant level of incentive pay earned by any Bovino Consulting Group client occurred in a 500 employee company. Employees earned a 44% incentive pay bonus for extraordinary levels of performance for a sustained three-month period. Their phenomenal performance and incentive pay was a great “win” for employees and shareholders.
Results Beyond the Numbers
- Organizational alignment is achieved. Employees have a common goal … the Key Performance Indicators (KPIs). The power of organizational alignment cannot be overstated.
- Employees concentrate on the greater good of the company … not just their department or shift.
- Improvements occur quickly and have a positive “bottom line” impact.
- Employees are more informed about the business than ever before.
- Employees have “fire in their belly”. They work harder, smarter and better together.
- There is a new sense of enthusiasm from nearly all employees, including those who have been “left for dead".
- Employee engagement for improved performance sets new records.
- The flow of good improvement ideas exceeds expectations.
- Employees identify and care about the obvious and not so obvious areas of waste and inefficiency.
- Employees challenge nonperforming peers. When this happens, you have hit a “home run”.
- Employees know that waste, rework and inefficiency impact their incentive pay and regularly talk about it.
- Employees know how much each KPI contributed to the Incentive Fund.
- Significant Safety Improvements are realized.
Client Case Studies
The three Case Studies below show the incredible results of our Operational Excellence Plans.