Bring discipline and consistency to KPI measurements
Every enterprise works best with a clear picture of its key performance indicators (KPIs). This global medical devices company knew this, but its breadth of operations around the world was obscuring the KPI view.
The organization has four main business units – a restorative therapies group, a cardiovascular group, a diabetes group, and a minimally invasive therapies group. The issue? Each unit had its own supply chain, operations, business risk, HR, and quality functions, so there had been little opportunity to build universal consensus around how to arrive at these all-important numbers.
As a result, the five functions were calculating some 80–100 performance measures inconsistently, with each function measuring KPIs using its own logic based on discrete data sources. What's more, some of these functions had their own legacy systems – remnants of past acquisitions – that further contributed to the muddle. And because accessing metrics was a highly manual and time-consuming exercise, people weren't making full use of the intelligence they offered.
All this meant that teams weren't sharing best practices. For example, if one unit's supply chain was healthy – meaning its inventory was up and it was meeting demand – it had no way of passing on its lessons learned to other units with supply chain challenges. There was no transparency into how the enterprise as a whole was running. Ultimately, the firm didn't have a strong sense of what was working well, so leaders couldn't make fully informed decisions or plan effectively for the future.
The chief operating officer (COO) recognized how these obstacles were hampering efficiencies – not to mention growth – and wanted to overcome them quickly. That's when he turned to Genpact.