1. Business Challenge
The Engine Room was engaged by a major utility that was facing significant challenges stemming from concerns about performance management practices and a lack of accountability for results. The utility’s KPI reporting processes required substantial manual effort, most of which was done outside the utility’s core IT systems and was frequently challenged by different teams with different (and often competing) perspectives of whose “numbers were right.” Operations leaders struggled to effectively monitor performance and hold teams accountable, resulting in suboptimal outcomes across the organization, including ineffective decision-making.
To address these issues, the utility embraced the Engine Room’s recommendation to implement an effective management system to streamline operations performance tracking, enhance decision-making, and foster a culture of accountability for business results.
The Engine Room defines the Management System in an organization as the regular cadence of management activities that, in combination, allow the company to track their operational performance, share and discuss performance trends, and develop tactical action plans to optimize performance over the long term. That typically includes elements such as KPIs, dashboards, and business review meetings with leaders and managers responsible for areas of business.
2. Actions Taken
The Engine Room collaborated closely with the utility’s operations team to implement a comprehensive management system solution, which included:
| Enhancing the Business Review Processes: While the utility had an existing routine of monthly management meetings, they were restructured to incorporate the Engine Room’s business review principles, including a more forward-looking focus, with 75% of the meeting dedicated to discussing actions to mitigate risks and achieve future goals. This revised approach has allowed leaders to distinguish between areas performing well and those requiring immediate attention. Business reviews have become a critical tool for leaders to assess team performance, share successes, and align strategies across the organization. |
| Development of Core IT System-Based Dashboards: Following a detailed business requirements discovery to understand the specific needs of the organization, the Engine Room worked with the utility’s reporting and operations teams to develop dashboards that were integrated with the utility’s core IT systems. That transformed the previously manual reporting processes into automated, real-time solutions. These dashboards also gave leaders the tools to monitor performance effectively and make informed decisions. |
| Improving Team Meeting Effectiveness: The Engine Room introduced a cascading business review meeting framework, ensuring that business reviews at every organizational level were focused and aligned with the utility’s strategic objectives. Leaders were trained in how to use the new dashboards during the meetings, making the meetings more productive and data-driven. This alignment improved communication and decision-making across the organization. |
| Cultivating a Culture of Accountability: To foster a culture of accountability, The Engine Room focused on strengthening several key leadership activities. Leaders were trained to set clear expectations, provide consistent feedback, and maintain a strong presence with their teams. This included positioning themselves to observe performance directly and using the dashboards to track progress. The training emphasized that accountability is created through regular, fact-based feedback and by addressing both positive and negative performance in a timely and constructive manner. |
3. Business Results
The implementation of the management system initiatives at this utility led to significant and lasting improvements:
| Operational Efficiency: The new core system-based dashboards automated data collection, reducing manual effort and providing leaders with real-time insights. This led to more agile decision-making and better alignment between strategic goals and daily operations, including moving resources to address capacity problems and improving workflow efficiency. |
| Enhanced Accountability: The focus on accountability, supported by data-driven business reviews and structured meetings, resulted in a more engaged and responsible leadership team. Leaders were empowered to monitor performance, provide timely feedback, and drive continuous improvement across their teams. |
| Sustained Performance Improvements: Integrating the new management system, business reviews, and enhanced meeting structures led to sustained productivity and operational performance gains. The utility saw a marked improvement in team alignment, target achievement, and overall efficiency. |
The improvements realized at this utility illustrate how The Engine Room’s approach to implementing management systems can transform operational performance management practices, including obtaining more value from existing IT systems and monthly management meetings, all leading to measurable and sustainable improvements in performance.
