SteveSherrettaDecember29,2024PerformanceManagement:EnhancingExecutionThroughaCultureofDialoguePeterisChiefExecutiveOfficerforamedicalsupplymultinationalthatrecentlycraftedanewstrategytocountercompetitivethreats
Theplanstressedtheneedtocutcycletime,concentratesalesonhigher-marginproductsanddevelopnewmarkets
Fourmonthsaftercirculatingtheplan,Peterdida“walkaround”toseehowthingsweregoing
Hewasappalled
EverywherePeterturnedpeople,departments—wholebusinessunits—simplydidn’t“getit
”Firstsurprise:Engineering
Thegrouphadcutproductdesigntime30%,meetingitsgoaltoincreasespeed-to-market
ThenPeteraskedhowmanufacturingwouldbeaffected
Itturnedoutthenewdesignwouldtakemuchmoretimetomake
Totalcycletimeactuallyincreased
“Ourstrategicplanmessageisnotreallygettingthrough,”Peterthought
Secondsurprise:Sales