Use cleverer KPIs…
In 1994 Continental Airlines was failing miserably. In the previous decade it had filed for bankruptcy twice.
But then Gordon Bethune took over...
Bethune simply got every employee focused on three KPIs.
Together they delivered a remarkable comeback. Continental became one of the most profitable airlines in the sky in the late 1990’s.
In 1994 they had a complex set of measures for their business, mostly focused on cost reduction.
So Bethune theatrically burned the employee manual in their car park.
The rules had changed.
The game changed because Bethune changed the KPIs.
He dumped most measures and got every employee focused on three KPIs:
What’s your equivalent to Bethune’s three customer-focused KPIs?
Less lost luggage
More on-time arrival
Notice how these three company KPIs matter to the airline’s customers.
Profits soared because they focused on KPIs that made a dramatic difference to their customers.
Bethune managed to get all Continental employees taking regular action to improve these three customer-focused KPIs.
Less lost luggage – a quality KPI
Fewer complaints – a customer satisfaction KPI
On time arrival – a speed of delivery KPI.
What’s your equivalent to Bethune’s three customer-focused KPIs? Go here to work it out...