Opportunity  |  Millions of dollars in manufacturing process improvements had fallen short of delivering the performance improvement leadership expected and needed to ensure effective execution of a consumer goods company manufacturing plan of operations. Employee engagement and performance was identified as the missing ingredient and root cause of the shortfall, but how could the company get employees to become willing participants and key contributors in delivering better results?

Approach  |  After developing a clear understanding of manufacturing processes and key performance metrics we identified specific ways employees could improve their performance. We also saw that a two-tiered group incentive plan, which measured and rewarded performance at both the facility and departmental level, could get employees on board with the needed changes.

Using financial and operational performance data to develop a detailed incentive plan kept compensation aligned with corporate strategy. Enlisting employees’ feedback in designing the new incentive plan garnered widespread acceptance of the plan among the rank and file.

Results  |  The new incentive plan was effective in boosting employee engagement and by aligning their interests with desired behaviors quickly and cost-effectively delivered the needed performance improvements:

  • Enhanced employee performance delivered $1.8 million to the bottom line within nine months.
  • The initiative is projected to deliver an annual ROI of more than 850%.
  • Facility performance increased significantly across all key operational metrics.

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