Ventana Research Analyst Perspectives

Sustainability and Performance Management

Posted by Robert Kugel on Dec 3, 2010 5:23:06 PM

Years ago I was given a tour of a company’s factory by the CEO who was credited with engineering its recent turnaround. We were walking along a gallery one story above the shop floor when he pointed down to it and told me that when he first looked down on this scene he saw people dashing madly back and forth. Rather than taking that as a good sign of a busy factory, he said it was a clear indication to him of how inefficient the operation was and why the company was losing money. He immediately went about realigning the factory’s layout to smooth out physical flows and re-examined its manufacturing processes, and soon the business was profitable.

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Topics: Sustainability, Environment Management, Uncategorized, CFO, finance, Green