A Practical Example of the Use of Root Cause Analysis in a Radiation Therapy Department
A Cause P&L Example Of Value
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THE CAUSE P&L® An Example of its Value
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An example of the way the Cause P&L diagnosis the causes of business problems
Transcript of A Cause P&L Example Of Value
THE CAUSE P&L®An Example of its Value
A Cause P&L®
Identifies CAUSES
of Outcomes
Mid-size service business gradually losing contracts
Assignment: Why is the company losing contracts?
A Real Example
The following findings are drawn from our report to this client.
Are customers SATISFIED with your overall service delivery?
1
85% Are SATISFIED/VERY SATISFIED
YES
Would your customers RECOMMEND you to others?
2
Only 43% Would !
NO
Why?
Do you understand the company’s STRATEGY to offer value to customers?
3
0% 100%
Percent Agree / Strongly Agree
Management
Employees
YES
94%
100%
Mgmt & Empl’s: What is the company’s strategy?
4
Lowest Price
Highest Quality/Innovation
Customized Solutions
Other
Don’t Know
0% 100%
Highest Quality & Lowest Price
Customers: Which value strategy do you desire?
ManagementEmployees
Percent Selecting Strategy
Not Aligned
Customers
The company is losing contracts because it LACKS ALIGNMENT to the right strategy. … internally and with customers
What is Customer Loyalty worth?
What is Customer Loyalty worth?
5%
Increase
Loyalty
Starting PROFIT
Change in PROFIT
+25%
+100%
to
Source: The Ultimate Question – Driving Good Profits and True Growth, Fred Reichheld, Harvard Business School Publishing, 2006, p. 15
Typical Range
What is Strategic Alignment worth?
What is Strategic Alignment worth?
Source: Driving Success: The Incredible Power of Company-Wide Goal Alignment, Success Factors, 2001.
Almost ½ of STRONG Co’s Have 100% MgmtAlign-ment
None of WEAK Co’s Have 100% Mgmt. Align-ment
Almost ½ of STRONG Co’s Have >50% Empl.Align-ment
Less than 1 in 5 WEAKCo’s Have >50% Empl.Align-ment
50%
25%
0%
Percent of Companie
s That Have
STRONG Strategic Alignment
Strong Performing Companies
Weak Performing Companies
Management
Employees
Relevance of This Example
Several major studies show that in MOST companies, less than 20% of employees understand the company’s strategy …
…even if they report they do.
Relevance of This Example
Several major studies also show that of customers that report they are “SATISFIED” with a vendor …
… 60% are actually actively looking for an
alternative.
The Cause P&L® is here.
WHY NOT
check it out?
E-mail…[email protected]
The Cause P&L® is here.
for our white paper, Even a Ferrari Has Blind Spots
Know Why
