Linking Metrics to Corporate Executives

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In a lot of corporate structures, there is a hierarchal model where the corporation talks to the individual Business Units (BUs), who in turn talk to the individual plants, who then have to control the individual lines.

At the very top level, they crunch their numbers to figure out what their goals and margins need to be for the upcoming quarter and simply pass the responsibility of achieving this to the BU, who then passes it down. At each level they need to make their own decisions and instruct their employees how things must get run. But in the end, the corporation never sees how the lines are run or their performance; they only see what they get from the immediate lower level.

We don’t believe that any of these roles are less important but there is a need to bridge the gap between the corporation and the lines that make their products. For our take on the responsibilities of each level and an in depth look at linking performance metrics, read our full post here.

Are any of you in manufacturing plants that have a lot of corporate levels? Does the top level know how well the lines are doing or do they just go based on the numbers the plant produces?

Also, for our take on three generic strategies to achieve an advantage, read our blog post here.