Youtube video link: Keep your eye on the ball
“The trick is this: keep your eye on the ball. Even when you can’t see the ball.”
- Tom Robbins
The leader of the organization stated “they had little employee turnover and it is not a problem”. After the Root Cause Analysis was completed it became clear he was correct about the majority of his organization. Operations and operations management, which he spent the majority of his time on, had little to no turnover. However, the departments which were considered “support” had massive employee turnover to the point of being out of control.
The leader was not aware of this as he spent considerably less time on that group. He was floored to learn that his turnover cost averaged over $1 million a year just in those departments. The first year was $900,000 and the most recent year was $1.2 million. It always goes up! I have found that this is not uncommon. Very seldom do I find a leader that is not surprised by something reported in our Root Cause Analysis. The majority of the time the leader will seriously question an item or two; only to agree with the results after a review of the facts.
As the rate of turnover increases - the total cost becomes exponential
So much of what we do is on issues that are no readily apparent to management when we first start working with them. The organization so many times is focused on what they think are the issues or on the symptoms. They cannot seem to make headway against their employee turnover. This is due to them not drilling deep enough to get to the actual root causes. Many times they are simply satisfied with treating the symptoms even when the problem continues year over year.
Clients agree that they would have never figured out what the actual problem was without our help. What creates this problem?
- They may not have ever reviewed the problem area.
- They were observing the problem with blinders on
- They simply do not recognize the significance of the issue
Would you like us to take a look at your issue and give you a root cause analysis?