February 11, 2015 | Mark Paradies

Why is Performance Improvement (and Root Cause Analysis) Essential?

Sometimes I get the impression that some managers think that performance improvement is an optional activity that can be cut to meet budget goals. That view surprises me because I think that performance improvement is an essential activity that can’t be cut because it supports activities that:

  1. Stop Fatalities
  2. Reduces Regulatory Conflict
  3. Avoids Major Financial Losses
  4. Keeps Clients Happy
  5. Eliminates Bad Press
  6. Improves Operational Efficiency and Equipment Reliability

After all, can you really afford deaths, regulatory initiatives, major losses, unhappy clients, bad press, and broken, inefficient operations?

If your performance improvement program isn’t world class, you are inviting disaster. And disaster is expensive. Every cent you save by reducing effective performance improvement efforts will come back to you in expensive accidents, incidents, plant upsets, equipment downtime, and regulatory headaches.

So, the next time management has a great idea to cut the performance improvement budget, remind them what the budget does for them. Remind them of the losses avoided and the good nights of sleep they get and how bad it will be when things go haywire.

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