About fifteen years ago I had the privilege to sit in on an executive leadership training session for a major corporation. During this session, corporate leaders discussed various issues their company was having. Most of these discussions centered on stories; anecdotes that represented issues the company faced. One story in particular stuck with me…
A well-known fried chicken chain restaurant was being inspected by their corporate efficiency team. The goal was to improve operations at all of their outlets in order to maximize profits. This seems reasonable as making money is usually the goal of such places.
The corporate team brought with them hundreds of metrics designed to identify and minimize all the little inefficiencies that creep into such operations and nibble away at profit. The local store in question was doing pretty well. They were “green” on most of the major metrics and had very few “red” ratings. One of these red categories, though, was costing them quite a bit: they were throwing out too much chicken. Health codes, of course, limit how long chicken can sit on the rack before it loses its serviceability and must be disposed of.
This local store was leading the region in thrown out chicken, an obvious hit to the bottom line. Something must be done! The corporate inspectors chided the local manager and left him with instructions to fix that metric. They would be back in 60 days to check on him. Continue reading