What they do?
A global organisation providing specialist transportation services to offshore oil and gas platforms, medical evacuation and civilian search and rescue. The company runs more than 250 aircraft across 30 countries, with major operating units in Australia, Brazil, Norway and the UK.
What was their challenge?
The highly variable nature of the business, with unique contracts and locations across each operating region had created a significant challenge in establishing a meaningful set of metrics to help track performance and drive improvement. This was compounded by a series of acquisitions that had further complicated reporting and a move from regional to centralised operational control, driving the need for common and standardised measures across the business.
What did Oakland do?
The first step was to establish a clear understanding of the management requirement underpinning the Key Performance Indicators (KPIs), especially given the new operating structures with changes in accountability and ownership. At the highest level, all contracts were serviced using the same set of inter-related processes – the key was therefore to find a mechanism to link operational indicators across all aspects of the business (the cause) with financial outcome metrics (the effect) in a way that:
- Measured performance against an agreed baseline and targets
- Identified opportunities to focus improvement action
- Enabled data-driven management decisions
- Refined productivity assumptions for future bids and forecasts
Working closely with the Business Intelligence and functional teams, an initial set of KPIs linking operational performance with financial impact were defined and piloted in Brazil. This acted as a proof of concept to demonstrate what was possible, but also provided the vehicle to refine the metrics and trial the supporting meeting and governance structures, an essential component in driving management decisions and real improvements from the information.
The key to roll-out was sustainability on a global stage – automated KPI dashboards between each region and the global operating centre were built into an online performance hub with live data feeds. This provided a significant change in the way management could access, review and act upon data. An essential component of the project was therefore to help manage this change, establishing standard ways of reporting and reviewing information, coaching operational staff on the metrics and underlying data, and emphasising the required behaviours at all levels of the organisation.
What was the outcome?
Live integrated dashboards, with clear ownership of each KPI, are now fully operational across the organisation’s global footprint. They provide the essential anchor points for the governance processes, creating visibility to make strategic decisions, identifying the key areas to focus improvement effort and allowing the operational teams to share best practice. In the first three months following launch, improvements to crew rostering, training and manpower management yielded $2.3M audited savings p.a.
Don’t assume having the right data and information will mean you will get the right decisions – it is vital to lead the business through the journey to becoming a more data centric organisation, demonstrating what is possible and establishing the necessary foundations to make the transformation stick.
Posted in Case Study