According to national talk-show host Ken Mathews, Walt Disney himself implemented a system called “Low Ride Out Policy.”
Using this policy, the Disney Theme Parks rank every ride’s performance by measuring the number of people choosing to ride it. Hence, eliminating the lowest ranking ride each year means a new ride takes its place.
For this reason, the Walt Disney theme parks continually improve, and remain relevant.
Unfortunately, many small businesses NEVER measure the performance of their products and services; nor the performance of their employees.
Therefore, owners and managers can’t determine the true cost of poor performance, much less WHY it continues to happen. In other words, continuous improvement becomes happenstance, and poor performance remains “business as usual”!
How Do You Measure Performance?
These systems measure performance by prompting management to answer important questions concerning any non-conformance of processes relating to employees, departments, and/or vendors.
Furthermore, they prompt management to uncover the ROOT CAUSE of any non-conforming event occurring in operations. More importantly, prompting management to UPDATE a current process or implement a new system to ensure performance improvement.
If companies fail to measure the performance of processes, used in making products and rendering services, they can’t effectively improve or manage their overall business. Clearly, measuring process performance of employees is extremely important for business health.
In brief, a SYSTEM for measuring performance is a MUST for growing a business. Otherwise, it’s a shoot-from-the-hip method of operation.
What is a process?
A process is a sequence of actions undertaken to perform a specific end.
In short, a process is a SYSTEM!
As mentioned, Walt Disney Theme Parks measure the performance of every amusement ride to ensure only the BEST performing rides stay active. Therefore, keeping their brand relevant for NEW generations of theme park goers.
In like manner, identifying Best Practices in business is a process of elimination and improving the steps in operational processes. In other words, ensuring continual improvement comes through constant measurement; documenting the best way to perform a process step-by-step.
How do I know?
By systematic measurement of non-conforming events in our former commercial printing company, we were able to reduce rework by 70%.
Proof of “Quality” is in measuring, NOT in slogans!
In the same manner, just as Disney removes their poor performing amusement rides, we systematically removed outmoded equipment and processes; and yes, poor-performing employees who refused to correctly use our Quality Assurance Systems.
As a result, our company ran like a well-run Amusement/Theme Park, day after day.
Did I mention? Great systems work even for Micky!