How Data Fosters a Performance-Improvement Mindset
Good data can help make any organization successful.
That’s an important mindset for foodservice distributors that aim to make progress by collecting and tracking their own performance data and comparing it to industry benchmarks to accelerate improvement.
The importance of succeeding in this activity will be spotlighted at the IFDA Solutions Conference in a presentation called “Metrics Drive Behavior: What are the Right Metrics?” on Tuesday, Sep. 30.
The session will feature two speakers from Wipfli — company directors Cara Walton and Gene Mussel — who will outline opportunities based on their organization’s work with clients.
“Tracking and using data can drive innovation for foodservice distributors,” said Mussel. “Looking at your own data is a check on how your business is performing, and benchmarking it against outside data identifies opportunities for innovation and improvement.”
Many organizations don’t fully understand the value of collecting their own key performance data and sharing it internally. “Tracking and publicizing your own data within a business can drive improvement in a metric up to 20% to 30%,” said Walton. “Leveraging outside data for comparison on top of that can lead to further improvements each year.”
This process can achieve savings and efficiencies that help future-proof organizations, emphasized Mussel. “It helps build agility into a business to ride the waves of business cycles without suffering dramatic consequences in downcycles.”
Wipfli makes use of strategies ranging from analytics to data visualization and is tech-agnostic in identifying client solutions. As part of its work, it compares foodservice distribution performance to manufacturing industry benchmarks based on more than 15 years of historical data. This benchmarking helps to drive process improvements.
“We use data to help with scored assessments, health checks of businesses, benchmarking and recommendations,” Mussel explained. “Then our team identifies projects and other opportunities to drive business improvements.”
What measurement areas does Wipfli focus on? The goal is to think critically about specific metrics that will drive changes in behavior and improvement in a business’ bottom line, Walton said.
The company emphasizes throughput to help businesses understand overall efficiency by looking at total value-add revenue per individual at a facility.
“We prefer to focus on a high-level metric that drives improvement, such as throughput, and then translate this into management and then into departmental or functional metrics,” she added.
Article authored by freelance writer David Orgel.
