The Benefits of Post Event Analysis

When something unexpected happens in the supply chain, how does it respond? You might expedite materials, hijack production plans, work overtime and short circuit processes to minimize customer impact. It doesn't take long before the tired but apt cliche, "fire fighting" comes to mind.

Usually we move on to the next fire right away, leaving in place work around solutions with a promise to return one day to fix it for good. But when the problem comes back, we are again out of time and under the gun, so we hit it with the fire with the hose in the name of momentum. And so the cycle is repeated to the immense frustration of continuous improvement minded supply chain professionals.

"We just don't do that here; we don't have time," said a senior supply chain executive in a major information security company. The fire fighting mentality was pervasive there. It impacted operating profit, supply chain cost, and staff morale. The leadership simply did not see the value of reviewing the quality of responses to unexpected problems. The unanswered question was, how many mistakes were they repeating and at what cost?

By analyzing the response (even beyond Supply Chain) to unexpected problems, valuable insight can be gained about the organizations capabilities and resource needs. The most effective post event reviews result in reduced cost, improved morale and, most importantly, minimizing the negative impact on customers.

If your organization is ready for Post Event Analysis Review, here are some elements that can help maximize its value and impact:
 

• Make it cross functional – Single function reviews are great, but they tend to focus on one aspect of results, at the expense of a full appreication of cause and effect. For example, DC operations might have great fill rates, but customer service can bring real customer feedback to the discussion.
• The sooner the better - Post event reviews are most effective when the results are fresh in the collective mind. Knowledge of the events details is highly perishable: it is quickly covered up with new and more pressing needs.
• Present successes as well as opportunities - This process quickly looses momentum when it is perceived as an "accountability" session. Time should be spent in equal parts on what went well and opporutnities for improvement.
• Encourage cross functional investment – A good facilitator is important, but a succinct investment of analysis from a key resource in each functional area will ensure broad buy in and better support for any resulting recommendations.
• Examine cause and effect– Focus on how changes in one area impact results others. For example, achieving lower inventory cost is great, but if it is at the expense customer experience, something needs it is not ideal.
• Make time – Resist the natural urge to move on. What is more wasteful: a time out to problem solve or repeatedly making the same mistakes?
• Communicate outcomes – Valuable insights and recommendations should be communicated to the executive leadership team. Their support can be critical if additional resources are required to enable improvements.

A lot of great companies are good at post event analysis. Afterall, it is not a new concept. But it can be challenging to get it working in organizations where it is not the norm. If you decide it is necessary, following these principles will help maximize the benefits Post Event Analysis Reviews can offer.