The Vision
It has been six months since Aubyn stepped into the role of interim operations manager. Last month, the productivity slide bottomed out at a dismal 22.4 moves per crane hour (MPCH).
"Under normal circumstances, we should achieve upwards of 25 moves per crane hour, or thereabouts; that's what the terminal was designed to achieve," mused Aubyn.
These circumstances were anything but normal. The metrics that showed the maintenance department's performance against the key performance indicators (KPIs) were the worst on record. The management and staff there felt utterly demoralized. They felt they needed to get the much-needed support from The Authority.
The maintenance department team had to mothball upwards of 20% and, in specific instances, as much as 30% of the various container handling equipment. They had even been cannibalizing the mothballed equipment to secure spare parts to keep the active fleet going.
In the main, the terminal's tarmac had fallen into disrepair, further exacerbating the strain on the availability and reliability of mobile equipment. STS crane operators complained regularly about the state of the crane rails. The cries from the maintenance and operations department grew louder with each passing day.
All categories of equipment operators lost confidence in operating the equipment to its optimally designed capacity, resulting in a slowdown in productivity.
The performance metrics on ship-to-shore (STS crane) reliability, straddle carrier availability, and crane productivity were embarrassing, and shipping companies were using these poor metrics to threaten legal and other drastic consequences.
Such was the condition of the terminal. Despite the difficulties of the last six months, Aubyn had been proactive, advocating a "back to basics" philosophy. He successfully implemented or reinforced most things he would have wanted. He enforced rigorous compliance with the Terminal Operating System (TOS), harnessing innovative technology to oversee it around the clock.
The operation teams seldom accurately reported poor performances. It was common for actual performance figures to be doctored, leading to false reporting.
To verify the productivity reports from each Shift Manager, Aubyn depended on his Revenue Protection Team, especially Clayton and Denton, who had become experts at sifting out anomalies.
Aubyn didn't shy away from pushing his managers for truthful reporting.
"The KPIs may be grim, but at least they're accurate, showing us the true state of affairs. We can't fix what we won't acknowledge. Once we recognize the problem, we can tackle it. If we can identify the issue, we can find a solution," he said.
One thing that gave him some solace was the improved overall atmosphere among the staff. There was more friendly banter, and a sense of lightheartedness had taken over. Even the weekly management meetings Aubyn had just emerged from had become more relaxed.
Notwithstanding the improvement in the social environment, Aubyn knew it would require more to rally his team and the entire workforce. The terminal was going to the dogs, and everyone knew it, evidenced by a lack of significant capital investment, poor performance metrics, and low staff morale.
The talks of the impending privatization seem to grow louder every day. Whenever the news mentioned the port, it focused on the government's plans to privatize the assets that had become a burden the taxpayers could no longer afford.
Here comes David puffing on a cigarette as usual, with his trademark childish smirk, ever the prankster. He is up to no good; some unsuspecting soul is about to be on the wrong end of his wit. This morning, it was the turn of his friend Aubyn, recently one of his most frequent victims. Truth be told, they both enjoy taking turns at each other.
David was waving a makeshift sign that read "28" in jest. He was flashing that "28" like a blinking neon sign: "28", now you see it, now you don't, hinting at the pivotal operational KPI of 28 MPCH.
"Are you still a movie star?" he asked. "Are you still acting as Ops Manager? Captain B will not confirm you, Aubyn, unless we hit 28!"
Now, 28 was a significant number on the port. Twenty-eight moves per crane hour is a weighted monthly average. It has been the single most critical productivity KPI for the last four years, the attainment of which would almost certainly result in a hefty incentive payment midway through the following month.
The incentive scheme comprised three metrics: productivity of 28 MPCH or greater, crane reliability of 98.1% or greater, and straddle carrier availability of 89% or greater. Productivity had a weight of 60%, crane reliability 25%, and straddle carrier availability a weight of 15%.
Four years ago, the terminal's management adjusted it from 26 MPCH to 28 MPCH, and its contribution to the computation of incentive payout increased in importance to its current weighting of 60%. Conversely, other KPIs deemed less significant had their importance reduced and taken out of the computation for incentive payment. Employees consistently achieved these now lesser-weighted metrics before the adjustments, which resulted in incentive payouts.
The workforce deemed these changes as just another sleight of hand by management, setting an unattainable target to cheat the "little man" out of his fair share of the pie. All talk of incentives by management and staff alike consequently died a natural death.
However, the KPIs remained significant to the management team and the port's customers, especially the shipping lines patronizing the facilities. The achievement of these KPIs reduced variable costs associated with vessel operations and increased overall customer satisfaction.
In the container terminal industry, where productivity is king, you are only as good as your last performance. That's the nature of the container terminal industry, especially an 80% transshipment terminal; international customers have you by the proverbial nuts.
Back to the diabolical David, flashing his hypnotic sign "28". He and Aubyn had been a part of several attempts in the past to analyze and implement initiatives to raise the port's profile. They both believe much more could be done to improve the port's current state, not least to help the terminal achieve consistency in its performance toward eventually attaining some of these elusive KPIs.
Aubyn took David's teasing in stride, recognizing a kernel of truth in the playful challenge.
"Actually, you're onto something," Aubyn replied, much to David's surprise.
That was not the reaction David hoped he would have gotten. The look in Aubyn's eyes was familiar to David—it told David that he had just bitten off more than he could chew and that this attempt at banter would come back to haunt him. That look meant they were about to venture out on one of their missions to change the world, if not perhaps significantly boost the terminal's performance. At a minimum, they felt a sense of purpose for a couple of weeks before their efforts were frustrated because of a lack of buy-in.
David ruefully thought, "Why did I stir up Aubyn today?"
He knew this playful jab could lead to more work on his plate.
Yet, this moment was unique. It held potential, though only the acting operations manager, Aubyn, had the authority to lead change.
Aubyn was the unexpected choice of Captain B to head up the operations department, which came on the heels of yet another of their missions to bring change and hope. They set out seven months before to analyze the use of the ever-dwindling resources in the operations department. They intended to chart the path towards improving resource efficiency—David focusing on safety and procedures, Aubyn optimizing the TOS usage, and reducing unproductive delays.
"David doesn't realize that he is on to something. There is no reason we can't achieve the 28 moves per crane or any other KPI. We have top-notch equipment operators and a workforce that is second to none. All we need to do as a team is dream it, believe it, and consistently motivate each other towards achieving our goals," Aubyn thought.
David inadvertently was holding up his makeshift sign not 20 feet away from the KPI Notice Board, which was last updated over a year ago.
This sparked an idea in Aubyn.
"Yes, that's it! Communicate the goal and make it visible to all," Aubyn exclaimed.
"Revive the KPI notice board, update it daily, and let every person who walks through the terminal gates see how we are doing against our monthly targets," Aubyn concluded.
Key Personal Introspection #1
Have a clear vision:
· OWN: Become one with the vision
· FEEL: Desire the outcome of the vision
· DO: Take action towards achieving the goals
· LOVE: Be passionate about achieving the goals
· DECLARE: Verbalize the vision by sharing it with others
· SEE: Visualize the outcome, see beyond the surface
· CLARIFY: Meticulously document the various components of the vision for public consumption
