Ownership Thinking: How to End Entitlement and Create a Culture of Accountability, Purpose, and Profit

RIP Example 1: No More Tears

This RIP was created for an organization that packages and sells produce and that was doing roughly $20 million in annual revenues. One of the most critical KPIs at the company is average cost per package, that is, the average cost of a package of produce when it leaves the facility. The company’s first RIP was to reduce average cost per package from $2.00 to $1.50. Here are the details:

■ KPI: Average Cost per Package.

■ Quantifiable Objective: To reduce Average Cost per Package by 50 cents in 90 days.

■ Financial Effect on the Company: Astonishingly, this added $600k to the company’s profit over a period of one year, which significantly affected the incentive pool.

■ Actions:

• Move to 70 percent purchasing from ...