I've recently conducted a limited introductory kaizen programme with a new client, a small but growing business engaged in the manufacture of small capital items. It prides itself on Delivery and Quality ...but profitability is a concern, with jobs taking generally 20% over the estimated time to manufacture.
The owner has now proposed a more sustained intervention, with remuneration based upon a small 'retainer' fee, and a share of improved profits.
I'm not in the business of awarding certificates, generating warm feelings etc. (they're a by-product) and have previously contracted to deliver x% productivity improvements, letting the client do the maths on this. Such improvements need to be autonomously maintained for a month after my intervention. If targets not met or sustained - no fee. Simple!
The new scenario is different.'Efficiency' depends on a host of things - job complexity (typically each product is 70% generic, 30% bespoke ...but ratios may switch), clarity & timeliness of customer specification, as well as all the usual organisational and motivational stuff. Efficiency/profits will therefore be subject to factors that I will find difficult to influence - which I accept to some extent as this is a reality of business.
Can anyone offer any advice on the contractual arrangements for this way of working? Any experience of something similar ...does & don'ts, etc.?