Topgrading Helps IT Department Reduce Costs by Half
The Company & The Challenge
Carestream is a medical and dental imaging and IT solutions company with 7,200 employees globally.
Chief Information Officer Bruce Leidal was hired to reduce the cost of the IT department from 3% to 1.5% of sales, while improving efficiency and productivity throughout the business. Leidal entered the department well aware of the warp-speed advances in IT in the US, and concerned that the department lacked the A Players necessary for IT to become a core strength of the company.
No. of Employees: 300 (Department)
Industry: Digital Healthcare Solutions
- Improvement from an estimated 30% to 74% A Players hired
- 100% A Players hired for IT leadership team
- Successfully Topgraded a department without Topgrading the full organization
- Achieved cost reductions and improved service
Leidal continued to use the Carestream hiring methods but quietly inserted the Topgrading methodology that he had learned when he was CIO at Hayes Lemmerz – Job Scorecards, Tandem Topgrading Interviews, and reference checks arranged by candidates.
Leidal conducted thorough talent reviews of his entire department. There had been less than 1% turnover for years, which in this case indicated what the talent reviews revealed – mass complacency. He replaced all five of his direct reports and was able to replace 100 low performers with 50 high performers.
As an innovation, Leidal added minimum ratings on general competencies to Carestream's Job Scorecards. He had found that some people could achieve results but were such poor team players that they dragged down others' results and made the organization culture less attractive to prospective hires.
After improving hiring results and replacing lesser performers with high performers, Leidal mentioned the new Topgrading methods to Corporate Human Resources. Impressed, they attended a public Topgrading Workshop and have remained supportive of its inclusion.
"With a 4-year goal to reduce costs to 1.5% of sales, our team has almost achieved it (1.57%) in only 3 years. Efficiency has increased 10-fold and productivity is much improved. The only way we could have achieved those results is with Topgrading."
- Bruce Leidal, CIO
Carestream did not measure hiring results prior to Topgrading, but the IT Department's results after Topgrading were:
- 100% A Players or A Potentials on the leadership team
- Out of 46 hires across a global staff, including China, Europe, and the US, 34 (74%) turned out to be A Players.