4 Key Characteristics of an Effective Corrective Action System- Part 1 (2024)

“Without continual growth and progress, such words as improvement, achievement and success have no meaning.” Benjamin Franklin

By Dana Slagle – All businesses face two major challenges to success. First, they must constantly detect inefficiencies and apply corrective action to stay competitive. Second, they must find a way to hold team members accountable for completing these corrective measures to ensure improvements are made. When you take into account all the moving pieces of a company — regulation, compliance, risk management, employee satisfaction and customer experience — the task of improving a business (especially a franchise with multiple locations) seems like a daunting, if not impossible, task.

Thankfully, there are corrective action systems available that help address the challenge. These systems come into play after a manager has completed an evaluation of his or her store and is ready to put corrective measures into play. Company executives should consider the following four key characteristics of an effective corrective action system:

  1. Efficiency
  2. Accountability
  3. Transparency
  4. Legal Protection

Imagine that a store manager has just completed a store evaluation. As we analyze what happens next, let’s look at how these first two values come into play with an effective corrective action system.

1 – Efficiency

An efficient evaluation system gets a store to the corrective action stage as quickly as possible. Oftentimes when an evaluation is complete, a manager has to then return to his or her office, fire up a laptop, input each item of data individually into a spreadsheet, and then send it to the next person on the corporate food chain.

Let’s stop here for a moment. We’re already seeing a major issue in this process. It’s taking forever for this store to get to the corrective action stage. The manager is spending too much time by having to first complete the evaluation, enter the information, and then send it to the regional manager. The longer it takes to complete, upload and submit evaluations, the longer it will be before stores can address the issues with corrective actions.

Solutions: By taking the pen, paper and spreadsheet out of the equation entirely and replacing them with mobile evaluation software that can be used onsite on any smartphone or tablet, you can reduce wasted time, increase productivity, and improve employee satisfaction. This streamlines the evaluation process. Having a system that will automatically send these evaluations to the correct person also helps make the system more efficient and gets stores to the corrective action stage more quickly.

Let’s continue with our scenario.

2 – Accountability

After the store manager sends the report via email to the regional manager, a few things can happen. First, the regional manager might not even read it. Second, the manager may read it, but not really know the corrective action to prescribe. Third, the manager may read it and respond to the email with the appropriate corrective action. This is only effective if the company has a system in place to ensure the store manager then completes the corrective action.

The problem with this part of the evaluation process is the lack of accountability. When evaluations are stuck in an endless cycle of emails and spreadsheets with no centralized hub of information, there is no realistic way for upper management to track the corrective action. This means things could fall through the cracks.

Solutions: All companies need a system that makes each person along the evaluation process accountable. Such a system would give store managers a certain amount of days to complete evaluations and auto notifications would remind them if they had surpassed their time. The system would also remind regional manager to review evaluations, determine corrective actions, and follow up with the stores making those corrections. Finally, all of this information should automatically be transmitted to corporate headquarters, where company leadership can see trends in real time.

In summary, an effective corrective action system will provide stores with a user friendly tool to manage their corrective action workflow process. I’ll cover the next two characteristics of an effective corrective action system — transparency and legal protection — in my next blog post.

Dana Slagle is a Regional Vice President Sales at Steton, partnering with some of the most innovative brands in the retail and hospitality industries. She’s an expert in mobile audit, data analytics, social responsibility, business intelligence, compliance, corrective action and operational excellence. Leaders like Sears, Limited Brands, Marriott, Academy Sports, Wendy’s, McDonald’s and many others recognize that robust data capture software is a key driver to the success of their organizations. If you’re passionate about your brand and want to brainstorm with someone who has 10+ years of experience driving positive change in large, national and international organizations, contact Dana at dana.slagle@steton.com.

4 Key Characteristics of an Effective Corrective Action System- Part 1 (2024)

FAQs

4 Key Characteristics of an Effective Corrective Action System- Part 1? ›

The types of corrective action that can be used to provide an opportunity for an employee to correct conduct or work performance standards are written warning, corrective salary decrease, suspension and demotion.

What are the four types of corrective actions? ›

The types of corrective action that can be used to provide an opportunity for an employee to correct conduct or work performance standards are written warning, corrective salary decrease, suspension and demotion.

What are the key elements of a corrective action plan? ›

The following are the key elements of a corrective action plan:
  • Defined problem. The first element of a corrective action plan is identifying the problem. ...
  • Due dates. ...
  • Risk assessment. ...
  • Root cause. ...
  • Action items. ...
  • Stakeholders. ...
  • Metrics for completion. ...
  • Progress updates.
Feb 12, 2024

How to answer a corrective action report? ›

How to Write the Corrective Action Response
  1. Finding: What is the finding and why did it occur?
  2. Action Taken/Who: List the action taken to correct the finding. ...
  3. When: Provide the date(s) when corrective action(s) was/were implemented or will be implemented.

What are the 5 steps of a corrective action? ›

CLCA process includes five steps:
  • Identify Non Conformance or Failures.
  • Open a Corrective Action.
  • Respond to the Corrective Action.
  • Define the Root Cause of the Non Conformance or Failure.
  • Implement the Solution.

What is a Level 4 corrective action report? ›

Level IV CARs are issued by the DCMA NSEO ACO and may be coupled with contractual remedies to include suspension of progress payments, suspension of product acceptance activities, removal of QAR from facility, and charge for additional cost of inspection or test when prior rejection makes reinspection or retest ...

What are the principles of corrective action? ›

In general, corrective action should be progressive, beginning with the lowest severity action before employing actions of more severity. Any formal corrective or disciplinary action must follow the principles of "Just Cause".

What are the 4 features of an action plan? ›

How do you build an action plan?
  • Specific. The goal should be clear and concise.
  • Measurable. There must be criteria in place to measure success.
  • Achievable. The goal must be achievable within a reasonable timeline.
  • Relevant. Make sure the goal aligns with values and long-term objectives.
  • Time-bound.

How to measure effectiveness of corrective action? ›

The best way to check for effectiveness is to review the implementation of each corrective action after a specified period. Sufficient time must be given and verification must occur prior to closing the corrective action.

What are critical components to an effective corrective action process? ›

A root cause analysis is a critical component of your corrective action plan. It'll help you treat the problem at hand instead of simply reacting to the consequences. Your root cause analysis procedure might look like: Compiling reports and collecting data specific to the conflict you identified in the first step.

What is corrective action give an example? ›

Corrective action examples should be clear, concise, and detailed to ensure that the employee understands what needs improvement. These examples may include missed deadlines, violation of company policies, or failure to meet quality standards.

What is a corrective action example? ›

Corrective action is a term used when any work-related activities are undertaken to improve performance or to reduce the risk of harm in the workplace. This can include a range of things, such as employee training, disciplinary action and safety inspections.

What are the 6 phases of a corrective action plan? ›

Generally, however, CAPs follow six phases: identification, evaluation, root cause analysis, action plan development and implementation, and follow-up.

What are the different types of corrective actions? ›

Corrective action is commonly used when employees fail to meet performance standards. These actions can include warnings, suspension, demotion to a lower classification, and dismissal.

What are the three types of corrective actions? ›

To begin with, let's explore the most common types of corrective actions. These can be broadly categorized into three main groups: immediate, intermediate, and long-term corrective actions. * *Immediate corrective actions* consist of steps taken to quickly resolve a problem or issue at hand.

What are corrective actions give examples? ›

Corrective Action Examples

In the context of human resources, corrective actions focus on discipline. For instance, an employee who harassed a coworker may face warnings, suspension or termination. These actions aim to eliminate the cause of the harassment by reprimanding the harasser.

What is a Level 3 corrective action? ›

A Level III CAR may be coupled with contractual remedies such as reductions of progress payments, cost disallowances, or business management systems disapprovals, etc. A Level I or II CAR need not be issued before a Level III CAR is generated. All Level III CARs shall be coordinated with the Contracting Officer.

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