March 2026 Monthly Update
“What Got Us Here Won’t Get Us There”
Two months in. The theme is no longer new-it’s becoming real.
January was about alignment.
February was about execution.
March is about proving it.
We came out of the gate strong. Revenue is ahead of plan and up over 8% versus last year. That matters. But as I’ve said before, 2026 will be won on consistency, not early wins. The scorecard below tells the full story-and there are areas that need our honest attention.
2026 KSO Scorecard – Through February
Where We’re Winning
Freight: A standout result. At 6.0% of revenue YTD, we are already below our 7.0% full-year target and down significantly from 9.3% last year. Better planning and execution are showing up in the numbers. Keep it up.
Revenue & Sales: We are ahead of plan and growing 8.3% over prior year. The team is owning our region-and it’s showing.
Where We Need to Bear Down
Labor: At 11.8% of revenue, we are above our 10.5% target-and above where we were last year. This is the area that needs the most focus in March. Labor efficiency improves through smarter processes, reducing rework, and eliminating motion that doesn’t add value. If you see waste, say something.
Warranty & Quality: Warranty costs through February are significantly elevated versus the same period last year. A 10% improvement in quality metrics is our goal-we are moving in the wrong direction right now. This requires honest conversations about where defects are originating and fixing them at the source, not downstream.
Customer Experience: We don’t have a single metric that captures this-but warranty costs and on-time delivery are leading indicators. Elevated warranty is a signal our customers notice. As we drive quality up, the customer experience will follow.
What March Is About
The wins are real. So are the gaps. March is where we close them. That means:
- Data over assumptions. If you’re making a decision, ask: what does the data say?
- Fix it at the source. Don’t pass problems downstream. Stop them where they start.
- Cut the waste. Wasted motion, wasted time, and wasted cost don’t serve our customers or our team.
- Hold the standard. Accountability isn’t about blame-it’s about doing what we committed to do.
A Challenge for March
Look at your work this week and ask: Is there a better way to do this?
If the answer is yes-bring it forward. Leaders are expected to listen, remove obstacles, and help move good ideas ahead. That’s the commitment.
We won’t transform this company in a single month. We’ll do it through thousands of small, disciplined improvements made every day-by every person on this team.
Thank you for the work you’re doing and for leaning into what’s ahead.
Let’s keep building.
DZC