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OPERATIONAL EXCELLENCE

Creating a Culture of Excellence

Operational Excellence is not easily defined, but its definition is essential for any organization wishing to pursue it. Unfortunately, most organizations fail to define operational excellence and without an actionable definition they end up defaulting to the old saws:

Building excellence in everything we do

Being world class

Being best in the industry

Etc.

These definitions are difficult to translate into practical actions. Worse, there are probably many different interpretations of what “Operational Excellence” is across an organization preventing the development of a clear road map to follow for achieving it. 

This where we start with our clients. We want to have a clear idea of what you’re trying to accomplish and how it fits into your definition of operational excellence. Because if you’re not sure we can’t be sure, and success is unclear.

 

What we can say is,

Operational excellence is a part of organizational leadership focused on the application of principles, systems, and tools toward the sustainable improvement of key performance metrics and ultimately greater customer satisfaction.

For us the focus of Operational Excellence goes beyond the traditional tool and event-based model of improvement toward a long-term change in organizational culture.

To help us better serve our clients we’ve developed an intuitive framework model for operational excellence. This model allows us to look at the components of operational excellence and how they interrelate within your organization. By using our model as reference, we can locate opportunities to improve operations and collaboratively establish a plan to realize them.

Adopting an OE model...

Models provide a map of reference points for our efforts and a good model answers Peter Drucker’s age-old questions: Who is the customer? And what does the customer value? It also answers fundamental questions every leader must ask: How do we accomplish the organization's goals? What is the underlying  logic that explains how we can best deliver value to customers at an appropriate cost? Our model for operational excellence is based on 30 years of experience with organizations and exhaustive research into what works and what doesn't.

Components of Operational Excellence (OPEX)

Vision, Mission, and Values

  • Mission, Vision, and Values must be meaningful to every member of your organization or they are only placards.

  • To be meaningful the three must be Clearly and Consciously represented within the organization.

 

Strategy

  • Strategy must reflect the organization’s Mission, Vision, and Values.

  • It provides a sense of direction and outlines measurable goals. It must be reflected in day-to-day decisions and also for evaluating progress and changing approaches when moving forward.

  • In order to make the most of strategy, your company should give careful thought to the strategic objectives it outlines, and then back up these goals with realistic, thoroughly researched, quantifiable benchmarks for evaluating results.

Operating Principles

People

  • Build positive relations

  • Lead with humility

  • Respect every individual

Purpose

  • Create constancy of purpose

  • Embrace systems thinking

Process

  • Embrace scientific thinking

  • Focus on the process, then performance

  • Flow customer value

  • Remove process waste

Principals

  • Create value for stakeholders

Systems

  • Clear ownership

  • Organization structure supports systems

Tools and Behaviors

  • Clearly articulated and communicated

  • Daily execution pursued

 

Results

  • Measure from the perspective of stakeholder value and communicated in understandable terms

 

Customer Value

  • Clear and frequent methods of identifying customer value and gap between results and that value