SlideShare ist ein Scribd-Unternehmen logo
1 von 48
Downloaden Sie, um offline zu lesen
An	
  Introduc+on	
  to	
  	
  
Opera+onal	
  Excellence	
  
“We	
  are	
  what	
  we	
  repeatedly	
  do.	
  	
  	
  	
  
Excellence,	
  then,	
  is	
  not	
  an	
  act,	
  but	
  a	
  habit.”	
  
	
  
–Aristotle	
  
Top 10 CEO Challenges & Priorities
E 
E 
E 
E 
E 
E 
Opera+onal	
  Excellence	
  –	
  A	
  Philosophy	
  
A Philosophy: Operational Excellence is a philosophy of leadership, teamwork
and problem solving resulting in continuous improvement throughout the
organization by focusing on the needs of the customer, empowering
employees, and optimizing existing activities in the process.
Opera+onal	
  Excellence	
  –	
  An	
  Approach	
  
A Value Stream Management Approach: Operational Excellence is when each
and every employee can see the flow of value to the customer, and fix that flow
before it breaks down.
Opera+onal	
  Excellence	
  –	
  A	
  Model	
  
A Process Excellence Model: The Shingo Model
The Shingo model is comprised of two elements: the house and the diamond.
The diamond represents the transformation process for embedding the principles
of operational excellence into the organizational culture.
The house details the principles of operational excellence and the power of
balancing effort across all the dimensions.
Opera+onal	
  Excellence	
  –	
  A	
  “Checklist”	
  
A	
  “Checklist”:	
  Oliver	
  Wight	
  Class	
  A	
  Checklist	
  for	
  Business	
  Excellence	
  	
  
There	
  are	
  nine	
  chapters	
  describing	
  latest	
  prac+cal	
  and	
  proven	
  best	
  prac+ces.	
  Implementa+on	
  follows	
  
the	
  “Proven	
  Path	
  Methodology”.	
  	
  	
  
These	
   support	
   five	
   further	
   chapters	
   that	
   address	
   the	
   prime	
   processes	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
in	
  most	
  organiza+ons:	
  Products	
  &	
  Services,	
  Demand,	
  Supply	
  Chain,	
  Internal	
  
Supply,	
  and	
  External	
  Sourcing.	
  
The	
  Oliver	
  Wight	
  Class	
  A	
  Checklist	
  is	
  aimed	
  so	
  that	
  organiza+ons	
  can	
  see	
  for	
  
themselves	
  what	
  "excellence"	
  is	
  and	
  what	
  they	
  have	
  to	
  do	
  to	
  be	
  excellent.	
  Its	
  
scoring	
  method	
  allows	
  organiza+ons	
  to	
  visualize	
  and	
  measure	
  progress	
  toward	
  
excellence	
  in	
  every	
  part	
  of	
  the	
  business.	
  
The	
  four	
  priority	
  chapters	
  describing	
  the	
  processes	
  and	
  prac+ces	
  that	
  enable	
  the	
  whole	
  business	
  to	
  
be	
  excellent:	
  
Ø  Strategic	
  Planning	
  
Ø  Managing	
  and	
  Leading	
  People	
  
Ø  Driving	
  Business	
  Improvement	
  
Ø  Integrated	
  Business	
  Planning	
  
Various	
  approaches,	
  frameworks	
  and	
  models	
  exist	
  that	
  are	
  presented	
  under	
  the	
  
term	
  Opera+onal	
  Excellence.	
  
What	
  is	
  Opera+onal	
  Excellence?	
  
Opera+onal	
  Excellence	
  –	
  A	
  Defini+on	
  
A	
  Business	
  Strategy:	
  In	
  "The	
  Discipline	
  of	
  Market	
  Leaders“	
  (1995),	
  Michael	
  Treacy	
  and	
  
Fred	
   Wiersema	
   describe	
   three	
   dis+nct	
   value	
   proposi+ons	
   or	
   disciplines:	
   Product	
  
Leadership,	
  Customer	
  InImacy	
  and	
  OperaIonal	
  Excellence.	
  
Market	
  leaders	
  choose	
  to	
  excel	
  in	
  delivering	
  extraordinary	
  levels	
  of	
  one	
  of	
  these	
  three	
  
value	
  proposi+ons,	
  while	
  maintaining	
  reasonable	
  standards	
  in	
  the	
  other	
  disciplines.	
  
Market leaders will not pursue a diffused business strategy
across two or even all three disciplines, but will continually focus
on their organizational design, processes, technology and
competencies to improve the one particular value discipline that
they want to provide to their Customers better than anyone else.
Organizations pursuing an Operational Excellence strategy,
strive to deliver a combination of quality, price, and ease of
purchase and service that no other organization in their market
or industry can match.
What	
  is	
  Opera+onal	
  Excellence?	
  
Achieving	
  Opera+onal	
  Excellence	
  requires	
  the	
  successful	
  implementa+on	
  of	
  a	
  integrated	
  
Business	
  ExecuIon	
  System	
  that	
  effec+vely	
  and	
  seamlessly	
  integrates	
  the	
  following	
  four	
  
building	
  blocks:	
  Strategy	
  Deployment,	
  Performance	
  Management,	
  Process	
  Excellence,	
  
and	
  High	
  Performance	
  Work	
  Teams.	
  
Strategy or Policy Deployment
is the process that aligns and
links business strategy and
execution.
Performance Management is
the process that translates
strategic initiatives into
measurable objectives and
goals.
Operational Excellence can
be achieved and sustained
with the right attitude, the
right mindset, and the right
competencies.
Well designed, efficient, and
effective Management, Value
Chain, and Support Processes
are necessary to deliver world-
class results.
Strategy	
  	
  	
  
Deployment	
  
Performance	
  
Management	
  
High	
  Performance	
  	
  
Work	
  Teams	
  
Process	
  	
  	
  	
  	
  
Excellence	
  
Opera+onal	
  Excellence	
  	
  	
  
Business	
  Execu+on	
  
System	
  
What	
  is	
  Opera+onal	
  Excellence?	
  
Achieving	
  Opera+onal	
  Excellence	
  requires	
  the	
  successful	
  implementa+on	
  of	
  a	
  integrated	
  
Business	
  ExecuIon	
  System	
  that	
  effec+vely	
  and	
  seamlessly	
  integrates	
  the	
  following	
  four	
  
building	
  blocks:	
  Strategy	
  Deployment,	
  Performance	
  Management,	
  Process	
  Excellence,	
  
and	
  High	
  Performance	
  Work	
  Teams.	
  
Strategy or Policy Deployment
is the process that aligns and
links business strategy and
execution.
Strategy	
  	
  	
  
Deployment	
  
Performance	
  
Management	
  
High	
  Performance	
  	
  
Work	
  Teams	
  
Process	
  	
  	
  	
  	
  
Excellence	
  
Opera+onal	
  Excellence	
  	
  	
  
Business	
  Execu+on	
  
System	
  
“People	
  and	
  their	
  managers	
  are	
  working	
  so	
  hard	
  to	
  be	
  sure	
  
things	
  are	
  done	
  right,	
  that	
  they	
  hardly	
  have	
  9me	
  to	
  decide	
  
if	
  they	
  are	
  doing	
  the	
  right	
  things.”	
  
Stephen	
  R.	
  Covey	
  
Opera+onal	
  Excellence	
  –	
  	
  
Strategy	
  Deployment	
  
Ø  Only	
  5%	
  of	
  the	
  workforce	
  understands	
  their	
  
company	
  strategy.	
  
Ø  Only	
   25%	
   of	
   managers	
   have	
   incen+ves	
  
linked	
  to	
  strategy.	
  
Ø  60%	
   of	
   organiza+ons	
   don’t	
   link	
   budgets	
   to	
  
strategy.	
  
Ø  86%	
  of	
  execu+ve	
  teams	
  spend	
  less	
  than	
  one	
  
hour	
  per	
  month	
  discussing	
  strategy.	
  
	
  Source:	
  Balanced	
  Scorecard	
  Collabora=ve	
  
Strategy is an expression of what an organization intents to do to get from a
current state to a future state. Strategy is often expressed in terms of a vision
statement, objectives, goals, and initiatives.
Opera+onal	
  Excellence	
  –	
  	
  
Strategy	
  Deployment	
  Process	
  
Phase III – Strategic Vision Elements
Phase IV – Strategic Breakthrough Objectives
Phase II – Current State Analysis (CSA)
Phase I – Organize the Process
Phase V – Strategic Initiatives & Tactics
Phase VI – Strategy Implementation & Review
Opera+onal	
  Excellence	
  –	
  	
  
Strategy	
  Deployment	
  Process	
  
Once you have completed the strategic grid, go back and make sure everything fits with your overall
strategy. A set of strategic grids should provide the strategic model for running the business, outlining the
specifics of the strategy. All stakeholders should be able to look at the grids and follow the flow of the
organization’s strategy.
Strategy Maps or Strategic Grids:
Strategic	
  Focus	
  Area:	
  Increase	
  Shareholder	
  Value	
  
Financials	
   Revenue	
  Growth	
  of	
  20%	
  by	
  2014	
  	
  
Customers	
  
Acquire	
  More	
  Customers	
  
Become	
  the	
  Price	
  Leader	
  
Internal	
  
Processes	
  
Improve	
  Opera+onal	
  Efficiency	
  
Cost	
  Reduc+on	
  
Program	
  
Knowledge	
  Based	
  
System	
  
Reduce	
  	
  	
  	
  
Non-­‐Core	
  Ac+vi+es	
  
Learning	
  &	
  
Growth	
  
Training	
  –	
  Lean	
  Six	
  
Sigma	
  Program	
  
Database	
  Network	
  on	
  
Opera+onal	
  
Performance	
  
Re-­‐Align	
  Organiza+on	
  
with	
  Core	
  
Competencies	
  
Dimensions	
  or	
  PerspecIves	
  
Opera+onal	
  Excellence	
  –	
  	
  
Strategy	
  Deployment	
  Process	
  
The	
   Hoshin	
   X-­‐Matrix	
   is	
   a	
   tool	
   that	
   visualizes	
   an	
  
organiza+on’s	
  	
  
Ø  strategic	
  objec+ves,	
  	
  
Ø  strategic	
  ini+a+ves,	
  	
  
Ø  key	
  performance	
  indicators,	
  	
  
Ø  key	
  projects	
  &	
  ac+on	
  items,	
  and	
  
Ø  human	
  resources	
  requirements	
  
in	
  one	
  simple	
  matrix.	
  
The Hoshin X-Matrix enables an organization to easily review the alignment of its
strategic objectives, strategic initiatives, key performance indicators, key action items and
human resources.
The Hoshin X-Matrix, if used properly, improves the likelihood of a successful execution of
the strategic plan.
Opera+onal	
  Excellence	
  –	
  	
  
Strategy	
  Deployment	
  Process	
  	
  
7. …
x 6. Initiate RFQ Process for Customer Service x x
x x 5. Implement reliability program for new products x x x x
x x 4. Establish LSS Black Belt project for return drivers x x x x
x 3. Establish & train order-to-cash process team x
x 2. Identify Lean Six Sigma consulting company x x
x 1. Define Lean Six Sigma Program x x x
QualityManager
SystemTestManager
SystemsEngineeringManager
CustomerSupportManager
…
x $15M in annualized cost savings in 2012 x x x x x
x Order-to-Cash cycle time reduction of 25% x x
x DSO reduction from 90 days to 45 days x x
x x Return Rate reduction from 15% to less than 8% x x x
…
Rev: <Rev#> Revised: <Date> Author: <Name> Status: Draft - Not Released
4.…
3.ImproveNetPromoterScoreto+50%
2.ReduceDSOfrom90daystolessthan45
days
1.ReduceOperatingCostsby15%
1.ImplementaLeanSixSigmaProgram
2.Map&streamlineorder-to-cashprocess
Resource Planning
Operational Excellence Consulting Strategy Deployment Matrix 2012
3.ResolveTOP3productreturndrivers
4.Improveproductverificationandvalidation
5.OutsourceCustomerServicefunction
6.…
Measures & Targets
Action Items
StrategicInitiatives
StrategicObjectives
Measures & Targets
Action Items
StrategicInitiatives
StrategicObjectives
Organization’s
Strategic
Objectives &
Goals
Organization’s Key
Performance Indicator
(Balanced Scorecard)
Organization’s
Strategic Initiatives &
Tactics
Organization’s Tactical
Projects & Action
Items
Organization’s Human
Resource Allocation
Opera+onal	
  Excellence	
  –	
  	
  
Strategy	
  Deployment	
  
“I   sure   wish   I’d   done   a   be1er   job   of  
communicating   with   GM   people.   I’d   do   that  
differently   a   second   time   around   and   make  
sure  they  understand  and  shared  my  vision  for  
the  company.  Then  they  would  know  why  I  was
tearing   the   place   up,   taking   out   whole   divisions,   changing   our   whole  
production  stCDctDre    .  .  .    I  never  got  this  across.”  
  
Roger Smith, CEO of General Motors (1981 - 1990)
Strategy	
  Planning	
  &	
  Deployment	
  –	
  
Resources	
  
Ackoff,	
  R.L.	
  –	
  A	
  Concept	
  of	
  Corporate	
  Planning	
  (New	
  York,	
  New	
  York:	
  Wiley,	
  1970)	
  
Collem,	
  Joseph	
  F.	
  –	
  A	
  Field	
  Guide	
  to	
  Focused	
  Planning:	
  Hoshin	
  Kanri	
  -­‐	
  American	
  Style	
  
(The	
  Woodledge	
  Group,	
  1995)	
  	
  
Cowley,	
  Michael	
  and	
  Domb,	
  Ellen	
  –	
  Beyond	
  Strategic	
  Vision:	
  Effec=ve	
  Corporate	
  Ac=on	
  
with	
  Hoshin	
  Planning	
  (Burlington,	
  Massachuseos:	
  Buoerworth-­‐Heinemann,	
  1997)	
  
Treacy,	
  Michael	
  and	
  Wiersema,	
  Fred	
  -­‐	
  The	
  Discipline	
  of	
  Market	
  Leaders:	
  Choose	
  Your	
  
Customers,	
   Narrow	
   Your	
   Focus,	
   Dominate	
   Your	
   Market	
   (New	
   York,	
   New	
   York:	
  
HarperCollins	
  Publishers,	
  1995)	
  
	
  
To	
   learn	
   more	
   about	
   our	
   proven	
   OperaIonal	
   Excellence	
   Strategy	
   Planning	
   &	
  
Deployment	
   SoluIon,	
   review	
   our	
   “OperaIonal	
   Excellence	
   Strategy	
   Planning	
   and	
  
Deployment	
  Training	
  Module”.	
  	
  
What	
  is	
  Opera+onal	
  Excellence?	
  
Achieving	
  Opera+onal	
  Excellence	
  requires	
  the	
  successful	
  implementa+on	
  of	
  a	
  integrated	
  
Business	
  ExecuIon	
  System	
  that	
  effec+vely	
  and	
  seamlessly	
  integrates	
  the	
  following	
  four	
  
building	
  blocks:	
  Strategy	
  Deployment,	
  Performance	
  Management,	
  Process	
  Excellence,	
  
and	
  High	
  Performance	
  Work	
  Teams.	
  
Strategy or Policy Deployment
is the process that aligns and
links business strategy and
execution.
Performance Management is
the process that translates
strategic initiatives into
measurable objectives and
goals.
Strategy	
  	
  	
  
Deployment	
  
Performance	
  
Management	
  
High	
  Performance	
  	
  
Work	
  Teams	
  
Process	
  	
  	
  	
  	
  
Excellence	
  
Opera+onal	
  Excellence	
  	
  	
  
Business	
  Execu+on	
  
System	
  
“Tell	
   me	
   how	
   you	
   will	
   measure	
   me,	
   and	
   then	
   I	
   will	
   tell	
   you	
  
how	
  I	
  will	
  behave.	
  If	
  you	
  measure	
  me	
  in	
  an	
  illogical	
  way,	
  don’t	
  
complain	
  about	
  illogical	
  behavior.”	
  
Eli	
  GoldraR	
  –	
  “The	
  Goal”	
  
Opera+onal	
  Excellence	
  –	
  	
  
Performance	
  Management	
  
“Balanced   Scorecards   tell   you   the   knowledge,   skills   and   systems   that  
your  employees  will  need  (lear:ing  and  g;owth)  to  innovate  and  build  
the  right  st;ategic  capabilities  and  efficiencies  (inter:al  processes)  that  
deliver  specific  value  to  the  market  (customer)  which  will  eventAally  lead  
to  higher  shareholder  value  (financial).”  
  
“Having Trouble with Your Strategy? Then Map It.”
by Robert S. Kaplan and David P. Norton - Harvard Business Review
Ø  Help the management team focus on the execution of their business
strategy
Ø  Focus and align an organization towards common goals and objectives
Ø  Enable an organization to understand the relationship between measures
and performance
Ø  Improve communication of organizational priorities across an organization
Ø  Help employees to understand and focus on organizational priorities and
realize relevant results
Ø  Reduce the number of metrics to the few vital key performance indicators
Ø  Strengthen and formalizing the project selection process to focus on key
capabilities and enablers
Opera+onal	
  Excellence	
  –	
  
Performance	
  Management	
  
Benefits	
   of	
   developing	
   &	
   deploying	
   Balanced	
   Scorecards	
   in	
   an	
   organiza+on	
  
include:	
  
Opera+onal	
  Excellence	
  –	
  	
  
Performance	
  Management	
  
FINANCIALS
How do you want to look to your shareholders? -
Indicators focus on whether your strategic and
operational plan contributes to your top-line,
bottom-line and/or market share.
CUSTOMERS
How do you want to look to your Customers? -
Indicators focus on the specific measures that
matter the most to your Customers.
INTERNAL BUSINESS PROCESSES
At which internal processes and capabilities do
you want to excel? - Indicators focus on internal
operations that enable Customer satisfaction,
growth and profitability.
LEARNING AND GROWTH
What skills and competencies do you need to
implement your strategic and operational plan? -
Indicators focus on your organization’s ability to
innovate, improve and execute.
Objectives Indicators Targets Projects
Objectives Indicators Targets Projects
Objectives Indicators Targets Projects
Objectives Indicators Targets Projects
Vision
&
Strategy
Opera+onal	
  Excellence	
  –	
  	
  
Performance	
  Management	
  Process	
  
Phase	
  I	
  -­‐	
  Strategic	
  FoundaIon	
  
Step	
  1:	
  Strategic	
  Alignment	
  
Step	
  2:	
  Key	
  Strategic	
  Focus	
  Areas	
  &	
  Objec+ves	
  
Step	
  3:	
  Strategic	
  Grid	
  &	
  Model	
  
Phase II - Three Critical Components
Step 4: Key Performance Indicators
Step 5: Goals & Targets
Step 6: Initiatives & Programs
Phase III – Deployment Process
Step 7: Integrate
Step 8: Cascade
Step 9: Manage
Balanced Scorecard Development & Deployment Process
Opera+onal	
  Excellence	
  –	
  	
  
Performance	
  Management	
  
Strategic	
  Focus	
  Area:	
  Increase	
  Shareholder	
  Value	
  
Financials	
   Revenue	
  Growth	
  of	
  20%	
  by	
  2014	
  	
  
Customers	
  
Acquire	
  More	
  Customers	
  
Become	
  the	
  Price	
  Leader	
  
“Internal”	
  
Processes	
  
Improve	
  Opera+onal	
  Efficiency	
  
Cost	
  Reduc+on	
  
Program	
  
Knowledge	
  Based	
  
System	
  
Reduce	
  	
  	
  	
  
Non-­‐Core	
  Ac+vi+es	
  
Learning	
  &	
  
Growth	
  
Training	
  –	
  Lean	
  Six	
  
Sigma	
  Program	
  
Database	
  Network	
  on	
  
Opera+onal	
  
Performance	
  
Re-­‐Align	
  Organiza+on	
  
with	
  Core	
  
Competencies	
  
For each objective on your strategic grids, you need at least one performance indicator.
Can you have an objective without a performance indicator? Yes, it is possible, but not
having a measurement makes it difficult to manage the objective. It’s best to revisit this
objective and ask the question: Why is this an objective?
Dimensions	
  or	
  PerspecIves	
  
Opera+onal	
  Excellence	
  –	
  	
  
Performance	
  Management	
  
From: January 2010
ORGANIZATION: TBD Until: December 2010
Current Month: TBD 2010
KPI
KPI Name
(Unit)
KPI First Name
Champion Last Name
10 STRETCH
9
8
7 GOAL
6
5
4
3 BASE
2
1
0 ZERO
WEIGHT 0
2010 TOTAL SCORE
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
CURRENT SCORE 3 4 7 2 3 5 6 9
Stretch 2010 1000
Goal 2010 700
Base 2009 300
Actual 0
TOTAL
ORGANIZATION
OPERATIONAL EXCELLENCE BALANCED SCORECARD
FINANCIALS CUSTOMERS PROCESSES
RESULTS
1 2
5 7
4
12
11
8
9
3
6
10
For	
  each	
  strategic	
  objec+ve	
  on	
  your	
  strategic	
  grid,	
  you	
  need	
  
at	
  least	
  one	
  performance	
  indicator.	
  Can	
  you	
  have	
  an	
  objec+ve	
  
without	
  a	
  performance	
  indicator?	
  Yes,	
  it	
  is	
  possible,	
  but	
  not	
  
having	
   a	
   measurement	
   makes	
   it	
   difficult	
   to	
   manage	
   the	
  
objec+ve.	
   It’s	
   best	
   to	
   revisit	
   this	
   objec+ve	
   and	
   ask	
   the	
  
ques+on:	
  Why	
  is	
  this	
  an	
  objec+ve?	
  
Performance	
  Management	
  –	
  Resources	
  
Chang, Richard Y., and Morgan, Mark W. – Performance Scorecards: Measuring
the Right Things in the Real World (New York, New York: John Wiley Sons Inc.,
2000)
Kaplan, R.S. and Norton, D.P. – The Balanced Scorecard (Cambridge,
Massachusetts: Harvard Business School Press, 1996)
Kaplan, R.S. and Norton, D.P. – Putting the Balanced Scorecard to Work (Harvard
Business Review, September/October 1993)
Kaplan, R.S. and Norton, D.P. – Balanced Scorecard: Translating Strategy into
Action (Cambridge, Massachusetts: Harvard Business School Press, 1996)
To	
  learn	
  more	
  about	
  our	
  proven	
  OperaIonal	
  Excellence	
  Balanced	
  Scorecard	
  SoluIon,	
  
review	
  our	
  “OperaIonal	
  Excellence	
  Balanced	
  Scorecard	
  Deployment	
  Training	
  Module”.	
  	
  
What	
  is	
  Opera+onal	
  Excellence?	
  
Achieving	
  Opera+onal	
  Excellence	
  requires	
  the	
  successful	
  implementa+on	
  of	
  a	
  integrated	
  
Business	
  ExecuIon	
  System	
  that	
  effec+vely	
  and	
  seamlessly	
  integrates	
  the	
  following	
  four	
  
building	
  blocks:	
  Strategy	
  Deployment,	
  Performance	
  Management,	
  Process	
  Excellence,	
  
and	
  High	
  Performance	
  Work	
  Teams.	
  
Strategy or Policy Deployment
is the process that aligns and
links business strategy and
execution.
Performance Management is
the process that translates
strategic initiatives into
measurable objectives and
goals.
Well designed, efficient, and
effective Management, Value
Chain, and Support Processes
are necessary to deliver world-
class results.
Strategy	
  	
  	
  
Deployment	
  
Performance	
  
Management	
  
High	
  Performance	
  	
  
Work	
  Teams	
  
Process	
  	
  	
  	
  	
  
Excellence	
  
Opera+onal	
  Excellence	
  	
  	
  
Business	
  Execu+on	
  
System	
  
Process Input:
Strategic and Annual Operating
Plan (Objectives, Goals, Initiatives)
Process Output:
Exceeding the Plan
Opera+onal	
  Excellence	
  –	
  	
  
Process	
  Excellence	
  
•  Clarify big picture using
strategic & operating
plan
•  Prioritize projects
based on impact,
value, resources,
timing
•  Select key projects
with leadership buy-in
•  Check accountability -
business and personal
Select the
Right
Projects
Select and
Train the
Right People
•  Ensure the right
leadership and
ownership
•  Select the right team
leader & team
•  Develop a training
plan
•  Dedicate time for
training & application
•  Ensure the right
support resources
are available
Develop and
Implement
Improvement
Plans
•  Utilize the right
improvement
methodology for
the right project
Manage for
Excellence in
Execution
•  Stay focused
•  Frequently review
progress and remove
barriers
•  Check real business
impact
•  Continuously
communicate
progress
•  Link to performance
management and
R&R
Sustain the
Gains
•  Implement effective
control plans
•  Conduct regular
training focused on the
process
•  Review the system
effectiveness at least
quarterly
•  Continually identify and
launch new projects
based on strategic &
operating plan
Balanced Scorecard Project Selection Matrix
KPI#1
KPI#2
KPI#3
KPI#4
KPI#5
KPI#6
KPI#7
KPI#8
Weights 20 10 15 10 5 20 10 10 100 50 30 20 100 70 30 100
Project Definition
1 Project #1 10 0 5 0 0 3 0 0 3.4 5 0 5 3.5 0 5 1.5
2 Project #2 0 3 0 5 0 0 0 0 0.8 0 5 0 1.5 3 0 2.1
3 Project #3 5 5 10 10 3 3 8 8 6.4 3 8 5 4.9 5 8 5.9
4 Project #4 0 0 10 5 0 0 5 0 2.5 0 0 10 2.0 3 3 3.0
5 Project #5 5 10 0 0 1 0 0 3 2.4 10 5 3 7.1 3 5 3.6
Ranking 0 = none Not Started
3 = low On Track
5 = medium At Risk
8= high Behind Schedule
10= very high
CORRELATION MATRIX
MANAGEMENTRISK
TOTALRISK
PROJECTSTATUS
CAPITALRESOURCES
DURATIONOFPROJECT
TOTALEFFORT
TECHNICALRISK
EFFORT RISK
PEOPLERESOURCES
IMPACT
FINANCIALS
CUSTOMERS
PROCESSES
LEARNING&
GROWTH
TOTALIMPACT
Opera+onal	
  Excellence	
  –	
  	
  
Process	
  Excellence	
  
10
9
8
7
6
5
4
3
2
1
0
0 1 2 3 4 5 6 7 8 9 10
EFFORT
IMPACT Opera+onal	
  Excellence	
  –	
  	
  
Process	
  Excellence	
  
Size of the Ball = Size of the Risk
1
2
3
4 5
Opera+onal	
  Excellence	
  –	
  	
  
Process	
  Excellence	
  
State	
  of	
  Michigan	
  Department	
  of	
  Management	
  and	
  Budget	
  (DMB)	
  
Coordinator	
  Kathe	
  Carter:	
  
"Our	
  management	
  team	
  evaluates	
  poten=al	
  new	
  programs/ini=a=ves	
  by	
  seeing	
  how	
  
they	
  fit	
  in	
  with	
  our	
  strategy.	
  In	
  the	
  past	
  we	
  would	
  con9nue	
  stacking	
  new	
  projects	
  on	
  
everyone's	
  plates,	
  but	
  now	
  if	
  it	
  doesn't	
  fit	
  with	
  our	
  strategy	
  we	
  don't	
  do	
  it."	
  Just	
  as	
  
important	
  for	
  the	
  DMB	
  is	
  that	
  "whenever	
  a	
  new	
  project	
  or	
  ini=a=ve	
  is	
  proposed,	
  our	
  
people	
  ask	
  'how	
  does	
  this	
  fit	
  in	
  with	
  our	
  strategy	
  map	
  /scorecard?'	
  They	
  feel	
  that	
  this	
  
connec=on	
  a]aches	
  a	
  higher	
  level	
  of	
  importance	
  to	
  the	
  ini=a=ve."	
  	
  
Opera+onal	
  Excellence	
  –	
  	
  
Process	
  Excellence	
  
SystemaIc,	
  ScienIfic	
  &	
  
Disciplined	
  Problem	
  Solving	
  
Process	
  Development,	
  
Improvement	
  &	
  Management	
  
Lean	
  Methodology	
  
5. Pursuit
Perfection
2. Map Value
Stream
3. Create
Flow
4. Establish
Pull
1. Define
ValueLean
Principles
Six	
  Sigma	
  Methodology	
  
BPI	
  7	
   8	
  D	
  
Opera+onal	
  Excellence	
  –	
  	
  
Process	
  Excellence	
  
Process
Excellence
Lean
is about creating flow and
identifying & eliminating waste in
a process or value stream.
Six Sigma
is about understanding and
eliminating variation in a process
or value stream.
CIAM
Project Management
D
Process	
  Excellence	
  –	
  Resources	
  
Breyfogle, Forrest W. III – Implementing Six Sigma: Smarter Solutions Using
Statistical Methods (New York, New York: John Wiley & Sons Inc., 1999)
George, Mark O. - The Lean Six Sigma Guide to Doing More with Less
(Hoboken, New Jersey: John Wiley & Sons, Inc., 2010)
Ohno, Taiichi - Toyota Production System (New York, New York: Productivity
Press, 1988)
Rother, Mike and Shook, John - Learning to See - Value-Stream Mapping to
create Value and eliminate Muda (Cambridge, Massachusetts: Lean Enterprise
Institute, 2009)
Womack, James P. and Jones, Daniel T. - Lean Thinking (Free Press, 2003)
To learn more about our proven Operational Excellence Process Excellence
Solutions, review our various “Operational Excellence Process Management,
Lean Management, Six Sigma Methodology & 8D Problem Solving Training
Module”.
What	
  is	
  Opera+onal	
  Excellence?	
  
Achieving	
  Opera+onal	
  Excellence	
  requires	
  the	
  successful	
  implementa+on	
  of	
  a	
  integrated	
  
Business	
  ExecuIon	
  System	
  that	
  effec+vely	
  and	
  seamlessly	
  integrates	
  the	
  following	
  four	
  
building	
  blocks:	
  Strategy	
  Deployment,	
  Performance	
  Management,	
  Process	
  Excellence,	
  
and	
  High	
  Performance	
  Work	
  Teams.	
  
Strategy or Policy Deployment
is the process that aligns and
links business strategy and
execution.
Performance Management is
the process that translates
strategic initiatives into
measurable objectives and
goals.
Operational Excellence can
be achieved and sustained
with the right attitude, the
right mindset, and the right
competencies.
Well designed, efficient, and
effective Management, Value
Chain, and Support Processes
are necessary to deliver world-
class results.
Strategy	
  	
  	
  
Deployment	
  
Performance	
  
Management	
  
High	
  Performance	
  	
  
Work	
  Teams	
  
Process	
  	
  	
  	
  	
  
Excellence	
  
Opera+onal	
  Excellence	
  	
  	
  
Business	
  Execu+on	
  
System	
  
“The	
  rate	
  at	
  which	
  organiza9ons	
  learn	
  may	
  soon	
  become	
  
the	
  only	
  sustainable	
  source	
  of	
  compe99ve	
  advantage.”	
  	
  
Peter	
  Senge	
  
	
  
“The	
   thing	
   I	
   have	
   learned	
   at	
   IBM	
   is	
   that	
   culture	
   is	
  
everything.”	
  
Louis	
  V.	
  Gerstner,	
  Jr.	
  
Opera+onal	
   Excellence	
   can	
   and	
   can	
   only	
   be	
   achieved	
   and	
   sustained	
   with	
   the	
   right	
  
amtude,	
  the	
  right	
  mindset,	
  and	
  the	
  right	
  competencies.	
  
	
  
Empowerment	
  =	
  f	
  (Authority,	
  Resources,	
  Informa+on,	
  Accountability)	
  
	
  
Low	
   High	
  
The	
  Empowerment	
  
ConInuum	
  
Selected	
  Employee	
  
Input	
  
Ongoing	
  Employee	
  
Taskforces	
  
High	
  Performance	
  
Work	
  Teams	
  
Opera+onal	
  Excellence	
  –	
  	
  
High	
  Performance	
  Work	
  Teams	
  
Empowerment	
  =	
  0,	
  
if	
  Authority	
  or	
  Resources	
  or	
  Informa+on	
  or	
  Accountability	
  =	
  0	
  
	
  
	
  
	
  
	
  
	
  
Opera+onal	
  Excellence	
  –	
  	
  
High	
  Performance	
  Work	
  Teams	
  
In their book Gung Ho ! – Turn on the People in any
Organization, Ken Blanchard and Sheldon Bowles describe
three distinctive phase of transforming a traditional
organization to an organization based on high performance
work team.
Spirit of the Squirrel Way of the Beaver Gift of the Goose
Opera+onal	
  Excellence	
  –	
  	
  
High	
  Performance	
  Work	
  Teams	
  
Spirit of the Squirrel
WORTHWHILE WORK
1.  Knowing we make the world a better place.
2.  Everyone works toward a shared goal.
3.  Values guide plans, decisions, and actions.
Opera+onal	
  Excellence	
  –	
  	
  
High	
  Performance	
  Work	
  Teams	
  
Way of the Beaver
IN CONTROL OF ACHIEVING THE GOAL
1.  A playing field with clearly marked territory.
2.  Thoughts, feelings, needs, and dreams are
respected, listened to, and acted upon.
3.  Able but challenging.
Opera+onal	
  Excellence	
  –	
  	
  
High	
  Performance	
  Work	
  Teams	
  
Gift of the Goose
CHEERING OTHERS ON
1.  Active or passive, congratulations must be TRUE.
2.  No score, no game, and cheer the progress.
3.  E = m · c2 – Enthusiasm equals mission times
cash and congratulations.
Opera+onal	
  Excellence	
  –	
  	
  
High	
  Performance	
  Work	
  Teams	
  
While an organization transitions from a more traditional “top-down”
organization to an organization build around high performance work
teams, the role of a supervisor or manager changes to the role of a leader
and coach, with six distinctive capabilities.
Leader ≠ Supervisor
Coach
Facilitator
Result
Catalyst
Living
Example
Business
Analyzer
Barrier
Buster
High	
  Performance	
  Work	
  Teams	
  –	
  
Resources	
  
Blanchard, Ken and Bowles, Sheldon – Gung Ho ! – Turn on the People in any
Organization (New York, New York: William Morrow and Company, Inc. 1998)
Fisher, Kimball – Leading Self-Directed Work Teams (New York, New York:
McGraw-Hill, 2000)
What	
  is	
  Opera+onal	
  Excellence?	
  
Achieving	
  Opera+onal	
  Excellence	
  requires	
  the	
  successful	
  implementa+on	
  of	
  a	
  integrated	
  
Business	
  ExecuIon	
  System	
  that	
  effec+vely	
  and	
  seamlessly	
  integrates	
  the	
  following	
  four	
  
building	
  blocks:	
  Strategy	
  Deployment,	
  Performance	
  Management,	
  Process	
  Excellence,	
  
and	
  High	
  Performance	
  Work	
  Teams.	
  
Strategy or Policy Deployment
is the process that aligns and
links business strategy and
execution.
Performance Management is
the process that translates
strategic initiatives into
measurable objectives and
goals.
Operational Excellence can
be achieved and sustained
with the right attitude, the
right mindset, and the right
competencies.
Well designed, efficient, and
effective Management, Value
Chain, and Support Processes
are necessary to deliver world-
class results.
Strategy	
  	
  	
  
Deployment	
  
Performance	
  
Management	
  
High	
  Performance	
  	
  
Work	
  Teams	
  
Process	
  	
  	
  	
  	
  
Excellence	
  
Opera+onal	
  Excellence	
  	
  	
  
Business	
  Execu+on	
  
System	
  
The	
  House	
  of	
  Opera+onal	
  Excellence	
  
"The	
  House	
  of	
  Opera+onal	
  Excellence"	
  provides	
  a	
  high-­‐level	
  framework	
  for	
  an	
  integrated	
  Business	
  
Execu+on	
  System	
  for	
  Opera+onal	
  Excellence	
  organiza+ons.	
  
“Perfection  is  not  aFainable,  but  if  we  chase  perfection  we  
can  catch  excellence.”  
Vince Lombardi

Weitere ähnliche Inhalte

Was ist angesagt?

Operational excellence through lean &amp; six sigma
Operational excellence through lean &amp; six sigmaOperational excellence through lean &amp; six sigma
Operational excellence through lean &amp; six sigma
Harsh Upadhyay
 
You Say Process Excellence, She Says Operational Excellence, I Say Performanc...
You Say Process Excellence, She Says Operational Excellence, I Say Performanc...You Say Process Excellence, She Says Operational Excellence, I Say Performanc...
You Say Process Excellence, She Says Operational Excellence, I Say Performanc...
Mike Gammage
 
What Is Operational Excellence?
What Is Operational Excellence?What Is Operational Excellence?
What Is Operational Excellence?
Flevy.com Best Practices
 
Continuous Improvement Powerpoint Presentation Slides
Continuous Improvement Powerpoint Presentation SlidesContinuous Improvement Powerpoint Presentation Slides
Continuous Improvement Powerpoint Presentation Slides
SlideTeam
 

Was ist angesagt? (20)

A New Perspective on Operational Excellence
A New Perspective on Operational ExcellenceA New Perspective on Operational Excellence
A New Perspective on Operational Excellence
 
Operational Excellence
Operational ExcellenceOperational Excellence
Operational Excellence
 
Continuous Improvement Strategy
Continuous Improvement StrategyContinuous Improvement Strategy
Continuous Improvement Strategy
 
Operational excellence through lean &amp; six sigma
Operational excellence through lean &amp; six sigmaOperational excellence through lean &amp; six sigma
Operational excellence through lean &amp; six sigma
 
Operational Excellence
Operational ExcellenceOperational Excellence
Operational Excellence
 
You Say Process Excellence, She Says Operational Excellence, I Say Performanc...
You Say Process Excellence, She Says Operational Excellence, I Say Performanc...You Say Process Excellence, She Says Operational Excellence, I Say Performanc...
You Say Process Excellence, She Says Operational Excellence, I Say Performanc...
 
Achieving Operational Excellence - A better approach for a complex world
Achieving Operational Excellence - A better approach for a complex worldAchieving Operational Excellence - A better approach for a complex world
Achieving Operational Excellence - A better approach for a complex world
 
What Is Operational Excellence?
What Is Operational Excellence?What Is Operational Excellence?
What Is Operational Excellence?
 
Cost of-poor-quality - juran institute
Cost of-poor-quality - juran instituteCost of-poor-quality - juran institute
Cost of-poor-quality - juran institute
 
Understanding Business Excellence
Understanding Business ExcellenceUnderstanding Business Excellence
Understanding Business Excellence
 
ISO 9001:2015 Awareness Training
ISO 9001:2015 Awareness TrainingISO 9001:2015 Awareness Training
ISO 9001:2015 Awareness Training
 
Lean Project Management Sample
Lean Project Management SampleLean Project Management Sample
Lean Project Management Sample
 
The new ISO 9001:2015
The new ISO 9001:2015The new ISO 9001:2015
The new ISO 9001:2015
 
Operational Excellence
Operational ExcellenceOperational Excellence
Operational Excellence
 
Dmaic
DmaicDmaic
Dmaic
 
Key Performance Indicators (KPI)
Key Performance Indicators (KPI)Key Performance Indicators (KPI)
Key Performance Indicators (KPI)
 
Lean Leadership: Part 1 of 3
Lean Leadership: Part 1 of 3Lean Leadership: Part 1 of 3
Lean Leadership: Part 1 of 3
 
Lean Thinking by Operational Excellence Consulting
Lean Thinking by Operational Excellence ConsultingLean Thinking by Operational Excellence Consulting
Lean Thinking by Operational Excellence Consulting
 
Continuous Improvement Powerpoint Presentation Slides
Continuous Improvement Powerpoint Presentation SlidesContinuous Improvement Powerpoint Presentation Slides
Continuous Improvement Powerpoint Presentation Slides
 
Kaizen & Small Group Activities
Kaizen & Small Group ActivitiesKaizen & Small Group Activities
Kaizen & Small Group Activities
 

Andere mochten auch

Overview of HR Shared Services
Overview of HR Shared ServicesOverview of HR Shared Services
Overview of HR Shared Services
William Chin
 
Framework hr analytics
Framework hr analyticsFramework hr analytics
Framework hr analytics
Luca Solari
 
D:\My Documents\7 Knowledge\Bsc\8680786 Scorecard Ppt
D:\My Documents\7  Knowledge\Bsc\8680786 Scorecard PptD:\My Documents\7  Knowledge\Bsc\8680786 Scorecard Ppt
D:\My Documents\7 Knowledge\Bsc\8680786 Scorecard Ppt
Chulalongkorn
 

Andere mochten auch (20)

Balanced Scorecard Strategies For Hr Ss Workshop May 10 2010a Chicago, Il
Balanced Scorecard Strategies For Hr Ss   Workshop May 10 2010a   Chicago, IlBalanced Scorecard Strategies For Hr Ss   Workshop May 10 2010a   Chicago, Il
Balanced Scorecard Strategies For Hr Ss Workshop May 10 2010a Chicago, Il
 
HR Dashboard Metrics 2013
HR Dashboard Metrics 2013HR Dashboard Metrics 2013
HR Dashboard Metrics 2013
 
KPI for HR Manager - Sample of KPIs for HR
KPI for HR Manager - Sample of KPIs for HRKPI for HR Manager - Sample of KPIs for HR
KPI for HR Manager - Sample of KPIs for HR
 
Overview of HR Shared Services
Overview of HR Shared ServicesOverview of HR Shared Services
Overview of HR Shared Services
 
Ae-6_2015
Ae-6_2015Ae-6_2015
Ae-6_2015
 
HRSS Cherobelle (2)
HRSS Cherobelle (2)HRSS Cherobelle (2)
HRSS Cherobelle (2)
 
Mastering Goals & Metrics
Mastering Goals & MetricsMastering Goals & Metrics
Mastering Goals & Metrics
 
7 reasons why your plan will fail (and what to do about it)
7 reasons why your plan will fail (and what to do about it)7 reasons why your plan will fail (and what to do about it)
7 reasons why your plan will fail (and what to do about it)
 
Framework hr analytics
Framework hr analyticsFramework hr analytics
Framework hr analytics
 
How to set your business sales goals
How to set your business sales goalsHow to set your business sales goals
How to set your business sales goals
 
Human Resources Transactional Services
Human Resources Transactional ServicesHuman Resources Transactional Services
Human Resources Transactional Services
 
An Olympic Mindset
An Olympic MindsetAn Olympic Mindset
An Olympic Mindset
 
Handover Consulting - HR Process Framework
Handover Consulting - HR Process FrameworkHandover Consulting - HR Process Framework
Handover Consulting - HR Process Framework
 
21 total-quality-management-concepts
21 total-quality-management-concepts21 total-quality-management-concepts
21 total-quality-management-concepts
 
Goal
GoalGoal
Goal
 
5 Fool-Proof Ways to Set and Accomplish Productive Goals
5 Fool-Proof Ways to Set and Accomplish Productive Goals5 Fool-Proof Ways to Set and Accomplish Productive Goals
5 Fool-Proof Ways to Set and Accomplish Productive Goals
 
Bsc for-hr-trial
Bsc for-hr-trialBsc for-hr-trial
Bsc for-hr-trial
 
Hr balanced scorecard
Hr balanced scorecardHr balanced scorecard
Hr balanced scorecard
 
Recruitment Metrics from a Direct-to-Patient Approach to Enroll Patients in a...
Recruitment Metrics from a Direct-to-Patient Approach to Enroll Patients in a...Recruitment Metrics from a Direct-to-Patient Approach to Enroll Patients in a...
Recruitment Metrics from a Direct-to-Patient Approach to Enroll Patients in a...
 
D:\My Documents\7 Knowledge\Bsc\8680786 Scorecard Ppt
D:\My Documents\7  Knowledge\Bsc\8680786 Scorecard PptD:\My Documents\7  Knowledge\Bsc\8680786 Scorecard Ppt
D:\My Documents\7 Knowledge\Bsc\8680786 Scorecard Ppt
 

Ähnlich wie Operational-Excellence

Holistic Approach
Holistic ApproachHolistic Approach
Holistic Approach
reachab7
 
Management Edge 360 - Case Study
Management Edge 360 - Case StudyManagement Edge 360 - Case Study
Management Edge 360 - Case Study
Chuck Coletta
 
Intro To Alignment By Design
Intro To Alignment By DesignIntro To Alignment By Design
Intro To Alignment By Design
Thomas Bradley
 
Webinar: The Balanced Scorecard What Does It Mean And How To Implement It
Webinar: The Balanced Scorecard What Does It Mean And How To Implement ItWebinar: The Balanced Scorecard What Does It Mean And How To Implement It
Webinar: The Balanced Scorecard What Does It Mean And How To Implement It
Ali Zeeshan
 
Rick Schultz resume 2015
Rick Schultz resume 2015Rick Schultz resume 2015
Rick Schultz resume 2015
Rick Schultz
 

Ähnlich wie Operational-Excellence (20)

talent acquisition's role in workforce planning
talent acquisition's role in workforce planningtalent acquisition's role in workforce planning
talent acquisition's role in workforce planning
 
Holistic Approach
Holistic ApproachHolistic Approach
Holistic Approach
 
Measurement of performance at Organisational Level.pptx
Measurement of performance at Organisational Level.pptxMeasurement of performance at Organisational Level.pptx
Measurement of performance at Organisational Level.pptx
 
Value chain strategy 180315
Value chain strategy 180315Value chain strategy 180315
Value chain strategy 180315
 
Getting Success with Business Hierarchy of needs, and a Culture of Strategic ...
Getting Success with Business Hierarchy of needs, and a Culture of Strategic ...Getting Success with Business Hierarchy of needs, and a Culture of Strategic ...
Getting Success with Business Hierarchy of needs, and a Culture of Strategic ...
 
E xamplecg strategy analytics and operations excellence transformation programs
E xamplecg strategy analytics and operations excellence transformation programsE xamplecg strategy analytics and operations excellence transformation programs
E xamplecg strategy analytics and operations excellence transformation programs
 
Management Edge 360 - Case Study
Management Edge 360 - Case StudyManagement Edge 360 - Case Study
Management Edge 360 - Case Study
 
Basics of operations management
Basics of operations managementBasics of operations management
Basics of operations management
 
Hrd as business partner
Hrd as business partnerHrd as business partner
Hrd as business partner
 
Intro To Alignment By Design
Intro To Alignment By DesignIntro To Alignment By Design
Intro To Alignment By Design
 
4 constraints wbk-strategy scorecard
4 constraints wbk-strategy scorecard4 constraints wbk-strategy scorecard
4 constraints wbk-strategy scorecard
 
SAFe 5 for Lean Enterprises - Seven Core Competencies.pdf
SAFe 5 for Lean Enterprises - Seven Core Competencies.pdfSAFe 5 for Lean Enterprises - Seven Core Competencies.pdf
SAFe 5 for Lean Enterprises - Seven Core Competencies.pdf
 
Rajesh Sehgal
Rajesh SehgalRajesh Sehgal
Rajesh Sehgal
 
Ch.3 design your organization for performance
Ch.3 design your organization for performanceCh.3 design your organization for performance
Ch.3 design your organization for performance
 
Webinar: The Balanced Scorecard What Does It Mean And How To Implement It
Webinar: The Balanced Scorecard What Does It Mean And How To Implement ItWebinar: The Balanced Scorecard What Does It Mean And How To Implement It
Webinar: The Balanced Scorecard What Does It Mean And How To Implement It
 
Intro to Organizational Development - SBG
Intro to Organizational Development - SBGIntro to Organizational Development - SBG
Intro to Organizational Development - SBG
 
1. Business and Consulting Toolkits - Sample.pptx
1. Business and Consulting Toolkits - Sample.pptx1. Business and Consulting Toolkits - Sample.pptx
1. Business and Consulting Toolkits - Sample.pptx
 
Balanced scorecard-ppt
Balanced scorecard-pptBalanced scorecard-ppt
Balanced scorecard-ppt
 
LEI_Overview
LEI_OverviewLEI_Overview
LEI_Overview
 
Rick Schultz resume 2015
Rick Schultz resume 2015Rick Schultz resume 2015
Rick Schultz resume 2015
 

Mehr von Dr. Janne Ohtonen

Mehr von Dr. Janne Ohtonen (6)

Employee Engagement and Customer Experiences - How are they related?
Employee Engagement and Customer Experiences - How are they related?Employee Engagement and Customer Experiences - How are they related?
Employee Engagement and Customer Experiences - How are they related?
 
3 essential tips for change management
3 essential tips for change management3 essential tips for change management
3 essential tips for change management
 
The customer of the future is here!
The customer of the future is here!The customer of the future is here!
The customer of the future is here!
 
Customer centric stakeholder management
Customer centric stakeholder managementCustomer centric stakeholder management
Customer centric stakeholder management
 
12 important questions when starting bpm projects
12 important questions when starting bpm projects12 important questions when starting bpm projects
12 important questions when starting bpm projects
 
Creating customer centric culture for your organisation
Creating customer centric culture for your organisationCreating customer centric culture for your organisation
Creating customer centric culture for your organisation
 

Operational-Excellence

  • 1. An  Introduc+on  to     Opera+onal  Excellence   “We  are  what  we  repeatedly  do.         Excellence,  then,  is  not  an  act,  but  a  habit.”     –Aristotle  
  • 2. Top 10 CEO Challenges & Priorities E  E  E  E  E  E 
  • 3. Opera+onal  Excellence  –  A  Philosophy   A Philosophy: Operational Excellence is a philosophy of leadership, teamwork and problem solving resulting in continuous improvement throughout the organization by focusing on the needs of the customer, empowering employees, and optimizing existing activities in the process.
  • 4. Opera+onal  Excellence  –  An  Approach   A Value Stream Management Approach: Operational Excellence is when each and every employee can see the flow of value to the customer, and fix that flow before it breaks down.
  • 5. Opera+onal  Excellence  –  A  Model   A Process Excellence Model: The Shingo Model The Shingo model is comprised of two elements: the house and the diamond. The diamond represents the transformation process for embedding the principles of operational excellence into the organizational culture. The house details the principles of operational excellence and the power of balancing effort across all the dimensions.
  • 6. Opera+onal  Excellence  –  A  “Checklist”   A  “Checklist”:  Oliver  Wight  Class  A  Checklist  for  Business  Excellence     There  are  nine  chapters  describing  latest  prac+cal  and  proven  best  prac+ces.  Implementa+on  follows   the  “Proven  Path  Methodology”.       These   support   five   further   chapters   that   address   the   prime   processes                                   in  most  organiza+ons:  Products  &  Services,  Demand,  Supply  Chain,  Internal   Supply,  and  External  Sourcing.   The  Oliver  Wight  Class  A  Checklist  is  aimed  so  that  organiza+ons  can  see  for   themselves  what  "excellence"  is  and  what  they  have  to  do  to  be  excellent.  Its   scoring  method  allows  organiza+ons  to  visualize  and  measure  progress  toward   excellence  in  every  part  of  the  business.   The  four  priority  chapters  describing  the  processes  and  prac+ces  that  enable  the  whole  business  to   be  excellent:   Ø  Strategic  Planning   Ø  Managing  and  Leading  People   Ø  Driving  Business  Improvement   Ø  Integrated  Business  Planning  
  • 7. Various  approaches,  frameworks  and  models  exist  that  are  presented  under  the   term  Opera+onal  Excellence.   What  is  Opera+onal  Excellence?  
  • 8. Opera+onal  Excellence  –  A  Defini+on   A  Business  Strategy:  In  "The  Discipline  of  Market  Leaders“  (1995),  Michael  Treacy  and   Fred   Wiersema   describe   three   dis+nct   value   proposi+ons   or   disciplines:   Product   Leadership,  Customer  InImacy  and  OperaIonal  Excellence.   Market  leaders  choose  to  excel  in  delivering  extraordinary  levels  of  one  of  these  three   value  proposi+ons,  while  maintaining  reasonable  standards  in  the  other  disciplines.   Market leaders will not pursue a diffused business strategy across two or even all three disciplines, but will continually focus on their organizational design, processes, technology and competencies to improve the one particular value discipline that they want to provide to their Customers better than anyone else. Organizations pursuing an Operational Excellence strategy, strive to deliver a combination of quality, price, and ease of purchase and service that no other organization in their market or industry can match.
  • 9. What  is  Opera+onal  Excellence?   Achieving  Opera+onal  Excellence  requires  the  successful  implementa+on  of  a  integrated   Business  ExecuIon  System  that  effec+vely  and  seamlessly  integrates  the  following  four   building  blocks:  Strategy  Deployment,  Performance  Management,  Process  Excellence,   and  High  Performance  Work  Teams.   Strategy or Policy Deployment is the process that aligns and links business strategy and execution. Performance Management is the process that translates strategic initiatives into measurable objectives and goals. Operational Excellence can be achieved and sustained with the right attitude, the right mindset, and the right competencies. Well designed, efficient, and effective Management, Value Chain, and Support Processes are necessary to deliver world- class results. Strategy       Deployment   Performance   Management   High  Performance     Work  Teams   Process           Excellence   Opera+onal  Excellence       Business  Execu+on   System  
  • 10. What  is  Opera+onal  Excellence?   Achieving  Opera+onal  Excellence  requires  the  successful  implementa+on  of  a  integrated   Business  ExecuIon  System  that  effec+vely  and  seamlessly  integrates  the  following  four   building  blocks:  Strategy  Deployment,  Performance  Management,  Process  Excellence,   and  High  Performance  Work  Teams.   Strategy or Policy Deployment is the process that aligns and links business strategy and execution. Strategy       Deployment   Performance   Management   High  Performance     Work  Teams   Process           Excellence   Opera+onal  Excellence       Business  Execu+on   System  
  • 11. “People  and  their  managers  are  working  so  hard  to  be  sure   things  are  done  right,  that  they  hardly  have  9me  to  decide   if  they  are  doing  the  right  things.”   Stephen  R.  Covey  
  • 12. Opera+onal  Excellence  –     Strategy  Deployment   Ø  Only  5%  of  the  workforce  understands  their   company  strategy.   Ø  Only   25%   of   managers   have   incen+ves   linked  to  strategy.   Ø  60%   of   organiza+ons   don’t   link   budgets   to   strategy.   Ø  86%  of  execu+ve  teams  spend  less  than  one   hour  per  month  discussing  strategy.    Source:  Balanced  Scorecard  Collabora=ve   Strategy is an expression of what an organization intents to do to get from a current state to a future state. Strategy is often expressed in terms of a vision statement, objectives, goals, and initiatives.
  • 13.
  • 14. Opera+onal  Excellence  –     Strategy  Deployment  Process   Phase III – Strategic Vision Elements Phase IV – Strategic Breakthrough Objectives Phase II – Current State Analysis (CSA) Phase I – Organize the Process Phase V – Strategic Initiatives & Tactics Phase VI – Strategy Implementation & Review
  • 15. Opera+onal  Excellence  –     Strategy  Deployment  Process   Once you have completed the strategic grid, go back and make sure everything fits with your overall strategy. A set of strategic grids should provide the strategic model for running the business, outlining the specifics of the strategy. All stakeholders should be able to look at the grids and follow the flow of the organization’s strategy. Strategy Maps or Strategic Grids: Strategic  Focus  Area:  Increase  Shareholder  Value   Financials   Revenue  Growth  of  20%  by  2014     Customers   Acquire  More  Customers   Become  the  Price  Leader   Internal   Processes   Improve  Opera+onal  Efficiency   Cost  Reduc+on   Program   Knowledge  Based   System   Reduce         Non-­‐Core  Ac+vi+es   Learning  &   Growth   Training  –  Lean  Six   Sigma  Program   Database  Network  on   Opera+onal   Performance   Re-­‐Align  Organiza+on   with  Core   Competencies   Dimensions  or  PerspecIves  
  • 16. Opera+onal  Excellence  –     Strategy  Deployment  Process   The   Hoshin   X-­‐Matrix   is   a   tool   that   visualizes   an   organiza+on’s     Ø  strategic  objec+ves,     Ø  strategic  ini+a+ves,     Ø  key  performance  indicators,     Ø  key  projects  &  ac+on  items,  and   Ø  human  resources  requirements   in  one  simple  matrix.   The Hoshin X-Matrix enables an organization to easily review the alignment of its strategic objectives, strategic initiatives, key performance indicators, key action items and human resources. The Hoshin X-Matrix, if used properly, improves the likelihood of a successful execution of the strategic plan.
  • 17. Opera+onal  Excellence  –     Strategy  Deployment  Process     7. … x 6. Initiate RFQ Process for Customer Service x x x x 5. Implement reliability program for new products x x x x x x 4. Establish LSS Black Belt project for return drivers x x x x x 3. Establish & train order-to-cash process team x x 2. Identify Lean Six Sigma consulting company x x x 1. Define Lean Six Sigma Program x x x QualityManager SystemTestManager SystemsEngineeringManager CustomerSupportManager … x $15M in annualized cost savings in 2012 x x x x x x Order-to-Cash cycle time reduction of 25% x x x DSO reduction from 90 days to 45 days x x x x Return Rate reduction from 15% to less than 8% x x x … Rev: <Rev#> Revised: <Date> Author: <Name> Status: Draft - Not Released 4.… 3.ImproveNetPromoterScoreto+50% 2.ReduceDSOfrom90daystolessthan45 days 1.ReduceOperatingCostsby15% 1.ImplementaLeanSixSigmaProgram 2.Map&streamlineorder-to-cashprocess Resource Planning Operational Excellence Consulting Strategy Deployment Matrix 2012 3.ResolveTOP3productreturndrivers 4.Improveproductverificationandvalidation 5.OutsourceCustomerServicefunction 6.… Measures & Targets Action Items StrategicInitiatives StrategicObjectives Measures & Targets Action Items StrategicInitiatives StrategicObjectives Organization’s Strategic Objectives & Goals Organization’s Key Performance Indicator (Balanced Scorecard) Organization’s Strategic Initiatives & Tactics Organization’s Tactical Projects & Action Items Organization’s Human Resource Allocation
  • 18. Opera+onal  Excellence  –     Strategy  Deployment   “I   sure   wish   I’d   done   a   be1er   job   of   communicating   with   GM   people.   I’d   do   that   differently   a   second   time   around   and   make   sure  they  understand  and  shared  my  vision  for   the  company.  Then  they  would  know  why  I  was tearing   the   place   up,   taking   out   whole   divisions,   changing   our   whole   production  stCDctDre    .  .  .    I  never  got  this  across.”     Roger Smith, CEO of General Motors (1981 - 1990)
  • 19. Strategy  Planning  &  Deployment  –   Resources   Ackoff,  R.L.  –  A  Concept  of  Corporate  Planning  (New  York,  New  York:  Wiley,  1970)   Collem,  Joseph  F.  –  A  Field  Guide  to  Focused  Planning:  Hoshin  Kanri  -­‐  American  Style   (The  Woodledge  Group,  1995)     Cowley,  Michael  and  Domb,  Ellen  –  Beyond  Strategic  Vision:  Effec=ve  Corporate  Ac=on   with  Hoshin  Planning  (Burlington,  Massachuseos:  Buoerworth-­‐Heinemann,  1997)   Treacy,  Michael  and  Wiersema,  Fred  -­‐  The  Discipline  of  Market  Leaders:  Choose  Your   Customers,   Narrow   Your   Focus,   Dominate   Your   Market   (New   York,   New   York:   HarperCollins  Publishers,  1995)     To   learn   more   about   our   proven   OperaIonal   Excellence   Strategy   Planning   &   Deployment   SoluIon,   review   our   “OperaIonal   Excellence   Strategy   Planning   and   Deployment  Training  Module”.    
  • 20. What  is  Opera+onal  Excellence?   Achieving  Opera+onal  Excellence  requires  the  successful  implementa+on  of  a  integrated   Business  ExecuIon  System  that  effec+vely  and  seamlessly  integrates  the  following  four   building  blocks:  Strategy  Deployment,  Performance  Management,  Process  Excellence,   and  High  Performance  Work  Teams.   Strategy or Policy Deployment is the process that aligns and links business strategy and execution. Performance Management is the process that translates strategic initiatives into measurable objectives and goals. Strategy       Deployment   Performance   Management   High  Performance     Work  Teams   Process           Excellence   Opera+onal  Excellence       Business  Execu+on   System  
  • 21. “Tell   me   how   you   will   measure   me,   and   then   I   will   tell   you   how  I  will  behave.  If  you  measure  me  in  an  illogical  way,  don’t   complain  about  illogical  behavior.”   Eli  GoldraR  –  “The  Goal”  
  • 22. Opera+onal  Excellence  –     Performance  Management   “Balanced   Scorecards   tell   you   the   knowledge,   skills   and   systems   that   your  employees  will  need  (lear:ing  and  g;owth)  to  innovate  and  build   the  right  st;ategic  capabilities  and  efficiencies  (inter:al  processes)  that   deliver  specific  value  to  the  market  (customer)  which  will  eventAally  lead   to  higher  shareholder  value  (financial).”     “Having Trouble with Your Strategy? Then Map It.” by Robert S. Kaplan and David P. Norton - Harvard Business Review
  • 23. Ø  Help the management team focus on the execution of their business strategy Ø  Focus and align an organization towards common goals and objectives Ø  Enable an organization to understand the relationship between measures and performance Ø  Improve communication of organizational priorities across an organization Ø  Help employees to understand and focus on organizational priorities and realize relevant results Ø  Reduce the number of metrics to the few vital key performance indicators Ø  Strengthen and formalizing the project selection process to focus on key capabilities and enablers Opera+onal  Excellence  –   Performance  Management   Benefits   of   developing   &   deploying   Balanced   Scorecards   in   an   organiza+on   include:  
  • 24. Opera+onal  Excellence  –     Performance  Management   FINANCIALS How do you want to look to your shareholders? - Indicators focus on whether your strategic and operational plan contributes to your top-line, bottom-line and/or market share. CUSTOMERS How do you want to look to your Customers? - Indicators focus on the specific measures that matter the most to your Customers. INTERNAL BUSINESS PROCESSES At which internal processes and capabilities do you want to excel? - Indicators focus on internal operations that enable Customer satisfaction, growth and profitability. LEARNING AND GROWTH What skills and competencies do you need to implement your strategic and operational plan? - Indicators focus on your organization’s ability to innovate, improve and execute. Objectives Indicators Targets Projects Objectives Indicators Targets Projects Objectives Indicators Targets Projects Objectives Indicators Targets Projects Vision & Strategy
  • 25. Opera+onal  Excellence  –     Performance  Management  Process   Phase  I  -­‐  Strategic  FoundaIon   Step  1:  Strategic  Alignment   Step  2:  Key  Strategic  Focus  Areas  &  Objec+ves   Step  3:  Strategic  Grid  &  Model   Phase II - Three Critical Components Step 4: Key Performance Indicators Step 5: Goals & Targets Step 6: Initiatives & Programs Phase III – Deployment Process Step 7: Integrate Step 8: Cascade Step 9: Manage Balanced Scorecard Development & Deployment Process
  • 26. Opera+onal  Excellence  –     Performance  Management   Strategic  Focus  Area:  Increase  Shareholder  Value   Financials   Revenue  Growth  of  20%  by  2014     Customers   Acquire  More  Customers   Become  the  Price  Leader   “Internal”   Processes   Improve  Opera+onal  Efficiency   Cost  Reduc+on   Program   Knowledge  Based   System   Reduce         Non-­‐Core  Ac+vi+es   Learning  &   Growth   Training  –  Lean  Six   Sigma  Program   Database  Network  on   Opera+onal   Performance   Re-­‐Align  Organiza+on   with  Core   Competencies   For each objective on your strategic grids, you need at least one performance indicator. Can you have an objective without a performance indicator? Yes, it is possible, but not having a measurement makes it difficult to manage the objective. It’s best to revisit this objective and ask the question: Why is this an objective? Dimensions  or  PerspecIves  
  • 27. Opera+onal  Excellence  –     Performance  Management   From: January 2010 ORGANIZATION: TBD Until: December 2010 Current Month: TBD 2010 KPI KPI Name (Unit) KPI First Name Champion Last Name 10 STRETCH 9 8 7 GOAL 6 5 4 3 BASE 2 1 0 ZERO WEIGHT 0 2010 TOTAL SCORE JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER CURRENT SCORE 3 4 7 2 3 5 6 9 Stretch 2010 1000 Goal 2010 700 Base 2009 300 Actual 0 TOTAL ORGANIZATION OPERATIONAL EXCELLENCE BALANCED SCORECARD FINANCIALS CUSTOMERS PROCESSES RESULTS 1 2 5 7 4 12 11 8 9 3 6 10 For  each  strategic  objec+ve  on  your  strategic  grid,  you  need   at  least  one  performance  indicator.  Can  you  have  an  objec+ve   without  a  performance  indicator?  Yes,  it  is  possible,  but  not   having   a   measurement   makes   it   difficult   to   manage   the   objec+ve.   It’s   best   to   revisit   this   objec+ve   and   ask   the   ques+on:  Why  is  this  an  objec+ve?  
  • 28. Performance  Management  –  Resources   Chang, Richard Y., and Morgan, Mark W. – Performance Scorecards: Measuring the Right Things in the Real World (New York, New York: John Wiley Sons Inc., 2000) Kaplan, R.S. and Norton, D.P. – The Balanced Scorecard (Cambridge, Massachusetts: Harvard Business School Press, 1996) Kaplan, R.S. and Norton, D.P. – Putting the Balanced Scorecard to Work (Harvard Business Review, September/October 1993) Kaplan, R.S. and Norton, D.P. – Balanced Scorecard: Translating Strategy into Action (Cambridge, Massachusetts: Harvard Business School Press, 1996) To  learn  more  about  our  proven  OperaIonal  Excellence  Balanced  Scorecard  SoluIon,   review  our  “OperaIonal  Excellence  Balanced  Scorecard  Deployment  Training  Module”.    
  • 29. What  is  Opera+onal  Excellence?   Achieving  Opera+onal  Excellence  requires  the  successful  implementa+on  of  a  integrated   Business  ExecuIon  System  that  effec+vely  and  seamlessly  integrates  the  following  four   building  blocks:  Strategy  Deployment,  Performance  Management,  Process  Excellence,   and  High  Performance  Work  Teams.   Strategy or Policy Deployment is the process that aligns and links business strategy and execution. Performance Management is the process that translates strategic initiatives into measurable objectives and goals. Well designed, efficient, and effective Management, Value Chain, and Support Processes are necessary to deliver world- class results. Strategy       Deployment   Performance   Management   High  Performance     Work  Teams   Process           Excellence   Opera+onal  Excellence       Business  Execu+on   System  
  • 30. Process Input: Strategic and Annual Operating Plan (Objectives, Goals, Initiatives) Process Output: Exceeding the Plan Opera+onal  Excellence  –     Process  Excellence   •  Clarify big picture using strategic & operating plan •  Prioritize projects based on impact, value, resources, timing •  Select key projects with leadership buy-in •  Check accountability - business and personal Select the Right Projects Select and Train the Right People •  Ensure the right leadership and ownership •  Select the right team leader & team •  Develop a training plan •  Dedicate time for training & application •  Ensure the right support resources are available Develop and Implement Improvement Plans •  Utilize the right improvement methodology for the right project Manage for Excellence in Execution •  Stay focused •  Frequently review progress and remove barriers •  Check real business impact •  Continuously communicate progress •  Link to performance management and R&R Sustain the Gains •  Implement effective control plans •  Conduct regular training focused on the process •  Review the system effectiveness at least quarterly •  Continually identify and launch new projects based on strategic & operating plan
  • 31. Balanced Scorecard Project Selection Matrix KPI#1 KPI#2 KPI#3 KPI#4 KPI#5 KPI#6 KPI#7 KPI#8 Weights 20 10 15 10 5 20 10 10 100 50 30 20 100 70 30 100 Project Definition 1 Project #1 10 0 5 0 0 3 0 0 3.4 5 0 5 3.5 0 5 1.5 2 Project #2 0 3 0 5 0 0 0 0 0.8 0 5 0 1.5 3 0 2.1 3 Project #3 5 5 10 10 3 3 8 8 6.4 3 8 5 4.9 5 8 5.9 4 Project #4 0 0 10 5 0 0 5 0 2.5 0 0 10 2.0 3 3 3.0 5 Project #5 5 10 0 0 1 0 0 3 2.4 10 5 3 7.1 3 5 3.6 Ranking 0 = none Not Started 3 = low On Track 5 = medium At Risk 8= high Behind Schedule 10= very high CORRELATION MATRIX MANAGEMENTRISK TOTALRISK PROJECTSTATUS CAPITALRESOURCES DURATIONOFPROJECT TOTALEFFORT TECHNICALRISK EFFORT RISK PEOPLERESOURCES IMPACT FINANCIALS CUSTOMERS PROCESSES LEARNING& GROWTH TOTALIMPACT Opera+onal  Excellence  –     Process  Excellence  
  • 32. 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 EFFORT IMPACT Opera+onal  Excellence  –     Process  Excellence   Size of the Ball = Size of the Risk 1 2 3 4 5
  • 33. Opera+onal  Excellence  –     Process  Excellence   State  of  Michigan  Department  of  Management  and  Budget  (DMB)   Coordinator  Kathe  Carter:   "Our  management  team  evaluates  poten=al  new  programs/ini=a=ves  by  seeing  how   they  fit  in  with  our  strategy.  In  the  past  we  would  con9nue  stacking  new  projects  on   everyone's  plates,  but  now  if  it  doesn't  fit  with  our  strategy  we  don't  do  it."  Just  as   important  for  the  DMB  is  that  "whenever  a  new  project  or  ini=a=ve  is  proposed,  our   people  ask  'how  does  this  fit  in  with  our  strategy  map  /scorecard?'  They  feel  that  this   connec=on  a]aches  a  higher  level  of  importance  to  the  ini=a=ve."    
  • 34. Opera+onal  Excellence  –     Process  Excellence   SystemaIc,  ScienIfic  &   Disciplined  Problem  Solving   Process  Development,   Improvement  &  Management   Lean  Methodology   5. Pursuit Perfection 2. Map Value Stream 3. Create Flow 4. Establish Pull 1. Define ValueLean Principles Six  Sigma  Methodology   BPI  7   8  D  
  • 35. Opera+onal  Excellence  –     Process  Excellence   Process Excellence Lean is about creating flow and identifying & eliminating waste in a process or value stream. Six Sigma is about understanding and eliminating variation in a process or value stream. CIAM Project Management D
  • 36. Process  Excellence  –  Resources   Breyfogle, Forrest W. III – Implementing Six Sigma: Smarter Solutions Using Statistical Methods (New York, New York: John Wiley & Sons Inc., 1999) George, Mark O. - The Lean Six Sigma Guide to Doing More with Less (Hoboken, New Jersey: John Wiley & Sons, Inc., 2010) Ohno, Taiichi - Toyota Production System (New York, New York: Productivity Press, 1988) Rother, Mike and Shook, John - Learning to See - Value-Stream Mapping to create Value and eliminate Muda (Cambridge, Massachusetts: Lean Enterprise Institute, 2009) Womack, James P. and Jones, Daniel T. - Lean Thinking (Free Press, 2003) To learn more about our proven Operational Excellence Process Excellence Solutions, review our various “Operational Excellence Process Management, Lean Management, Six Sigma Methodology & 8D Problem Solving Training Module”.
  • 37. What  is  Opera+onal  Excellence?   Achieving  Opera+onal  Excellence  requires  the  successful  implementa+on  of  a  integrated   Business  ExecuIon  System  that  effec+vely  and  seamlessly  integrates  the  following  four   building  blocks:  Strategy  Deployment,  Performance  Management,  Process  Excellence,   and  High  Performance  Work  Teams.   Strategy or Policy Deployment is the process that aligns and links business strategy and execution. Performance Management is the process that translates strategic initiatives into measurable objectives and goals. Operational Excellence can be achieved and sustained with the right attitude, the right mindset, and the right competencies. Well designed, efficient, and effective Management, Value Chain, and Support Processes are necessary to deliver world- class results. Strategy       Deployment   Performance   Management   High  Performance     Work  Teams   Process           Excellence   Opera+onal  Excellence       Business  Execu+on   System  
  • 38. “The  rate  at  which  organiza9ons  learn  may  soon  become   the  only  sustainable  source  of  compe99ve  advantage.”     Peter  Senge     “The   thing   I   have   learned   at   IBM   is   that   culture   is   everything.”   Louis  V.  Gerstner,  Jr.  
  • 39. Opera+onal   Excellence   can   and   can   only   be   achieved   and   sustained   with   the   right   amtude,  the  right  mindset,  and  the  right  competencies.     Empowerment  =  f  (Authority,  Resources,  Informa+on,  Accountability)     Low   High   The  Empowerment   ConInuum   Selected  Employee   Input   Ongoing  Employee   Taskforces   High  Performance   Work  Teams   Opera+onal  Excellence  –     High  Performance  Work  Teams   Empowerment  =  0,   if  Authority  or  Resources  or  Informa+on  or  Accountability  =  0            
  • 40. Opera+onal  Excellence  –     High  Performance  Work  Teams   In their book Gung Ho ! – Turn on the People in any Organization, Ken Blanchard and Sheldon Bowles describe three distinctive phase of transforming a traditional organization to an organization based on high performance work team. Spirit of the Squirrel Way of the Beaver Gift of the Goose
  • 41. Opera+onal  Excellence  –     High  Performance  Work  Teams   Spirit of the Squirrel WORTHWHILE WORK 1.  Knowing we make the world a better place. 2.  Everyone works toward a shared goal. 3.  Values guide plans, decisions, and actions.
  • 42. Opera+onal  Excellence  –     High  Performance  Work  Teams   Way of the Beaver IN CONTROL OF ACHIEVING THE GOAL 1.  A playing field with clearly marked territory. 2.  Thoughts, feelings, needs, and dreams are respected, listened to, and acted upon. 3.  Able but challenging.
  • 43. Opera+onal  Excellence  –     High  Performance  Work  Teams   Gift of the Goose CHEERING OTHERS ON 1.  Active or passive, congratulations must be TRUE. 2.  No score, no game, and cheer the progress. 3.  E = m · c2 – Enthusiasm equals mission times cash and congratulations.
  • 44. Opera+onal  Excellence  –     High  Performance  Work  Teams   While an organization transitions from a more traditional “top-down” organization to an organization build around high performance work teams, the role of a supervisor or manager changes to the role of a leader and coach, with six distinctive capabilities. Leader ≠ Supervisor Coach Facilitator Result Catalyst Living Example Business Analyzer Barrier Buster
  • 45. High  Performance  Work  Teams  –   Resources   Blanchard, Ken and Bowles, Sheldon – Gung Ho ! – Turn on the People in any Organization (New York, New York: William Morrow and Company, Inc. 1998) Fisher, Kimball – Leading Self-Directed Work Teams (New York, New York: McGraw-Hill, 2000)
  • 46. What  is  Opera+onal  Excellence?   Achieving  Opera+onal  Excellence  requires  the  successful  implementa+on  of  a  integrated   Business  ExecuIon  System  that  effec+vely  and  seamlessly  integrates  the  following  four   building  blocks:  Strategy  Deployment,  Performance  Management,  Process  Excellence,   and  High  Performance  Work  Teams.   Strategy or Policy Deployment is the process that aligns and links business strategy and execution. Performance Management is the process that translates strategic initiatives into measurable objectives and goals. Operational Excellence can be achieved and sustained with the right attitude, the right mindset, and the right competencies. Well designed, efficient, and effective Management, Value Chain, and Support Processes are necessary to deliver world- class results. Strategy       Deployment   Performance   Management   High  Performance     Work  Teams   Process           Excellence   Opera+onal  Excellence       Business  Execu+on   System  
  • 47. The  House  of  Opera+onal  Excellence   "The  House  of  Opera+onal  Excellence"  provides  a  high-­‐level  framework  for  an  integrated  Business   Execu+on  System  for  Opera+onal  Excellence  organiza+ons.  
  • 48. “Perfection  is  not  aFainable,  but  if  we  chase  perfection  we   can  catch  excellence.”   Vince Lombardi