The P – A – C – E Engagement Process

Operational Excellence Consulting (OEC) provides assessments, training solutions,

kaizen event facilitation, and implementation support to enable our clients achieve
superior performance through Operational Excellence - Strategy Deployment &
Hoshin Planning, Performance Management & Balanced Scorecards, Process
Excellence & Lean Six Sigma, and High Performance Work Teams.

1 3/4/2016 – v6.0
 Designing an Integrated OpEx Business Execution System

An organization pursuing an Operational Excellence strategy needs to be able to

establish a Business Execution System that successfully integrates the four
building blocks of Operational Excellence - Strategy Deployment, Performance
Management, Process Excellence, and High Performance Work Teams.

4. Operational Excellence can only

be achieved and sustained with the 1. Strategy Deployment is the
right attitude, the right mindset, and process that aligns and links
the right competencies. business strategy and execution.

2. Performance Management
3. Well designed, efficient, and
is the process that translates
effective Management, Value
strategic initiatives into
Creation and Support Processes
measurable objectives and
are necessary to deliver world-
goals.
class results.

2 3/4/2016 – v6.0
 The P – A – C – E Engagement Process: Overview

Prepare Align Cascade Execute

Prepare
Objective: Build shared understanding of execution challenges & opportunities.

Align
Objective: Communicate. Gain Commitment. Establish & approve the Plan.

Cascade
Objective: Communicate the Plan. Set clear Expectations. Initiate Execution.

Execute
Objective: Execute the Plan. Manage Execution. Take Counter Measures.

3 3/4/2016 – v6.0
 Prepare Phase: Build shared Understanding

Prepare Align Cascade Execute

#1 Capture existing Vision & Strategic Objectives

#2 Build Inventory of current Initiatives & Performance Indicators

#3 Perform initial Operational Excellence Assessment

#4 Run SBU Executive Team Planning & Training Workshop(s)

 Clarify Vision & Strategic Objectives

 Review Execution Challenges & Opportunities

 Articulate 2-4 Strategic Breakthrough Objectives Key Outputs:

 Identify Key Initiatives & Draft initial Project Charters  OpEx Assessment Results
 2-4 Breakthrough Objectives
 Identify Steering Group, Champions & Key Resources
 Key Initiatives & Champions
 Strategy Maps, Balanced Scorecard & Lean Six Sigma  SBU Balanced Scorecard
Training for Executive Teams
 Key Resources & Initial Timelines

4 3/4/2016 – v6.0
 Align Phase: Establish & Approve the Plan

Prepare Align Cascade Execute

#1 Run Functional “Catch-Ball” Workshops with

Champions and their Teams

#2 Develop & implement Training Plan for Champions

#3 Perform focused OpEx Assessment 2-4 Breakthrough

Objectives

#4 Finalize Project Charters, Resource Planning & Timelines

#5 Identify Training Requirements, Schedule & Resources

#6 Develop Functional Balanced Scorecards

Key Outputs:
#7 Estimate projected Impact of all Initiatives on Functional  Functional Balanced Scorecards
and SBU Balanced Scorecards
 Final Project Charters
#8 Review final Plans with SBU Executive Team and gain  Training Requirements & Schedule
Approval and Commitment
 Approved Plan by SBU Executive Team

5 3/4/2016 – v6.0
 Cascade Phase: Communicate the Plan & Initiate Execution

Prepare Align Cascade Execute

Operational Excellence Consulting Strategy Deployment Matrix 2012

#1 Communicate Final Plan & Project Charters to Rev: <Rev#> Revised: <Date> Author: <Name> Status: Draft - Not Released

Functional Teams 7. …
x 6. Initiate RFQ Process for Cusromer Service x x
x x 5. Implement reliability program for new products x x x x
x x 4. Establish LSS Balck Belt project for return drivers x x x x

#2 Define Guiding Principles & Set clear Expectations x 3. Establish & train order-to-cash process team
x 2. Identify Lean Six Sigma consulting company
x 1. Define Lean Six Sigma Program
x
x
x

x
x
x
Resource Planning

2. Reduce DSO from 90 days to less than 45

4. Improve product verification and validation

Action Items

2. Map & streamline order-to-cash process

1. Implement a Lean Six Sigma Program
#3 Align existing Roles & Responsibilities with

3. Improve Net Promotor Score to +50%

5. Outsource Customer Service function

3. Resolve TOP 3 product return drivers
Strategic Objectives
1. Reduce Operating Costs by 15%

Strategic Initiatives
Training and Project Requirements

Systems Engineering Manager

Customer Support Manager
System Test Manager
Quality Manager
#4 Schedule Training Sessions & Deploy Training
Measures & Targets

days
4. …

6. …
Plans

…
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
…

#5 Initiate & manage Projects

#6 Establish & implement Champion Review Process

Key Outputs:
#7 Track Functional Balanced Scorecards & Evaluate  Competence Development
Project Impact
 Project Execution & Management
#8 Take Corrective Actions & Counter Measures  Functional Balanced Scorecards

6 3/4/2016 – v6.0
 Execute Phase: Execute the Plan & Manage Execution

Prepare Align Cascade Execute

Last Update: _______________________

#1 Deploy Training Plan Bowling Chart
Author: ____________________________

#2 Facilitate Project Management & Execution Strategic Breakthrough Initiative: __________________________________________________

Initiatives - Programs - Projects Baseline 20xx Results (Actual vs. Target) 20xx
Initiative Target Unit Q1 Q2 Q3 Q4 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12
#3 Establish & implement SBU Executive Execution Increase Fabricator Uptime 82 % 60 62 58 60
Plan 60 62 64 66 68 70 72 74 76 78 80 82
Actual 61 65 63 66 67 72
Management Process Plan
Actual
Plan
#4 Develop Reward & Recognition Approach Actual
Plan
Actual

#5 Track & Review SBU Balanced Scorecards Plan

Actual
Plan

#6 Evaluate Projected & Actual Project Impact Actual

#7 Review Resource Requirements & Allocation Key Outputs:

 SBU Balanced Scorecard
#8 Take Corrective Actions & Counter Measures, if
necessary  SBU Execution Reviews & Action Plan
 Corrective Actions & Counter Measures
#9 Celebrate Success
 Reward & Recognition

7 3/4/2016 – v6.0
 Integrated Business Execution System Transformation (iBEST)

“Perfection is not attainable, but if we chase perfection we can catch excellence.”

- Vince Lombardi

8 3/4/2016 – v7.0