You are on page 1of 50

An Introduction to Operational Excellence

An Integrated Business Execution System


by Operational Excellence Consulting LLC

1 - 6/13/20 – v10.0
Top 10 CEO Challenges & Priorities





2 - 6/13/20 – v10.0
Operational Excellence – A Definition

A Business Strategy: In "The Discipline of Market Leaders“ (1995), Michael Treacy and
Fred Wiersema describe three distinct value propositions or disciplines: Product
Leadership, Customer Intimacy and Operational Excellence.
Market leaders choose to excel in delivering extraordinary levels of one of these three
value propositions, 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.

3 - 6/13/20 – v10.0
What is Operational Excellence?

Achieving Operational Excellence requires the successful implementation of an


integrated Business Execution System that effectively and seamlessly integrates the
following four building blocks: Strategy Deployment, Performance Management,
Process Excellence, and High Performance Work Teams.

Operational Excellence can be


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

Well designed, efficient, and Performance Management is the


effective Management, Value process that translates strategic
Chain, and Support Processes are initiatives into measurable
necessary to deliver world-class objectives and goals.
results.

4 - 6/13/20 – v10.0
What is Operational Excellence?

Achieving Operational Excellence requires the successful implementation of a integrated


Business Execution System that effectively 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.

5 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

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.

 Only 5% of the workforce understands their company


strategy.
 Only 25% of managers have incentives linked to
strategy.
 60% of organizations don’t link budgets to strategy.
 86% of executive teams spend less than one hour per
month discussing strategy.
Source: Balanced Scorecard Collaborative

6 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

Lack of a proper strategy is a serious problem that can result in ad hoc improvements that don't
contribute to the organization’s overall needs.
 Non-Strategy #1: ‘The Wall Placard Strategy’
 Some organizations will go to great lengths to create great Vision and Mission statements, but then
their planning stops there.
 Non-Strategy #2: ‘The Stratospheric Strategy’
 These strategies start in the clouds and they never come down, making them extremely difficult to
make actionable. The result will usually be some nice slick-looking verbiage for the organization’s
website and annual reports.
 Non-Strategy #3: ‘The KPI Strategy’
 When asked to present their strategies, some organizations excitedly pull out a beautiful PowerPoint
slide that states their goals in terms of a metric. Examples are ‘double revenue in three years’ or
‘achieve 20% margin by 2013’. This is not a strategy.
 Non-Strategy #4: ‘The Govern-less Strategy’
 Some strategies are actually quite well constructed, but they miss one crucial element: a governance
process. A strategy is worthless unless it has a clear process on who will lead the reviews, what
specifically will be covered and what the frequency will be.

7 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

Strategic Planning ought to contain two elements:


1. Strategic Thinking, where managers synthesize their strategic vision, using
intuition and creativity. The outcome is “an integrated perspective of the
organization, a … vision of direction.”.
2. Conversion of the vision into actionable steps; “realization” of the vision.

One of the important purposes of strategic planning is to find productive and


high-leverage directions in which to stretch the organization.

Source: Mintzberg 1994


8 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

Phase I – Organize the Process

Phase II – Current State Analysis (CSA)

Phase III – Strategic Vision Elements

Phase IV – Strategic Breakthrough Objectives

Phase V – Strategic Initiatives & Tactics

Phase VI – Strategy Implementation & Review

9 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

Strategy Maps or Strategic Grids:


Strategic Focus Area: Increase Shareholder Value

Financials Revenue Growth of 20% by 2014


Dimensions or Perspectives

Acquire More Customers


Customers
Become the Price Leader
Improve Operational Efficiency
Internal
Processes Cost Reduction Knowledge Based Reduce
Program System Non-Core Activities

Database Network on Re-Align


Learning & Training – Lean
Operational Organization with
Growth Six Sigma Program
Performance Core Competencies

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.

10 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

The Hoshin X-Matrix is a tool that visualizes an organization’s


Policy Deployment Hoshin X - Matrix 2019 - Level 1

 strategic objectives, Rev: 1.0 Revised: ___ / ___ / ______ Author: ___________________ Status: Draft - Not Released

 strategic initiatives,
 key performance indicators,
Resource Planning

 key projects & action items, and


 human resources requirements
in one simple matrix.
● Primary Responsibility
○ Secondary Responsibility

● Primary Relationship
○ Secondary Relationship

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.

11 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

Organization’s
Strategic Initiatives Organization’s Human
Organization’s Resource Allocation
Annual Strategic & Tactics
Goals & Objectives

Organization’s Key
Organization’s 3- Performance Indicator
5 Year Breakthrough (Balanced Scorecard)
Goals & Objectives

12 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

“I sure wish I’d done a better 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 structure . . . I never got this across.”

Roger Smith, CEO of General Motors (1981 - 1990)

13 - 6/13/20 – v10.0
Operational Excellence – Strategy Planning and Deployment

Strategic Initiatives

Catchball

Annual Strategic Strategic Initiatives


Objectives

Strategic Objectives

Catchball

14 - 6/13/20 – v10.0
Strategy Planning & Deployment Training Module

To learn more about effective strategy planning and deployment based on


Hoshin Kanri and Strategy Maps, please review our Strategy Planning &
Deployment Process Training Module.
The Strategy Planning and Deployment Training Module includes:
1. MS PowerPoint Presentation covering our Strategy Planning and
Deployment Process using Strategy Maps and Hoshin Kanri, including
Introduction to Strategy Planning, Organizing the Process, Current State
Analysis (CSA), Strategic Vision Elements, Strategic Breakthrough Objectives,
Strategy Maps, Strategic Initiatives and Tactics, Strategy Deployment Matrix,
and Strategy Implementation and Review.
2. MS Excel Templates for Annual Planning, Criticality Analysis, Force Field
Analysis, Radar Gap Analysis Chart, Strategy Grid Alignment Matrix, Strategy
Grid Correlation Matrix, Project Selection Matrix, Bowling Chart, and Strategy
Implementation Review Table.
3. MS Word Current State Analysis (CSA) Questionnaire
4. MS Excel Hoshin Kanri Strategy Deployment X-Matrix Template

15 - 6/13/20 – v10.0
What is Operational Excellence?

Achieving Operational Excellence requires the successful implementation of a integrated


Business Execution System that effectively 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.

16 - 6/13/20 – v10.0
Operational Excellence – Performance Management

“Balanced Scorecards tell you the knowledge, skills and systems that
your employees will need (learning and growth) to innovate and build
the right strategic capabilities and efficiencies (internal processes) that
deliver specific value to the market (customer) which will eventually 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

17 - 6/13/20 – v10.0
“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 Goldratt – “The Goal”

18 - 6/13/20 – v10.0
Operational Excellence – Performance Management

Benefits of developing & deploying Balanced Scorecards in an organization


include:
 Help the management team focus on the execution of their business strategy
 Focus and align an organization towards common goals and objectives
 Enable an organization to understand the relationship between measures and
performance
 Improve communication of organizational priorities across an organization
 Help employees to understand and focus on organizational priorities and realize
relevant results
 Reduce the number of metrics to the few vital key performance indicators
 Strengthen and formalizing the project selection process to focus on key
capabilities and enablers

19 - 6/13/20 – v10.0
Operational Excellence – Performance Management Process

Phase I - Strategic Foundation


Step 1: Strategic Alignment
Step 2: Key Strategic Focus Areas & Objectives
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

20 - 6/13/20 – v10.0
Operational 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.
Objectives Indicators Targets Projects

CUSTOMERS INTERNAL BUSINESS PROCESSES


How do you want to look to your Customers? - At which internal processes and capabilities do
Indicators focus on the specific measures that Vision
Vision you want to excel? - Indicators focus on internal
matter the most to your Customers. operations that enable Customer satisfaction,
Objectives Indicators Targets Projects
&& growth and profitability.
Strategy
Strategy Objectives Indicators Targets Projects

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

21 - 6/13/20 – v10.0
Operational Excellence – Performance Management

Strategic Focus Area: Increase Shareholder Value

Financials Revenue Growth of 20% by 2014


Dimensions or Perspectives

Acquire More Customers


Customers
Become the Price Leader
Improve Operational Efficiency
“Internal”
Processes Cost Reduction Knowledge Based Reduce
Program System Non-Core Activities

Database Network on Re-Align


Learning & Training – Lean
Operational Organization with
Growth Six Sigma Program
Performance 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?

22 - 6/13/20 – v10.0
Operational Excellence – Performance Management
OPERATIONAL EXCELLENCE BALANCED S CORECARD

From: January 2010


1 ORGANIZATION: TBD Until: December 2010 2
Current Month:
3
TBD 2010
FINANCIALS CUS TOMERS PROCES S ES ORGANIZATION

KPI 4 KP I
Na me
(Unit)
KPI Firs t Name
5 Champio n
10
Las t Name
S TRETCH 7
9
8
7 GOAL
6
5
8
4
3 BAS E
2
1
0 ZERO

6 WEIGHT
2010 RESULTS
0
TOTAL S CORE
JANUARY
FEBRUARY
MARCH
APRIL
12
MAY
JUNE For9each strategic objective on your strategic grid, you need at
JULY
AUGUS T least one performance indicator. Can you have an objective
S EPTEMBER
OCTOBER without a performance indicator? Yes, it is possible, but not
NOVEMBER
DECEMBER
having a measurement makes it difficult to manage the
CURRENT S CORE objective.
3 7 10this2 objective 3 and ask 5the
It’s4 best to revisit 6
TOTAL
9

question: Why is this an objective? S tre tc h 2010 1000


Go al 2010
Bas e 2009
700
300
11
Ac tual 0

23 - 6/13/20 – v10.0
Operational Excellence – Performance Management

Performance Indicators vary according to the Organizational Level.

M1 – Organizational Level – Executive Scorecard Indicator


M2 – Process or Functional Level – VP/Director Scorecard Indicator
M3 – Sub-Process or Departmental Level – Manager Scorecard Indicator
M4 – Task or Activity Level – Work Group Scorecard Indicator
M1
M2

• Task 1 Task 2 Task 3 Task 4 Task 5


Process
Outcome

Customer
M4 M3 M4 M3

24 - 6/13/20 – v10.0
Operational Excellence – Performance Management

Organization’s
Customer Satisfaction measured through
the Net Promoter Score

Order Management Production


Customer Satisfaction Customer Satisfaction
measured through Order measured through Order
Confirmation Lead Time Fulfillment Lead Time

Customer Service
Customer Satisfaction
measured through First Call
Resolution

Purchasing
Sales & Marketing Performance measured
Performance measured through Material
through 90-Days Replenishment Lead Time
Forecast Accuracy

25 - 6/13/20 – v10.0
Balanced Scorecard Deployment Training Module

To learn more about effective performance management based on the Balanced


Scorecard Methodology, please review our Balanced Scorecard Deployment
Training Module.
The Balanced Scorecard Deployment Training Module includes:
1. MS PowerPoint Presentation covering Balanced Scorecard History &
Benefits, Four Dimensions of a Balanced Scorecard, Balanced Scorecard
Development & Deployment Process, Balanced Scorecard Deployment
Challenges & Resolution Strategies, Balanced Scorecard Template & Detailed
Instructions, and Project Evaluation & Selection Matrix.
2. MS Excel Balanced Scorecard Template and Example
3. MS Word Workshop Agenda & Evaluation Sheet for a Balanced Scorecard
Development Workshop
4. MS Excel Project Evaluation & Selection Matrix to ensure alignment of
Operational Excellence, Lean Management, and Six Sigma projects to the
Balanced Scorecard

26 - 6/13/20 – v10.0
What is Operational Excellence?

Achieving Operational Excellence requires the successful implementation of a integrated


Business Execution System that effectively 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.

Well designed, efficient, and Performance Management is the


effective Management, Value process that translates strategic
Chain, and Support Processes are initiatives into measurable
necessary to deliver world-class objectives and goals.
results.

27 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

BPI 7 A3 or 8D

Process Development, Systematic & Team-Based


Improvement & Management Problem Solving

5. Pursuit
Perfection
1. Define
4. Establish
Pull
Lean Value
Principles

3. Create 2. Map Value


Flow Stream

Lean Management Six Sigma Methodology


28 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

Function A Function B Function C


Input 1. There is no
complete
description of
the end-to-end process.

2. Functions start to make


documents
Output of their own sub-processes
for their own
purposes.

4. Everyone knows only his/her own 3. The function's borders


function's activities and tasks. As a act as barriers and slow the
result, they make changes which overall process, as work is stored at
focus on the function, not on the the entry and exit points to each
overall process performance function

29 - 6/13/20 – v10.0
Operational Excellence – Process Excellence
Sub-Process #1
Input
A1 B1 B2 C1

Sub-Process #2
A2 A3 B3 B4 C2

Sub-Process #3 Output
C3 B6 B5 A4

Function A Function B Function C


- Competence A - Competence B - Competence C
development development development
- Training - Training - Training
- Resource pool - Resource pool - Resource pool
- Superior relations - Superior relations - Superior relations

 Functions become competence centers - supplying


competence and resources to the processes
30 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

Establish the Team


1
• Describe the Problem
2
• Develop Interim Containment Actions
3
• Define and Verify Root Causes and Escape Points
4
• Choose and Verify Permanent Corrective Actions
5
Implement and Validate Permanent Corrective Actions
6
Prevent Recurrence
7
Recognize Team and Individual Contributions
8

31 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

1 Background

2 Current Conditions

3 Goals & Targets

4 Root Cause Analysis

5 Countermeasures

6 Implementation

7 Follow Up

32 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

Project Management

D M A I C

Lean = Efficiency Six Sigma = Effectiveness


is about reducing the lead time of a is about reducing the variation in a
process or value stream. process or value stream.

Process
Excellence

33 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

Process Input:
Strategic and Annual Operating Plan Process Output:
(Objectives, Goals, Initiatives) Exceeding the Plan

Develop and
Select the Select and Manage for
Implement Sustain the
Right Train the Excellence in
Improvement Execution
Gains
Projects Right People Plans

•• Clarify
Clarify big
big picture
picture •• Ensure
Ensure the
the right
right •• Utilize
Utilize the
the right
right •• Stay
Stay focused
focused •• Implement
Implement effective
effective
using
using strategic &&
strategic leadership
leadership andand improvement
improvement •• Frequently
Frequently review
review control plans
control plans
operating
operating plan
plan ownership
ownership methodology
methodology for for progress
progress and remove
and remove •• Conduct
Conduct regular
regular
•• Prioritize
Prioritize projects
projects •• Select
Select the
the right
right team
team the right project
the right project barriers
barriers training
training focused on
focused on the
the
based
based on on impact,
impact, leader
leader && team
team •• Check
Check real
real business
business process
process
value, resources,
value, resources, •• Develop
Develop aa training
training impact
impact •• Review
Review thethe system
system
timing
timing plan
plan •• Continuously effectiveness
effectiveness at at least
least
Continuously
•• Select
Select key
key projects
projects •• Dedicate
Dedicate time
time for
for communicate
communicate quarterly
quarterly
with
with leadership
leadership buy-in
buy-in training &
training & progress
progress •• Continually
Continually identify
identify and
and
•• Check
Check accountability
accountability -- application
application •• Link launch
launch new
new projects
projects
Link to
to performance
performance
business
business andand personal
personal •• Ensure
Ensure the
the right
right management
management and and based
based onon strategic
strategic &&
support
support resources
resources R&R
R&R operating
operating plan
plan
are
are available
available

34 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

IMPACT EFFORT RISK

CUSTOMERS

LEARNING &
PROCESSES
FINANCIALS

GROWTH
Balanced Scorecard Project Selection Matrix

DURATION OF PROJECT
CAPITAL RESOURCES
PEOPLE RESOURCES

PROJECT STATUS
MANAGEMENT RISK
TECHNICAL RISK
TOTAL EFFORT
TOTAL IMPACT

TOTAL RISK
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 CORRELATION MATRIX

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


Linking Performance
Ranking 0 = none
Management & Not Started
Process Excellence 3 = lowthrough focused On Track
5 = medium At Risk
Project 8=Selection
high Behind Schedule
10= very high

35 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

10

9 Linking Performance Management &


Process Excellence through focused
8
Project Selection
7

6 3
IMPACT

3
1
2
4 5
1
2
0

0 1 2 3 4 5 6 7 8 9 10

EFFORT
Size of the Ball = Size of the Risk

36 - 6/13/20 – v10.0
Operational Excellence – Process Excellence

State of Michigan Department of Management and Budget (DMB)

Coordinator Kathe Carter:

"Our management team evaluates potential new programs/initiatives by seeing how


they fit in with our strategy. In the past we would continue 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 initiative is proposed, our
people ask 'how does this fit in with our strategy map /scorecard?' They feel that this
connection attaches a higher level of importance to the initiative."

37 - 6/13/20 – v10.0
Process Excellence Training Modules

To learn more about the different Process Excellence Methodologies, please review our Lean
Management, Six Sigma Methodology, Business Process Improvement, and 8D Problem
Solving Process Training Modules.
The COMPLETE LEAN MANAGEMENT Training Module Library includes the latest
version of all seven currently publicly available Lean Management training modules with over
900 PowerPoint slides and many additional templates, worksheets, and forms to support your
organization's Lean Management initiative.
The COMPLETE SIX SIGMA METHODOLOGY Training Module Library includes the
latest version of all six currently publicly available Six Sigma training modules with over 700
PowerPoint slides and many additional templates, worksheets, and forms to support your
organization's Six Sigma initiative.
The Business Process Improvement (BPI 7) Methodology Training Module includes a MS
PowerPoint Presentation, as well as additional worksheets and templates, covering our Business
Process Improvement Methodology (BPI 7).
The 8D (Disciplines) Problem Solving Process Training Module includes a MS PowerPoint
Presentation covering the Global 8D Problem Solving Process & Tools, a Case Study, and 7
Workshop Exercises.
The A3 Problem Solving Process Training Module includes a MS PowerPoint Presentation
covering the A3 Problem Solving Process & Tools, a Case Study, and 7 Workshop Exercises.

38 - 6/13/20 – v10.0
What is Operational Excellence?

Achieving Operational Excellence requires the successful implementation of a integrated


Business Execution System that effectively and seamlessly integrates the following four
building blocks: Strategy Deployment, Performance Management, Process
Excellence, and High Performance Work Teams.

Operational Excellence can be


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

Well designed, efficient, and Performance Management is the


effective Management, Value process that translates strategic
Chain, and Support Processes are initiatives into measurable
necessary to deliver world-class objectives and goals.
results.

39 - 6/13/20 – v10.0
“The rate at which organizations learn may soon become
the only sustainable source of competitive advantage.”
Peter Senge

“The thing I have learned at IBM is that culture is


everything.”
Louis V. Gerstner, Jr.

40 - 6/13/20 – v10.0
Operational Excellence – High Performance Work Teams

High Performance Work Teams = E 3

E * E * E
= = =
Engage Educate Empower

41 - 6/13/20 – v10.0
Operational Excellence – High Performance Work Teams

Proportion of highly engaged Proportion of low or no engagement


employees experiencing this: employees experiencing this:

They view their job as important to


98% the company 22%

They are able to do their best every


99% day
53%

98% They have opportunities to learn and 13%


grow

98% Their manager cares about them 20%

Someone has talked about their


92% progress 13%

Someone encourages their


97% development 10%

42 - 6/13/20 – v10.0
Operational Excellence – High Performance Work Teams

Operational Excellence can and can only be achieved and sustained with the right
attitude, the right mindset, and the right competencies.

Empowerment = f (Authority, Resources, Information, Accountability)

Empowerment = 0,
if Authority or Resources or Information or Accountability = 0

Selected Employee Ongoing Employee High Performance


Input Taskforces Work Teams

The Empowerment
Continuum

43 - 6/13/20 – v10.0
Operational 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

44 - 6/13/20 – v10.0
Operational 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.

45 - 6/13/20 – v10.0
Operational 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.

46 - 6/13/20 – v10.0
Operational 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.

47 - 6/13/20 – v10.0
Operational 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.

Coach
Living Barrier
Example Buster

Leader ≠ Manager

Result Business
Catalyst Analyzer
Facilitator

48 - 6/13/20 – v10.0
What is Operational Excellence?

Achieving Operational Excellence requires the successful implementation of a integrated


Business Execution System that effectively and seamlessly integrates the following four
building blocks: Strategy Deployment, Performance Management, Process
Excellence, and High Performance Work Teams.

Operational Excellence can be Strategy or Policy Deployment is


achieved and sustained with the the process that aligns and links
right attitude, the right mindset, and business strategy and execution.
the right competencies.

Well designed, efficient, and


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

49 - 6/13/20 – v10.0
About Operational Excellence Consulting LLC

“In the global and competitive environment of today and


tomorrow, organizations must rethink and reshape their
approach to execution in order to stay competitive. Operational
Excellence is the strategic initiative under which this process
can take shape.”

We work with our clients, primarily smaller and medium-sized manu-facturing


and service organizations, hands-on and side-by-side to achieve their strategic
and operational goals and objectives through the innovative application of
Operational Excellence principles, methods, and tools.

Email: info@oec-us.com
Phone: +1 (888) 372 – 8705
Website: www.oec-us.com

50 - 6/13/20 – v10.0

You might also like