Transcript
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Driving Strategy & Innovation through
Operational Excellence
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
• What is Operational Excellence?
• The pursuit: Creating a formula for success.
• Driving Force: It’s impact and importance.
• Maximizing Engagement; Minimizing Failure.
• Execution: Delivering with Speed & Velocity
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
What is Operational Excellence?
Operational Excellence is a leadership philosophy that emphasizes the application of systems, tools and principles as a means towards achieving sustained operational improvements, validated by improvement in key performance metrics.
The Objective of Operational Excellence is to continuously improve operational performance to maximize investment and resource utilization to increase profits and develop a sustainable competitive advantage.
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Competition; Market Forces
Ownership; Shareholders
“Perfection is not attainable, but if we chase perfection we can catch excellence. ”
― Vince Lombardi
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
What is Operational Excellence?
Key attributes of organizations who achieve Operational Excellence:
• Continuous pursuit of improvement.• Collaborative Decisions.• Employee Empowerment.• A culture of Innovation.• Accountability and results are monitored and
measured.
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Approach to Operational Excellence
Experience, Talent and
Qualifications
Transfer Mechanisms
Desired Outcomes
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Operational Excellence & Strategy
The pursuit of Operational Excellence requires clear objectives, a plan to achieve those
objectives, and measures and accountabilities surrounding achieving the plan.
These are the same elements that are fundamental to an effective Strategy.
Improving Operational Performance
Why Does Strategy Fail?
© Shawn Casemore 2013. All rights reserved
Failure to change behavior
Inaccurate Prediction
Customer ConfusionFailure to Manage Change
Poor Communications
Failed Strategy
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Operational Excellence & Innovation
The pursuit of Operational Excellence requires the introduction and integration of new ideas supported through collaborative relationships
both internally and externally to the organization.
These same elements are fundamental to achieving Innovation.
Improving Operational Performance
Why Does Innovation Fail to Materialize?
© Shawn Casemore 2013. All rights reserved
Unrealistic Expectations
Lack of Resources
Singular FocusLack of Collaboration
Misaligned roles
Failed Innovation
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
The Other Factors at Play
Internal
Influence
s
External
Pressures
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Internal Influential FactorsA Driving Force is the strategic area that exerts the greatest influence on the
organization
• Profit Driven (i.e. low cost, high margin)• Sales/Revenue Driven (i.e. not always the
best sale)• Technology Driven (i.e. new technology
introduced)• Production Capability (i.e. capability to
produce)• Distribution Method (i.e. how
products/services delivered)• Markets Served (i.e. what does the market
need?)• Natural Resources (i.e. availability, location,
price)
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Economic
Political
Social
Technological
Influential External Factors
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Operational Excellence Model
.
• Contract Management• Supplier Innovation• Supplier Collaboration
• Fully integrated• Supportive technology• Effective measurement
and reporting
• Functional alignment• Continuous
Improvement• Value focused
• Vision & mission• Accountability• Talent Management
Leadership & Culture
Process Design & Execution
Partners & Affiliations
Technology Integration
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Leadership & Culture
Strategic
Accountable
Focused
What is yourgreatest challengeto improving the
Leadership & Cultureacross your
organization?
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Process Design & Execution
What is yourgreatest challengeto improving the
processes applied within your
organization?
Value to customer
Effective
Supportive
Aligned
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Partners & Affiliations
What is yourgreatest challengeto improving the
Partnershipsthat support
your organization?
Customer facing
Operations facing
Operation
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Technology Integration
What is yourgreatest challengeto improving theTechnology used
across your organization?
Information Management
Inbo
und Supplier
Mul
ti-di
recti
onal Operations
Inbo
und Customer
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Staying on the Rails
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Engagement TractionImplementing and managing Operational
Excellence requires:
1. Introduction to all stakeholders (i.e. internal & external).
2. Commitment from top to bottom of the organization (*)
3. Clear actions & accountabilities (What, by Who, by When).
4. Ongoing oversight & monitoring of progress (quarterly reviews).
5. Broad engagement to resolve or overcome obstacles (i.e. suppliers, internal stakeholders, customers).
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Engaging Stakeholders
1. Identify and qualify key stakeholders (who are they and what value do they bring?).
2. Develop stakeholder relationships (strategically build relationships with key stakeholders and influencers).
3. Connect needs with outcomes (identify parallels between stakeholder needs and desired outcomes).
4. Formulate a plan (determine the best approach to influencing and engaging stakeholders).
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
Summary• Operational Excellence is not to be feared.
• You define what Op Ex is for your organization.
• Improving Op Ex will help to: • Deliver upon your Strategy• Develop and deliver upon Innovative ideas
• Operational Excellence is a model with fundamental focus areas.
• Engagement is key to continued Operational Improvement.
Improving Operational Performance© Shawn Casemore 2013. All rights reserved
For a copy of our recent white paper “Operational Excellence: An Incremental
Journey” see me after the session.
Thanks!
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