Operational Excellence
Driving Operational Performance Improvement through digitally enabled Operating Models and Production Systems.
Step 1: Operating model
It starts with an operating model. Just like any large undertaking, you have to first view the entire system, understand the “so what”, and ask enough questions to get down to the “why”. As you begin to understand the basic steps that lead your business to making money, the Process Framework begins to take shape. The Process Framework helps us better understand the roles and positions needed (Organization Framework), along with how to measure their performance (Performance Framework). The three elements for the basis of the Operating Model.
Define.
Apply.
Control.
Step 2: Digital Enablement
Digital Enablement… yes, it’s a buzz word but I mean it here. Once you have defined the inputs and outputs of the system and learned how your business converts those inputs into outputs (SIPOC, RACI, etc.)...you are now in a position where you can simplify and automate. The first step (Operating Model) is critical to make this possible, otherwise the complexity will lead to false progress. Trackers, Smartsheets, lists, workflows etc. are key to helping businesses create repeatable processes. The goal here is increasing the likelihood of a predictable outcome. Noise into music.
Step 3: Performance Improvement
Operational Performance Improvement… a somewhat vague term, but only because I don’t want to exclude anything. This is the reason we do steps 1 and 2, because only then are we able to understand where the business needs help, and whether our improvements are helping. Once we have a stable process environment, the actions we take have a clear and measurable effect (thanks to our digital solutions). To continue the analogy of noise into music, in this step we are directing the symphony.