Operational excellence

Operational Excellence is an element of organizational leadership and organizational intelligence that focuses on meeting customer expectation, all while stressing the application of a variety of principles, systems, and tools toward the sustainable improvement of key performance metrics. It is based on data driven metrics that are derived from either algorithms, machine learning or artificial intelligence.

Much of this management philosophy is based on earlier continuous improvement methodologies, such as Lean Thinking, Six Sigma, OKAPI and Scientific Management. The focus of Operational Excellence goes beyond the traditional event-based model of improvement toward a long-term change in organizational culture.

Operational Excellence creates a balanced scorecard and 360˚ perspective of an organization. It focuses on meeting customer expectation, through the continuous improvement of the operational processes in the organization.

Core principles

The Shingo Prize, an organization that recognizes success in the discipline, has identified ten key principles its award winners display:[1]

  1. Respect every individual
  2. Lead with humility
  3. Seek perfection
  4. Assure quality at the source
  5. Flow and pull value
  6. Embrace scientific thinking
  7. Focus on process
  8. Think systemically
  9. Create constancy of purpose
  10. Create value for the customer

The OKAPI method was created by Organizational Intelligence experts Iris Tsidon [2] and Maya Gal.[3] Their system incorporates the use of a methodology of SMART KPIs.

Challenges

The OKAPI method identifies the main challenges facing companies striving for Operational Excellence

–Disconnect: People are not connected enough to the larger business needs; rather, they are motivated by professional considerations, without seeing the prices we pay in the commercial aspects.

–Lack of progress: The tasks truly important for the growth of the business are not progressing. People here work very hard and are very devoted to their work, however, the assignments we need to perform in order to grow the business are not given priority

–Unable to change to stay competitive: In a competitive market, you need the ability to adapt your management infrastructure to change. However, this process as to happen quickly and efficiently. Many organizations do not succeed in changing courses in time to keep up with their competition.

–Data is too complicated to understand easily: To receive a picture of the state of the company, you should not need to dig through intricate Excel reports. Complicated reports and their preparation consumes lots of valuable time. Creating a system to enable the receipt of a timely, readily available picture on a current basis will add a great deal of value.

–No coherent management plan: There are many people who think that systematic management is not important, or they don’t use one because setting it up and following a plan is not one of their strong points and they pay too heavy a price for it. They get too involved in facilitating transactions, leading business development, and creating solutions to immediate problems in the company. Managers need to learn how to delegate responsibility for their own current management, so that others can work towards the shared objectives we have defined.

See also

References

  1. ↑ "Shingo Prize - Model and Guidelines".
  2. ↑ http://www.globes.co.il/en/article-israeli-female-entrepreneurs-visit-silicon-valley-1001168309
  3. ↑ https://women2.com/stories/2014/04/07/meet-the-female-cto-and-ceo-who-are-shaking-up-the-corporate-world-with-their-crowdsourcing-startup

[1] [2]

  1. ↑ http://www.globes.co.il/en/article-israeli-female-entrepreneurs-visit-silicon-valley-1001168309
  2. ↑ https://women2.com/stories/2014/04/07/meet-the-female-cto-and-ceo-who-are-shaking-up-the-corporate-world-with-their-crowdsourcing-startup
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