The principle of 'creating value for the customer' encompasses (and necessitates) the development of good strategy, innovation, adoption of new practices and exploring potential new products and services.
Supporting Concepts
The principles are placed within the FOUR DIMENSIONs of the model; for which there are supporting concepts that help organisations develop their approach.
Operational Excellence is geared to execution of your business strategy in the best possible way - more consistently and better than your competitors.
It involves strengthening and aligning management systems and processes, engaging people and changing ways of thinking to improve performance and create greater value for all stakeholders. At its heart, Operational Excellence is the result of ideal behaviors based on correct principles, practiced across the whole organisation to develop the mindset and culture that everyone should embrace.
The principles are defined in the SHINGO model of excellence, which we use as a basis for our approach to OpEx.
Respect Everyone and Lead with Humility
Focus on Process and Embrace Scientific thinking
Flow and Pull Value, Assure Quality at the source and Seek Perfection
Create Constancy of Purpose and Think Systematically
Create Value for the customer
For organisations to be successful over the long term, leaders must ensure that the behaviors of every person are in harmony with these principles.
You can find out more about how we interpret the SHINGO model into our Operational Excellence approach in our blog.
Looks & Feels like..
Safe systems, low incidents
Clean, organised environment
Sufficient staffing and skills
Roles & Responsibilities clear
Career Opportunities explored
Personal goals are achieved
Performance standards clear
Reward & recognition aligned with ideal behaviours
Trust is high
Engagement is high
Equality and Inclusion
Communication clear & timely
Ideas & Feedback acted upon
Leaders are role models
People want to work here
Looks & Feels like..
Quality systems in place
Value stream mapped
Key Processes are documented
Improved Flow is a goal
Resource planning is robust
Risks understood & managed
Process objectives clear
KPIs defined & monitored
Visual management in place
Waste is not 'hidden'
Internal customer needs are understood and met
'No defects passed on' culture
Employees empowered to slow down or stop to resolve issues
Evidence of Process Improvement
LEAN thinking is evident
Quality tools actively used
Management team visible
Looks & Feels like..
Vision & mission have 'buy-in'
Top level 3+ yr strategy is clear
Strategic objectives support mission and vision
SMART Objectives and goals set at each level of the organisation
Individual objectives can be linked back to top level strategy
the 'why' is clear'
the WIIFM is clear
a common goal is established
Systems are integrated
'Silos' removed
Operating models support goals
Standard work created
Management expectations clear
Improvement is system wide
Values are evident in actions
Looks & Feels like..
Customer focus is evident
'Delighted' customers
Performance actively monitored
KPIs drive the correct behaviours
Correct behaviours are rewarded
Standards and Balanced scorecards used
Objectives are being met
Trends & forecasts drive decisions
Issues are opportunity to improve
Preventative actions > corrective
Active Benchmarking
Outperforming the competition
Continuous drive to innovate
Active learning organisation
Positive feedback loops in place
Re-investment & growth
Results support sustainability