Thursday, August 6, 2009

Building Operational Excellence

Transitioning to a truly World-class organization means breaking old patterns and installing new ones. To accomplish this, an organization requires a whole new set of tools and a framework for applying them.

A Good Operations Excellence framework is based on three basic elements:

  1. Strategic Framework: refers to strategic intent of your organization – the kind of business You organization intends to be – and a plan of action
  2. Fundamental Structure: refers to how your organization’s internal and external relations are arranged
  3. Organizational Strength: refers to your organization’s capabilities, or step-by-step production and support routines mastered by the company, through which it gets work accomplished



Deciding Where You Are At

It is crucial that your company re-examine their reason for existence on a regular basis The business renewal stage should occur every three to five years.

The following are critical for establishing a proper vision for your company:

  • Envision the future
  • Analyze core capabilities and fundamental obligations
  • Revise the vision
  • Deploy the vision

The following steps should be taken in order to build an operational excellence strategy:
· Conduct an Organizational Excellence audit
· Review strategic information
· Define strategic benchmarks
· Produce an Organizational Excellence development plan

Building Excellence

There are four phases to the Building Excellence Stage:

  1. Focus
  2. Standardization
  3. Adherence
  4. Reflection

These phases help your company assess its direction, learn form its mistakes and build strong competitive strengths for success in the future. Each phase involves processes that help teams prioritize and analyze problems, and then develop, prioritize, and implement improvement ideas to achieve the organization’s strategic goals

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