What is Operational Excellence?
Operational Excellence is the mindset to continuously strive to be better than the competition through strong and consistent execution of your business’ strategy. It is not a program or isolated initiative, but a culture that needs to be embraced by the entire organization. To achieve excellence, many different types of continuous improvement methodologies and tools are used like Lean Thinking, Six Sigma and Scientific Management, but also broader concepts like organizational structure and leadership development. The ultimate goal of Operational Excellence is to create more value for customers and thereby achieve sustained growth.
Our Operational Excellence Framework can be seen below:
Our framework consists of two overarching themes required to achieve Operational Excellence: Foundation and Enablers. Foundation means that you have all the basic elements in place in your organization including a Strategy, Organization Structure, Processes & Systems and Products & Services. Call it the “brain” of your organization. Enablers are needed to ensure that the Foundation is brought to life and delivers value to clients. They include Performance Management, Leadership, People & Culture, Continuous Improvement and Risk & Quality Management. They ensure that all elements of the Foundation are executed well, steered properly and continuously reviewed to become even better. Enablers are the “heart” of your organization and pump oxygen to the “brain”. Read more about each element below.
Guiding Principles of the Shingo Model:
- Respect every individual
- Lead with humility
- Seek perfection
- Assure quality at the source
- Flow and pull value
- Embrace scientific thinking
- Focus on process
- Think systemically
- Create constancy of purpose
- Create value for the customer