In "The Discipline of Market Leaders - Choose your Customers, Narrow your Focus, Dominate your Market", Michael Treacy and Fred Wiersema describe three distinct value propositions or disciplines an organization can choose to compete in their market or industry - Operational Excellence, Product Leadership, and Customer Intimacy.
Market leaders choose to excel in delivering extraordinary levels of one of these three value propositions, while maintaining competitive standards in the other disciplines.
Based on Treacy's and Wiersema's findings, market leaders will not pursue a diffused business strategy across two or even all three disciplines, but will continually focus on their organizational design, processes, technology and competencies to improve the one particular value discipline that they want to provide to their Customers better than anyone else.
Organizations pursuing an Operational Excellence differentiation strategy are able to deliver a combination of price, quality, and ease of purchase and service that no other organization in their market or industry can match.
Achieving Operational Excellence requires the successful implementation of a Business Execution System that effectively and seamlessly integrates the following four building blocks: Strategy Deployment, Performance Management, Process Excellence, and High Performance Work Teams.
First - Strategy Deployment → Operational Excellence organizations follow a well defined Strategy and Operational Planning & Deployment Process that ensures collaboration and alignment among the different parts of the organization and effectively links strategic and operational objectives, initiatives and execution. Strategy Mapping and Hoshin Planning provide this systematic and collaborative planning, execution, and review process. Read more ...
Second - Performance Management → Operational Excellence organizations effectively translate strategic or operational objectives and initiatives into measurable success indicators and ensure alignment among the different levels and parts of the organization.
The Balanced Scorecard Methodology, utilizing Strategy Maps, provides a proven Performance Management framework to ensure alignment of an organization towards common objectives and goals. Balanced Scorecards also provide the critical inputs for an effective Project Prioritization and Selection Process. Read more ...
Third - Process Excellence → Operational Excellence organizations are process-centered organizations that have well designed, efficient, and effective management, value chain, and support processes to deliver best-in-class products and services to their customers consistently.
Process Excellence concepts, methods and tools, including Lean Management Methodology, Six Sigma Methodology, 8D Problem Solving Process, and Business Process Management, are core competencies of Operational Excellence organizations and utilized to achieve an organization's strategic or operational objectives and goals. Read more ...
Fourth - High Performance Work Teams → Operational Excellence can only be achieved and sustained with the right attitude, the right mindset, and the right competencies. Operational Excellence organizations continuously strive to increase the engagement, education, and empowerment of their employees through strong values, guiding principles, leadership development, coaching, and continuous competence development.
Many of our clients decide to begin their Operational Excellence initiative with our in-depth Operational Excellence 360o Assessment TM of their current capabilities and opportunities. Upon completion of the assessment, your organization will receive, or we will present to you and your organization, a detailed report about your current strengths and opportunities. We will also present three to five specific Operational Excellence & Lean Six Sigma projects or activities that we could start with and that would lead fairly quickly to significant performance improvements based on our assessment. That would give us time to develop, discuss, and define a more comprehensive approach to your Operational Excellence initiative.
For other organzations it is more beneficial to start an Operational Excellence initiative very targeted and focused by implementing specific Operational Excellence solutions to solve specific problems, like a Balanced Scorecard deployment, a Value Stream Mapping workshop, or a 5S Visual Workplace Organization initiative.
Benefit from our expertise and experience to help organizations drive profitability and create growth through Operational Excellence.
Contact Us to discuss how Operational Excellence Consulting can support you and your organization in establishing or accelerating your own Operational Excellence initiative. Follow us on LinkedIn and Facebook.
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