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Operational Excellence
Operational excellence comes from the appropriate resources applied with commitment, focus and discipline. A clear understanding of customer needs, combined with goals that are aligned to avoid conflicting behaviour maximize the effective use of scarce resources. Too often basic principles such as the Plan, Do, Check, Act cycle are overlooked in favour of the latest business process fad. The latest fad may drive some short term benefits, but they fail to make long lasting and fundamental improvements.
Goals
Goals should be SMART i.e. Specific - Measurable - Agreed Upon - Realistic - Time Based.
They also need to be aligned both horizontally across departments and also vertically through the levels of the organization to ensure consistent performance. They must be tested to avoid departmental goals that are in conflict.
Performance Measures
Once goals are established and the organization embarks on its course of action, regular measurement must be conducted and the results become input at the “Check” phase of the cycle. Creating a trend analysis of the measures is an immensely powerful method of keeping goals on track.
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