Efficiently Effective Operations
External business stakeholders may expect improved results over the short term, but they also value sustained and profitable performance over the long term. Satisfying external and internal business stakeholders requires an operational strategy that relies upon the management of operational ‘quality’, inclusive of the ability to identify and address systemic operational constraint.
It is time for business leaders to act your way into a new way of thinking...
“It is easier to act your way into a new way of thinking than to think your way into a new way of acting.” – Popularized version by E. Stanley Jones?
Otherwise stated... Stop talking and/or thinking about operational excellence and start creating it!
“It is a universal truth that those who are not dissatisfied will never make any progress. Yet, even if one feels dissatisfaction, it must not be diverted into complaining; it must be actively linked to improvement.” – Dr. Shigeo Shingo
But how? Let’s begin with an understanding that the system of business operations provides the ability to fulfill the purpose/mission of the business through all of the ‘work’ done within the organization...
This high-level view of business operations can be further delineated into operational groups and even subgroups; each having dedicated business process workflows that enable their capability to contribute to the fulfillment of the purpose/mission of the business.
However, it is the ‘quality’ of those business process workflows that matters. The entire system of business process workflows is executed within a specific sequence; each with defined responsibilities, requirements, and accountabilities to the other business process workflows they interact with to ultimately provide the requisite results that create stakeholder satisfaction.
Once the system of operational capabilities is aligned/defined within operational groups and subgroups, the ‘work’ required of them is broken down into the various ‘business process workflows’ that enable each operational capability. This provides for a scalable solution to modernize, energize, and digitize each business process workflow as a subgroup and/or group.
The aggregate of operational capability, capacity, and cost must be profitably balanced against the fulfillment of the current market demand before any consideration of growth and/or value creation can be considered.
The ‘quality’ of business operations is therefore derived from:
1)??? understanding and aligning business capabilities with operational capabilities.
2)??? the Quality Management System (QMS) that formally modernizes and establishes the standard work of the business.
3)??? the ‘quality’ of the execution is addressed by energizing the workforce through the Quality System(QS)... QS = QMS + skilled, trained and competent people that execute the work, in compliance with the QMS standard work of each business process workflow.
4)??? the ‘quality’ of the Quality System Management (QSM), established using digitization technology utilized to measure, monitor and manage business process workflows.
5)??? the ‘quality’ of Quality Management (QM), the ability to optimize the operational infrastructure by targeting and improving identified systemic operational constraint. ?
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The pathway to operational excellence requires the ability to 1) strategically address the ongoing capability, capacity and cost of business operations, for profitability, 2) modernize business process workflows, 3) energize the workforce to execute the workflows, 4) digitize the updated system of workflows, and 5) optimize the system by improving systemic constraint to create and sustain ongoing growth and value.
Mgmt-Ctrl supports the achievement of operational excellence (OpEx), within any business, utilizing the management of operational ‘quality’ as an effective tool. We understand that a business, any business, seeks/requires improved and ongoing sustainable growth for the creation of business value:
Once operational capability is achieved, operational capacity must be scaled to meet the market demand, at an operational cost that doesn’t cannibalize profitability. The demand identified from Opportunity Management & Sales Forecasting must be in alignment with the Operational Management of capability, capacity, and cost management to ‘balance’ ongoing operational investments in growth, while ensuring profitability.
Operational ‘quality’ management is a ‘game-changer’ because every business is essentially a machine that is expected to profitably generate revenue from the products and/or services that are delivered to satisfy a market demand. Market demand must be balanced with operational capacity to capably deliver high-‘quality’products and/or services. The capability and/or capacity of the business operations not only drives the business expense (Op Exp), but it also dictates the level of demand, from revenue generation, that can be successfully and profitably fulfilled, based upon operational constraint in each and every business process workflow associated with:
o?? Capability or the ability of business operations to create and deliver the products and/or services that are marketed and sold to generate Net Revenue.
o?? Capacity or the scale of business operations, utilized to create and deliver those products and/or services in a manner that does not cannibalize the Net Revenue that was gained.
o?? Cost, or operational expense (Op Exp), which must be kept at the necessary minimum.
These 3C’s must be responsibly managed and controlled to achieve profitable operations.
Transforming how operational management systems are built and run to professionally manage the 3C’s requires an operational ‘quality’ management solution/model that utilizes modern concepts and technologies. The scalable operational ‘quality’ management solution we offer:
1)??? Aligns market demand with operational capability, capacity, and cost.
2)??? Modernizes the business process workflows that enable the operational capabilities.
3)??? Energizes the workforce to execute the standard work, at the requisite capacity.
4)??? Digitizes those workflows within a process builder, incorporating AI & automation tools.
5)??? Optimizes the business by targeting and improving systemic operational constraint.
Mgmt-Ctrl would be honored to support your journey to achieve operational excellence (OpEx). We don’t provide lofty inspiration; we provide inspired solutions, with strategically derived methodology, and the underlying toolsets to tactically do the job. We understand yourbusiness seeks improved and ongoing business value and sustainable growth, for stakeholder satisfaction.
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