An Excellent Combination

Many Lean Six Sigma and other operational excellence (OpEx) initiatives fail because they were not properly deployed or, in some cases, not deployed at all. To many, “deployment” boils down to training a handful of Black Belts or Green Belts and turning them loose on the company without any support whatsoever. The successful deployment of an operational excellence program, however, requires all the essential elements below. I will address each part in more detail in future articles, but my purpose for this article is to get the conversation started about what is and is not necessary for OpEx programs to succeed.

·??????? Senior leadership knowledge and commitment. This aspect encompasses more than just acknowledged buy-in; it is the “glue” that holds all the other necessary components together. All senior leaders throughout the organization must have a working knowledge of the OpEx methodologies to be implemented, take part in the OpEx strategy development process, and be held accountable to enforce the OpEx program requirements. A primary cause for the failure of many OpEx programs is the tendency for associates to view OpEx activities as secondary or not part of their “real” jobs. Only senior leaders have the authority to build OpEx activities into the job descriptions of their direct reports and hold them accountable; therefore, senior leaders must drive all successful OpEx programs top-down.

·??????? Alignment with corporate strategy. Any successful OPEX program must be coordinated with corporate strategy and goals. All projects, events, and activities must trace to a tangible bottom-line increase or risk reduction for the enterprise. Any adjustments to corporate strategy could dictate equal changes in OPEX strategy; therefore, it is imperative operational and OPEX strategy planners coordinate regularly.

·??????? OPEX infrastructure. A true OPEX organization is one that has adopted and supports an infrastructure for continuous process improvement that consistently produces measurable results. In a Lean Six Sigma organization, for example, Yellow Belts are assigned to cross-functional project teams, Black Belts lead multiple projects and train, coach and mentor Green Belts, Master Black Belts manage pipelines of multiple projects and train, coach, and mentor Black Belts and Sponsors provide organizational support for Lean Six Sigma activities at all levels.

·??????? Customized training at all levels throughout the organization. Training must be continuous and designed to provide the OPEX subject matter expertise necessary for the associate to achieve success at his or her level within the OPEX infrastructure. In a Lean Six Sigma organization, for example, one would expect to find continuous waves of Executive, Sponsor, Master Black Belt, Black Belt, Green Belt and Yellow Belt training conducted at regular intervals.

·??????? Budget. Nothing significant is achieved within the business context without a budget—including the deployment and management of a OPEX program. There are costs associated with deploying and running an OPEX program (salaries for SMEs and executives, wages for cross-functional team members, training materials, etc.) Though the financial returns on a well-run OPEX program will quickly eclipse the upfront costs of deployment, the costs still need to be budgeted and the budget needs to be professionally managed.

·??????? OPEX program metrics. While the OPEX program will serve to develop metrics for operational processes within the enterprise, leaders must design other metrics around the OPEX program itself to ensure the organization’s OPEX processes remain in control and deliver the targeted returns. Since OPEX objectives are achieved through projects, we use the Project Management Body of Knowledge (PMBOK) to aid in the development of OPEX program metrics.

·??????? Performance management. As shown previously, to successfully engrain OPEX within the DNA of the organization and re-shape the culture, OPEX objectives and activities must be operationalized and made a part of each associate’s job (from the CEO down). Organizations that are reluctant to take this critical step lack the necessary senior management commitment and have doomed their OPEX deployment efforts to fail before they have begun. In fact, I have advised many CEOs with whom I have consulted against attempting to deploy an OPEX program until they are prepared to make this vital commitment—to spare them the frustration and spare their companies the wasted time and money. ?

·??????? Center of excellence (COE). An OPEX COE serves as a hub to centralize and standardize OPEX organizational learning and offers a mechanism to help leverage best practices. I have found the establishment of an OPEX COE necessary to enhance collaboration and provide a catalyst for other OPEX activities as the organization develops in its OpEx maturity.

Rich St. Rose is the President and CEO of Amelioration Incorporated (ameliorationinc.com ), a company that provides operational excellence consulting and training services. If you have enjoyed reading this article and would like to keep similar articles coming, please remember to click the “Like” button and follow Rich St. Rose on LinkedIn. Also consider leaving a comment and/or sharing the article so we can keep the discussion going.