Operational Unification
“A system must have an aim.? A system must create something of value, in other words…results.?? - W. Edwards Deming
‘Value’ that matters to any business: Gross Profit = Sales Revenue – Operational Expense.
Sustainable business value requires an operational performance management strategy that ensures the ‘quality’ of business operations that enable the governance of the planning and the execution of planned work, verification of results and the improvement of systemic constraint.
Most businesses today do not have a unified operational performance management strategy. Their business operations are not executed as a homogeneous business unit. Instead, they are comprised of multiple functional business groups, each with its own executive leader, that are managed under a Chief Executive Officer (CEO), who depends upon cross functional collaboration. However, without a unified operational performance management strategy, the CEO experience can be similar to the leader of an orchestra, with each functional group playing a slightly different tune because they aren’t all playing in synch and/or on the ‘same page of music’.
Einstein’s edict: “Everything should be made as simple as possible, but no simpler.”
The elements of an operational performance strategy, consisting of a strategic approach for:
Plan the work | Do the work | Check the work | Act to improve constraint(s)
The highest level of business value is established when the work of the organization is well planned. The business process workflows won’t produce the results the business needs, unless their capability to do so is established. Plan your work so your workforce can execute it planfully.
The planful execution of work, without regard to its efficient execution, will result in a level of operational expense that will significantly limit the gross profit of the business. The goal is to preserve the hard-earned sales revenue, not to spend that money on inefficient operations.
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Business process workflows must be managed and executed with an understanding of the ratio of direct labor to indirect labor (DL/IL), which is usually between 3/1 and 4/1, and typically associated with a traditional hierarchal organizational structure. Transitioning from a people-based hierarchal organizational structure to a role-based organizational structure can yield a DL/IL ratio that is significantly better. Even higher ratios are possible with an updated eQMS.
Updating paper-based or outdated eQMS solutions to a modern state-of-the art eQMS solution, with built-in communication features and workflow automation capabilities will enable even more business value to be captured to preserve gross profit. This cutting-edge technology will better enable a CEO and their operational leadership team to strategically target specific operational constraint (capability, capacity and efficiency) to focus on ongoing continual improvement that provides for sustained operational growth in alignment with the generation of market demand.
Are you ready to begin your transformational ‘quality’ management journey?
To begin, just call. (844) 349-2272, Email. [email protected], or visit. PQMcoach.com for:
1 - Information about the PQM operational ‘quality’ management solution is available to the business community to provide an understanding of the PQM strategy and framework.
2 - Education, in the form of coursework, is available to describe the establishment of the? Plan – Do – Check – Act phases of the PQM operational ‘quality’ management solution.
3 - Coaching is available for ongoing support to help keep you on track.
4 - Resources are available to support your 'quality' management transformation.
5 - Services are also available for specific processes associated with management control over ‘quality’, in support of ongoing and continual improvement for sustained success.
“Whenever you see a successful business, someone once made a courageous decision.” - Peter Drucker