Ownership and Alignment: the foundation for Operational Excellence

Who within the organisation is responsible for ensuring that Operational Excellence initiatives are aligned with and support our organisation`s overall strategy?

The age-old question of accountability within Operational Excellence initiatives. Let’s look at this fascinating case study that illustrates the importance of clear ownership and alignment with the organisation's overall strategy.?

GlobalCo and the journey to reduce waste and inefficiencies

Imagine a global manufacturing company, let's call it GlobalCo, with a rich history of innovation and a strong reputation for quality products. GlobalCo's leadership recognised the need to optimise their operations to stay competitive in a rapidly changing market. They embarked on an Operational Excellence journey, aiming to reduce waste, enhance efficiency, and improve overall performance.?

Initially, the initiative was led by a cross-functional team comprising representatives from various departments, including operations, supply chain, and finance. While the team worked diligently to identify areas for improvement, they struggled to gain traction and secure buy-in from the entire organisation.?

You may be thinking…? this initiative is crucial for GlobalCo's future, but how can we ensure it receives the necessary attention and resources? When we delve deeper into the organisation, we discover that the lack of clear ownership and alignment with the overall strategy are significant hurdles.?

The cross-functional team, although well-intentioned, lacked a single point of accountability. Each department had its own priorities, and the Operational Excellence initiatives often took a backseat to more pressing concerns. The team's efforts were, in essence, a series of disconnected projects rather than a cohesive strategy.?

To address this, GlobalCo's leadership appointed a seasoned executive, let's call her Sarah, as the Chief Operational Excellence Officer. Sarah had a deep understanding of the organisation's strategy and was tasked with overseeing the Operational Excellence initiatives. This appointment marked a significant turning point in the journey.?

Chief Operational Excellence Officer: meet Sarah

With Sarah at the helm, the Operational Excellence initiatives were reframed to align with GlobalCo's overall strategy. She worked closely with the executive team to ensure that the initiatives were integrated into the organisation's goals and objectives. This alignment enabled the team to focus on projects that would drive the most significant impact on the organisation's performance.?

Sarah's leadership also facilitated the development of clear key performance indicators (KPIs) to measure the success of the Operational Excellence initiatives. These KPIs were cascaded throughout the organisation, ensuring that every department and team member understood their role in achieving the desired outcomes.?

Observing the progress, one realizes that Sarah's appointment had brought a sense of clarity and direction to the Operational Excellence initiatives. Her ability to connect the dots between the organisation's strategy and the operational improvements was crucial in gaining buy-in and resources from across the organisation.?

The results.

Within 12 months, GlobalCo achieved significant reductions in waste, improved efficiency, and enhanced overall performance. The Operational Excellence initiatives were no longer a series of disconnected projects but a cohesive strategy that drove meaningful change throughout the organisation.?

Now, let’s reflect on this case study, and remind ourselves that ensuring Operational Excellence initiatives are aligned with and support the organisation's overall strategy requires clear ownership and a deep understanding of the organisation's goals. By appointing a seasoned executive like Sarah, GlobalCo was able to drive meaningful change and achieve significant improvements in operational performance.?

In conclusion, when it comes to Operational Excellence initiatives, accountability and alignment are key.

By appointing a single point of accountability and ensuring that initiatives are aligned with the organisation's overall strategy, organisations can drive meaningful change and achieve significant improvements in operational performance.?

THE APPROACH AND ITS SPECIFICS:

To ensure that Operational Excellence initiatives are aligned with and support the organisation's overall strategy, a clear ownership and accountability structure must be established. This structure should involve multiple stakeholders and leaders across the organisation, with defined roles and responsibilities.?

Ultimately, the CEO or equivalent top executive is responsible for setting the overall strategy and direction of the organisation. As such, they should be the ultimate sponsor of Operational Excellence initiatives, providing support and resources as needed. However, the CEO cannot be solely responsible for ensuring alignment with the overall strategy. A more nuanced approach is required.?

A designated Operational Excellence leader or champion should be appointed to oversee the development and implementation of Operational Excellence initiatives. This individual should report directly to the CEO or a senior executive, ensuring that they have the necessary authority and visibility to drive change across the organisation.?

The Operational Excellence leader should be responsible for:

1. Developing a comprehensive Operational Excellence strategy that aligns with the organisation's overall strategy.?
2. Identifying and prioritizing areas for improvement across the organisation.?
3. Developing and managing the Operational Excellence roadmap, including setting goals, objectives, and key performance indicators (KPIs).?
4. Coordinating and facilitating cross-functional teams to drive Operational Excellence initiatives.?
5. Providing guidance and support to departments and teams implementing Operational Excellence initiatives.?
6. Monitoring and reporting on progress, identifying and mitigating risks, and making adjustments as needed.?

Additionally, each department or business unit should have a designated Operational Excellence representative who reports to the department head or unit leader.

These representatives should be responsible for:

1. Developing and implementing department-specific Operational Excellence plans that align with the overall Operational Excellence strategy.?
2. Identifying and prioritizing improvement opportunities within their department.?
3. Collaborating with the Operational Excellence leader to ensure alignment and coordination.?
4. Providing input and feedback on the overall Operational Excellence roadmap and strategy.?
5. Supporting and facilitating the implementation of Operational Excellence initiatives within their department.?

The organisation's senior leadership team, including department heads and unit leaders, should also play a critical role in ensuring alignment with the overall strategy.

They should:

1. Provide input and guidance on the Operational Excellence strategy and roadmap.?
2. Ensure that their departments are allocating sufficient resources to support Operational Excellence initiatives.?
3. Hold their teams accountable for implementing and sustaining Operational Excellence improvements.?
4. Review and provide feedback on department-specific Operational Excellence plans and progress.?

To further ensure alignment and support, the organisation should establish a cross-functional Operational Excellence governance team or steering committee.

This team should comprise representatives from various departments and business units, as well as the Operational Excellence leader and senior leaders.

The governance team should:

1. Review and approve the Operational Excellence strategy and roadmap.?
2. Provide input and guidance on department-specific Operational Excellence plans.?
3. Monitor and review progress against Operational Excellence goals and objectives.?
4. Identify and address any barriers or obstacles to Operational Excellence implementation.?
5. Foster collaboration and knowledge-sharing across departments and business units.?

By establishing a clear ownership and accountability structure, with defined roles and responsibilities, the organisation can ensure that Operational Excellence initiatives are aligned with and support the overall strategy.

This structured approach will facilitate a cohesive and coordinated effort to achieve Operational Excellence, driving improved performance, efficiency, and competitiveness.

Which role has made the biggest impact on your Operational Excellence implementation success?