Paving the way for Operational Excellence

The operational infrastructure of many businesses, in their effort to become viable in the market, can be best described in comparison to a hastily built gravel road. There isn’t anything wrong with that. Gravel roads can certainly serve a community effectively and affordably for years, just as the rudimentary operational infrastructure can adequately service a young company, especially those who have not yet experienced significant employee turnover and the loss of tribal knowledge.

However, some businesses obtain viability and continue down their worn and poorly maintained gravel road, neglecting the improvement of their infrastructure in favor of external stakeholder pressure to continually increase profitability and neglecting the improvement of their operational infrastructure to do so. The larger the business becomes, the more the neglected infrastructure becomes a significant impediment to achieving sustained profitability, for stakeholder satisfaction. There is no escaping the reality that gravel roads must eventually be paved, upon well-laid roadbed, to bear the weight and facilitate the movement of heavy and constant traffic that is forecasted to come.

The question becomes... How do you accomplish operational infrastructure investment, Year over Year, without sacrificing short-term profitability, Quarter over Quarter? The answer to that question significantly depends upon understanding where the business stands today, financially, such that strategic decisions can be made about where the business wants the operational infrastructure to be in one year from now.

External business stakeholders may expect improved results over the short term, but they also value sustained and profitable performance over the long term. To accomplish this, business leaders must understand the balance between the market demand created from Sales, with the cost of Inventory and Operations, to create a Business Plan and supporting roadmap. When the operational capacity is balanced against the fulfillment of the current market demand, the leadership of the business can make important decisions as to the investments for creating additional market demand from sales and/or improving operational infrastructure to support the creation of future profitability and growth of the business.

The pathway to operational excellence requires the ability to create a scalable roadmap, providing the understanding and 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 don’t provide lofty inspiration; we provide inspired solutions, with strategically derived methodology, and the underlying toolsets to tactically do the job. 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:

-?? 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.

-?? 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.

-?? Cost, or operational expense (Op Exp), 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 OpEx solution that is offered:

1)??? Align 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, defined within the workflows.

4)??? Digitizes those workflows within a process builder, incorporating AI & automation tools.

5)??? Optimizes business operations by targeting and improving systemic 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 your business seeks improved and ongoing business value and sustainable growth, for stakeholder satisfaction.