Operational excellence: between working methods and team management
In the world of team management, the concept of operational excellence is gaining in popularity. It is mainly a question of steering performance and optimising processes to increase efficiency. In a context that aims for constant improvement, operational excellence has its place. However, it must be translated into the implementation of good practices, which presupposes that the method is adopted with conviction by the employees. The use of software solutions can contribute to this acceptance.
1-What is operational excellence?
Operational excellence is less a method than a state of mind. One could even speak of a new corporate culture, which aims for continuous improvement and helps to give meaning to the actions of the members of the various teams. Operational excellence is thus different from an overly pyramidal managerial approach, driven solely from the top. Far from being subjected to or reduced to being executors, employees are invited to understand, participate and experiment, so that everyone contributes to increasing performance and efficiency.
It is certainly the responsibility of the company’s management to drive operational excellence, so as to put the internal organisation at the service of the customers, but it is also a method which aims to be a global and structured approach, based on carefully chosen tools to optimise the actions of each person at the service of the teams.
It thus aims to replace purely hierarchical management, which is still too widespread in companies, with a strategy that develops the autonomy of employees. In the context of operational excellence, individual efforts are placed within a team framework that provides a structure for continuous improvement.
Operational excellence is thus an integral part of a lean management strategy.
2-Vision, strategy, objectives and governance
The deployment of an operational excellence strategy requires first of all a governance effort, with the clear and precise definition of objectives, which can then be translated into strategy. In other words, operational excellence involves optimising the management of operations, with the aim of increasing production, developing productivity and improving work performance.
In the implementation phase of the company’s strategy, the use of digital checklists contributes significantly to operational excellence. It reduces waste and minimises problems by better anticipating their occurrence. For example, work instructions and checklists managed by shared software reduce much of the non-value-added time and energy wasted on paper.
The use of digital media greatly contributes to better governance and even to a better ownership of the company’s vision by the different employees.
3-Performance management and process efficiency
Operational excellence improves performance management. Many companies that have seen their processes improve over the years are faced with a major challenge: how to continue this positive dynamic and continue to optimise performance and results? Managers in the field have the task of driving the implementation of the company’s global strategy. But they need to have the methods to achieve this. Operational excellence is therefore above all a matter of team management.
The objective is to put this operational excellence at the service of quality: it is not an end in itself. Efficient management of teams and production processes contributes to reducing costs by optimising the organisation of work. But what principles should be followed? First and foremost, a number of problems or pitfalls that are common in companies must be avoided. The points to be optimised often include excessively long or poorly planned transport times. Sometimes a better structuring of the space within the company can reduce travel and therefore time loss. But it is equally important to eliminate redundant and unnecessary processes.
A tool to reach
operational excellence at work?
4-Human resources management
Operational excellence and management are inseparable. The former implies optimising the use of resources. But what resources are we talking about? Material resources, obviously, but also, and above all, human resources, i.e. teams. Better management of human capital usually leads to cost reductions, but also to increased productivity at work.
Too many companies are characterised by a real waste of their human capital. This is one of the main obstacles to productivity. Whether employees are under- or over-employed according to their skills, their poor deployment is a problem: unmotivated employees do not contribute to operational excellence.
5-Towards a culture of continuous improvement
It is the responsibility of managers, but also of the company’s management, to ensure that operational excellence follows certain good practices.
These include the following:
- consider your employees,
- help everyone to excel,
- re-evaluate your processes,
- do better the first time,
- connect the synergies,
- clearly state the objectives to be achieved.
The implementation of the overall strategy requires the definition and application of rigorous and efficient methods to avoid waste. The aim of operational excellence is to induce a dynamic of continuous improvement.
Managers and management alike must therefore define and apply rigorous and effective methods and ensure that the overall strategy is implemented to avoid waste.
This sometimes requires a fundamental transformation of practices, which must be aligned with the principles of lean through a software solution, such as Six Sigma. It is therefore clear that operational excellence and lean management are inseparable.
Conclusion
Operational excellence therefore requires improving processes as well as the skills of employees and their working conditions. It can be measured through performance indicators.
It allows companies to renew their product to adapt to a constantly growing environment. To achieve this, they need to be able to identify problems as early as possible that indicate the need to adjust processes and/or skills.