The Most Important Aspect for an Organization to Achieve Operational Excellence | Operational Excellence Quick Hits
Quick Hits share weekly tips and techniques on topics related to Operational Excellence. This week’s theme relates to Operational Excellence Operating Structure: The Foundtion. We hope you enjoy the information presented!


Speaker 1: (00:05)
I put together this slide here, we call it the house of operational excellence. So there’s a reason I made it like a house, because a house is only as strong as the foundation. So a foundation is so critical. And the other important part of this house is I only have two pillars. The reason there’s only two pillars is because if one of the pillars is missing, the house doesn’t stay up. I’ve seen other models where there’s three, four or five pillars. So what that tells me, if one pillar is missing, the house can still stand. It starts with the foundation. So it starts with customer focus on leadership. The first thing is vision and mission. I believe every company should have a vision and mission state. So what is vision? What is mission? To me, vision is the direction we’re going as an organization.
Speaker 1: (01:01)
What direction are we going? Are we going to go south? Are we going to go west? Are we going to go north? What’s our direction? Once we choose a direction, the mission explains why we chose that direction. So every company should have a vision and mission. So we want to make sure that when we’re taking action, we’re supporting the vision and mission. We don’t want misalignment between what the vision and mission is and the actions that we’re taking. Next is value analysis and value proposition. So that starts with asking ourselves what value are we adding to the market today? And, is there opportunity to actually get more sales by adding more value to the market? So what’s our value proposition? To understand where the value propositions are and they’re all over the place I call them golden nuggets.
Speaker 1: (01:55)
There’s gold nuggets lying all over the place. We just got to find them. Then once we understand what our vision and mission is, hopefully our value proposition aligns with that. And then we come up with our strategy and tactics. So the strategy is how we’re going to achieve those. And the tactics are the actions we’re going to take to achieve it. And then lastly is performance metrics. I put performance metrics on the bottom tier because they’re so critical in driving the right behaviors. If we have the wrong metrics, we’re going to get the wrong behaviors.