No matter what type of business you are, if you are looking at reducing costs, increasing sales and building relationships (who isn't right?!), you will want to take advantage of this...
In order to create change, organisations need to change the way they deal with the information and documentation they use every day and look to excelling in their business aspirations and actively obtain Operational Excellence through utilising that information, documentation and knowledge already being developed through tools and structure, which can be established to create that same drive and aspiration for businesses everywhere.
Businesses always need to 'up the ante' when it comes to utilising their information effectively. You can talk about compliance, risk and customer satisfaction, however we are in the business of utilising the information that has already been obtained and if it isn't, then introducing this in an effective way, to create that all exclusive word... Operational Excellence.
So what determines Operational Excellence?
Is it meeting contractual requirements? Is it meeting SLA's and KPI's? Is it even meeting Best Practice requirements? The name says it all... Operational Excellence. Think of the term excellence. There is no higher status... excellent... to excel. This is what businesses should be striving for each and every day!
Firstly, look at establishing your organisation's status when it comes to Operational Excellence. Is your business just going through the motions and just 'complying' with customer and organisational requirements, or are they excelling and going above and beyond? Excelling means creating a competitive advantage, not just with the product or service you provide, but in the way your business runs as a whole and most importantly, what kind of culture the organisation gives off. Operational Excellence stems from the culture of the business and ensuring that all members of that organisational team are on the same page.
It is about utilising the everyday requirements of your operation to meet certain standards, commitments, timelines and re-creating how these day to day requirements are perceived and commit to excelling in operational practices.
FACT- Organisations need Policies to create for employees, Managers, customer and other key stakeholders to align the structure of the business and how things are to be done.
FACT- Constantly managed and updated Objectives are fundamental for structure. Up to date objectives that are regularly managed and constantly made active give Managers, employee, customers and other key stakeholders allows the story to be told regarding where the company wants to go and how it is going to get there.
FACT- If you don't have processes and work instructions (that are constantly updated to reflect what is ACTUALLY happening in your business), it is inevitable, that cracks will start to appear. Structure and substance to processes and work instructions allows a clear alignment and flow as to the Operational Practices your company works to.
The processes and work instructions need to be there to support the structure based on your policies and objectives. Without them constantly being managed proactively and with clear and concise definition, there will become inconsistencies, rogue behaviour, doubt and errors that can escalate into a snowball effect so unmanageable that it becomes a dire circumstance resulting in potential complaints, loss of sales, loss of customers and risk exposure.
FACT- Identifying hazards to all Operational Practices, not just segregating to Health and Safety or the Environment, allows a full range of potential risks to be averted.
Think about these 7 Triggers in Crisis when it comes to potential hazards for your business:
1. A change in technology. We live in a hugely dominated technological world therefore business at the very least, need to keep with the pack when it comes to utilising it effectively. Ensuring you have an Operational Excellence System in place focuses on this area that may not be at the forefront, but with a manageable system, it will keep this potential risk a recognisable part of your ongoing strategic plan.
2. A change in your businesses culture. This is important. Creating a positive culture for your business defuses potential risks allowing the strength of a positive culture to cultivate progressive and sustainable Operational practices.
3. A change in the economy means a shift in how you do business, where, with what and with whom. Implementing a flexible Operational Excellence System, allows your system to manage strongly and effectively, any changes that occur in a volatile economy that can change at any moment. Think about your industry, could economic changes have deep impacts to how your business performs?
4. The potential for changes in customers lives means building an active alignment with your customer, understanding needs, wants and their own businesses and goes a long way to sustaining customer satisfaction and any changes that are resorting customers to go elsewhere.
5. A change in employees lives will have a huge impact on how well executed Operational Practices within your business are. It may seem like an old adage but it IS the employees that make the business. Developing a culture and a well implemented Operational Excellence System will pay off dividends in successfully representing your business and drawing in customers (and keeping them).
6. Change in your businesses life stage- This is why constant communication of where your business is, where it wants to be and how it is going to get there is crucial in forecasting business changes and what the best tools and methods for supporting the change are for minimal impact.
7. A change in competition can blind side businesses and allow new entrants into your industry and selling spectrum.
Having a sound Operational Excellence System, allows you to focus on 'excelling' in your business approach and practices that can alleviate these potential hazards from creating high risk issues for your organisation moving forward.
FACT- Incident reporting can tell you a bigger story other than what the incident is and how it happened. Incidents can affect all aspects of your business and can give you a 'big picture' insight into potential risks that may not have been known before an incident occurred. While we want to understand incidents and put in place corrective and preventative actions to ensure they do not occur again, incidents can create great insight and therefore be utilised effectively and efficiently to provide powerful tools for improvement opportunities.
FACT- Without training and development, you can never truly support your Management, employees, customers and other stakeholders to effectively meet set policies, procedures, cultural aspects, objectives and targets and create change in order to create Operational Excellence. Training and Development allows the opportunity for self-improvement into your organisations culture and allows employees to embrace their potential for added skills and knowledge. This reflects to customers and other stakeholders and creating knowledge emanating throughout the organisation. Training and Development creates a positive impact on Operational Excellence through the increase and resourcefulness of skills and knowledge to support the business and its practices.
FACT- Corrective Actions go hand in hand with the information and fundamental knowledge incident reporting gives organisations within an Operational Excellence System in order to create positive change and preventative action. As an incident describes what happened, how and in what circumstance, a corrective action gives businesses the opportunity to 'correct' what has happened in order to prevent its occurrence. Corrective actions can provide the key for Knowledge Management fundamentals to act to support of other departments, regions, countries of your business (this can also be applied to your customers), in order to utilise and act on actions found and implement to prevent these incidences re-occurring.
FACT- No-one is in business without customers. Like employees, they are the life blood of your business and must be supported and understood in order to create a competitive advantage. With more opportunities to customers and demands by them, creating customer satisfaction is more important than ever to provide the service and/or product they need. Creating an Operational Excellence base in this area of an Operational Excellence System will create real understanding and a person's approach to gain and excel in customer recognition.
Organisations are living in a world with increased stress of customer expectation, increase in costs, and changes (and in some cases increases) in legal, contractual and regulatory requirements. This is why looking at how you currently do things and creating an Operational Excellence System, allowing your organisation to change your approach to areas that are creating constant issues (but not getting any sustainable performance improvements), can make a vast difference on your businesses operationl practices and create positive movement.
Jodi Parry is an MBA graduate and Director of The Ninja Report, an Australia based organisation in Melbourne focusing on the implementation and compliance of Operational Excellence Systems, Document Management and Control, ISO Readiness, Continuous Improvement, Knowledge Management and Cross Pollination.
The Ninja Report focuses on helping organisation's increase productivity and customer liaison and decrease costs and overall risks, through the management and utilisation of everyday organisational documentation and information flow in order to achieve Operational Excellence.
Find The Ninja Report at www.theninjareport.com
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