A Better Workplace --- Meridian Group's Newsletter, Number 24, 10-15-03

The Missing Element in Operational Excellence

All Operational Excellence programs analyze products and processes. Some rethink the company's structure. A few examine the human side, carefully building deeply committed and involved people, at all levels. Only these few can achieve total customer satisfaction.

This week a friend described to me the difficulties his company is having with Operational Excellence—managers were not on board. Several weeks before, another manager told me that after four years his company's high-profile Six Sigma program had achieved little. In both cases leaders had unknowingly planted these programs in unreceptive soil.

The Goal of Operations Excellence

Under pressure from today's marketplace, many companies in all business areas, particularly in manufacturing and supply, are pursuing Operational Excellence, a performance improvement process that ensures the right technology, processes and people are in place to serve customers effectively. Operational Excellence seeks such long-term benefits as:

• Improved customer satisfaction with shorter cycle times, more reliable products, faster response, and better on-time delivery.
  
• Increased capacity and operating leverage, which minimizes capital needs, providing additional dollars for reinvestment, expansion, and earnings.

Success = Analysis + People

Operational Excellence programs use Kaizen and Six Sigma type methods to improve Product quality and Process management. Some go further and examine the organizations Structure of power, authority, control, and responsibility—a notoriously difficult-to-discuss area.

When companies step beyond Product, Process and Structure—adding People—they tap a vast and powerful force, the creativity, motivation and commitment of employees and managers at all levels. This is usually the missing key to success.

Getting People On Board—The Open Workplace

Well-intentioned improvement efforts often fail because employees do not feel safe to speak up—they withhold information, creativity and commitment. As one manager told me, "You can't have a safe plant if you don't have safe meetings." It takes a skillful leadership team to create a company culture with high levels of trust, morale, motivation, and pride—essential elements for analyzing problems and making major improvements.

First line employees aren't the only group that might not buy into Operational Excellence. Managers must also be on-board. When interdepartmental relationships are not open and cooperative, the best plans will get a voice "Yes", but not "walk-the-talk" follow-through from executives. When top leaders show ambivalence, those below understandably follow suit. Then results are mediocre.

Customer Satisfaction Requires Employee Satisfaction

Satisfied customers—one goal of Operational Excellence—is almost impossible to achieve without satisfied employees. This takes strong, confident leaders who can openly discuss relationships, communications and attitudes with teams at all company levels, and then put in place the needed changes. When leaders do this—identifying and satisfying the business related needs of employees and managers—Operational Excellence programs shift rapidly into high gear. Then everybody wins.

The Many Faces of Operations Excellence

Operations Excellence and continuous improvement efforts have many faces:

• Kaizen, Six Sigma, Quality Control.
• Reliability and risk management in maintenance.
• Process management in manufacturing and in cross-functional transactions.
• Reducing the gap between what customers expect and the company delivers.
• Product quality.
• Supply chain management.
• Cost control.
• Waste reduction.
• Outsourcing items and functions to lower cost and increase quality.
• Leadership training to manage a culture of Operational Excellence.

Whichever programs you use, they'll work best when you hold as inseparable, analytic excellence and human engagement. This takes a mature, open work culture—which is what these newsletters are all about.


CompanyCulture.com is now Online

After six months preparation, Meridian Group's new venture, CompanyCulture.com is online as a free online resource center, providing the tools for your Company to move on—creating a more satisfying and productive work culture.

You can participate in the project in several ways:

1. Read and use the articles.
2. Join the discussion group.
3. Pass the web site address to your friends and associates.
4. Give us your suggestions.
5. Write an article for the site.