What is Operational Excellence?

Executing a business strategy more effectively and consistently than the competition is called Operational Excellence. Ideally, every employee can see the flow of value to the customer and fix it when the flow is interrupted.

We are often asked if continuous improvement and operational excellence are the same. They are not, but they are closely related. Continuous improvement involves constantly improving your business operations to reduce waste, cut costs, improve quality, and maximize human potential. It focuses on making each existing process perfect. Operational excellence goes further. It involves setting the organization up for growth by understanding what the market wants and creating an uninterrupted value stream that continuously feeds the need.

One of the most critical responsibilities of leadership teams in organizations of all types and sizes is to set the strategic direction and develop an executable plan to achieve the most important key performance indicators. Unfortunately, until recently, the data used to drive strategy execution was limited to lagging indicators like financial performance and customer satisfaction ratings. 

Today, a new option that allows management with leading indicators of success is available. Rather than a rearview mirror, strategy execution software provides management teams with a dashboard to help them drive toward the results they need to achieve.

Hoshin Kanri, sometimes called "strategy deployment", is an approach that helps companies achieve breakthrough goals over a three to five-year time horizon.

The methodology is effective because it allows leaders to keep their eye on the long-term objectives that will change the game, without losing sight of the day-to-day improvements that can add up to significant benefits.

However, we won’t lie. Effective strategy deployment isn’t easy.

Too often, the strategic plan gets lip service but little else. If you are looking for help making sure that your organization arrives at “True North,” an X-Matrix might help.

I don't think I'm going out on a limb when I say that I believe we are all glad to have 2020 in the rearview mirror. While life isn't going back to normal any time soon, there is hope on the horizon. The COIVD-19 vaccine rollout is on the way, and our healthcare professionals have made great strides in treatment for the disease. 

Last year at about this time, we laid out some suggested continuous improvement resolutions for 2020. If the pandemic thwarted your plans and best intentions, give yourself a pass. No one knew what unprecedented challenges would arise.

But this is an excellent time to begin again. Even knowing that COVID-related disruptions will continue, it is still a healthy exercise to think about what your team can accomplish for continuous improvement in 2021. You'll have to consider your unique priorities, but we do have some suggestions for goals that will help your organization achieve excellence in the coming year.

It may seem early to start thinking about the strategic plan for 2020, but the kids are back in school, and pumpkin spice is on the shelves, so it is time to start at least planning for the plan. Our clients who have achieved their most lofty goals have done so by laying a strong foundation upon which the strategy and related tactics can be built. Here are some of the things they've found that work.

I recently read that it takes the average person about eight minutes to read 1000 words.

You’re smarter than average, and this post isn’t quite that long, so you can read it and get the essential information you need about strategy deployment software in probably less than seven minutes. That’s terrific because there are so many technologies available to help you achieve better business results that no one has the time to read lengthy explanations about all of them.

If you’ve got just a few minutes to spare today, learning more about strategy deployment software will be worth your time.

Hoshin Kanri is a strategic planning approach that is often used to improve organizations. Although it is not as commonly used as some other Lean techniques, it is an extremely useful way to ensure that the entire organization is working towards the same ends and moving in the same direction. An organization does not need to be practicing Lean to benefit from Hoshin Kanri, any organization that has embraced the ideas that continuous improvement is essential and that employees should be empowered to create positive change can benefit from the approach.

We get a lot of questions from leaders about which continuous improvement tools and techniques they should use. Is DMAIC better than PDSA? Should I do Gemba walks or daily huddles? When do I use incremental improvement vs. a Kaizen event? These are all reasonable questions, but the great news is that most continuous improvement tools, including those popular with organizations that use the Lean or Six Sigma methodology, work very well together. In fact, in many cases, they were developed jointly.

Strategy deployment is arguably the most crucial responsibility of business executives. Setting the direction for the organization and making the day-to-day decisions that drive the organization closer to “True North,” is what leadership is all about. But it’s not easy. There are a lot of other concerns that compete for resource and attention. It is easy to lose sight of long-term goals in the face of day-to-day events.

Hoshin Kanri is a popular remedy for the challenge. It is a method for bridging the gap between strategy and execution. By laying out the strategic objectives of the organization and cascading goals down through every level, the organization has aligned priorities, and everyone moves in the same direction. Everyday process improvement is coordinated with the strategy and decision making improves.

A favorite way to visualize Hoshin Kanri is an X-matrix. Since we added the ability to manage X-matrices in KaiNexus, we’ve received many questions about the technique. Here are the answers.

Strategy deployment, often known in Lean circles as Hoshin Kanri or Policy Deployment, is a technique for ensuring that the strategic goals and objectives are the drivers of every activity throughout the organization. Strategy deployment software supports this effort by serving as the management platform for projects related to the goals. This post covers the benefits and capabilities of the best strategy deployment solutions.