From OpEx early days as Six Sigma and Lean –
the methodologies, tools and techniques were leveraged as a continuous improvement mindset with Cost Savings as King although it has evolved over the years at mature organizations to include waste elimination, improved process flow & efficiencies, enhanced capacity, and a quality/compliance driver.
More recently, organizations have a new mantra – Business Transformation. The very nature of global competition and customer expectations is forcing a shift to Customer Excellence while at the same time minimizing costs and driving efficiencies through traditional OpEx approaches. What has been driving Business Transformation? The Boston Consulting Group has had several in-depth analyses with consistent findings 1:
OpEx and Business Transformation – Engaging Cultural, Strategic, and Behavioral Challenges
The top four reasons that transformations fail 2:
Clearly, the ability to meet business challenges demands that companies and leaders inspire and align their organizations, create a sense of urgency and speed while balancing innovation and continuous improvement and always keeping an eye on Quality from a customer view while meeting the company vision milestones/objectives. This is evident in the dramatic shift in Top Investment Areas for 2016 by businesses 3:
An integrated view for OpEx Deployment WITH Business Transformation was presented as a “Next Level” evolution of Operational Excellence:
Key elements of this “Next Level Evolution” model:
Ideal Business Results are delivered by bringing together these combined Business Transformation and Operational Excellence elements into the deployment model called Enterprise Excellence.
Here's a final Case Study example of how KPIs and KBIs drive sustainable business results and how these can be used to change the culture in an organization are presented:
Boston Consulting Group, internal survey October 2015 of 80 respondents and 169 companies.
“Transformation – Delivering and Sustaining Breakthrough Performance” edited by Lars Faeste and Jim Hemerling, @The Boston Consulting Group, Inc. 2016.
Source: Economist Intelligence Unit, January 2011 global survey of 288 executives, more that 75% in organizations with annual income exceeding $1 Billion.
PeX (Process Excellence) Network Special Report - Aligning Strategy with OpEx to drive Sustainable Enterprise-wide Transformation, 4th Biannual State of Industry Report, 2015-2016. In association with Appian, Bizagi, & IPM-Integrated Project Management companies.
Hoshin Kanri Planning articles are quite numerous in the literature. A good introductory slide show presentation can be found at: https://www.slideshare.net/Lightconsulting/hoshin-planning-presentation-7336617
Toyota Way Of Leadership - for a comprehensive overview, see the book: “The Toyota Way to Lean Leadership: Achieving and Sustaining Excellence Through Leadership Development by Jeffrey K. Liker and Gary L. Convis “.
30 Years of benchmark studies and evolution in the Shingo Model for Best-In-Class Performance has identified how to integrate the concepts of KPIs and KBIs to deliver business strategy and results. http://www.shingoprize.org/model