Al Mostacciuolo
By
December 13, 2018

Primary Measures of Success of OPEX Program

Al Mustacciuolo has written an article on his interpretation of the Global State of Operational Excellence Survey Report - Critical Challenges & Future Trends - 2018/2019.  Click here to download the full Survey Report 2018/19.  

 

The Most Comprehensive Study of Critical Challenges and Future Trends within Operational Excellence

With nearly 1000 respondents, 37 insightful questions, detailed analysis & insights from 40 industry thought leaders, and the BTOES Insights executive team, this 130 page report is recognised as the most comprehensive study of critical challenges and future trends within Operational Excellence, and is considered a key resource for the industry. Areas covered include:

  • The Critical Operational Excellence Challenges faced by executives.

  • The Current Scope of Operational Excellence.

  • How is Operational Excellence success measured?

  • Key Findings & Roadblocks.

  • What are executives focusing on over the next 12-18 months?

  • What have been the greatest developments?

  • What are the key drivers pushing change in Operational Excellence?

  • Industry Perspectives.

  • Small, Medium & Large Corporation Perspectives.

  • Detail Analysis & Insights from BTOES Insights Executive Team.

  • Detailed Analysis & Insights from 40 Industry Thought Leaders.

  • Analysis of key themes, including Cultural Transformation, Customer Delight, Sustaining an Operational Excellence program, Need for end-to-end Business Transformation, Keeping up with new technologies/impact of digitalization and Leadership Buy-in & Understanding.

 

Research report front cover

 

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Primary Measures of Success of OPEX Program

In the BTOES survey, the top three measures of success were: Customer Delight, Process Improvements and Cost reductions.  It will be useful to review these three measures to see how well they translate to organizational success. An organization would not engage in OPEX unless there was a clear path and a significant benefit to the journey. Click here to read the full Survey Report 2018/19.    

Primary measure of success:Research Report: Primary measures of success of OPEX program

 

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Cost reductions and process improvements

Cost reductions can include reducing cost for purchased materials, facilities, purchased or leased services.  There is always a cost to making a change, whether it is in terms of reduced efficiency during startup, effect on quality of products, etc.  As an OPEX team member, understanding the end effect of the cost reduction on the enterprise will be an important measure of effectiveness.

Process improvements can include operational efficiencies, leaning out production and office processes, employing digital enabling technologies.  An OPEX team should not only be able to identify the improvements that can be gained through efficiency efforts but also how those efficiencies will affect both internal and external customers.

 

Research Report: Primary measures of success of OPEX program

Both cost reductions and process improvements can be objectively measured.  To be sure, there are customer satisfaction elements that go along with these improvements, but many of the benefits are more objective than subjective.

Providing solutions in a cost effective and efficient manner will go a long way to meeting customer demands; and yet, the survey respondents clearly identified that customer demands are changing.  Customers want to be delighted with the products and services they receive, both B2B and B2C. Delight then becomes the measure of how effective our cost reduction and process improvement activities have been.

 

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The question then becomes, how do we measure customer delight.

Delight is measured one interaction at a time.  Many organizations use surveys to gage customer delight.  We often see questions like “How satisfied were you with…“ and “On a scale of 1 to 10 how likely are you to recommend…“ as part of post contact surveys.  Data from these types of instruments can be useful - they capture customers feelings at a point of time and over many interactions – and can provide a point of view as to the performance of the organization over time.  These measures tend to be lagging indicators that measure the effect of existing behavior leaving it up to other instruments to identify the specifics of non-delight.

Unfortunately, customers are not always delighted. They may be happy with your product or service overall but retain some doubts about how effective it is for them.  As highlighted in the survey, “churn” is a significant issue with many companies because the products they provide are like other offerings in the marketplace. Taking a more proactive approach to understanding how to retain customers (reduce churn) can yield improved outcomes.

Customers want to be successful, that is their bottom line.  If the product or service your business is providing helps them achieve that success best, you have a long-term customer that will help your business be successful.  

 

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How can we measure customer success?

We need a plan to achieve our goal of customer success.  A customer success plan helps develop expectations for both the customer and the business.  We can start by clearly identifying customer expectations. It is important to include both customer expectations and business expectations so that the path to success is clear and balanced for everyone.  Next, we need to know how we will meet those expectations – that requires mapping our processes. Having an existing mapped process ensures we are driving to a common solution and reducing variation (think Lean).  Developing realistic metrics and goals for each critical expectation and process is critical. An effective metric may not be easy to identify but is critical to know how we are doing against the expectation. Measuring hours of training on a process (input) may be useful, measuring how effectively employees are using processes (output) is essential.  Assigning an owner for each goal (responsible person) helps to assure the progress toward the goal is monitored to drive achievement. These people will be “Accountable” for their goal. Lastly, for each goal must have a schedule that is agreed to by everyone to drive to success.

One leading indicator that should be established is a customer health score – measuring how customers are using the product or service and how well the business is adopting the new processes.  Proactively reaching out to users of products to see what is required, anticipating issues that can then be addressed and resolved before they become non-delighters will drive customer success.

Customer success, like all Operational Excellence initiatives, requires a top down company wide commitment, a culture change.  When each department in an organization takes a Customer Success focus, significant synergy can be generated to assure everyone in the business is identifying who are their customers and how best to assure they are successful.  We will enable our success when we focus on helping our customers be successful. This can lead to a “Business transformation in order to keep up with changing customer (internal and external) demands.”

Want to learn more? Download the full Report.
Primary measures of success of OPEX program

pillar%20page%20line%201About the Author

Al Mostacciuolo: Primary measures of success of OPEX programAl Mustacciuolo 

Independent Process Excellence Manager, 
X/Celerant Consulting

Al has been working with leaders in many industries to identify and address operational issues to achieve strategic business objectives. Key areas of focus are to ensure people and organizations identify and address issues that impede continuous improvement and sustainable change. Check out his LinkedIn page.

His focus is Lean / Six Sigma
• Develop and deploy analysis methods that enable teams to understand current performance so that opportunitys are identified
• Lead / coach teams to create improvements to address those opportunitys
• Install systems that maintain the improvements as well as identify new opportunities as they arise.

Focus areas:
Performance Management
Organizational Effectiveness
Process Re-engineereing
Productivity & Efficiency improvement
Lean / Six Sigma

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BTOES.com

The issues in this article are just one of topic areas that are going to be discussed at the Business Transformation & Operational Excellence World Summit & Industry (BTOES19). March 18-22, 2019, Loews Portofino Bay Hotel at Universal Orlando Resort®

BTOES is the industry’s biggest and best, senior-level, cross-industry gathering of Business Transformation & Operational Excellence industry leaders and senior executives.

It also hosts the Business Transformation & Operational Excellence Awards, which showcase globally the most outstanding organizational achievements through the application of Operational Excellence programs.

The summits hosts a number of private forums for C-Level & Global corporate-level leaders as well as business unit heads.

With over 150 speakers, over 100 sessions, 12 Keynotes, 9 Track Themes, 5 parallel tracks, 60+ track sessions, 50 roundtable discussions, 20 Interactive Workshops, 6 Thought Leader Panels, 5 Leaders Boardrooms, 5 co-located events, the Industry Awards Program, Site Visits, 20+ hours of social networking including 2 gala cocktail parties, dinners, numerous group activities, this is the ultimate event to benchmark, network and drive Operational Excellence to the next level.

 

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BTOES19 Awards

 

There is a strong focus on Cultural Transformation, Customer Delight, Sustaining an Operational Excellence program, Need for end-to-end Business Transformation, Keeping up with new technologies/impact of digitalization and Leadership Buy-in & Understanding. We dedicated two tracks to advanced technologies, such as AI, Machine Learning, RPA, Predictive Analytics, Blockchain, Cloud infrastructure etc.

 

The agenda is designed to encourage active meaningful conversations though all day enhanced networking and interaction opportunities, including

  • All-day Refreshment & Themed Breaks

  • 1¼ Hour Hot Breakfast Networking Sessions

  • 1½ Hour Hot Plated Networking Lunches with Topic & Industry Sector focussed tables

  • 1½ Hour Roundtable Sessions by Topic & Industry Sector.

  • Keynote & Themes Panel Sessions

  • Hosted Welcome Receptions from 5.30pm

  • Expanded more lavish Awards Program

  • Newly launched Night Summit for attendees to meet after dinner

For more information or to discuss the summit in more detail please schedule a call below,

Click here to schedule a call. 


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