Operational Excellence

Operational Excellence has been traditionally linked to problem solving techniques such as lean management and six sigma. Today we know that operational excellence is more than just fixing a problem. Real operational excellence provides a sustainable advantage only when it is combined with innovation. At ShiftIN Partners we believe that toperational innovation is the place where process improvement techniques are combined with the latest innovative thinking to drive, not only productivity, but also business growth.

What are the benefits?

Breakthrough innovations–not just steady improvements–in operations can destroy competitors and shake up entire industries. Just look at Dell, Toyota, and Wal-Mart. However large organisations have a tendency to undervalue operations.

An operational innovation programme typically results in a new way to do things. Whether it be a new supply chain process that dramatically reduces time to order and working capital, or a different way to organise the products in your warehouse that releases additional warehousing space; operational innovation always has a business breakthrough.

How we do it?

Our approach is simple, understand your operation, identify the spots of great impact, and then find new ways to do more with less. Our 3-step methodology to drive Operational Innovation is the following:

  1. Assessment: at this stage we prepare the programme, understand the current performance and identify high level opportunities. Also during this stage, a detail data gathering process is conducted in order to baseline the current situation. We use outcome measures as the ultimate metrics of success. The innovation intent is clearly determined by the value gap defined between the desired stage and the existing performance.
  2. Breakthrough Design: here we engage with the client in a mind stretching exercise whereby we look at role models, not only from the industry, but many times from outside its industry. We envision innovative business models and design innovative concepts to implement.
  3. Implementation: during this phase the ideas are gradually implemented through a thoughtful process of change management. Business performance is closely monitored to capture the incremental impact over the status quo and the lessons are documented.

How can we help you?

ShiftIN Partners has no vested interest in any given methodology; we are guided only by our expertise in choosing the solution that best meets the client’s needs. Some of our most popular services around the Balanced Scorecard are:

  • Process mapping and operational innovation programme
  • Operational benchmarking
  • Ideation Workshop
  • Business Process Management Office
Contact Us for more info

Acquire the capabilities

To develop these key managerial skills and competences, ShiftIN Partners offers an array of education and training opportunities to help your organisation bolster its execution strengths, at all levels of the leadership pipeline, from senior-most managers to the strategy leaders of tomorrow.

Media / Videos / Links

Latest Thinking
In 1991, Progressive Insurance, an automobile insurer based in Ohio, USA, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry that grows with GDP. Did it diversify into new businesses? No, Progressive’s business was and is overwhelmingly concentrated in consumer auto insurance. Did it go global? Again, no. Progressive operates only in the United States.

Neither did it grow through acquisitions or clever marketing schemes. Nor did it grow at the expense of its margins, even when it set low prices. By contrast, Progressive’s combined ratio (expenses plus claims payouts, divided by premiums, where the verage of the industry is 102), fluctuates around 96 percent. The company’s growth has not only been dramatic, it has also been profitable.

The secret of Progressive’s success is maddeningly simple: It outoperated its competitors. By offering lower prices and better service than its rivals, it simply took their customers away. And what enabled Progressive to have better prices and service was operational innovation, the invention and deployment of new ways of doing work.

See the whole article here:

http://hbswk.hbs.edu/archive/4115.html