Operational Excellence Reviews Pay for Themselves

OER logoIf you’ve found yourself asking, “why do we do that?” and no one seems to have an answer, your organization may benefit from an Operational Excellence Review.

An Operational Effectiveness Review (OER) is an intensive audit of processes, systems, and structures that aims to reduce waste, increase productivity, and positively impact the efficiency and effectiveness in an organization. OER’s can be done within a specific function, at the business unit level, or for the entire company.

Through a combination of job shadowing, data analysis, interviews, and focus groups, an OER uncovers roadblocks to performance and unleashes creativity and innovative solutions that don’t get attention during the routine of everyday work. Using lean six sigma methodologies, proven job design models, and systems thinking, an OER pays off big by freeing employees to do their jobs the best possible way.

An OER is an investment in your organization that has a high rate of return. Invariably, an operational audit leads to work simplification through elimination of non-value-adding tasks and activities. Additionally, an OER gives focus to process improvements by the people who perform the work, leading to sustained efficiencies over time.

OER’s done within human resource, training, and OD functions guarantee that business partners are getting what they need without a lot of fluff. The OER process forces functional areas to look in the mirror and ask, “are we doing our best?” Legacy programs, non-value add processes, and misaligned objectives are evaluated and replaced, tweaked, or enhanced through an OER, allowing for lean operation and better alignment with the organization’s strategy.

Because of the savings from streamlined processes, OERs pay for themselves and are a morale boost to your staff as they participate in making sense of the work they do.

Cornerstone Global Training & Performance Solutions provides experience and expertise to conduct an OER at the department, division or enterprise level. Find out more by email us at info@cornerstoneglobaltps.com.

Process Excellence Essential to Success

You can have great products and great people in your organization, but without great processes, you may be missing opportunities and squandering resources. Process excellence doesn’t just happen, though, it requires intentional focus on evaluating and building processes throughout the organization; across the supply chain.

How we get things done in our organizations warrants the same level of attention as developing and marketing products and services. We wish that developing methods and procedures was a “one and done” endeavor, but nothing could be further from the truth.

I’ve been working on an operational audit for a global financial services company that has been around for four decades. The pace is fast, change is constant, and competition is fierce.  In this environment, procedures and processes must be agile—there must be a constant review of how things are done, why they’re done, and who is doing them.

An Operational Effectiveness Review, whether conducted by internal or external resources, should be a regularly scheduled event in every organization. Trained experts in process improvement and organizational effectiveness can provide insight into the best way to perform a task, technology that can provide automation (and reduce human error), and organizational design that will ensure information and work flow smoothly up and down the supply chain.

The outcomes of an OER will vary depending on several factors, such as how well processes are currently documented; how many tasks are performed within each function, and what technologies are currently in use. There are, however, some outcomes that are common no matter the size or scope of the effort in your organization:

  1. A short list of process improvements that can be implemented quickly and easily (low hanging fruit).
  2. Significant cost-saving (or revenue-generating) improvements that may take longer to implement or require a budgetary commitment.
  3. Long-term solutions, such as implementing new technology to streamline a process, or adding a position to eliminate a bottle-neck to a process.

One of the greatest aspects of an Operational Effectiveness Review is that subject matter experts—those employees who do the job day-in and day-out—already have ideas for improvements. The OER resources help build on those ideas and provide the expertise to implement them well.

Process excellence leads to better efficiency and effectiveness, key ingredients to overall organizational success. And an OER ensures excellent processes and addresses the need to evolve the way things are done within your company as internal and external circumstances change and new technologies are made available.