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- achiving operational excellence -

- The FIVE Pillars of Operational Excellence -

Good is no longer good enough. To survive in today's competitive environment, you need to excel. To excel, a company needs to focus on all parts of the organization, optimizing the use and effectiveness of all of its resources.  


We call these key elements the five pillars of organizational excellence. All five must be managed simultaneously. Top management's job is to keep all of them moving forward at the same time. To concentrate on one or two of them and let the others slide is a sure-fire formula for failure. 


 Organizational excellence is designed for permanent change by focusing on managing the five key pillars.


Pillar 1: Process Improvement

The process management concept certainly isn't new to management professionals; it's the basis of most improvement methodologies. 

  • An output requirement statement between process owners and customers
  • An input requirement statement between process owners and suppliers
  • A process that is capable of transforming the suppliers' input into output that meets the customers' performance and quality requirements
  • Feedback measurement systems between process and customers, and between process and suppliers
  • A measurement system within the process

Pillar 2: Project Management

 Let's look at why projects fail.

  • Failure to adhere to a committed schedule 
  • Poor resource utilization   
  • Poorly management  
  •   Loss of intellectual capital and/or knowledge capital  

Pillar 3: Change Management

Change is inevitable, and we must embrace it if we are going to be successful in our challenging world. The change management system is made up of three distinct elements:

  • Defining what will be changed
  • Defining how to change
  • Making change happen

Pillar 4: Knowledge Management

Today more than ever, knowledge is the key to organizational success.    

To make matters worse, most of the organization's knowledge is still not documented; it rests in the minds and experiences of the people doing the job. This knowledge disappears from the organization's knowledge base whenever an individual leaves an assignment.

Knowledge management is defined as a proactive, systematic process by which value is generated from intellectual or knowledge-based assets and disseminated to the stakeholders.     

  • Requirements definiton
  •  Infrastructure evaluation
  • Design and development
  • Pilot
  • Deployment
  • Continuous improvement

Pillar 5: Resource Management

Nothing can be accomplished without resources. Resources are at the heart of everything that we do. Too little and we fail, too much and there is waste--making our organization noncompetitive. Too many organizations limit their thinking about resources to people and money. These two are important, but they' re only a small part of the resources that an organization needs to manage. 


  

Summary
When we look at the five pillars that must be managed to achieve excellence, we see common threads that run across all of them:

  • Communication
  • Teamwork
  • Empowerment
  • Respect
  • Honesty
  • Leadership
  • Quality
  • Fairness
  • Technology



BMS can assist with your 

Operational Excellence process. 


Call us at today (405) 593-6085 

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