The world cup Brazil 2014, the winner is Germany. Joachim Löw explained that they applied a strategic development and implementation plan during the last 10 years to win the world cup. 10 years are not a short period. In business terms, they applied long-termism for growth, profitability, competitive advantage and highest customer value. They created organizational alignment. In other words they created operational excellence and organizational agility.
During the global downturn, many companies focused on to cut costs and increase the efficiency. They saved money and now they have to decide how they will spend this money in structural and executional changes, improvements in marketing and innovation strategy, and fueling new competitive growth.
A Turkish company was in 12th in ranking at 1987. This company is the market leader after 2001. Because leadership created operational excellence and organizational agility in an innovative way. The most important key factor in this superior success is related to its leadership experience, know-how and strong personal skills.
When we established jar baby food business, we have completed factory 6 months earlier and we developed organic fruit and vegetable supply in one year in Turkey. All were good examples of operational excellence and organizational agility.
In today's hypercompetitive business world companies should create operational excellence and organizational agility. They should have true leadership and skills, innovation strategy, excellent information technology and company knowledge to create a high-performance organization. On the other side organizational agility is becoming an important parameter to compete with local and global competitors.
What is Operational Excellence?
It is the design and the performance of the integrated systems and processes that create ongoing improvements and excellence in strategic, competitive, and operational value through speed, flexibility and cross-purpose adaptability and also focusing on the customer's needs and keeping the employees positive and empowered with the strategic purpose.
The key parameters of operational excellence are process performance, process outcomes and value generated through company knowledge, organizational structure, technologies, process execution and people in the organization.
An effective design and implementation of business architecture should be performed to create a high-performance organization that achieves operational excellence.
The leadership should perform greater speed, minimum human intervention and highest quality through its technology, information technology, human performance and knowledge. They have to minimize transaction costs and maximize created value to have operational excellence. Of course designing a lean management system and creating a well aligned organization will be very effective to create operational excellence.
The leadership can perform a benchmarking to see their performance in creating operational excellence. They can do these benchmarks through intra-company, intra-industry and cross-industry to see their real performance. Of course benchmarking has some benefits and limitations and company should consider all of these.
Therefore companies should design, develop and implement a business process that creates a strategic value, having low cost & flexibility & longevity, applicable to different areas, providing a flawless execution, and also having adaptable, sustainable, and meaningful performance targets . Of course continuous improvement and innovation should be performed to keep the operational excellence.
What is Organizational Agility?
Organizational agility is the essential enabler of the operational excellence or a high-performance organization in today's hypercompetitive business world to keep growth, profitability, transient competitive advantage and highest customer value.
It is the capacity of the organization to quickly and efficiently create, redeploy, reconstitute, reallocate the resources in a manner which optimizes their use in an environment or allows them to create new core processes and competencies to create a higher customer value before than competitors.
The ability to be agile is directly related to organization's human performance and the processes and technologies of the organization that have.
What should you do to create an operational excellence and organizational agility to create a systematic growth, profitability, transient competitive advantage and continuous competitive innovation?
1- Remove shoddy leadership and create an organization that fully focus on organizational alignment, good communication & collaboration, short and long-term marketing and innovation strategy and effective lean management faster than local and global competitors.
2- Align roles and responsibilities and work with the best performers, decision makers and problem solvers before than competitors. Develop the most highly-qualified, capable and flexible workforce within the organization.
3- Work with leaders/managers that have true experience, know-how and excellent skills (including high emotional intelligence).
4- Establish an innovation department. Work with the true achievers that have strong experience, knowledge and great skills in strategic management. Create new products, services, networks and go to the new markets before than others.
5- Make competitive intelligence. Take action faster than your local and global competitors.
6- Make a long-term sector analysis and risk management. Reconfigure your business accordingly.
7- Don't fall into average leadership trap that has a ratio of 82%. Otherwise you will fail in long-term term.
8- Understand your competitive essence. Why should customers prefer your products and/or services?
9- Formulate and implement your operational excellence strategy in regards its structural and executional elements . Ask the questions of "Why", "Who", "What", "How", "Where" and "When".
10- Create excellence in complexity management.
11- When you create company's long-term marketing and innovation strategy, you should focus on operational excellence, organizational agility, product/service leadership and customer loyalty through building a strong and effective brand management and winning sales strategy.
12- Alignment should be your operating, innovating and competing model towards achieving strategic management and operational excellence with together organizational agility.
13- Create a regulatory process that is strategic and efficient in regards the company purpose.
14- Everyone in the company from top to bottom should know the main objective of the business and take action accordingly on the exact time.
15- Be transparent and improve transparency.
16- Implement a performance based, collaborative and innovative culture within the organization.
17- Improve the executive decision speed/quality.
18- Initiate a continuous learning and development program to create a high-achieving organizational culture.
19- Communicate the company purpose/strategy to achieve understanding, commitment, and desired action.
I am confident that innovative manufacturing companies can enjoy a bright and competitive future through working with true leaders/managers and people who have excellent experience, know-how and good personal skills. So that they will not fall into the Valley of Death.
No comments:
Post a Comment