OPERATIONAL EXCELLENCE
Operational Excellence is a term that embodies many things that organizations seek to achieve, such as consistent strategy execution, profitable growth and sustainable cost reduction. While there are many definitions of the term, most would agree that it entails focusing on customers, cross functional execution and consistent delivery of outcomes that create value for customers and shareholders.
As complexity increases, few manufacturers realize the full value from operational excellence. One of the primary reasons for this is that they use immature planning and performance management (P&PM) processes that are not aligned with operational excellence objectives. We help organizations resolve this problem by establishing integrated P&PM processes that provide the means to:
-
-
- Provide planned and actual process and activity costs that are always reconciled to financials
- Plan and manage productivity, outcomes and related tradeoffs
- Establish rewards that are based on these measures
- Establish effective accountability for the above
-
Integrated planning and performance management processes also support profitable growth and sustainable cost reduction, two closely related business objectives. Details about the solution that supports the above can be found here. Further information about operational excellence perspectives is provided below.
