The Power of a Business System

When implementing a business system based on Performance Excellence, there are at least eight major changes that we want the organization to see quickly.

Value-Stream Based—Instead of assigning resources to projects based on financial priority, which means they can be spread all over, we assign resources to a specific site or value stream to work a series of projects. This creates focus, achieving significant transformation in that value stream and allowing the local leadership team to become comfortable using new tools to solve problems. With this approach, we build up islands of excellence much faster.

Such a value stream approach also allows for a more systematic project selection process.

Project Selection—Such a value stream approach also allows for a more systematic project selection process. We don’t want to be haphazardly selecting projects but rather working on initiatives designed to drive toward the achievement of the strategic goals and objectives of the business.

Move to Local—Nearly all improvement teams and kaizen events should be conducted at the local site. No more conference room kaizens! This gets more point-of-action team members involved and experiencing the process first-hand.

Pinpoint Focus—Improvement opportunities such as kaizen events should be scoped with a small enough focus to allow for actual process improvements to be made DURING the run week. Thirty-, 60- and 90-day plans are good for creating a long-term view, but we want to see immediate results both to the bottom line and in the lives of the employees doing the job.

Drum Beat of Success—Process improvements should take place in the same value stream on a consistent monthly basis until we have affected the required amount of improvement and have trained the local team. The “drum beat” of success is of vital importance both from a cultural standpoint and a sustainment point of view.

Replication—By installing a replication process, organizations can take an improvement implemented in one location and duplicate that to all of the other affected locations. This allows the whole organization to see results much faster.

Deployment Dashboard—A deployment dashboard summarizes all results to date and informs the leadership team of expected progress. This dashboard should be communicated on a regular basis. Results have to be measured and shared to sustain success.

Processes—organization operations
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