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Operational Excellence[1]

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Don Harmon
Don Harmon
NegóciosTecnologia
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OBJECTIVES ,[object Object],[object Object],[object Object],[object Object],[object Object],No company can succeed today by trying to be all things to all people Companies thrive because they shine in a way their customers care about They have honed at least one component of value to a level of excellence that puts competitors to shame
Why is it that some companies endear themselves to us while others don’t seem to please? Why is it that it takes only a few minutes for pick up or drop off a rental car at Hertz’s #1 Club Gold, but twice that time and an annoying address form to check into a Hilton Hotel? Why is it that FedEx can ‘absolutely positively” deliver a package overnight, but Delta, American and United Airlines have trouble keeping your bags on the plane?
To Be A Leader… Companies must sell something more than the obvious. This something is customer value. Not just ordinary value…superior value. And, not just superior value… but continually improving superior value.
Customer value is the sum of benefits received minus the cost incurred by the customer from the product and the service that we provide. ,[object Object],[object Object],[object Object],Customers want superior value .
Components of Value ,[object Object],[object Object],[object Object],[object Object]
Customers’ Expectation of Value ,[object Object],[object Object],[object Object],[object Object]
The New World of Competition ,[object Object],[object Object],[object Object],[object Object],Four New Premises Underlie Successful Business Practice Today:
[object Object],Sony outperforms its competitors by almost every financial measure. Its average annual revenue growth over the past 5 years was 29%, compared to 14% for rivals. These companies aren’t doing just a little better than the competition … they are leaving their competitors in the dust! Home Depot has averaged 37% annual sales growth over the past 5 years, almost triple the average for the industry.
Market Leaders ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Three Value Propositions:
Not providing lunch? Not providing baggage handling? Not providing advance check in?
SOUTHWEST AIRLINES ,[object Object],[object Object],[object Object],Hint: Other airlines are building zero loyalty (other than frequent flyer miles).
[object Object],[object Object],[object Object],MAJOR IMPROVEMENT CHALLENGES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],IMPROVEMENT LEVERS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],CORE PROCESSES ,[object Object],[object Object],[object Object],GOLDEN RULE ,[object Object],[object Object],[object Object],VALUE PROPOSITION CUSTOMER INTIMACY PRODUCT LEADERSHIP OPERATIONAL EXCELLENCE
Threshold vs. Leadership in Customer Value Product Leadership “ best product” Operational Excellence “ best total cost” Customer Intimacy “ best total solution” Product Differentiation Operational Competence Customer Responsive
Can you name other icons of Operational Excellence and describe their formulas? Question -
Why Choose? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Class Excercise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Corporate Strategy to Focus on Operational Excellence ,[object Object],[object Object],[object Object],[object Object],[object Object]
STANDARDIZING OUR PROCESSES ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Company’s Goal: Operational Excellence = Lowest Cost Provider
GAIN COMPETITIVE EDGE MARKET SHARE ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
COST REDUCTION THROUGH: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CREATIVITY, QUALITY PROCESS FOCUS, TEAMWORK & COMMITMENT ARE KEY TO OUR SUCCESS
To Deliver Superior Basis Service: ,[object Object],[object Object],[object Object],[object Object]
Operational Excellence Model’s Key Features 1. Processes for end-to-end product supply and basic service that are optimized and streamlined to minimize costs and hassle. 2. Operations are standardized, simplified, tightly controlled and centrally planned. 3. Management systems that focus on integrated, reliable, high-speed transactions and compliance to norms. 4. A culture that abhors waste and rewards efficiency.
The Discipline of Product Leadership ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
To Climb the Pinnacle of Operational Excellence: ,[object Object],[object Object],[object Object],[object Object]
Other Elements of Operational Excellence ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Class exercise: ,[object Object]
Formula! Formula! Formula!! – From Operational Competence to Operational Excellence, we must make hard choices. ,[object Object],[object Object],[object Object]
What Does This Mean? ,[object Object],[object Object],[object Object],[object Object],[object Object]
U.S. RESULT OF TRANSITION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
CREDCO 2004 GOALS ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
STRATEGY ,[object Object],[object Object]
OPERATIONAL EXCELLENCE ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SUMMARY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Operational Excellence

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Operational Excellence[1]

  • 1.  
  • 2.
  • 3. Why is it that some companies endear themselves to us while others don’t seem to please? Why is it that it takes only a few minutes for pick up or drop off a rental car at Hertz’s #1 Club Gold, but twice that time and an annoying address form to check into a Hilton Hotel? Why is it that FedEx can ‘absolutely positively” deliver a package overnight, but Delta, American and United Airlines have trouble keeping your bags on the plane?
  • 4. To Be A Leader… Companies must sell something more than the obvious. This something is customer value. Not just ordinary value…superior value. And, not just superior value… but continually improving superior value.
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  • 11. Not providing lunch? Not providing baggage handling? Not providing advance check in?
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  • 14. Threshold vs. Leadership in Customer Value Product Leadership “ best product” Operational Excellence “ best total cost” Customer Intimacy “ best total solution” Product Differentiation Operational Competence Customer Responsive
  • 15. Can you name other icons of Operational Excellence and describe their formulas? Question -
  • 16.
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  • 18.
  • 19.
  • 20.
  • 21.
  • 22. CREATIVITY, QUALITY PROCESS FOCUS, TEAMWORK & COMMITMENT ARE KEY TO OUR SUCCESS
  • 23.
  • 24. Operational Excellence Model’s Key Features 1. Processes for end-to-end product supply and basic service that are optimized and streamlined to minimize costs and hassle. 2. Operations are standardized, simplified, tightly controlled and centrally planned. 3. Management systems that focus on integrated, reliable, high-speed transactions and compliance to norms. 4. A culture that abhors waste and rewards efficiency.
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Notas do Editor

  1. Companies can no longer raise prices in lockstep with higher costs; they have to try to lower costs to accommodate rising customer expectations. Companies can no longer aim for less than hassle-free service. Their customers enjoy effortless, flawless, and instantaneous performance from one industry and want it from every other. Companies can no longer assume that good basic service is enough; customers demand premium service—and raise their standards continuously. Companies can no longer compromise on quality and product capabilities. They must build products to deliver nothing less than superiority and eye-popping innovation.