Obliterate Costs, Don't Just Manage Them.

As much as 80% of the costs incurred by service and knowledge worker organisations are non-value adding and can be eliminated .

Not only can they be eliminated but doing so improves the organisations service, quality, profitability, revenues, customer and employee satisfaction.

The reason for this is very simple, service and knowledge worker organisations in the main have failed to value and build a core competence in the Discipline of Operations Management which, when practised in its highest form, is referred to as Operational Excellence.

Operations is the engine of execution in an organisation and after many years of promoting a “winning strategy” as the holy grail of management, the business and academic world are now recognising that organisations who can execute extraordinarily well, will out-perform those who don’t, regardless of their strategy.

This is because true Operational Excellence executes in both directions, delivering products and services to customers and providing feedback on business performance. Immediate and reliable feedback allows an organisation with a weak strategy, product or service to adjust quickly to the external environment.

Many organisations, now recognising this deficit are looking at some of the advanced operational concepts such as Lean and Six Sigma. While this is to be welcomed, organisations with little existing formal operational training are struggling, finding that the gap between where they are and where these methodologies aspire to take them, daunting.

Unfortunately many consulting businesses whose main competence is in providing advice (strategy) fail to recognise the enormity of the gap and how clients are supposed to bridge it (execution).

A new breed of organisation has now evolved to provide organisations with the practical support necessary to build Operational Excellence as a core competence.

Known as Master Practitioners, these companies are owned and resourced by Operational Excellence practitioners with many years of training & experience in developing these competencies in all types of organisations.

Organisations who have worked with Master Practitioners in Operational Excellence have seen reductions in costs of 15%-35% in less than 9 months while seeing their customer service and staff satisfaction ratings soar.

Despite the apparent contradiction, staff morale and customer satisfaction are inversely correlated with excess cost. This is because many organisations, despite their best intentions , throw resources at problems rather than eliminate problems at source.

Managers who have not been trained in Operational Excellence have a tendency to break the organisation into small teams to better manage and control. Despite its apparent attraction, such decisions are at the root of creating the hidden high costs of complexity and coordination.

True Operational Excellence empowers staff and managers to realise their tremendous potential by eliminating the barriers to excellences which are usually, albeit unknowingly, self inflicted.