operational excellence governance atlanta operational excellence leadership forum september 2014...
TRANSCRIPT
Operational Excellence Governance
Atlanta Operational Excellence Leadership Forum
September 2014
Larry Oglesby
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Larry has over 25 years of Operational Excellence experience with a balance of industry and consulting experience
Introduction
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Why Accenture?
The book captures our lessons learned and deployment best practices from (100+) engagements spanning 10 years – extracting the greatest impact from Operational Excellence programs
Provides contemporary, flexible approaches to create client capability in the shortest possible time
First book on LSS that presents a practical and rapid approach to substantive cost reduction – departmental performance improvement to enterprise transformation
A “how-to guide” for management, providing insights on how holistic LSS drives effective execution
How to take your program to the highest level of impact and how to rescue a program that has failed to deliver to its full potential
Accenture’s book, Doing More with Less, provides key insights into architecting your journey toward Operational Excellence – regardless of current performance level
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Dictionary.com defines governance as:
-- government, exercise of authority, control
-- a method or system of government or management
Governance
DEFINITIONS SYNONYMS
“Administration is, or ought to be, a necessary overhead to aid production, and should at all times be kept as low as possible.”
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0
5
10
15
20
25
30
35
40
45
Manufacturing (value added) output, % of World
United States
Japan
IndiaBrazil
European Union (27)
China
Changing Labor Costs
2006-2007 2007-2008 2008-2009 2009-20100
20
40
60
80
54 58 63
80Fortune Global 500 Changes
Manufacturing Global Output
-40.0 -20.0 0.0 20.0 40.0 60.0 80.0
United States
Japan
Mexico
United Kingdom
Germany
South Korea
France
Thailand
India
Italy
Indonesia
Brazil
China
Change in relative unit labor costs2001 to 2011
*% change from 2001 to 2011
The Speed of Change
“Everything new endangers something old. A new machine replaces human hands; a new source of power threatens old businesses; a new trade route wipes out the supremacy of old ports and brings prosperity to new ones. This is the price that must be paid for progress and it is worth it.”
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The Faces of OpEx Governance
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The Faces of OpEx Governance
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STRATEGY EXECUTION
High Performance
Strong strategy and execution are both required to achieve and sustain high performance
“Nothing so sharpens the thought process as writing down one's arguments. Weaknesses overlooked in oral discussion become painfully obvious on the
written page”
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The Faces of OpEx Governance
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Structure
Criteria Decentralized Representative Centralized
Business unit autonomy
Alignment with organization structure
Ease of deployment across business
Scalability across business
Enablement of best-practice sharing
DisadvantageAdvantage Neutral
There have been strong OpEx programs that have chosen each of these Operating Models
“Responsibility is a unique concept... You may share it with others, but your portion is not diminished. You may delegate it, but it is still with you... If responsibility is rightfully yours, no evasion, or ignorance or passing the blame can shift the burden to someone else. Unless you can point your finger at the man who is responsible when something goes wrong, then you have never had anyone really responsible.”
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The Faces of OpEx Governance
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Talent ManagementAnalytics gives us new capabilities to accurately assess and assist Talent
“They all have excellent resumes... So what I’m trying to find out is how they will behave under pressure. Will they lie, or bluff, or panic, or wilt? Or will they continue to function with some modicum of competence and integrity?”
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The Faces of OpEx Governance
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Time and lost opportunities are seldom measured
Dashboards
“The man in charge must concern himself with details. If he does not consider them important, neither will his subordinates. Yet “the devil is in the details.” It is hard and monotonous to pay attention to seemingly minor matters. In my work, I probably spend about ninety-nine percent of my time on what others may call petty details.”
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The Faces of OpEx Governance
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Leadership
“But the greatness of the American military service, and particularly the greatness of the Navy, is symbolized in this ceremony today, because this man, who is controversial, this man, who comes up with unorthodox ideas, did not become submerged by the bureaucracy, because once genius is submerged by bureaucracy, a nation is doomed to mediocrity.” - President Richard Nixon
“There were a few times I hated him because he demanded more from me than I thought I could deliver” - President Jimmy Carter
Great leaders inspire people, often unconventionally
"Good ideas are not adopted automatically. They must be driven into practice with courageous impatience. Once implemented they can be easily overturned or subverted through apathy or lack of follow-up, so a continuous effort is required.“