4 Perils Of Operational Excellence Strategies To Avoid While Boosting Strategic Sourcing

Posted in Operations Improvement on July 24, 2013

boosting-strategic-sourcing | Photo Courtesy of Depositphotos http://depositphotos.com/19037541/stock-illustration-Rocket-Space-Ship.html?sqc=1&sqm=19207&sq=1xnk25

Operational excellence strategies can be a huge performance boost to your organization, but there are several pitfalls that can cause a manufacturer to stumble.

A recent article on the IndustryWeek website says a general “lack of awareness” can cause “lackluster results” in your operations. Continuous improvement philosophies like strategic sourcing are vital for better results.

Here are four factors that can thwart your operational excellence strategies, and tips for how you can enhance them.

  1. Lazy leaders:Oftentimes, organizations try to put certain structures in place and then go on autopilot. Management needs to realize that they’re not empowering employees by simply ignoring them.Achieving operational excellence starts at the top. The head of the operation must understand and be mindful of the continuous oversight in governance that needs to be done on programs like this.

    It’s not just about empowering individuals in the organizations; it’s also about providing them a channel of communication up to the top to explain that aspects of a program aren’t working and need to be improved. Maintain involvement and work on team building.

  2. Undeveloped team:Just aligning the heads of any respective area is definitely not enough. From a change management standpoint, changes should be strong communication throughout the organization when putting new solutions in place.The article suggests teamwork and technical problem solving as other skills to develop. Institutional procurement practices like strategic sourcing are learned in these scenarios.
  3. Turning a cheek to your go-to guy:Just because an employee will consistently step up to the plate when you’re in a pinch doesn’t mean the rules don’t apply to him or her. There needs to be structure across the board and a level playing field. Everyone’s voice must be heard.The article suggests you deal with the “rogue rock star” by remembering “discipline is key for proper operational excellence.”
  4. Hiring someone who is not up to snuff: Don’t just pick someone with the highest intellectual aptitude. Operational excellence is a team effort. It’s not about going out and recruiting a top-tier performer in a specific area.

Continuous improvement must be part of the mantra of a company. Achieve world-class operations by picking an appropriate team leader, delegating and avoiding politics within the organization.

Source: IndustryWeek, June 2013

Post a Comment