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Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

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Page 1: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Operational Excellence Governance

Atlanta Operational Excellence Leadership Forum

September 2014

Larry Oglesby

Page 2: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 2

Larry has over 25 years of Operational Excellence experience with a balance of industry and consulting experience

Introduction

Page 3: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 3

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

Page 4: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 4

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.”

Page 5: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 5

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.”

Page 6: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 6

The Faces of OpEx Governance

Page 7: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 7

The Faces of OpEx Governance

Page 8: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 8

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”

Page 9: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 9

The Faces of OpEx Governance

Page 10: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 10

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.”

Page 11: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 11

The Faces of OpEx Governance

Page 12: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 12

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?”

Page 13: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 13

The Faces of OpEx Governance

Page 14: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 14

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.”

Page 15: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 15

The Faces of OpEx Governance

Page 16: Operational Excellence Governance Atlanta Operational Excellence Leadership Forum September 2014 Larry Oglesby

Copyright © 2014 Accenture. All rights reserved. Accenture Confidential Information. 16

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.“