In a manufacturing entity, operational performance is the result of what happens on the shop floor.
In a service entity, it is the result of functional group activity to provide an online or in house service to the customer. Both rely on processes. Both need to integrate the processes across functional areas. Both need to tie directly into tactical plans. And both need to visibly support the executive strategy and KPI’s. Monitoring is required to make sure that what everyone wants to happen actually is happening.
This visibility of what is happening vs. what we wanted to happen is especially important for continuous improvement work. Continuous improvement activity should be prioritized as to the return on investment, whether monetary or customer good will/ branding, and alignment with executive strategy.
Good operational performance will:
- Be captured in metrics that align with strategic KPIs
- Improve the safety and performance numbers for your shop floor
- Improve your cash flow
- Create greater ability to handle uncertainty
- Enable you to grow and transform
- Support supply chain performance goals
If you are interested in improving your operational performance and ability to grow, please contact Process & Strategy at Info@ProcessStrategySolutions.com
Key words and topics: business transformation, continuous improvement, ROI, KPI, cash flow, visibility, process, performance, strategy