Programme DeploymentCompanies considering the implementation of Operational Excellence should be very selective about any element included in their programmes and should not accept the conventional view that every aspect of Lean or Six Sigma is applicable or necessary in every circumstance. At Venturehaus, our background in Financial Services and our experience of business improvement programmes has led us to develop an approach that selects only those elements of Lean and/or Six Sigma which are appropriate for the industry. We combine this approach with equally suitable elements of Lean and other best management practices. We do not believe that if it worked for GE and Motorola, for example, it can simply be replicated en masse for a Financial Services company. Despite our specialisation, we are, at heart, methodology agnostic.Most service companies are using methods such as Six Sigma and Lean in the first instance to get the low hanging fruit and stabilise their operations and processes. We call it ‘Stop the Bleeding’. You require a very different approach if you are then looking to improve process capability towards Operational Excellence. We tend to find ourselves involved in a range of situations with clients, but we have consistently achieved rapid reductions in costs of between 10% and 30% of cost base. These sorts of improvements have a dramatic effect on the business contribution from operations. Starting a Operational Excellence ProgrammeDeploying Operational Excellence successfully in a cost-effective manner is challenging. Many companies lose focus and fail to achieve the desired financial gains or a satisfactory return on investment. We have found that in the Financial Services industry it is normally necessary to conduct a thorough process and metrics "Baselining" exercise during the initial phase, in order to ensure that the focus is in the right place and that the right projects will be selected. A useful way of achieving this is to conduct an Operations Review by adopting practices similar to those applied in a Due Diligence process.Such a review assesses the business infrastructure and the performance of the key business processes, analyses the operational efficiency of the company and identifies potential opportunities for financial savings, productivity improvement, quality and service enhancement, and options for consolidation. Having completed this review, it then becomes easier to select those projects which will have the greatest impact on the business and to ensure that the Operational Excellence programme gets underway successfully. Operational Business ReviewsOperational Business Reviews are rapid but rigorous operational reviews conducted within a company, a business segment or a department. The review aims to demonstrate where the business can gain increased contribution from operations, realise measurable financial value through operational improvement action, and establish key indicators to control sustained performance improvement.The objectives of this exercise are to:
The review will demonstrate where the company can realise increased contribution and measurable value from the current operating platform through focused operational improvement action. As a result the company will have:
There is significant value in knowing where a services
business stands in terms of efficiency, effectiveness and
operating capability. This includes depicting all the interfaces
between involved parties; the movement of physical items;
electronic messaging, information flows and the relevant
technology systems and database interfaces. Only by achieving
this, can the end-to-end process be seen from the customer’s
perspective, creating a true understanding of the business
and defining the critical service or product performance
levels.
Selecting projects for rapid resultsFollowing a detailed analysis of the business and the completion of an Operations Review, key areas requiring operational and process improvement can be identified. Improvement areas can be fully scoped to determine the number and size of improvement projects within them. The team will then complete a detailed breakdown of specific actions and projects to deliver the cost savings and efficiency gains. A business case will be defined for each of the proposed improvement projects. The business management team should approve every project and assign the appropriate resources and funds to enable each project specifically. Once the business case has been agreed and the scope defined, it is the responsibility of the team to drive the projects through to completion. It is desirable for the scope of the defined improvement projects to be narrow enough to allow them to be completed within 3 to 4 months, and hence be able to demonstrate early success.Getting it right the first timeDeploying Operational Excellence successfully in a cost-effective manner is challenging. Many companies lose focus and fail to achieve the desired financial gains or a satisfactory return on investment. The Venturehaus approach is driven by clear operational strategy and a focus on financial returns from every project. We believe in a lean, ambitious and relevant deployment of Operational Excellence - ensuring the client gets it right the first time.Summary of Venturehaus Operational Excellence Programme Initiation Services
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Venturehaus Ltd.