Chamber Operational Excellence
- 2. A Rich Heritage Published: March 20, 1921 Copyright 息 The New York Times
- 3. Todays Opportunity! OUR TASK NOW IS NOT TO FIX THE BLAME FOR THE PAST, BUT TO FIX THE COURSE FOR THE FUTURE. JOHN F. KENNEDY
- 4. Todays Goals Define Operational Excellence Identify basic assumptions about Operational Excellence. Use real-life lessons learned to ensure successful implementation of Operational Excellence
- 5. Operational Excellence (OpX) Outwardly focused on being flexible to meet stakeholder demand Inwardly focused on reducing/ eliminating the waste and cost in all processes Efficient use of time and resources Goals Highest Quality, Lowest Cost, Shortest Time, Maximum Flexibility
- 6. Efficiency = Time and Resources The extent to which time is well used for the intended task. The efficiency of the planning department is deplorable. The extent to which a resource, such as electricity, is used for the intended purpose. The efficiency of this light bulb is 40%. TIME IS MONEY!
- 7. Basic Assumptions Operational Excellence requires a willing suspension of disbelief Everything can be improved The benefit of improving something may not outweigh the pain/cost Operational Excellence does mean imposing structure
- 8. Basic Assumptions (continued) What is in your/your staffs/a volunteers head cant be reliably duplicated Operational Excellence requires data and intelligence not assumptions Trust is essential (approvals can waste time and resources) The 80/20 rule is crucial to Operational Excellence
- 9. Pareto Analysis The Law of Focus 20% of activities cause 80% of delays in a given process 20% of volunteers do 80% of the work 20% of events take 80% of staff time You wear 20% of your clothes 80% of the time Pareto Graphs can be done in Excel
- 10. Focus on saving $ in the top 80%
- 12. Its not what you dont know that will hurt you. Its what you know that isnt so that will do you in. Saitchel Paige Its all about the Data!
- 13. Real Life Example West Coast Chamber Project at a Chamber of Commerce Membership sales team were all using different ways to communicate Team was unqualifying potential members in their head without calling No call tracking/goals existed New process = doubled new Membership sales
- 14. Organizational Sales Leadership (OSL) By comparing notes on prospects in the community, you may find that there are businesses that have never been asked to join. Since building a focused new strategy and process at this Chamber to increase membership sales, the CEO says, we have discovered businesses right at our back door that say they would love to join the Chamber, but have never been asked to.
- 15. Opportunities for Improvement Events Membership Focus Dues structure Frequency Sales Internal Communication Operations Printing Expenses Consolidation Contracts Production Processes
- 16. Get a Team Together Select a team of 5 7 people who know your operation from different perspectives Meet for 3 to 4 hours to discuss opportunities for improvement Remind everyone of the Basic Assumptions Challenge everyone to let go of the status quo!
- 17. The Seven Areas of Waste 1. Waste of Overproduction Preparing unneeded reports, reports not read or acted on, multiple copies in storage 2. Waste of Time (Idle) Batch processing, i.e., monthly closings, weekly billing, monthly collection reports 3. Waste in Transportation Unneeded steps, document/data travel distance 4. Waste of Processing Excessive sign-offs 5. Waste of Stock on Hand (Inventory) Transactions waiting to be processed 6. Waste of Movement (Worker) Unneeded data entry, extra steps 7. Waste of Making Defective Products Incorrect data entry
- 18. Change Management Remember the Human Element
- 19. Change Management Consider all elements before committing to changes Document the changes that are being made Give the changes time to work! Celebrate successes
- 20. Remember Sometimes you have to step back to move forward!! Mick Fleming, ACCE
- 21. Thank You!