The Operational Elegance Index

In a previous post, I introduced the concept of Operational Elegance. Here is an assessment I have created called The Operational Elegance Index. This Index helps you assess how you can accelerate growth and maximize profitability.

Andrew Miller-The Operational Elegance Index

After you have completed the assessment, I would love to hear your feedback on its’ usefulness and discuss how I might be able to help you raise your Index score.

Two Questions that will change 2016 for your organization

Many organizations have a challenge prioritizing initiatives. Here are two questions that will help you find the most important priority for the year:

  1. What is your ideal future state?
  2. What is the fastest and most effective way to reach it?

Once you have answered the two questions above, you will have identified your one priority. Then prioritization becomes easier. Does the future initiative you are proposing allow you to achieve your ideal future state faster and more effectively than what you are currently doing?

Let’s use this real live client example. You are a $250 million organization and your ideal future state is to grow your customer base by at least 10% and increase the retention of existing customers. That answers question #1.

So what is the fastest and most effective way to grow the customer base and retain current customers better? In this case, it was identifying the organization’s ideal customer. Who would most benefit from what this organization had to offer and would be willing to pay for it?

Once we identified the ideal customer (the target market), we implemented strategies to attract and retain them. Every idea and initiative tied back to attracting and retaining that ideal customer group. Results were a growth in the customer base, an increase in customer retention, higher revenues, and increased profits.

This will be one of the concepts I cover in more detail in my free workshop on accelerating growth.

Finding your one priority allows you to focus your entire organization on the opportunity that can offer the greatest impact in the quickest amount of time. How did you answer the questions above?

Miller’s Monday Morning Message

Andrew MillerMiller’s Monday Morning Message
presented by ACM Consulting Inc.

Andrew Miller on operational excellence, strategy, life balance and everything in between

Toronto – December 28, 2015

If you want 2016 to be the best year ever for your organization, here are four essential things you need to do:

  1. Identify your ONE PRIORITY – Find the one priority that can most rapidly and effectively achieve your ideal future state.
  2. Implement OPERATIONAL TRANSPARENCY – Be clear and transparent about how the organization will make decisions and prioritize initiatives. Also, share as much relevant information as you can with customer and business partners to improve performance.
  3. Make the INTRINSIC EXTRINSIC – Identify your internal best practices and determine how to apply your success across the organization and figure out how to better manage internal knowledge.
  4. Demonstrate TOUCH POINT LEVERAGE. This could also be called the “King Midas effect” where everything you touch turns to gold. Every step in a process, every interaction with a customer, or every part of your manufacturing process should add value and leverage the previous “touch point.” You are enhancing at every touch point, not just assembling something.

2016 should be about raising the bar through operational excellence, not about restoring past performance.

What will will you do differently and how will you ensure you sustain momentum?

Looking for more insights?
Are you a small or medium-sized business owner looking to accelerate growth and maximize profitability? Then you need to register for my free workshop on How to Accelerate Growth Through Operational Excellence.
Want to become more adept at Operational Excellence? Check out my new Operational Excellence program.
Check out my podcast series called Hockey Management, where I use hockey as an analogy for successful business results.
Prefer watching videos? The take a look at my short videos providing operational excellence tips.
Follow me on Twitter @AndrewMillerACM

To request an interview or more information, please contact:

 
Andrew Miller
416-480-1336
© Andrew Miller. All rights reserved. 2015.

Why Cost Centers Should be Extinct

In this day and age, can any company afford to have a department or division that doesn’t contribute to the top- or bottom-line? The concept of a cost center makes no sense. “Let’s develop a department where we incur costs and have no ties whatsoever to improve the overall financial performance of the organization. We will have no financial measures that help the overall company improve.”

So here’s where you say, “But not all departments can be tied directly to the financial performance of the overall organization!” Wanna bet?

IT departments may have developed some great new technology tools to manage information in the company. Couldn’t that be commercialized and sold?

Call center representatives, who talk to customers ALL DAY LONG, could be trained on all of your company’s offerings and help identify new customer needs that can be filled with those products and services.

Repair people and technicians can be trained to provide better solutions to customers when they are in the field. Procurement departments can negotiate better relationships with key suppliers. Finance departments can find more cost effective ways to report on financial information.

And any department can contribute new ideas to help with customer acquisition and retention, or revenue growth, or increasing profitability.

I think you get the point. Creating cost centers is an out-dated idea that needs to become extinct. Are you one of the people giving it CPR to keep it alive?

Miller’s Monday Morning Message

Andrew MillerMiller’s Monday Morning Message
presented by ACM Consulting Inc.

Andrew Miller on operational excellence, strategy, life balance and everything in between

Toronto – October 19, 2015
Last week I spoke to a group of 50 healthcare innovators and providers on how to better engage in innovation. The focus of the discussion was how to build successful partnerships. Here are the characteristics that I suggested make for any successful partnership:
  • A common desired outcome/solution
  • Clear ROI for all parties
  • Proven results
  • Ability to share risk
  • Realistic expectations on timing of results

When you enter into a partnership, do you look for these characteristics?

Looking for more insights?
Check out my podcast series called Hockey Management, where I use hockey as an analogy for successful business results.
Prefer watching videos? The take a look at my short videos providing operational excellence tips.
Follow me on Twitter @AndrewMillerACM

To request an interview or more information, please contact:

 
Andrew Miller
416-480-1336
© Andrew Miller. All rights reserved. 2015.

Miller’s Monday Morning Message

Andrew MillerMiller’s Monday Morning Message
presented by ACM Consulting Inc.

Andrew Miller on operational excellence, strategy, life balance and everything in between

Toronto – October 12, 2015

VW has a tremendous opportunity to innovate in the way it operates. This emissions crisis affords them an opportunity to look at every aspect of the organization and change it.

Too often, when faced with an issue (especially very public ones), leaders focus on fixing the problem instead of leveraging the problem to do something completely different. Follow me here…..typically in VW’s situation, the new CEO will do a few things:

  • Find out who was complicit in the scandal and suspend or fire them
  • Implement new processes so that this kind of thing will never happen again
  • Add additional layers of approval and oversight within the company’s structure
  • Feverishly apologize to customers and promise it will never happen again

Fixing the problem actually puts the company in a worse position. It is now less flexible, more bureaucratic, and more risk averse.

But what if the new CEO leveraged the issue to innovate? If that was the case, he might:

  • Enhance the technology VW used for cheating and offer it to all governing bodies in the global car industry so no car company could cheat on emissions tests
  • Improve the technology so car owners could track their own emission use to help reduce it
  • Take the position that the standard emissions test needs to be stricter or completely changed or even discarded, since it is so easy to manipulate the data

Do you see the difference? Which company would you rather support? The one that follows the same path as everyone else, or the one that uses their situation as a launching pad for bigger and better things? That’s the difference between mediocrity and excellence.

Looking for more insights?
Check out my podcast series called Hockey Management, where I use hockey as an analogy for successful business results.
Prefer watching videos? The take a look at my short videos providing operational excellence tips.
Follow me on Twitter @AndrewMillerACM

To request an interview or more information, please contact:

 
Andrew Miller
416-480-1336
© Andrew Miller. All rights reserved. 2015.

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