Realizing Operational Efficiency Dr. Elspeth Murray Associate Professor & Managing Director, Queen’s Centre for Business Venturing Queen’s School of Business In partnership with Queen’s School of Business
“ Many more individuals of each species are born than can possibly survive. Consequently, there is a frequently recurring struggle for existence, and it follows that any being, if it varies however slightly in any manner profitable to itself under the complex conditions of life, will have a better chance of surviving, and thus be naturally selected.”
What Was Darwin Really Saying? Defined & forward looking strategy Innovative approaches Dynamic culture Establish direction Expect changes Create new rules Pride, passion Raise the bar Adjust along the way Outwit the competition Energy Ability to invent the future Ability to make it happen Visionary leaders PR-103
The Executive "Balancing Act" Create and build for the future Manage today's business efficiently and effectively EM-507
Good news and bad news – depends on your perspective…..
Every industry is impacted, in different but significant ways
To lead and manage effectively in the face of all this change, operations professionals need to be very good at:
Setting strategy – recognizing the need to change, creating a plan
Fostering innovative & creative thinking
Leading and managing the changes that result
Your Radar Screen: Tracking Leading Indicators Monitor performance Execute well Avoid complacency Turnaround required: Improve operating performance Re-position the business Operating performance may mask deteriorating strategic health Re-formulate strategy Avoid long-term pain for short-term gain Operational program: Improve margins, costs, productivity Strategic Health Weak Strong Weak Operational Health Strong
Best Employer research has identified a strong and consistent link between engagement and various performance measures. An analysis of the 2003 study results comparing the 50 organizations that were identified as the 50 Best (“Best”) to the 78 organizations that did not make the top 50 list (“Rest”) indicated the following:
* Information is based on total shareholder returns for publicly traded organizations over a five-year period (annualized over five years: 1997 to 2002).
The Importance of Innovation “… the only sustainable competitive advantage is to innovate consistently …” EM-369 … remember Digital Equipment Corporation? … remember when gold was the precious consumer metal?
Different Levels of Innovation High Low Degree of Difficulty Incremental “Tinkering at the Edges” Breakthrough “Outside the Box” Quantum “New Box(es)” EM-733
Establish the need, create shared understanding of the entire journey, make a plan
Speed – overcoming inertia
Create urgency, focus on a ‘critical few’, enable rapid decision making, deploy initiatives in parallel
Critical mass – gaining momentum
Provide leadership, operationalize ’20-70-10’, deal with the ‘arsonists & saboteurs’
Find the ‘Tipping Point’
Long Term Success Defined & forward looking strategy Innovative approaches Dynamic culture Establish direction Expect changes Create new rules Pride, passion Raise the bar Adjust along the way Outwit the competition Energy Ability to invent the future Ability to make it happen Visionary leaders PR-103