Chamber Operational Excellence

Today’s Opportunity! “OUR TASK NOW IS NOT TO FIX THE BLAME FOR THE PAST, BUT TO FIX THE COURSE FOR THE FUTURE.” JOHN F. KENNEDY

Today’s Goals • Define Operational Excellence • Identify basic assumptions about Operational Excellence. • Use real-life lessons learned to ensure successful implementation of Operational Excellence

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

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!

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

Basic Assumptions (continued) • What is in your/your staff’s/a volunteer’s “head” can’t 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

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

Focus on saving $ in the top 80%

“It’s not what you don’t know that will hurt you. It’s what you know that isn’t so that will do you in.” Saitchel Paige It’s all about the Data!

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

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.”

Opportunities for Improvement • Events • Membership – – Focus – Dues structure – Frequency – Sales • Internal • Communication Operations – Printing – Expenses – Consolidation – Contracts – Production – Processes

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”!

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

Change Management Remember the Human Element

Change Management • Consider all elements before committing to changes • Document the changes that are being made • Give the changes time to work! • Celebrate successes

Remember… …Sometimes you have to step back to move forward!! Mick Fleming, ACCE

Thank You!

Chamber Operational Excellence

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