Operational Excellence (OE) is a strategic enabler that equips organizations to respond to the future and achieve desired business outcomes. OE involves identifying critical strategic goals, aligning the enterprise toward value creation, and measuring performance at all levels. Leaders must establish clear connections between culture, behaviors, systems, and results through frameworks like Lean Six Sigma. Cascading goals and managing toward a high performance culture also help bring strategic objectives into daily management and sustain results over time. OE allows organizations to predict the future and change before needing to.

1. Operational Excellence: A Strategic Enterprise Enabler
Razwan Chaudary
Saudi Aramco
Organizational Consuting Dept. (OCD)
Lean Six Sigma Division

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OE equips you to respond to the future…
“The best way to predict the future is…
to create it.”
Peter Drucker

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Behavior principles impact business
outcomes
Principle Categories:
1. Divine guidance to promote:
Equity and justice
2. Universal natural laws based upon reason and
experience to promote:
Execution efficiency & performance
The closer our actual behavior align with our ideals…
the greater the likelihood of predicting desired results

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Planning your roadmap for successful business
outcomes
• Identify critical few measurable strategic value drivers or
‘Breakthrough’ goals
• Align and enable the enterprise towards value creation
• Measure performance at all levels
Six Sigma Philosophy lesson 101
You can’t manage what you can’t measure…
+ If you can’t measure it, you don’t know it
+ If you don’t know it, you can’t control it.
+ If you can’t control it, you are at the mercy of
chance!!!
= unpredictable outcomes

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Designing your OE framework to deliver your
‘strategic breakthrough goals’
‘X’
Matrix
Ref: Philip Holt
Strategic Objectives
Achieved
Standardize Breakthrough
objectives into daily Mgt
when achieved

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Establishing clear connection between culture,
behavior, systems and results
Leadership
Behaviors
OE Framework
Ref:Shigeo Shingo
Ref: R.Chaudary

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Cascading Goals (Hoshin Kanri) Performance Reviews
Ref: Hoshin Kanri Model
Cascading goals and managing towards a ‘high
performance culture’

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Bringing it all together and sustainability
SustainabilityActive Strategy
Ref: Covidien’s OpEx Management Framework
Ref:Shigeo Shingo

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Being able to predict the future…
…allows you to change
before you need to
(Jack Welch)

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Contact:
raz_chaudary@hotmail.com