Developing a Culture of Operational Excellence

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Dr. Joseph A. De Feo, President & CEODeveloping a Culture of Operational Excellence

All Rights Reserved, Juran Global Present reasons to Develop a Culture of Operational ExcellenceDefine what is Culture and Organizational CultureOffer 7 Tips to Develop a Culture of Operational ExcellenceTodays Agenda

All Rights Reserved, Juran Global Culture is not a kettle of loose, disconnected pieces. Rather, it is a unified whole, no element of which can be disturbed without repercussions on a wide scale.-Dr. J.M. Juran,1956

A Bit of History

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Customers complain about poor experiencesFinancial performance is unpredictableEmployees and Stakeholders are dissatisfiedToo many silos Leaders abdicate the importance of quality Conflicting strategies low cost and customer satisfactionGrowth strategies with little means to achieve themPoor alignment of goals to strategiesFocus on cost reduction and calling it improvement Poor planning and alignment capabilitiesNo internal resources to make organization effectiveNo tie in of employee daily work to strategies

Why Develop a Culture of Operation Excellence?

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Your OrganizationDeclining Financial Results

Fierce Competition

Globalization

Mergers & Acquisitions

AcceleratingTechnology

SophisticatedConsumers

A Crisis


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World Class CultureWhy Develop a Culture of Operation Excellence?





All Rights Reserved, Juran Global Transform to World ClassGoods,services, andprocessesthat are ranked bycustomersand industry-experts to be among the best of the best.

Thisdesignationdenotes standard-setting excellence intermsofdesign,performance,quality, andcustomer experienceandvaluewhen compared with all similaritemsfrom anywhere in the world.

All Rights Reserved, Juran Global What is an Organizational Culture?Thevaluesandbehaviorsthatcontributeto the unique social andpsychologicalenvironmentof an organization.It is shows up in:the ways the organizationconductsitsbusiness, treats itsemployees,customers, and the widercommunity.the extent to whichfreedomis allowed indecision making,developingnewideas, and personal expression.howpowerandinformation flowthrough itshierarchy.how committed employees are towards collectiveobjectives.

All Rights Reserved, Juran Global What is an Organizational Culture?

All Rights Reserved, Juran Global A culture affects the organization'sproductivityandperformance, andprovidesguidelineson customercareandservice,product qualityandsafety, attendance and punctuality, andeven concernfor the environment. What is an Organizational Culture?

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7 Tips to Develop a Culture of Operational Excellence

How Do You Change a Culture?


HistoricalForces

InternalForces

ExternalForcesA Culture

SharedHabits & Beliefs

Employee BehaviorsThe EnvironmentThe People1. Learn About Culture Change


Pace of Employees Adapting to Change

InnovatorsEarly AdoptersResistorsLateAdopters1. Learn About Culture Change

x

All Rights Reserved, Juran Global 15Employees will Change at Their Own PaceCharacteristics of Employees:

The Innovators:

Early Adopters:

Late Adopters:

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Understand and Master Two Sides of ChangeTechnicalLeadershipInfrastructureToolsTechniquesProcessesCulturalLeadershipCommitment Collaboration CreativityCustomer Focus1. Learn About Culture Change


1. Learn About Culture Change Time

Decide

PrepareLaunchExpandSustain

Leadership LedOrganizationStructureNew KnowledgeSupportCultureRenewal

Strategy Based on Being the Best Not jut the most profitable!Juran Transformation Roadmap PhasesSuccess

All Rights Reserved, Juran Global 2. Start Small Project by ProjectHold the GainsDevelop InfrastructureEstablish ProjectsDo It Again and Again

Breakthrough in Organization

Breakthrough in Results

Breakthrough in Leaderships Attitude

Breakthrough in KnowledgeBreakthrough in Cultural Patterns

Breakthrough in Sustainability & AdaptabilityComplete ProjectsDevelop New Strategic Direction

All Rights Reserved, Juran Global 3. Active Engagement of Employees

A culture of quality requires employees to apply skills and make decisions in highly ambiguous but critical areas while leading them toward deeper reflection about the risks and payoffs of their actions.

In an environment where customers tolerance for quality problems is declining, a workforce that embraces quality as a core value is a significant competitive advantage.HBR Research

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3. Active Engagement of Employees

"Employee Engagement is a measurable degree of an employee's positive or negative emotional attachment to their job, colleagues and organization which profoundly influences their willingness to learn and perform at work."


CommitmentEngage

Communicate

CollaborationJuran Model forEngaged Culture3. Active Engagement of Employees


4. Managers Must Learn to Lead & Communicate


5. Avoid Surprises and Conflicting Initiatives Employees will typically resist change, so change leaders need to increase their understanding of what causes resistance to change:The change is of a high surprise natureThe new situation is very different from the pastLittle opportunity exists for controlling eventsEmployees have a strong emotional attachment to the pastEmployees see few benefits only the loss of changeEmployees perceive little support of the change by their leaders


6. Be A Leader Not A Cheerleader

Besides doing leader-ly tasks, the C-Suite must learn and participate in driving the change by walking in the shoes of customers and employees. Joe DeFeo


7. Pick the Right Time for Change


Learn what culture change means and develop a strategic direction different from the current one.Start small, expand gradually, PROJECT by PROJECT, allowing people to experience success and satisfaction from changes.Create active engagement of employeesin planning and execution of change. Managers Must Learn to Lead and Communicate via forums, engagement teams, etc., to discuss WHY the change is needed and then solicit ways for employees to come to terms with it.Avoid surprises and conflicting initiativesAlways Be Aligning!Be a leader not a cheerleaderwalk in the shoes of the customers and employees. Choose the right time for change.

7 Tips to Develop a Culture of Operational Excellence

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Developing a Culture of Operational Excellence

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