Profit from the 'quality' of Operations
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Why ‘quality’ Matters
How does the ‘quality’ of business operations make a company successful?
What happens if the Marketing department drives demand for the company’s products and/or services AND the Sales department closes sales with the company’s customer base BUT the company’s business operations cannot deliver those products and/or services to those customers? Failure.
Or… What happens if the company’s business operations can deliver those products and/or services to those customers BUT the operational cost of doing so eclipses the operational revenue that was realized from the sales? Failure.
Why is it the case that so many companies segregate operational ‘quality’ from the role of the Quality organization? Regardless of the reason for doing so, far too many companies do keep the Quality organization segregated from managing operational ‘quality’ and siloed within the organization. Failure is guaranteed.
All of the organizational and departmental silos must be broken down to achieve a level of operational performance that ensures success.
The ‘quality’ of operations is essential for business success!
A holistic plan for operational performance must be based upon the ‘quality’ of operations.
Operational Performance
To create long-term value, companies must possess a performance strategy that enables them to govern operational execution, and risk, for profit. Every company needs to be profitable, and no company can survive operational inefficiency. The ‘quality’ of business operations will make or break any company. Profitable companies have 1) strong financials, 2) an aligned management team, and a track record of 3) consistent performance. Companies must be capable of managing operational expense (OpEx) to create Operating Profit for long-term value.
The Predictive Quality Management (PQM) solution is focused upon reducing operational inefficiencies to improve operating profit and reducing operational expense for ‘bottom line’ results.
Operating Profit = OpRev – OpEx
By strategically focusing on top-line OpRev growth and bottom-line OpEx cost management, businesses can achieve long-term success.
In the world of business, performance is the name of the game… Performance for results that matter to the business: Effective Process + Efficient Execution = Performance.
“Effectiveness is doing the right thing. Efficiency is doing the right thing right.” – Peter Drucker
Business success stems from a workforce that efficiently executes the work of the Enterprise by transforming their time ($$$) into effectively obtaining the results that matter. Operational Efficiency can be predictably achieved with the Predictive Quality Management (PQM) solution that enables management control over operational ‘quality’, ensuring operational efficacy and operational efficiency, yielding a net positive affect upon Operational Expense.
The first step is to ensure your core business operations well defined and capable of effectively delivering the products and/or services of the business in the most cost-efficient way possible.
Business capabilities are the activities an organization carries out, or need to be able to carry out, to conduct its business. For sake of simplicity, business capabilities are into two categories: 1) Core Capabilities, and 2) Support Capabilities. A business capability is therefore defined herein as an ability for a business to accomplish something as a result of its operational structure. A more formal definition is as follows: “A business capability is a particular ability or capacity that a business may possess or exchange to achieve a specific purpose or outcome.” [1]
[1] A Business-Oriented Foundation for Service Orientation, Ulrich Homann, White Paper, February 2006, published by Microsoft, February 2006
