How We Serve You : White Papers
Implementing a Business Operating System:
A Systems Approach for Achieving Bottom-Line Results
Audit Effectiveness of Implementation
After a period of about six months, an audit should be performed to evaluate the effectiveness of the implementation efforts. An outline of the areas to be audited include:
- The type of measures selected in each area. Measures should relate to others selected at the previous level and should be evaluated in terms of its impact on the internal customer.
- The use of problem solving activity. Each area within the organization should be trained in and exposed to the problem solving concepts. The audit reviews the effectiveness of problem solving activity.
- Deployment of the Business Operating System. An assessment is done with individuals on the shopfloor to evaluate the extent to which they have been exposed to concepts of the operating system and the extent to which it is used on a regular basis.
- The effectiveness of the Review System. An evaluation is performed on how the review system is conducted in each area. Feedback is provided on areas for improvement.
- Involvement of Senior Management. Management needs to demonstrate active participation and belief in the system. It is important that regular review meetings are held and that the reward and recognition systems are tied to the performance measures.
- Demonstrated overall business effectiveness. If the organization has embarked on the Business Operating System and are following the guidelines, then there should be an increase in bottom-line results. If this is not the case, then the entire system needs to be evaluated from the selection of the right measures to the execution of problem solving activity.
The Business Operating System provides a framework for organizational alignment. This structure reduces waste and if followed will improve financial performance. In addition, when the strategy is communicated and executed from boardroom to shop floor, it ensures an increase in organizational responsiveness to changes in the external environment.
