Current state and praxis of Operational Excellence is challenged. DEFRAGMENTOR claims something is missing!
Operational Excellence have throughout the last couple of decades been celebrated as the miracle cure against lacking efficiency, reduction of waste and to ensure added value at clients etc. Building on the concepts of LEAN, Six Sigma & Kaizen, all process oriented methodologies, the enthusiasm is initially high, however the manifestations struggle to meet expectations.
In the same period, Investigations of serious incidents have documented evidence of ignorance or negligence of Early Warning Indicators. Likewise, significant indications of loss of organisational “resilience” or capability to anticipate and or communicate potentiel known problems.
In hindsight, one must conclude that excellence programs do not successfully provide Risk Management Excellence!
Research advocate for three main reasons for risk blindness (se Menu – reflections for detailed paper):
- Reward obscures risk
- Sunk costs
- Future aversion
- Overreaction to unpleasant upsets or incidents
DEFRAGMENTOR works with Operational Excellence by supporting internal competences to address identified “concerns”. This via a transparent escalation methodology based on a value estimation according to company risk appetite and business category.
Do not hesitate to contact us for a more detailed conver-sation og how to align your Risk Management mindset for transformation of “Operational Excellence” Program.