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AchievingOperationalExcellenceattheCorporateLevel

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January 29, 2014

Brian D. Rains | DuPont Sustainable Solutions

Previous columns in this series have discussed building the business case for operational
excellence, as well as how to achieve operational excellence at the plant level. This column
continues the theme and will explore how we can achieve operational excellence at the corporate
level.

It is vital for those at the corporate level to support plans in achieving operational excellence.
There are several requirements for success, which we will explore below.
Commitment to Results
In order to take on achieving operational excellence collectively viewed at the corporate level,
business leaders need to understand the total business opportunity and commit to the
achievement of results.
Operational excellence can be viewed through two lenses: a program or an outcome. Each of these
options leads to very different results. Operational excellence should be an outcome that is driven
by a commitment to operational performance.
The alternate scenario organizing operational excellence as a program, or staff function is
often not successful. In this situation, the staff is in charge of the operational excellence program
and creates manuals, processes and procedures, which are then forced onto a plant whose leaders
did not have a seat at the table when this program was developed. This scenario creates significant
tension in the organization because the CEO/COO wants operational excellence to get to
operational performance. Instead, they should be asking for operational performance through the
vehicle of operational excellence.
The better approach is to work with plant managers to set targets based on what is thought to be
achievable with adequate program and resourcing support. In other words, look at the desired
outcome and then work with the plants to achieve it. In this context, an operational
improvement/excellence staff would be created to support plant management in achieving those
results, but with the line leadership thoroughly engaged and involved in the process.

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Program Management and Governance

REGULATION

In large organizations with global operations located in diverse geographic areas the corporation

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plays an important role in program management, which also can be called deployment. Housed
within program management is the activity required to estimate and secure the resources,
commensurate with the business case required to be successful. As you recall, this was the subject
of our last column.
Unlike program management, governance is the responsibility of the plant managers and line
leadership. The plant managers and the individual line managers must work together to ensure
that the worksite is achieving the agreed-upon results. They also are tasked with observing what is
going well and what needs to be changed from the micro level of their specific plant. And they have
to be willing to free up some of their key leaders to help drive the effort and gain site buy-in for the
transformational processes indicated.
It also is important to note the need for an honest, transparent dialogue between corporate

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AchievingOperationalExcellenceattheCorporateLevel
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It also is important to note the need for an honest, transparent dialogue between corporate

executives and plant management. An organization cannot achieve operational excellence solely by
having the business leaders at the corporate level dictate to the plant managers what needs to
happen. Rather, the plant managers must engage with the executives to let them know what is
possible and what they can commit to achieving. Active communication leads to a harmonious
process in which the executive management team sets the targets that enable the company to be
financially successful and the plant managers provide a bottom-up view of whats possible and
what they can commit to and own. Ultimately, corporate level management will analyze and
manage the results flowing out of the program with the line organization on a month-to-month
and year-over-year basis.
Networking and sharing best practices are important elements in the deployment of an operational
excellence program. The most successful networking will leverage a pull-through approach that
ensures leaders at every plant site have gone through the deployment of the previous plant. For
instance, when Plant 1 is about to deploy a new program, leaders from Plant 2 are moved into
Plant 1 for the deployment. The Plant 2 leaders are then returned to Plant 2 so when their plant

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deploys the same program, they know what to expect. In addition to providing plant managers
with the necessary experience and knowledge, this process also helps begin the process of

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Centers of Competency

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While the corporate executives are charged with overall program management, the organizations
that are most successful develop centers of competency to support the various programs critical to
their business. The simplest definition for a center of competency is that it is a group of experts
within the corporation who have a body of knowledge that is used to maintain standards and

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technical elements. There are often several centers of competency that are clustered around

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different specialties. These centers of competency center on a number of topics, including the

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supply chain, energy efficiency, and maintenance and reliability. Centers of competency are not
initiative-based taskforces imposing their will on worksites; rather, they can be viewed as the
conscience of a corporation that monitors and reviews performance in a number of areas across

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all worksites. Centers of competency own the technical standards and policies and are tasked with

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keeping those up-to-date, as well as acting as a resource the plants can go to for best practices and

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support of continuous improvement efforts. In the ideal state, the centers are called upon by the
plants on a regular basis, and the plant sites have representatives on network teams run by the

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centers.
Conclusion
We know the importance of operational excellence and how we must all come together to achieve
it. Those at the corporate level must understand and support those at the plant level and share a
true commitment to results. Effective program management and governance, as well as the
development of centers of competency, can further strengthen the commitment to operational
excellence at the corporate level. In the end, if line leadership does not support and own the
initiatives, they are unlikely to be successful and improve operational performance.
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