Operational excellence is a term that we all know. It is the umbrella for all activities that we do to improve the quality of our products and services, to speed up the speed of our business processes and to squeeze out the cost. Particularly ERP systems have been very successful here. So what is the business realm of EPM (enterprise performance management). It must be the management side of things. Making the organization smarter, more agile and to create organizational alignment.
This is what is called management excellence. Operational excellence, whether you are good at it or not, increasingly is becoming a given. There is a decreasing competitive advantage in being even faster, or having an even higher quality or an even lower price. The next competitive edge is about having more insight in large and small changes in the market, and doing something with that. It’s not the operational processes alone that do the trick, it’s the management that makes the difference.
Management Excellence is going to be a very important theme for Oracle EPM the coming year. That is why we have launched The Journal of Management Excellence.
In this quarterly publication, we will be exploring all facets of management excellence. In this first issue, we focus on introducing the concept. Please pay special attention to the article on Uncertainty Risk Management, this is a new concept to performance management.
In the second issue, the theme will be “organizing for management excellence”, focusing on centers of excellence, or alternative ways of embedding performance management in your organization. Do you feel like contributing an article? We’ll make it worth your while…
Best regards, frank
Comments (2)
Management Excellence is a journey to stay ahead of the curve and I believe the following are some of the key steps as part of the framework to enable Management Excellence
1. Enabling their departments /functions within the organization connected and measured to the common objectives and goals
2. Driving their resources (People, Capital and Assets) to maximum efficiency and effectiveness
3. Identify, Differentiate, Interact and Customize products to the needs of each and every customer which calls for lean accounting and manufacturing practices
4. Measurement and Rewards to Employees has to closely tie with the scorecards
5. Technology to be deployed to drive process improvements, bring effeciency and people productivity
Posted by Ravi TNC | July 18, 2008 8:14 AM
Posted on July 18, 2008 08:14
Frank:
Management Excellence is a critical concept, and while management theories and science have long been introduced through the academic and consulting world, the challenge is much deeper. The basic foundation of people and the lack of culture, education and rigor to follow a new method of managing business requires business transformation. In addition the management process for sales, customer, supply chain, operations, etc.. all require specific context that must be established for these organizations to take this seriously. Just designed this for a CEO/CFO/COO executive focus will not drive this down and throughout the organization as already seen by many efforts like Balanced Scorecard and others.
Just as deep as this is the challenge that the technology to instrument and guide this change must be wholly adopted by business management. One of your challenges in this effort at Oracle is that the applications for supporting must be led by selling and consulting to business and executive management. Having Management Excellence with EPM as part of Oracle middleware and IT focus is going to be the divide that will hinder Oracle from having true success in this initiative. Oracle will have to invest into this initiative with sales and services dedicated to this area and not just as a set of products in the middleware division for it to be taken seriously by organizations and us industry pundits.
Regards,
Mark
Posted by Mark Smith | July 19, 2008 5:28 PM
Posted on July 19, 2008 17:28