How Do We Create Leadership Pull for Operational Excellence?
Several times a year, over the last decade, in multiple Operational Excellence (OPEX) focused conference workshops, we have asked the same question. What’s the #1 obstacle to successfully deploy OPEX? The #1 answer has invariably remained “lack of top man
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How Do We Create Leadership Pull for Operational Excellence? Paul Docherty
The Paradox of Leadership Commitment Several times a year, over the last decade, in multiple Operational Excellence (OPEX) focused conference workshops, we have asked the same question. What’s the #1 obstacle to successfully deploy OPEX? The #1 answer has invariably remained “lack of top management commitment”. At a superficial level, at least, this answer doesn’t seem to make sense. OPEX activity is in theory something that every business leader should actively want to support. OPEX promises to simultaneously improve quality and reduce costs – both of which are clear drivers for better business results. These are the same business results for which business leaders are directly rewarded and recognized. Additionally, there is significant, indisputable evidence that operational excellence programs have had a significant effect on the business results of not just tens, but hundreds of large private sector organizations (iSixSigma 2011). It seems obvious given this evidence and the direct link to what they get rewarded and recognized for that top management would naturally see OPEX as a priority. The reality however is very different. Our research has shown that over 50 % of operational excellence pilots fail (Docherty 2006) and even highly successful programs suffer seismic shocks – we’ve seen top management in multiple companies inexplicably cancel OPEX programs generating hundreds of millions of dollars in savings – including, for example, BT’s Wholesale Division Lean Six Sigma (LSS) program (stopped in 2005) and the decision by Network Rail (the UK Rail Operator) to disband their Operational Excellence program in 2007.
P. Docherty (*) i-nexus, George House, Herald Avenue, Coventry Business Park, Coventry, CV5 6UB, UK e-mail: [email protected] T. Friedli et al. (eds.), Leading Pharmaceutical Operational Excellence, DOI 10.1007/978-3-642-35161-7_24, © Springer-Verlag Berlin Heidelberg 2013
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Fig. 24.1 Vroom expectancy motivation model
The Problem with the ‘Push’ Model Clearly we have to look deeper under the surface to understand what’s going on. Our simplistic assumption – that leaders will be motivated to support operational excellence – is based on the view that they will be motivated by the obvious link of OPEX benefits to the things they care about. The reality however, is that the link (particularly when OPEX is seen as a program) is often not that obvious, and in reality, motivation is based on more than just the belief that a link exists. A powerful model that helps us understand what drives motivation of individuals is Vroom’s Expectancy motivation model (Bandura 1977). This model suggests for us to be motivated to do something we must believe at least 3 things (Fig. 24.1): 1. If we do something it will result in an outcome. 2. That the outcome that will result is personally valuable to the individual i.e. there is a clear WIIFM (what’s in it for me) and; 3. That doing that thing (over all other thin
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