Global State of Operational Excellence - Critical Challenges and Future Trends PDF

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We are publishing a full abridged version of this survey, with additional observations and inference on
this research report from leading industry figures. Want to feature in this year’s Global Industry
Survey? Contact content@proqis.com.
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Introduction Share this:
Speed, and the ability to adapt to changing market conditions are a significant challenge for business. New technologies and innovation
acceleration are disrupting all traditional industries and markets.
Half of all major corporations have disappeared over the last 20 years. Start-ups no longer have major barriers to entry, computing powering is
accelerating, and business models are being disrupted in just a few months, causing massive pressure on margins. Robotics, AI, Robotic
Process Automation, Machine Learning, IOT and the ability to analyze Big Data as just some of the big disruptors.
Whether it be the need to keep up with new technologies, the pressures of implementing and sustaining a fully-fledged culture of Operational
Excellence in the organization, or encouraging the allocation of resources and buy-in for Operational Excellence projects, it is clear that OpEx
practitioners are facing a period of incredible change and upheaval.
In this time of continuous disruption and innovation The Global State of Operational Excellence: Critical Challenges & Future Trends seeks to
understand the most crucial issues, priorities and successes faced by OpEx Practitioners in 2017. We’ve compiled the responses of hundreds of
Operational Excellence practitioners to offer key insights into the state of Operational Excellence, including measures of success, the greatest
developments, and much more in the following report.
Key Findings this year include:

- The #1 most pressing challenge faced by OpEx teams
- The top industry thought-leaders leading by example
- Your #1 measure of success for Operational Excellence
- Why Operational Excellence is still gaining momentum in 2017
- The Greatest Developments in OpEx over the past 5 years
- Key Industry Drivers shaping Operational Excellence in 2017
Enjoy!
Vijay Bajaj
CEO
Are you looking for more content like this? Connect with our CEO Vijay Bajaj on LinkedIn for more giveaways.
Key Findings
Improving Company Culture is the most critical challenge facing OpEx Practitioners for the 2 nd year in a row
12% of respondents are unsure of the solutions they wish to invest in next year
Customer Satisfaction & Happiness is the most common “Measure of Success” for our practitioners
54% of respondents believe that wider understanding of Operational Excellence Methodologies is on the rise
The Threat of New Competition is the #1 Key Driver of Change in the OpEx ecosystem
Sustaining a Continuous Improvement Culture is the most prominent OpEx focus for organizations in the next 12-18 months.
37.5% of respondents claim their Operational Excellence program is now 6+ years old
Almost half of our respondents have an Enterprise-wide OpEx Program (45.33%)
Customer Services is the most popular individual business unit for utilizing Operational Excellence
Only 8.6% of respondents utilize any kind of Operational Excellence methodology in their Legal Department
Our Respondents Share this:
This year, BTOES Insights saw Operational Excellence Respondents by Company Type
practitioners, from across many industries and job roles,
present their thoughts and perspectives.
Our professionals come from a range of job functions & seniority

level - a select few of the arguments behind their
choices are shown throughout this report; to provide further
insight into our data.
This report has a global reach, with practitioners from around the
world taking part and sharing their views.
Respondents by Region
Our Respondents
Respondents by Seniority We’ve received responses and insights from numerous High-Level Executives this year -
their additional insights & thoughts have been added to the report.
Key OpEx Leadership Titles

CEOs, COOs, Global Heads, Heads of, VPs, Principals, Directors of Continuous Improvement, Corporate Services,
Operations, Operational Excellence, Process, Quality, Plant Safety, Supply Chain, Change Management, Lean Champions,
Advisors
Are you looking for more content like this? Join the 25,000+ strong Business Transformation & Operational Excellence LinkedIn Community
Our Respondents: Industries Share this:
Out of 52 specific Industry Sectors, the most prominent were Healthcare: Medical Facilities, Information Technology, Pharmaceuticals,
Education, and Aerospace and Defense. Take a look below for the full list of industries that contributed into more broad sectors of the
ecosystem. Our top areas for respondents were Healthcare (15%), Technology (11%), Transportation & Automotive (7.5%), and Education
(7%).
Full listing of Industry Sectors by segment
The Scale of OpEx
This year, 45%+ of our respondents stated that their company’s Operational Excellence Program was Enterprise-wide.
Further to this, 37%+ of our professionals claimed an Operational Excellence Team had been in place within their
organization for more than 6 years.
What is the Maturity of your OpEx Program?
6+ Years
Less than 6 Years
Less than 3 Years
Less than 6 Months
I don’t have a Program
Where are you utilizing OpEx? Share this:
It’s no surprise that Operational Excellence is being most often utilized in the Operations departments of
organizations! However, OpEx programs are also commonly found in Customer Service Departments, Manufacturing
and IT Departments, as well as Finance.
Where are you utilizing OpEx?
Which department is responsible for Operational Excellence?
#1 Center of Excellence Leadership Team at HQ 32.87% In line with our results on page 7, the
majority of respondents cited specific OpEx-
#2 Operations Department 25.26% focused teams as being most responsible for
their Operational Excellence Programs.
#3 Dedicated Quality/ CI Team 24.22% However, alongside these teams,
respondents also named departments
#4 Strategy Team at HQ 20.76% including Production, Engineering, the IT
Department (in line with the recent
#5 Other 15.57% convergence we have seen between OpEx
#6 Individual Business Units 13.15% & Digital Transformation), and even
Marketing.
#7 Production Team 9.34%
#8 Engineering 6.23% Listed in the ‘Other’ selections are:
• Outside Consultants (Long-term
#9 IT Department 5.88% engagement)
#10 Research and Development 4.84% • The COO
• No single department – business-
#11 Marketing 4.50% wide
#12 Human Resource Management 4.15% • Units have their own dedicated CI
teams
#13 Purchasing 3.11% • Lean Six Sigma Training
#14 Sales 3.11%
#15 Accounting and Finance 3.11%
Critical Challenges Share this:
What are the most critical challenges facing your OpEx program?
Improving the Company Culture
Execution & Sustaining OpEx Projects
Maintaining key priorities & focus
Need for end-to-end Business Transformation
'Keeping up' with New Technologies
Need for Leadership Understanding & Buy-In
Demands of the customer changing
Integrating CI Methodologies
Challenges within the Organizational
Adapting to Business Trends Culture remain prevalent for the second year in a
Failure to Innovate row. Key issues noted here also focus on
sustainability, company culture, and strategy
Lack of/Need for Resources
execution.
Improving Relations Between Departments
Lack of/Need for Skilled Workers View Last Year’s Reports
Other (please specify)
Lack of/Need for support from Employees
Critical Challenges
Which of these challenges do you believe to be most crucial, and why?
“Improving Company Culture for employee Top Answers: The Most Commonly Used Terms
fulfilment, to own their role for sustainable
Operational & Production Excellence”
“Leadership support – in the absence of this,

no resources are dedicated, and culture change
cannot happen”
- Leadership
Advisor
“As our services are becoming
commodities, we need to innovate and
build new competitive advantages”
- Leadership
Advisor
“Without End-to-End Transformation,
you may simply be moving the issue to
another department”
- Leadershi
p Advisor This year, Culture featured most prominently as the critical issue included
“Technology is changing fast – in over 24% of ALL survey responses to this question. Leadership was
we need the resources & another key topic, included in 12.3% of responses, followed by Sustaining
knowledge to keep up” & Execution, featuring in just over 8% & 9% of responses respectively.
- Lea
der
ship insights.btoes.com 12
Adv
A Closer Look: Culture Transformation
“Changing of Culture and helping “Changing and improving the

leaders understand the importance company culture. When you grow
“Changing corporate culture, of engaging the people that do the through acquisition, you increase
“Execution and sustaining operational
which should always be dynamic work. Heavy Top Down the risk of your culture eating
excellence - unlearning the learned, effective
and evolving to create new said to management culture and HEAVY strategy for breakfast if you don't
change management, workforce mindset”
execute core values.” focus on financials and not seek alignment on a core set of
- Operations Director
- President processes.” value drivers early on.”
- Senior Manager of Supply - Director, Operational
Chain Process Improvement Excellence
“The Company Culture defines the Company

“Changing and improving culture.
and the People in that Company are the “Changing and improving the “Cultural change is the heaviest lift
If we can get the culture that I
Windows showing what they stand for and company culture, we are a change because changing the real way a
envision right and fully
how they perform their work. When the management organization and I company operates requires the
propagated throughout the
culture does not allow People to express believe that we must walk the talk Leader to role model, hold
enterprise many of our other
themselves, such culture does not allow and lead change by discover first expectation accountabilities, and a
challenges will take care of
Change to find its way to improvement and hand with our own organization.” right infrastructure to support.”
themselves.”
leads to frustration and dissatisfaction” - C-Level, Operational Excellence - Engagement Director
- CEO
- General Manager
“Changing culture - at some point

“Improving company culture for “Changing company culture -
“Improving the Company Culture, lots of whatever made you successful in
employee fulfillment to own their Nothing is sustainable without
people saying "This is how we do business the first place is no longer going
role for sustainable operational wholesale evolution of the
always" to carry the day and that's when
and production excellence” culture.”
- CI Divisional Manager culture will matter”
- Excellence Advisor - Global Regulatory Operations
- Global VP, CMI
Critical Challenges
A Closer Look: Maintaining Key Priorities
“Maintaining key priorities, due to

“Integrating CI methodologies - if
“Maintaining key priorities in a highly “Maintaining key priorities the size, we strive to be one
done well, success in this area will
regulated B2B environment is a challenge, consistently, priority always keeps company so keeping all the
drive key priority clarity and drive
as clients and regulations drive priorities and going back to sales & revenue communications up to date can be
depth of business transformation.”
they change frequently” generation” a challenge. But we do execute
- Manager, Continuous
- Chief Technology Officer - General Manager very well across the enterprise”
Improvement
- Regional Lean Leader
“Maintaining key priorities consistently, we

are facing multiple challenges in the market,
“Maintaining key priorities: We
keeping good margins while reducing
are a consulting firm and we “Alignment of Strategic Priorities “Alignment of Middle
inventories and serve the customers with
constantly chase clients' and Operational Excellence.” Management with their Priorities.”
excellence could lead to be chanceful and
priorities.” - SVP Operational Excellence - Managing Partner
pursue only one of this three key business
- Owner
metrics.”
- Plant Manager
“Sustaining: Ebb & flow of busy “Aligning and maintaining

“Aligning and maintaining our priorities, “Maintaining key priorities focus is
manufacturing environment priorities whilst different
whilst understanding the priorities of the challenging with limited resources
creates tension of priorities and departments compete for
customer" who are stretched.”
can be 'pushed aside'.” resources.”
- Operations Manager - VP, Sensor Products
- Quality Manager - Global Head, Strategy
A Closer Look: End to End Transformation
“Need for end-to-end business

“Need for end-to-end Business transformation — challenging
“Integrating an Enterprise Excellence “E2E business transformation as
Transformation due to increased traditional functional organization
business-wide Strategy, End to End Business this is encompassing all
volume (a good thing) will less model and to adapt to a more
Transformation incorporating Operational components. Consistency across
ability for high touch support for process-based structure to enable
Excellence and change Management.” the group is important.”
customers.” end-to-end transformation.”
- President, Operational Excellence - Group Process Architect
- Director, Operations - Director, Performance
Transformation
“End-to-end business transformation. While “End to end transformation. If you

“Need to support large-scale
point kaizen can be attractive, we need to “E2E business transformation don’t have end to end
business transformation and
be mindful of how improvements in one which must be based on omni- transformation, then you may
sustain business changes.”
area will impact the chain - especially as we channel operations.” simply move the issue to another
- Head of Portfolio Process &
continue to scale.” - Partner part of the business.”
Systems
- Managing Director - Global Head OpEx
“Need for ETE business “End to end transformation to “End-to-End business

“Need for end-to-end Business transformation. We don't mitigate against functional and transformation, the need for
Transformation - A matter of long-term currently look at end-to-end organizational silos and un-aligned changes to not be dragged down
competitiveness" processes typically, but I believe goals and priorities” by old processes.”
- Technology Consultant we need to.” - Senior Director, Operational - Director, IT & Corporate
- Principal, OpEx Excellence Services
Critical Challenges
A Closer Look: New Technologies
“Changing customer requirements.

“Many leaders are still trying to determine “New technology. The constant
“Technologies breed new Technology brings tsunami of
the relevance of these emerging change in software requires
opportunities, but focus must be opportunity and at the same time,
technologies to their business, while others constant adjustment and mastery
maintained on process and their customers do not know what they
struggle to define where and how to target of a variety of new approaches to
performance.” don't know, and team does not
their investments most effectively.” old issues.”
- Managing Partner fully understand customer needs.”
- Business Development Director - Annuitant
- Application Specialist
“With digitization, cloud computing, mobile

“Need to demonstrate leadership
technologies, AI client expect seamless up “Not just technology, but “Difficult to incorporate new
in technology in response to
gradation of skills to match up with understanding how new technologies into our business
customer high value problems in
crunched the time cycles, zero tolerance for technology can bring value.” services.”
the semiconductor space.”
errors, up scaling of domain knowledge.” - Solutions, Global Finance & HR - Principal, OpEx
- Director, CI
- C-Level, Operations
“Continuously changing business

“Technologies bring with them training “Keeping up New Technologies trends due to technological “New technologies are driving
requirement needs, making this the most are important to ensure that our changes which impact people & localized changed with global
challenging" clients are at the leading edge.” processes to have innovative & impacts at an increasing rate.”
- Professor - Lead Consultant agile mind sets.” - Consultant
- COO
A Closer Look: Leadership Buy-In
“Leadership understanding and buy in. If

even one senior executive is on the fence or “Leadership support, in the “Success starts at leadership and
“Need for Leadership
opposed, it signals to everyone else that it's absence of that no resources are understanding to properly lead,
Understanding & Buy-in, too much
optional. Worse, if it's a key executive, their dedicated and culture change execute, review, and hold
focus on short-term cost cutting.”
opposition can breed antipathy and cannot happen.” accountable”
- Director Decision Support
resentment.” - Operational Excellence Leader - Managing Director
- Strategy Advisor
“Lack of Leadership understanding & buy-in “Lack of/Need for Leadership

“With Leadership committed not
(lack of mindset): We are in transformation “Leadership buy-in: We have Understanding & Buy-In - e2e
only to culture change via OpEx,
and there's a lot of new buzz words: Agile, pockets of success and buy-in, but process management and
but also to wise investment in
Squad, ... the majority don't understand to change the culture of the improvements are impossible to
technology, digital transformation
these concepts…but they apply them. company and drive meaningful drive just bottom-up; strong senior
can occur and the business will
Unfortunately, Continuous improvement results and change, leadership leadership support and sponsorship
thrive.”
seems to be a word to avoid in some sectors buy-in is necessary.” is critical.”
- Director, Business
of the business...” - Process Improvement - Head of Global Process
Development
- Senior Advisor, CI Management
“Leadership understanding - thinking “Without 100% senior leadership “Leadership understanding and “Lack of leadership buy in. It is
differently about business process buy in, implementation is not buy-in. This is the most critical present in some areas but missing
accountability, requirements, and sustainable.” factor for success. Improving it from many in senior leadership.”
outcomes." - CEO makes everything easier.” - Business Excellence Manager
- OpEx Advisor & Coach - Process Improvement Manager
Your OpEx Focus
What is your OpEx Focus over the next 12-18 months?
Improving Organizational Structure

Once more, we have Culture
Data Governance & Analytics Transformation at the top of the
priority list in terms of OpEx focus,
Implementation of New Technologies coming in with almost 50%.
Customer Satisfaction
Employee Engagement
Sustaining Continuous Improvement Culture
Utilizing Practical Methodologies (Kata, Lean)
OpEx Training
Expansion of OpEx Practices It’s not surprising to note that Customer
Satisfaction is a key priority, in line with
Aligning Different Departments last year’s report, where it was the #1
priority for OpEx practitioners. This
Cost Reduction
year, however, New Technologies are
Operational Process Improvement/Efficiency also a major focus.
Eliminating Waste This is

Focus on Innovation
Overall Business Growth
Gaining Leadership Buy-in
Your OpEx Focus Share this:
What is your OpEx Focus over the next 12-18 months? Selected Responses
“Enhance organization culture to drive “Trying to develop a consistent “Aligning business goals to each
“Standardized Work, Improvement
engineering excellence and collaboration corporate wide "branding" and departments key matrixes with one
System, 5S, Gemba Walks and Kata
among teams.” organization structure” common goal across all.”
Coaching”
- Senior Manager, Business - Senior Lean Process - Customer Relationship
- Business Lead
Operations Analyst Manager
“Bootstrapping Lean Start Up

“We estimate to be around 65-70% Teams (incl. Coaching and
respect our overall goal in terms of “Aligning the team members to be Engineering IP), so that they can
“Driving Continuous Improvement Culture.” coverage of the different areas. The focused on helping customers to the iterate through small pieces of work
- Sen
enio
iorr Vice Presid
esiden
ent,
t, Oper
era
atio
tion
ns target is to arrive around 90% for the best of our ability.” that have a quantifiable value-add
end of the 2018.” - Princip
incipa
al P
PM
M Man
Manager for the Customers.”
- CECEO
O - Sen
enio
iorr Project Ma
Mannager
“Integration with new company and

“Consolidation, refinement, and
“Need to support large-scale business using this forced culture change to
“Improved patient centered focus of care replication of targeted lean and agile
transformation and sustain business show how OpEx can guide through
and population health outcomes." approaches.”
changes.” this time.”
- Global Lean & Agile
- Head of Process & - Senior Manager, Supply
- Director Leader
Systems Chain
-
Your OpEx Focus
What is your OpEx Focus over the next 12-18 months? Selected Responses Cont.
“Understanding structural cost and

“Process improvement throughout the
performance limitations and “Operational and financial metrics,
operation, fewer touches, reduced handling, “Design changes or machine
developing approaches to alleviate skill development certifications,
leveraging technology.” changes that affect first time yield.”
these limitations.” project execution”
- Operations Support Manager, - Design Engineer
- Director, Performance - Senior Process Director
Lean & Quality
Transformation
“Simplification of the assessment

“Implement ERP systems in order to process and expansion to smaller
“Change management for the current “Implementing a few behavior
extract data information for tax and sites.”
improvement projects.” changing initiatives.”
files.” - Director, Global
- VP - Principal PM Manager
- Lean Six Sigma Black Belt Improvement
“Growing our new Enterprise

“Digitization of the company follow by the “Smart hires to optimize workflow
Business Unit into the predominant “People being happy at work!”
customer engagement.” and mitigate bottlenecks.”
revenue and profit generating entity - General Manager
- Principal
for the company.”
- Managing Director -
- COO
Measures of Success Share this:
“Unfortunately our success is measured simply in ‘Numbers of’ –

people trained, projects started, etc... we need a culture shift.”
What is your primary measure of Success?
- Global Regulatory Operations, Pharmaceuticals
“Buy-in and implementation of OpEx Improvement plans

across each site as the primary roadmap for change”
- Director of CI, Medical Devices
“Cost reduction through Operational efficiencies &

centralization of functions.”
- Program Manager, Healthcare
“Effective Production Plans & Capacity Resource

13% of our respondents actually identified their key measure of success as
Plan.”
being focused around Customer Satisfaction, rather than practical KPIs or
improvement metrics.
- Head of Industrial Engineering, Apparel
Other key measures to note from these results are seeing an increase in
profitability, reduced costs, the expansion of new projects, improved safety,
“New Client Growth, Existing Client Retention” and efficiency when dealing with clients. Performance metrics are still
considered valuable when measuring success, particularly using metrics such as
- CEO, Solution Provider the Balanced Scorecard, ROI, and KPIs.
Measures of Success
What is your primary measure of success with OpEx? Selected Responses
“No common metric for success. “Profitability should be, but we

“Employee Engagement, Collaborative Depends on what part of the were too early stage, so reducing
“Multiple measures - Quality,
Innovation, Engineering Culture.” organization is sponsoring O.E. cycle time and level of effort was
Velocity, Cost, Safety.”
- Senior Manager, Business activity.” instead.”
- Global ERP, Finance & HR
Operations - Senior Lean Process - Strategic Planner, Business
Analyst Development
“A balanced scorecard of Key Performance

“Value delivered to our Customers, “Number of errors, handoffs, tasks.
Indicators (KPIs) and Key Behavior Indicators “Consistent improvement in ALL key
i.e. Improving the Customer Customer satisfaction.”
(KBIs) delivering Business Vision, Strategy & metrics.”
experience.” - President
Values.” - GM, CRM
- Project Management
- Head of Operations
“Committed to relevant and obtainable “When employees execute

“Increased time to market, customer
goals by comparing each year which goals improvements and bring ideas for “Number of process failures with
satisfaction, quality while lowering
have and haven't been achieved." improvement forward.” customer or financial impacts.”
costs.”
- Senior Director, Business - Operations Lead
- Operations Director
- Leadership Process Improvement
Measures of Success Share this:
What is your primary measure of success with OpEx? Selected Responses Cont.
“Usually this revolves around

“Change of culture such that improvement of operational and “Determining that the problem
“Providing services and insights that meet
leadership and all employees financial metrics but is confused by definition was correct and
or exceed expectations even if that means
embrace their role in continuous project execution and skill successfully implementing solutions
creating new ways of doing so, or updating
improvement, daily.” certification goals. Vision easily which result in cycle time savings
old methods to achieve that objective.”
- Principal Operational becomes myopic in lieu of outcome and greater operational efficiency.”
- Global Head
Excellence Consultant based for customer.” - Supply Chain Analyst
- Engagement Director
“KPIs On-time and in Full OTIF

“Committed to relevant and
“Efficiency in organization revenue, Perfect orders delivering CI
obtainable goals by comparing each
development of business and staff, “Elimination of waste in Operations.” employees involvement
year which goals have and haven't
increased profit.” - Head, Strategic Management percentage.”
been achieved.”
- Operations Director - GM
- Owner & MD
“Buy-in and implementation of OpEx

improvement plans across each site as the “When all can see value. Fixing “Improvement of Annual Objectives
primary roadmap for change." abnormal flow. Ultimately, business “Turnover & Margin.” KPIs.”
growth.” - Director - Lean Six Sigma
- Director, Global Continuous - Training Development Specialist
Improvement
OpEx: The Global State
Why is OpEx Generally on

Which do you think matches the wider perception of the rise?
Operational Excellence Methodologies in the business ‘Widespread

environment right now? acknowledgement of value’
‘Proliferation of Lean as a
INCREASING IN POPULARITY: 54.5% methodology’
SAME LEVEL OF POPULARITY AS LAST YEAR: 35.5% ‘Though not fully accepted,
DECREASING IN POPULARITY: 10% leadership understanding is
constantly improving’
It’s positive to find that 90% of our respondents believe the wider perception of
Operational Excellence Methodologies to be maintaining, or increasing. As traditional
methodologies such as Lean and Kaizen continue to be implemented in organizations,
Operational Excellence is also growing in what it encompasses – particularly regarding
the rise of Digital Transformation.
However, 20%* of our respondents still believe Lack of Leadership understanding &
buy-in to be one of their most critical challenges, signaling that, whilst OpEx is gaining
visibility, there is still a long way to go for many Operational Excellence Practitioners
looking to implement best practices in their organizations.
*See pages 12 & 15 for more.
OpEx: The Global State Share this:
What do you believe to be the greatest development for Operational Excellence in the past 5 years?
It’s not easy to select just one key development for the world of Operational
Excellence. In the last 5 years, new technologies and AI have developed, and
many respondents suggest that the entire nature of Operational Excellence has
developed to be more inclusive, more adaptable, and more personalized to
each organization.
Rather than quantify the results here, we’ve provided the key arguments &
responses made in the survey, by job title and industry. Take a look below for
insights into what practitioners consider the key developments.
“Change in mindset from a tactical

“Expanded focus on strategic and “I don't believe much has changed in
Kaizen and tools driven methodology
“Expanding to incorporate multiple daily management practices to drive the past 5 years in terms of theory and
to focus on building, engaging and
methodologies rather than just a one employee engagement and CI application – what’s changed is a shift
empowering teams. Movement from
size fits all approach.” instead of just focusing on tools.” in the type of companies looking to
tools to interactions.”
- Director, Healthcare - Global Head, Aerospace & achieve operational excellence”
- Supply Chain Director, Medical
Defense - Head of Quality, Technology
Devices
“Translating to frontline staff in a “Getting employee buy-in to embrace “Online training to develop internal
“Moving from the world of lean tools
meaningful way.” Lean fundamental thinking” resources in lean process improvement
to People-Centric Leadership”
- Corporate Director, Quality, - Tech Team Advisor, methodologies”
- Exec Director, Education
Medical Facility Technology - Lean & Quality, Apparel
OpEx: The Global State
What do you believe to be the greatest development for Operational Excellence in the past 5 years?
“More in-house employee training

to build their professional
“Agile practices and deep/machine
“Integration of OpEx with Business “Big data and KPI development.” development that creates
learning capabilities.”
Transformation Strategies.” - - CEO, Engineering & confidence in company
- Principal, IT Services
- - President, Pharmaceuticals Construction communication.”
- Leadership Advisor,
Miscellaneous
“Progressing operational improvement “Increased intuition built in to

“Driving CI down to the floor,
from project based waterfall delivery to collaboration s/w & Learning
“Finding a way to increase everybody everyday solving
stable, persistent teams doomed to fail Management Systems tailored to
Operational Excellence without problems. not putting all
without the engineering IP to fundamentally various work places inclusive of
creating more overhead/process for improvements in the hands of a few
simplify the IT environment and remove the virtual, asynchronous, & mobile &
team members.” engineers.”
delivery dependencies.” home-based workers.”
- Principal, Computer Software - OpEx Leader, Medical
- Project Manager, - CEO, Medical Devices
Devices
Telecommunications
“Linking it to quantifiable business

“Coupling Lean and Six Sigma as an “Artificial intelligence (AI)
performance that matters to “Technologies that are making
integrated methodology for improvement." capabilities.”
investors or the Board.” operational lives easier.”
- Senior Director, Medical
- Strategic Advisor, IT - GM, CRM, Real Estate
- Process Analyst, Telecoms Facility
Services
OpEx: Key Industry Drivers Share this:
What are the Key Drivers pushing change in the Operational Excellence Ecosystem?
The threat of new competition is a major incentive for many organizations to begin, or invest in, their Operational Excellence
methodologies. With more than 20% of respondents citing this as a key driver of change, it’s not hard to understand why businesses
under constant pressure from new competition are determined to adopt a culture of Operational Excellence, reduce cost, and increase
their ROI.
See below for the top 5 most mentioned drivers, and continue on the next page for more detailed snapshots of responses.
"There is now a real need for continuous improvement, in order to stay competitive in a very competitive
#1 Threat of new competition global market."
"The ability to connect with customers, internally & externally, is now almost ubiquitous - easy to learn,
#2 Needs of the customer seamless and intuitive."
"We are all facing corporate-driven targets in cost & working capital reduction, in attempts to off-set declining
#3 Need to reduce cost revenue."
"Companies are scrambling to keep up with the latest tech, but these solutions are worthless without the right
#4 New technologies company culture to make the most of them."
"Start-ups and tech innovation are making the market more competitive every day, across all industries. So, it
#5 Cross-industry disruption is do or die."
Key Industry Drivers
“Sustainability and risk management “Growth and competition are driving “New insights about what works in
“Cost Optimization Customer Focus, are definitely business areas that are focus on rapid and flexible solution different functions across
Consistency of service delivery.” becoming more integrated in the offerings and execution.” organizations.”
- Director, Operational Excellence OpEx programs.” - Global Services - Director, Business
- VP, Sensor Products Lean and Operations
Agile Leader
“Leaders of companies bringing Lean “One is product pricing is at 10 year

thought further up in the organization. It is lows, and we need to drive down our
no longer something done at the Gemba by “Media attention to low productivity, costs. The other is the pending
“Pressure for financial & quality
front line employees, but also now in the difficulty automating straight merger that needs to provide
performance in healthcare.”
office spaces and in director level processes forward tasks due to inconsistency.” synergies to the new company's
- Lean Six Sigma Specialist
as well.” - CEO shareholders.”
- Senior Manager, Supply Chain - Senior Director, Maintenance
Process Improvement Process Improvement
“Market competitiveness, customer “Recognition that companies have

“Bureaucratic attitudes incorporated in the experience, sustainable operating “Competition New business models. to adapt and improve their costs
observation "If it ain't broke, break it." model to generate revenue, manage Increase of customer requirements.” and customer experience to
- President cost, and protect profits.” - Director survive.”
- Engagement Director - President
Key Industry Drivers Share this:
“Competitive pressures to deliver “Bringing together Business

“Commoditization of
“Mindset shift and value being generated by more products and services valued by Mission, Vision & Transformational
products/services, digitization, and
the business operations teams.” customers and to develop and deploy Strategy with methodologies, tools &
virtual/networked organizational
- Senior Manager, Business them before our competitors can.” techniques of Operational
models.”
Operations - Senior Lean Process Excellence.”
- Principal
Analyst - Founder
“Smart collaboration - Intelligence

“The high rate of failures. Short
“Changing needs of demanding & educated “Rapid disruption in all market places applied to processes - increasing
term thinking (too many Hunters
customers” and the high public visibility of some amount of information to be
and not enough Farmers in Op
- General Manager, Customer key disrupters.” managed efficiently addressing
leadership roles).”
Relationships - CEO Operation Excellence.”
- President,
- C-Level, OpEx Division
Operations
“24/7, 365 operations mode for most

companies. Ability to connect with
“Cost down, need for faster delivery
customers (and/or internally) that is almost “Rising awareness of healthcare
to the customer, expectations of “Cost, Risk & Customer
ubiquitous, seamless, easy to learn, & policy makers and healthcare
efficiency continue to increase.” Expectations”
intuitive. "Plug & Play" with lower costs to professionals.”
- Operational Excellence - Partner
acquire & maintain." - Chief Specialist
Leader
- CEO
Key Industry Drivers
“Showing sustainability - not revisiting the

“Processes, Platforms and “The need to adapt businesses at a “People are cluing in about Lean
same issue over and over again because it
Continuous Improvement.” rapid pace.” successes.”
cannot sustain.”
- Group Process Architect - Director, Information - Owner
- Director, PMO
Technology and Corporate Services
“Technology disruptors such as the

internet, smartphone, etc., and “Leadership, productivity, customers,
“A management buy-in at the C-level “Economic uncertainty, payment
improvements in communication, planning leader companies, innovation, new
as an enterprise wide means of changes in healthcare - continual
information sharing such as SCRUM and kind of thinking of the new people.”
improving business performance.” focus on cost cutting.”
Agile are enabling broader and more - Strategic Planning Vice
- COO - Director, Decision Support
effective coordination.” President
- Lean Six Sigma Black Belt
“Corporate driven targets in cost and

“Performance expectations in a wildly
“Nationwide pressure to reduce cost working capital reduction to offset
“Globalization, fast information, social changing global marketplace, 4
& improve patient experience.” declining revenue and EBITA
media." generations in workforce, speed of
- Principal Operational challenges.”
- Director change.”
Excellence Consultant - Senior Director, Operational
- President
Excellence
Thought Leaders & Influencers Share this:
Who are your top Industry thought leaders that you would want to learn from?
Thought Leaders: Individuals Thought Leaders: Companies
Thought Leaders & Influencers
Where would you most like to visit to see Operational Excellence in action?
#1 Toyota 26.14% Site visits are an extremely engaging

and popular way for Operational
Excellence practitioners to learn from
#2 Amazon 21.57% the leaders setting examples of

excellence in their industry.
#3 Google 18.34%
It should come as no surprise that
Toyota remains one of the most
popular choices for a site visit, with
over a quarter of respondents
#4 Microsoft 10.92% selecting it as their Site Visit of
choice.
#5 Tesla 10.39% Beyond this, we see heavyweights

Amazon, Google and Microsoft –
Apple, however, is noticeably absent.
#6 Mayo Clinic 4.64% SpaceX and Tesla have gained

popularity since last year’s survey,
#7 Autoliv 4.02% with 10% of selections for site visits,

and coming in 7th in our top Thought-
leading companies.
#8 Boeing 3.98%
Pressing Issues Share this:
What topic would you most want to hear about from an expert?
Industry Responses: Healthcare
“How to adapt innovation into a new “Organizational Culture and Employee

“Moving to customer self-help.” “Integration of CI with Providers.”
context.” Engagement.”
- Director, Business Operations - Systems Director
- Chief Specialist - Director
“Executive Leadership & Systems “Journey, and how to shape culture “Application examples of Standard “Culture Building – Senior leaders
Deployment.” with clinical staff.” Work in Healthcare.” leading lean.”
- Senior Director, Organizational - Senior Director, Business - Principal, Operational - VP Quality Operations
Innovation & Effectiveness Transformation Excellence
“What do process owners do in your “How to change a physician-centered

“Driving cultural change & global “Strategy deployment & initiative
organization?" culture.”
consistency in a fragmented business” de-selection.”
- VP Innovation & Continuous - Program Manager,
- Program Manager - VP Administration
Improvement Emergency
Pressing Issues
Industry Responses: Technology
“The best software suggestions for

“Use cases where operations drove
“Setting up and Developing Seamless “Meeting needs on a wider vs. more methodologies like Hoshin
major transformations (vs. process
Operational Strategies.” restricted budget.” Planning.”
stuff!).”
- EVP-COO - CEO - Director, Process
- Senior Director
Improvement
“Starting on the Operational

“Building an Operational Excellence
“Value & Culture Preservation in “Customer-focused Digitalization and Excellence Journey, what it takes
Culture / Defining Business
Constantly changing world.” process automation.” and how to sustain it.”
Architecture.”
- COO - Director, Process Excellence - VP Sensor Products
- Director, Mobility Processes
“The psychology of organizational “How to build and transform

“Fostering/Appreciating diversity of
change – how did they execute massive “Driving Corporate Culture Change” Organizational Culture.”
thoughts/approaches”
transformation?" - Senior Process Analyst - Senior Manager,
- Principal PM Manager
- Project Manager Business Operations
Pressing Issues Share this:
Industry Responses: Automotive & Transportation
“Integration of Management “Getting buy-in from ground-level

“Automation, and how to encourage “I would like to hear about success
System as OpEx staff; seeing sustained change in an
current workers to increase their skills to stories where the details of the old and
implementation/consolidation organization.”
adapt to the changing technologies.” new systems are explained.”
lever.” - Manager, Continuous
- Supply Chain Analyst - Design Engineer
- Senior OpEx Management Improvement
“How to create initial wins to help “Learning from past mistakes, “The threats that robotics pose to
“RPA in Operational Excellence
driving change.” essentially picking up on lessons Automotive production – replacing
Transactional operations.”
- Director, Continuous learned.” human roles.”
- Project Executive, Quality
Improvement - Senior OpEx Management - VP Sensor Products
“How to sustain employee driven

standardization, process “Case Study of self-healing
“What is the most effective methodology “Leading Transformation in
management and continuous production cells.”
for Automotive in the modern day?" Transportation”
improvement in a knowledge worker - Director of Operational
- Executive Vice President - Senior Group Manager
environment” Excellence
- Senior Agile Leader
Your OpEx Solutions
What Consultants do you currently use for your OpEx Projects?
Snapshot: Individual Responses to the Question
“I might partner with larger

consulting firms for larger projects. “We use independents for
Largely, Microsoft enterprise s/w but Operational Excellence projects.”
also, Major Health IT companies (e.g. - Senior Director,
CERNER, MEDITECH, McKesson, Maintenance Process
Allscripts).” Improvement
- COO
“Mix of vendors and consultants. -

“Looking for a more streamlined
mainly big 5, but also more niche
approach to manifesting this”
players.”
- Principal
- Group Process Architect
“Consulting is done in-house as we

“Consultants who are personal
55% of our respondents claimed not to use any kind of consultant for have several ex-consultants working
friends or acquaintances of a V.P.”
for us.”
their Operational Excellence projects, with 14% of them utilizing in-house - Senior Process Analyst
- Managing Director
consulting such as a dedicated CI team or Shared Services division. Further
to this, 30% of respondents use external consultants – however, many
sought to keep the actual names of consultants confidential.
Your OpEx Solutions
What OpEx Solutions are you hoping to invest in next year? A large number of respondents were openly unsure of their plans
for the future regarding solution providers. However, the most
common types of solutions practitioners are looking to invest in
are Data Analytics & Process Automation/RPA Solutions. Data
Analytics was mentioned by 11% of respondents, with Robotic
Process Automation & AI receiving a major 18.5% share.
The least common areas for planned investment this year are
found in Risk Management & E-Learning, at just 3% each.
Interestingly, we also see that BPM, a typically prominent area,
has dropped to only 5% - however, it may be the case that
respondents have opted to speak more specifically about their
solution needs for 2018.
Most common phrases

Enterprise resource planning, Software and Analytics were the 3
most commonly used terms by our respondents. Note, both SAP
and Minitab were explicitly mentioned as planned investments.
Your OpEx Solutions Share this:
What OpEx Solutions are you hoping to invest in next year? Selected Responses
“Need to Analysis, Simplify, and Control

“Any that can improve the process
(visually where ever possible) before
by absorbing time consuming and “Project Portfolio Management
Automating so our focus is helping clients to
potential risk activities” “Need better data analyses tools.” (PPM) software to help in managing
Analysis, Simplify, and Control. We leave
- Head of Business & - Lean Process Analyst these projects.”
automation to others who we may team up
Operation Performance - Senior Project Manager
with”
Management
- President, OpEx
“Learning more about Learning “New software is forced upon us,

“We are using our own platform - that will be
Management Systems (LMS) and e.g., new AOL "desktop" which
completed with new collaboration features in “Go to Webinars, Microsoft
Mobile Solutions for Learning & requires mastery of new approaches
the next 6 months. We are planning to create Dynamics and a host of other hybrid
enablers for excellence in Project to actions previously done on the
a spin-off company to create a separate ERP solutions.”
Mgt. What gets measured, gets previous AOL version. It has also
business based on such platform as we - Director, Operational
managed.” required becoming familiar with
invested for years on it.” Excellence
- C-Level, Operational Google systems of email/etc.”
- CEO
Excellence - President
“Our internal intranet SharePoint sites with a “Already have software platforms in “Internal upgrades primarily,
new ERP deployment.” “CRM as a cornerstone of the change, the corporation. Adding others just working with existing
the option will be cloud based.” adds complexity.” vendors/platforms.”
- Senior Director, Organizational - Managing Director - Division Operations & - Director, Mobility
Innovation & Effectiveness Lean Manager Process Ownership
Your OpEx Solutions
What OpEx Solutions are you hoping to invest in next year? Selected Responses Cont.
“None identified at this time. We are

“Adding Archicad to drawing
maximizing the use of our NetSuite ERP “We have developed our own “No large investments expected.
repertoire, looking for more
system along with iCharts in mining our applications using BI, and other Execution and utilization of existing
streamlined way to do project
business data in expressing performance applications.” softwares.”
management”
against KPI's.” - VP, Strategic Planning - President, LSS
- Principal
- COO
“In-house built OE administration

“Real-time process performance monitoring system and digital OE tools for “Better leveraging Office 365 &
“None. It is about people, not
and management; capacity management; teams to use. Currently researching enhancement on the new
software.”
data mining and predictive analytics.” enabling solutions.” membership system.”
- VP, Accounts
- Head, Global Process Management - Manager, Continuous - Global Vice President, CMI
Improvement
“Our corporation has just signed an “None, we have robust software

“Still in the planning stages, but most of the agreement for a completely new system in place that we enhance on “Financial software tools Increased
investments will be tied to KYC, data computer system, including an EMR, a yearly basis based on feedback automation to perform routine
collection, and data processing.” within the next few years.” from VOC.” tasks”
- Managing Director - Program Manager - Regional Lean Leader, - Principal
Emergency MBB
Conclusion Share this:
The results of this survey, ‘The Global State of Operational Excellence; Critical Challenges and Future Trends’, will help to shape
both the focus of content on BTOES Insights, and key areas such are Cultural Transformation, Sustainability of Programs, Strategic
Alignment and Impact of Digitalization will be addressed at the Business Transformation & Operational Excellence World Summit
(BTOES18), March 12-16, 2018, Orlando.
To learn more about BTOES18, click here, or click here to view the full agenda.
If this report has been of interest, you can subscribe to BTOES Insights for more content focusing on the future of Operational
Excellence & Business Transformation.
If you think you have the answers to some of these questions, or wish to share your thoughts, get in touch with our content team
to join BTOES Insights as a contributor, and help us bring Operational Excellence into the future.
For Media Questions Please Contact: For Partnership Opportunities Please Contact:
Content team, BTOES Insights Brian Reffell
content@proqis.com Commercial Director, BTOES Insights
UK: +44 203 435 8367 US: +1 312 496 6621 breffell@proqis.com
UK: +44 203 479 5927 US: +1 312 757 6247
With thanks to our partner:
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Experience / Lean / Strategy

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f

Key Findings this year include:

Almost half of our respondents have an Enterprise-wide OpEx Program (45.33%)

Our professionals come from a range of job functions & seniority

Key OpEx Leadership Titles

Full listing of Industry Sectors by segment

What is the Maturity of your OpEx Program?

Less than 6 Years

Less than 3 Years

Less than 6 Months

I don’t have a Program

Which department is responsible for Operational Excellence?

“Leadership support – in the absence of this,

A Closer Look: Culture Transformation

“Changing of Culture and helping “Changing and improving the

“The Company Culture defines the Company

“Changing culture - at some point

A Closer Look: Maintaining Key Priorities

“Maintaining key priorities, due to

“Maintaining key priorities consistently, we

“Sustaining: Ebb & flow of busy “Aligning and maintaining

A Closer Look: End to End Transformation

“Need for end-to-end business

“End-to-end business transformation. While “End to end transformation. If you

“Need for ETE business “End to end transformation to “End-to-End business

A Closer Look: New Technologies

“Changing customer requirements.

“With digitization, cloud computing, mobile

“Continuously changing business

A Closer Look: Leadership Buy-In

“Leadership understanding and buy in. If

“Lack of Leadership understanding & buy-in “Lack of/Need for Leadership

What is your OpEx Focus over the next 12-18 months?

Improving Organizational Structure

Eliminating Waste This is

“Bootstrapping Lean Start Up

“Integration with new company and

“Understanding structural cost and

“Simplification of the assessment

“Growing our new Enterprise

“Unfortunately our success is measured simply in ‘Numbers of’ –

“Buy-in and implementation of OpEx Improvement plans

- Director of CI, Medical Devices

“Cost reduction through Operational efficiencies &

- Program Manager, Healthcare

“Effective Production Plans & Capacity Resource

What is your primary measure of success with OpEx? Selected Responses

“No common metric for success. “Profitability should be, but we

“A balanced scorecard of Key Performance

“Committed to relevant and obtainable “When employees execute

“Usually this revolves around

“KPIs On-time and in Full OTIF

“Buy-in and implementation of OpEx

Why is OpEx Generally on

Operational Excellence Methodologies in the business ‘Widespread

*See pages 12 & 15 for more.

“Change in mindset from a tactical

“More in-house employee training

“Progressing operational improvement “Increased intuition built in to

“Linking it to quantifiable business

“Leaders of companies bringing Lean “One is product pricing is at 10 year

“Market competitiveness, customer “Recognition that companies have

“Competitive pressures to deliver “Bringing together Business