How can you innovate while maintaining standardization in business operations?
Innovation and standardization may seem like opposite goals in business operations, but they can actually complement each other if done right. Innovation can help you improve your processes, products, and services, while standardization can help you ensure quality, efficiency, and consistency. How can you balance these two aspects in your business operations career? Here are some tips to help you out.
The first step is to identify which processes are core and non-core for your business operations. Core processes are those that directly affect your value proposition, customer satisfaction, and competitive advantage. Non-core processes are those that support your core processes, but do not have a significant impact on your differentiation or profitability. You want to standardize your core processes as much as possible, to ensure that they deliver the best results and meet the expectations of your customers and stakeholders. You can innovate your non-core processes more freely, to find ways to optimize, automate, or outsource them, and free up more resources and time for your core processes.
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Emanuel S.
Manufacturing Operations | Strategic Partnerships | Business Transformations | Executive Leadership
Firstly accept that this is hard. Typically all the low hanging fruit has already been had. A culture that accepts change as a positive thing needs to be fostered. Simplify + why ? Across the whole organization focused on achieving a few key measurable outcomes. Too much at this stage and there is a risk that the process becomes unmanageable or looses momentum. I have found that removing constraints at the beginning allows the analysis of what the ideal process would look like allows the full range of possibilities to be explored and benchmarked. Reality quickly sets in based on real world constraints of affordability and regulation. However with effort and focus best practice can still be achieved.
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Dennis McCarthy
Director, DAK Consulting
Innovation occurs when existing things are used in a novel way. Don’t make the mistake of thinking that standardising work is a one off activity. Standardisation involves refining best practices so that they become easy to do right difficult to wrong and simple to learn. A situation that encourages innovation. It takes 2 or 3 iterations to get there. The outcome is to free up time previously taken to deal with human error. Translating that time into added value requires new thinking about roles and working relationships. AKA innovation.
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Kemper Morris
Leading Logistics Expert Driving Operational Excellence in Supply Chain
In my experience, limiting and compounding support functions and non-core processes has helped with profitability and excess spend. By limiting these functions, you are potentially reducing roadblocks and slow downs on production.
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Rodica Ghinea
Founder at International Business Processes Excellence
First of all we need to understand that the standards are dynamic and they should be used as a lavarage for the next innovation. The standardisation and innovation support each other, they do not eliminate each other. Any type of innovation (products, services, processes) has to be followed by a standard. After a period of time of fine tuning of the innovation, when want to innovate you have a higher point to start. To obtain maximum benefits from innovation create standards.
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Vijayanand Subramanian
Operational Excellence | Quality Governance & Management | Business Transformation | Lean, Six sigma Master Black Belt | Design Thinking
Establish Clear Processes: our processes should be flexible enough to accommodate new ideas and approaches while maintaining consistency in core operations.
The second step is to implement a continuous improvement cycle for your business operations. This means that you regularly monitor, measure, and evaluate your processes, products, and services, and identify opportunities for improvement. You can use various tools and methods, such as feedback surveys, benchmarking, audits, or data analysis, to collect and analyze information about your performance and customer needs. You can then use this information to generate and test new ideas, solutions, or features, and implement the ones that work best. You can also update your standards and best practices accordingly, to ensure that they reflect the latest changes and innovations.
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Kemper Morris
Leading Logistics Expert Driving Operational Excellence in Supply Chain
Implementing continuous improvement cycles and personnel gives your production a dedicated position to improving and investigating wasteful functions or processes and helps narrow the focus of those adhering and enforcing process and procedure. Continuous improvement can experiment and test new processes backed by data before adding in changes to a workforce.
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Vijayanand Subramanian
Operational Excellence | Quality Governance & Management | Business Transformation | Lean, Six sigma Master Black Belt | Design Thinking
Focus on Continuous Improvement: Emphasize the importance of continuous improvement within your organization. Encourage employees to regularly review and refine processes to identify areas for innovation and optimization.
The third step is to foster a culture of innovation in your business operations team. This means that you encourage and support your team members to be creative, curious, and collaborative, and to share their ideas and feedback openly. You can also provide them with the necessary resources, tools, and training, to help them develop their skills and knowledge, and experiment with new approaches. You can also reward and recognize their efforts and achievements, and celebrate their successes and failures as learning opportunities. By creating a culture of innovation, you can motivate and empower your team to continuously look for ways to improve your business operations, and to embrace change and challenges.
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Ufuoma Uwejeyan
General Manager @ Sage Grey Technologies Limited | Strategic Finance Leader| Driving Revenue Growth & Operational Excellence | Expertise in Fintech, Payments & E-commerce | Championing Women in Tech
This is very important. If you are not intentional about fostering an innovative culture. Change agents will always be purged by the system.
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Steve Blassingame
Leader of Change in Manufacturing and Logistics
Perhaps the most important step is fostering a collaborative and innovative culture. If entire team is looking for improvement we have now multiplied eyes looking for improvement rather it all coming from leadership. Making everyone change agents embraces any change.
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Vijayanand Subramanian
Operational Excellence | Quality Governance & Management | Business Transformation | Lean, Six sigma Master Black Belt | Design Thinking
Encourage a Culture of Innovation: Foster a culture of continuous improvement. innovation should be part of our company values and reward employees for innovative ideas that also align with standardization goals.
The fourth step is to align your innovation and standardization goals with your business strategy and vision. This means that you have a clear understanding of what you want to achieve with your business operations, and how you want to position yourself in the market. You can then align your innovation and standardization efforts with these goals, and ensure that they support and enhance your value proposition, customer experience, and competitive edge. You can also communicate your goals and expectations to your team, and involve them in the decision-making and planning process. By aligning your innovation and standardization goals, you can ensure that they are coherent, relevant, and impactful.
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Rodica Ghinea
Founder at International Business Processes Excellence
In fact, standardization is the first and most important step of innovation. Standards has to be dynamic, and they have to be changed periodically in order to really bring real benefits to the company.
The fifth step is to balance your risks and rewards when it comes to innovation and standardization. This means that you weigh the potential benefits and costs of your actions, and make informed and rational choices. You can use various tools and frameworks, such as SWOT analysis, risk matrix, or cost-benefit analysis, to help you assess and manage your risks and rewards. You can also consult with your team, customers, and stakeholders, and solicit their opinions and feedback. You can also test and validate your ideas and solutions before implementing them, and monitor and evaluate their outcomes and impacts. By balancing your risks and rewards, you can optimize your innovation and standardization efforts, and avoid wasting time, money, or resources.
The sixth step is to learn from others who have successfully innovated and standardized their business operations. This means that you research and study the best practices, case studies, and lessons learned from other organizations or industries, and see how you can apply them to your own context. You can also network and collaborate with other professionals, experts, or mentors, who can offer you advice, guidance, or support. You can also join or create communities of practice, where you can share your experiences, insights, and challenges with your peers, and learn from each other. By learning from others, you can gain new perspectives, ideas, and knowledge, and improve your business operations skills and competencies.
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Vijayanand Subramanian
Operational Excellence | Quality Governance & Management | Business Transformation | Lean, Six sigma Master Black Belt | Design Thinking
Leverage Technology Wisely: Leverage technology to standardize repetitive tasks to streamline operations and improve efficiency without sacrificing standardization. Maintain Communication Channels: Establish regular and open communication channels where employees can share ideas and provide feedback. Test and Iterate: Before implementing major changes, test innovative ideas on a small scale and gather feedback. Provide Training and Support: Equip employees with the skills and knowledge they need to innovate effectively while adhering to established standards. Monitor Performance Metrics: Establish KPIs to measure the impact of innovation on business operations.
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Paul Dakin
Interim Manager| Manufacturing, Operations, Supply Chain, & General Management| Business Transformation, Process Optimisation| Helping Businesses Grow by Delighting Customers.
This article confuses innovation with improvement. Standardisation has little to do with the former but everything to do with the latter. Innovation is not driven by customers. Customers did not realise they wanted electric lights, photography, automobiles, integrated circuits or mobile phones until an enterprising company presented them to a well understood market. Improvement IS driven by customers. Put simply, quality (in its widest sense) is best defined as providing what the company wants with minimum variation at the optimal cost. Key to reducing variation is an appreciation of process behaviour charts. An idea of optimal cost can be gained from the Taguchi loss function. All the above is coveted in the philosophy of Deming.
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