I primarily work with venture-backed startups and funds (e.g. private equity, venture studios) to help codifying, roll out and finally hand off to internal stakeholders their Operational Excellence Flywheel. Operational Excellence is built for the people running your organizations and initiatives, it leverages technology, but the end goal is that by consistently executing and operating with excellence, your business will get the most out of your human capital (e.g. your workforce).
Operational Excellence Flywheel AKA Optimize Your Human Capital
I build an Operational Excellence Flywheel, by first addressing the “6Ps” that make up every business.
Squishy Ps
- Purpose
- Process
- People
Data-driven Ps’
- Profit
- Product
- Performance
Most of the firms and companies I help are very clear on 2-3 of the 6Ps… often Product, Purpose or Profit (how they will or do make money) and less clear on the others. The first part of mapping an Operational Excellenc Flywheel is going through each P and understanding leadership’s goal versus where you are currently. Questions look like…
- Purpose: Does your organization know it’s purpose? Does your workforce, from C-Suite to interns? Is it documented in a clear format and easy to point back to?
- Product: does your team understand your product(s), can they speak to them intelligently, point to FAQ or documentation if complex needs arise? Is the delivery of your product(s) documented and easy to access for relevant stakeholders?
- Profit: Does your team understand how you monetize, is it clear how profit, users, or other monetization metrics tie into the larger purpose and their individual and team performance?
- Performance: Now that we are clear on our purpose, product and profit strategies, we ensure this is translated into clear, objective goals, with individual stakeholders and teams responsible for each.
- People: are the people you have in seat, the right people, to reach the goals? Are their incentives aligned? Are they bought into, the company’s purpose + understand how tracking everyone’s performance will make their jobs easier and more enjoyable?
Process: What processes are in place to ensure Operational Excellence across all Ps?
1. Modern Technology
- AI & Automation: We deploy artificial intelligence and automation tools in traditionally manual or paper-based environments. By replacing outmoded practices (e.g., spreadsheets and handwritten logs) with advanced systems, we free up human capital, reduce costs, and increase accuracy.
- Data-Driven Insights: Enhanced analytics and real-time reporting inform more agile decision-making, enabling rapid pivots and resource allocation based on current performance.
- Scalable Infrastructure: In industries typically slow to adopt cloud-based solutions, we install modern, flexible platforms that streamline operations and are readily scalable for future growth.
2. Aligned Incentives
- Shared Upside: We introduce compensation structures tied to individual and team-based performance, fostering a shared ownership mentality. In family-owned or legacy businesses, this can be a powerful motivator for employees who may have had limited profit-sharing opportunities previously.
- Clear Goals & Metrics: We work closely with management teams to set unambiguous objectives, ensuring that everyone—from the shop floor to the C-suite—strives toward the same key performance indicators.
- Culture of Ownership: Empowering employees at all levels to make decisions, innovate, and take responsibility. By instilling a mindset of shared success, we foster a culture that rewards initiative and accountability over the long run.
3. Playbooks
- Best-in-Class Practices: We draw upon proven methods from top-performing companies—across marketing, sales, customer success, and more—to build a robust library of playbooks. For businesses transitioning from legacy processes, these frameworks quickly accelerate modernization.
- Tailored Implementation: We adapt these playbooks to each acquired business, customizing them for unique market conditions and organizational nuances.
- Continuous Improvement: After implementation, we continually monitor performance, gather feedback, and refine our playbooks to keep pace with evolving business environments.