Continuous Improvement: The Key to Excellence in Business Processes

Accenture shows how to integrate continuous improvement initiatives into the way a company does business in order to maximize benefits.

Many companies have spent millions of dollars and years in implementing continuous improvement initiatives like Six Sigma—and yet still have little to show for it. The current economic turbulence is highlighting the need for the operational excellence that continuous improvement programs are designed to advance. Now could be the right time to get continuous improvement right, and make it part of your organization’s DNA.

As a concept, continuous improvement is as old as humankind. Today, it is dominated by two methodologies: Lean and Six Sigma. Based on the Japanese concept of kaizen, or continual improvement, Lean aims to minimize waste in business processes while Six Sigma aims to improve efficiency by reducing variation in repetitive processes.

In Accenture’s experience, four key modes of behavior must be in place to embed continuous improvement as a core capability:

• Put the Focus on Value. Companies must learn to strike a balance between creating value for customers and creating value for shareholders.
  
  
• Invest in Infrastructure. This point refers to organizational structure and alignment, training and executive accountability. This infrastructure should be organized around a center of excellence.
  
  
• Choose a Standard Approach and Toolkit. This may include Lean, Six Sigma or any combination.
  
  
• Manage Performance. A wide range of functions with the primary purpose of conveying to the business what success in continuous improvement means, and of aligning continuous improvement initiatives with what drives value in the organization.

Accenture takes a three-phased approach to continuous improvement, designed to maximize its contribution to the achievement of high performance.

• The first phase consists of an evaluation of the business and produces a well-syndicated “value agenda” that defines the value at stake and shows where the opportunities (both strategic and tactical) lie.
  
  
• The second phase builds a transformation road map to create a policy and procedures infrastructure that will support implementation. The quick wins identified in the first phase can be achieved at this point.
  
  
• Large-scale transformation occurs in the final phase. Business improvement skills are transferred through training and on-the-job coaching to make the program self-sustaining. The objective: sustained behavioral change throughout the organization.

Accenture has also identified seven impediments to achieving lasting results.

Contact us to find out how Accenture can help integrate continuous improvement into the way you work—and support the drive to achieve high performance.

Robert R. Iversen is a senior executive in Accenture Process & Innovation Performance service line. He has applied operations excellence in numerous industries including mining, metals, pulp and paper, refining, automotive, pharmaceuticals and food and beverage. He is a functional expert in lean manufacturing and maintenance has served clients across a broad span of business and operational transformations.

Melissa M. McCoy is a senior manager in Accenture Process & Innovation Performance service line. She has more than 20 years of experience in operations and consulting focusing on operations strategy and transformation; business process redesign; scheduling and warehousing; and capability building. Her consulting experience spans a diverse set of industries including automotive; consumer products and packaging; pulp and paper; and food processing.