Analysis of The Operating Systems - Crystal Davis

Crystal Davis - "LEAD Lean"

SHOW NOTES: Analysis of The Operating Systems 
Introduction:
Most businesses positioned in the optimum growth phase likely have their operating systems churning on auto-pilot. However, at this stage, consideration must be given to what’s next”? Is it time to sell, reinvest or do nothing. Given the fast paced of change, businesses still reeling from the pandemic, and the ease of industry disruptions with technology, let’s say that those tuning in aren’t considering doing nothing. Therefore, the options are to sell or reinvest. Either way, the business must begin to evaluate their operating system with fresh eyes, as would an interested buyer.

Last week Bill touched on the importance of building strong teams. Today, I would like to explore a few high-level aspects of the process, and systems. 

Show Objectives – The Why
Making the decision to sell or reinvest is hard decision for any business owner that has put in blood, sweat and tears to build the business to this point. Either way, it is critically important to take a step back to evaluate the strength of the system from the perspective of a new owner, or the new direction. Is the system up to the challenge? What aspects of the system might require an overhaul or an upgrade? Are new and innovative methods needed? Do you have the right talent for the future direction?  A review of the operating system is like a wellness check, which supports and enhances your decision.

Key Issues – Owner/Manager Perspective:

• What are the critical imperatives of the operating system to review?
• How does Agile-Lean support the findings of the analysis

What You Need to Know – The What

• Vision Path A or Path B
• Testing the System
• Process Stability

​What You Need to Do – The How

1. Critical Pathways for both options: define the criteria to sell or reinvest and use this to structure the analysis of the operating system. Today’s show is focused on processes and systems. In the lean world this is establishing the target condition for both pathways
2. The Scalpel Approach – using metrics to peel back the thin layers of the system and critical path processes in the value stream. Data is the new currency. Use it to prioritize what, if any, improvements are needed to make hold or improve the value of the business for resell or better positions your reinvestments.
3. Kaizen Sprints – the goal here is to move the improvement projects along quickly and in small iterations. Be Agile and Lean

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