Peak Performance

How to Achieve and Sustain Excellence in Operations Management

Patricia Melton Allen, Frances E. Alston, Emily Millikin DeKerchove

• Publisher: CRC Press
• Year: 2019
• ISBN:
  9780429836893
• Edition: 1
• Topic: Economics
• Subtopic: Economic Theory
• Index: Economics

The key to success and reaching peak performance is integrating three processes to optimize business through the use of human performance improvement tools, lean thinking, operational excellence, along with a strong organizational culture as the underpinning. These components form the basis of the Peak Performance Model. The tools presented in this book, along with the case studies, demonstrate how the model is applied and integrated into company practices. Companies and organizations want to improve their performance, but many have not integrated the right tools and processes. Through the application of the Peak Performance Model, every company can achieve and sustain Peak Performance.

chapter one

Defining peak performance and why it matters

1.1 Introduction

In today’s competitive business environment, many companies struggle to survive and realize a profit for their investors. The leaders of these companies have attempted to address this challenge in different ways with some success and failure. Many Corporate leaders have developed strategies and conducted a variety of analyses to gauge where their company is in comparison to:

• Their competition
• Assist in identifying and addressing operational and performance issues
• Identify new approaches to help move the company forward
• Retain a competitive position in their respective markets

Having knowledge of market position and how their business compares to competitors provides leaders with an opportunity to adjust their strategy and remain competitive and at times excel beyond the capability of their competitors. How to achieve the level of performance needed to sustain a business in the near and long term, and successfully compete in respective markets, is an ongoing challenge posed to many business leaders. The success of businesses depends significantly on the strategy that is developed and implemented, the leadership team, the culture of the organization, their ability to attract and retain talented employees, and the caliber of employees supporting the business. In order for a company to achieve their business objectives, operations must be strategic and sustainable. Included in a comprehensive strategy, there must be mechanisms to optimize and continue to improve performance across the board that include the human element, processes, and equipment. The desire to strive for improvement, coupled with a strategy that optimizes operational performance, is being referred to as Peak Performance for that company. Peak Performance can, and oftentimes differs, from company to company depending on the mission and goal of the company. It is even conceivable that Peak Performance can differ for companies with competing product lines in the same industry. What is Peak Performance and why does it matter? Peak Performance is achieved when an organization is able to remain highly competitive, recognized, and respected in the market in which they compete, delivers quality products and services to their customers and exceptional profits to stakeholders, and their employees want to work for the company because they are trusted and respected. A company that is functioning in the Peak Performance realm is capable of excelling in their respective business ventures, delivers exceptional value for their customers, and generates exceptional profits for stakeholders. Before an organization can reach Peak Performance, they must have the tools, processes, and practices in place that facilitate organizational effectiveness and stability. A successful organization will have processes in place to reduce and learn from human error, improve effectiveness and efficiencies, and continue to seek ways to improve.

It is recognized that Peak Performance is not easy to achieve; organizations must have a strategy and possess the staying power to impact and sustain implementation. Although not easy, it can be achieved and sustained using the tools outlined in this book. The right business strategy, coupled with a skilled leadership team and engaged employees, can help position a company to move toward achieving and sustaining their Peak Performance.

1.2 Strategic management

It has been said that “without a vision, the people will perish.” This is also true for organizations and companies. All successful companies and organizations have a vision that is reflective of strategic management decision-making. Strategic management is a process that is ingrained throughout the company and critical to the success of organizations. The process encompasses the decisions and actions that form the basis of the plans that assist the company in achieving their objectives. The strategy contains the vision for the organization and the steps needed to achieve that vision. Most strategic management plans contain key attributes that include:

• Leadership support and decision-making process
• Lean thinking leaders (leaders that are always seeking efficient and effective ways of getting things done)
• Considerations for the external environment and stakeholders
• Recognizing that strategic actions can have multifunctional impacts
• Strategic actions must target the present and the future
• The organization’s long-term viability depends on strategic actions and activities
• Allocating the resources necessary for success
• A plan and pathway for continuous improvement
• A learning organization

1.3 Workplace dynamics

Every company must deal with and adjust to workplace dynamics. More challenging is how to integrate the diversity of thoughts and cultures into a consolidated unit. Dealing with these dynamics is not straightforward and, most of the time, is tricky. Addressing workplace dynamics is not easy because it involves dealing primarily with three broad categories of behavioral attributes that form the basis of what guides behaviors in an organization (Figure 1.1). These attributes can represent competing priorities and instructions, and can be implemented in a way that seems counter-intuitive. When this occurs, it adds complexity to the prevailing workplace dynamics.

Figure 1.1 Workplace dynamics attributes.

Problem-solving can become an issue when the workplace dynamics are not aligned with the goals of the organization and the members of the organization are not engaged and do not have the appropriate relationship with each other and the leadership team. It can also become an issue if communications and trust are not fluid within the organization. Consider the following scenario; the leadership team of Company X is implementing a strategy that will streamline and increase efficiency in their procurement and receiving processes. The company conducted a proof of concept pilot-test to ensure that the process will perform as expected. The result of the pilot-test demonstrated that the concept will increase efficiency by 40% and require less human capital to implement. The leadership team communicated to the affected workers that no one will lose their job and some workers will be reassigned to other groups within the company. Employees were skeptical of what was communicated to them because management had not always followed through with decisions in the past. As a result, many of the workers began to seek employment elsewhere. This exodus of skilled workers presented additional challenges since new employees had to be sought, hired, on-boarded, and trained to perform critical tasks that were being performed by the employees that abruptly left the company. Workplace dynamics can facilitate good performance of a team to become extraordinary or cause them to fall apart. Improving workplace dynamics greatly depends on the ability to improve human relationships and behaviors. Workplace dynamics can negatively or positively impact an organization’s ability to reach their Peak Performance.

1.4 Peak performance model

It is postulated that Peak Performance will be achieved and sustained by companies when a strategic process has been established and implemented. The Peak Performance Model is one such process that, if effectively utilized, can improve a company’s performance and distinguish the company from the competition. In fact, it can drive operational performance from average to excellence. There are four functional elements of the Peak Performance Model:

• Lean
• Human Performance Improvement
• Operations Excellence
• Organization Culture

Individually, and collectively, these components will produce changes that can lead to incremental improvement in organizations. Often the changes or improvements realized are not sustained and seem like the flavor of the month to employees. However, used in unison these elements provide an organization with the best recipe for success toward achieving and sustaining their Peak Performance.

1.4.1 Lean

Lean has been tested and proven to be an exceptional process in improving performance by many companies. For example, Lean has been used successfully in the health-care industry, government, research and development, engineering, and more. The process and tools associated with implementing Lean are not optimally effective if not supported by a Lean-thinking leadership team. A Lean-thinking leader is strategic in thoughts and actions and supports a strategy of continuous improvement that is aligned with, and integrated into, the way business processes are defined and work is accomplished. There are some distinct behaviors one would expect to see from Lean-thinking leaders. These behaviors are depicted in Figure 1.2 ¹. The behaviors exhibited by leaders are important attributes that have the ability to shape the way employees act, react to work situations, perform work, and their overall commitment to the company and organization. The behavior of leadership is also important in building organizational trust, which is a key component of building relationships between organization members. Leadership behavior that builds trust exhibit the following attributes:

Figure 1.2 Lean-thinking leadership behaviors.

• Fluid communications that are honestly communicated with care
• Leading by example
• Admit mistakes when they occur
• Self-reflective and uphold commitments
• Demonstrate trust for organizational members
• Treat employees fair and equally

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