Use the Shingo Model to Improve Organizational and Operational Excellence

There are many models that can be used to improve the organization operational excellence. Operational excellence is an approach that focuses on improving the organization effectiveness and efficiency in providing the stakeholder with exact value by focusing on processes optimization, system synchronization, adopting best practices and tools, managing culture, managing employees and innovating. The primary goal of operational excellence is to streamline operations, eliminate waste, and optimize resources to achieve sustainable competitive advantage and superior business performance.

The Shingo Model is one of the commonly used models in Asia, Australia, Europe and America.  This model was developed by Dr. Shigeo in Japan and is currently administered by Shingo Institute, and it is a framework for achieving organizational excellence by focusing on operational excellence and continuous improvement. It is based on a set of principles and guidelines that can help organizations improve their processes and create a culture of excellence. The model proposes that sustainable good performance requires everyone to make improvements every day and that can happen when there is a common purpose and direction. This model starts with guiding ten principles that must be ingrained in the system to build a high performing culture. Dr. Shingo stance is premised on the fact that principles are enterprise laws that influence action and that govern the consequences of actions. They include respecting everyone, leading with humility, seek perfection, embrace scientific thinking, focus on process, assure quality at the source, improve flow and pull, think systemically, create constancy of purpose, and create value for the customer.

These principles are further divided into cultural enablers, continuous improvement, and enterprise alignment dimensions. Culture enablers include leading with humility and respecting everyone. Human beings are influenced by people who give them respect and employees tend relate to each other better when their relationship is based on respect principle because when they feel respected, they give far more than their hands; they give their minds and hearts as well. On the other hand, humility is a principle that is characterized by a modest or unpretentious attitude, a lack of arrogance, and a willingness to recognize one’s own limitations or weaknesses. Nelson Mandela is one of the celebrated icons who possessed this virtue, he acknowledged that he was not perfect and there is always room to improve and seek ideas from others. Improvement is only possible when people are willing to acknowledge their vulnerability and abandon bias and prejudice in their pursuit of a better way. 

Continuous improvement dimension means adopting the habit of improving business operations so that things are done in an easier, faster, and cheaper way. The principles that follow under this dimension are , seek perfection, embrace scientific thinking, focus on process, assure quality at the source, improve flow, and pull. To seek perfection the organization should strive for excellence in all aspects of operations and that requires setting interesting and ambitious goals, innovating, and getting out of comfort zone. On the other hand, applying a scientific mindset involves using data, evidence, and experimentation to identify root causes, test hypotheses, and make informed decisions. It promotes a systematic approach to problem-solving and improvement. Moreover, focusing on process means managing the business process fully so that all wasteful activities are removed to improve the speed of service delivery and satisfaction of customers. Many business problems are caused by poorly designed and unmanaged business processes. Furthermore, assuring quality at the source means doing what we must do in our respective jobs correctly the first time.

Moreover, enterprise alignment requires the organization to adopt these principles: think systemically, create constancy of purpose, and create value for the customer. These principles determine the purpose of the organization and to achieve excellence, an organization must effectively align with every value stream. To think systematically means understanding the relationships and interconnectedness of a system components to make better decisions and improvements that will align with the desired outcomes of an organization. Creating constancy of purpose means an unwavering understanding of why the organization exists, where it is going, and how it will get there. It enables people to align their actions, as well as to innovate, adapt, and take risks with greater confidence. Lastly, to create value for the customer means designing services and products that meet customer expectations.

The Shingo Model also has system aspect, tools, culture, and results dimensions which are equally important, and they must be applied to get operational excellence. The first element of guiding principles focused on how an organization can build a sustainable culture of excellence and the tools are more into the approaches and techniques that are used in doing the job. The organization system must be synchronized so that its components pull in one direction to deliver expected results.