This edition of Ryan McCormack's Operational Excellence Mixtape examines why true operational excellence remains elusive despite decades of tools, frameworks, and good intentions. From reflections on learning organizations at LEGO and leadership discipline at Costco, to the hidden costs of AI-driven “workslop,” restructuring fatigue, and narrative-driven culture change, the collection reinforces that sustainable improvement depends on clarity, conviction, and long-term leadership commitment–not heroics, hype, or shortcuts.
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News, articles, books, podcasts, and videos about how to make the workplace better.
Operational Excellence, Improvement, and Innovation
Book Review: There's Got to Be a Better Way: How to Deliver Results and Get Rid of the Stuff That Gets in the Way of Real Work by Nelson P. Repenning and Donald C. Kieffer.
This book offers a straightforward and accessible overview of the core principles of operational excellence, complemented by illustrative stories. I recommend it without reservation to anyone seeking real operational improvement, but it ultimately falls short of breaking new ground or truly explaining why these principles remain the exception in many organizations.
Fortunately, the authors strive to make these ideas more relatable by avoiding excessive jargon and a clutter of tools and methodologies common in many similar books. Experienced practitioners and leaders familiar with concepts like the Shingo Model, Deming, or Lean will find themselves nodding in agreement, recognizing familiar themes such as the importance of clearly defining problems before rushing to solutions, empowering frontline staff to solve issues, striving for smooth workflow, and making work visible.
The authors do share some hard-earned wisdom to prevent readers from blindly adopting tools and tactics–like tailoring huddles and meetings to the actual pace of work and decision-making rather than applying a one-size-fits-all approach. They also offer some sharp observations, such as how “universal busyness” prevents organizations from identifying which problems truly need solving. However, their insights are unlikely to motivate operational leaders to leave their offices and fundamentally change their leadership approach.
Ultimately, the reality remains that most organizations continue to rely on heroic efforts and firefighting rather than embracing true operational excellence. The struggle endures…
Don't have time to read the book? The authors join Jamie Flinchbaugh to discuss the principles on the People Solve Problems podcast.
Becoming a Learning Organization at LEGO
Deep experience teaches us that fully implementing lean principles in a work cell unlocks human potential in a profound way. However, convincing traditional leaders of the business value, especially when it involves reevaluating entrenched operational practices, remains a significant challenge.
Several years ago, researchers conducted a study at LEGO to evaluate the effectiveness of lean practices. They used a ‘treatment' group subjected to lean changes and a ‘control' group that maintained existing processes. The goal was to assess whether lean initiatives altered employees' perceptions of learning and whether these perceptions translated into improved performance. The findings showed that both groups experienced positive changes over time, but the treatment group's improvements were more substantial. The study was recently awarded the Shingo Research Award.
Does this definitively prove that lean works? No. The researchers acknowledge that replicating these results would be difficult and that the study does not establish a direct causal relationship. Part of the marketing challenge for lean has always been that it tends to be deeply personal, situational, and local, i.e. difficult to scale. Nonetheless, it provides valuable insight into the challenge of fostering a true culture of continuous improvement within organizations.
Managing the business during a transformation
Transformation programs are often added on top of existing operations, leading to fragmentation, disconnect, and a tendency to overlook routine performance. To succeed, you must establish a robust operational foundation that seamlessly manages daily business activities throughout the transformation process.
“Workslop” is driving productivity down
Corporations are (literally) banking on the fact that AI will significantly improve productivity and drive out costs. But “workslop”, AI-generated work content that masquerades as good work but lacks the substance to meaningfully advance a given task, is driving unnecessary rework and a lack of trust in quality. Is this just part of the AI learning curve? Time will tell, but in the meantime, for many professional services, AI isn't freeing up the expected capacity.
Creating a Culture of Improvement
Costco's secret? Simplicity built on conviction.
Costco endures. It reliably delivers shareholder value, grows its membership base, and experiences high employee retention. Why? Many reasons, not the least of which is that it sticks to its principles over the long term.
Former CEO Jim Sinegal shares how, even two CEOs later, Costco continues to thrive by focusing on the ‘shop floor', disciplined practices, and continual teaching.
Everyone is “Restructuring” – what does this mean for improvement culture?
Reading the business news lately, it's hard to avoid reports of major corporations announcing “restructuring plans” – massive layoffs and closures. Why are these upheavals happening? Several reasons, but a key factor is that investors have already priced in expected future gains in productivity from AI into their valuations.
What does this mean for fostering cultures of continuous improvement? In short: it will be challenging. Having survived multiple recessions and restructuring phases, I know it often leads to indiscriminate cost-cutting, an overemphasis on short-term results, and widespread fear of job loss. While some initiatives that promise rapid, step-change improvements may be fast-tracked, they are unlikely to boost frontline engagement or long-term improvement culture.
Brace yourself – this journey will be turbulent.
Culture change is a war of narratives, not messaging
It's not unusual to hear new leaders say things like “we need a culture change”. But rather than inspire, this is likely to create reactance. But culture change isn't a ‘messaging' exercise – it's a battle of competing narratives. Here are 5 ways to win the narrative war for your culture change.
Coaching – Developing Self & Others
Brene Brown and Adam Grant on courageous leadership
Have you ever had a hard time articulating your core values? Wait until you try articulating why you feel they're your core values. Brown and Grant get together to discuss that even though the concept of vulnerability is more popular, the behaviour is probably not more prevalent, and much more.
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