An operating principle is an operations framework or guideline that an entire organization believes is the right strategy or tactic for goals and results to be realized. Operating principles are critical in today’s complex business environment as they guide leadership and employee behavior, decision making, selection of methods and tools, progress measurement, and ultimately determine whether leadership is aligned on how goals will be achieved. The absence of operating principles can result in frequent changes of strategy and tactics, leading to confusion and frustration across the organization. Therefore, they are critical for setting direction and deciding what work the organization will perform.
In this episode, Robert Martichenko, co-author of Discovering Hidden Profit, helps us understand how organizations can operationalize principles that support value-stream thinking, and how the four core business processes should align and collaborate in order to be successful.
