Ryan McCormack’s Operational Excellence Mixtape: February 7, 2025

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Operational Excellence, Improvement, and Innovation

Lost In The Translation: Reduce Chaos with the Base Unit

One of the biggest challenges in production planning–or integrating any data sets–is ensuring consistency when converting base units across different systems and processes. The definition of a “unit” can vary widely, leading to inefficiencies such as waste, inconsistencies, and operational bottlenecks.

For instance, a manufacturing facility might measure soda production in gallons or liters, while the bottling line fills individual bottles or cans. The warehouse tracks inventory in cases or pallets, and retailers sell the product in six-packs, single units, or bulk packages. These differences can disrupt workflows, cause miscommunication, and complicate resource allocation.

To improve efficiency and maintain seamless operations, organizations must establish a standardized “base unit” that applies across all teams and systems. Defining a common measurement minimizes errors, streamlines communication, and reduces operational strain. This approach improves cross-departmental alignment, enhances production predictability, and ultimately creates a more efficient and reliable process.

AI “Hackathons” Are The New “Rapid Improvement Events”

The 5-day Kaizen event was a cornerstone of corporate continuous improvement throughout the 1990s and 2000s. The goal of these “rapid improvement events” was to bring together cross-functional teams to quickly design, test, prototype, and implement process improvements aimed at reducing waste, boosting efficiency, or solving operational or customer-facing challenges. This high-paced approach not only developed the team's problem-solving skills but also enabled improvements that would typically take much longer to achieve. While the method has its critics and potential pitfalls, when executed effectively, it can deliver impressive results.

But are the days of butcher paper and sticky notes on conference room or shop floor walls behind us? Not necessarily. A modern twist on this concept is the growing trend of AI Hackathons. Similar to traditional Kaizen events, AI Hackathons bring together cross-functional teams for multi-day sessions where they design, test, and prototype AI-driven solutions aimed at tackling operational challenges, improving efficiency, and reducing waste–often in a fraction of the time it would normally take.

Sound familiar? It should. The essence of rapid, focused problem-solving remains the same, but with the added power of artificial intelligence.

Take, for example, GE Aerospace, which has successfully integrated AI Hackathons into its continuous improvement strategy. By leveraging AI technology in this format, they are able to accelerate innovation and create solutions that drive measurable improvements in operations.

What is Total Factor Productivity?

Many of us striving for operational excellence focus on increasing productivity, often with a narrow definition of productivity in mind. Typically, we measure it as the ratio of outputs to inputs within a specific process or business function. However, this traditional view doesn't always align with broader, more comprehensive economic measures of productivity. In North America, for instance, overall economic productivity has been stagnating for decades, despite the availability of well-established, off-the-shelf improvement methods.

William A. Levinson offers a valuable perspective on this issue by breaking down the concept of Total Factor Productivity (TFP). He explains that TFP is a more holistic measure of productivity because it accounts for both labor and capital in the production process. Unlike simple productivity ratios, which only measure outputs relative to a single input (like labor or materials), TFP considers all inputs–capital, labor, energy, and materials–helping to provide a clearer picture of how effectively an organization or economy is utilizing its resources.

Ultimately, Levinson's insights challenge the traditional view of productivity and provide a framework for achieving more sustainable and meaningful gains in operational efficiency. By using Total Factor Productivity as a guide, businesses can move beyond simplistic output-input ratios and instead target improvements that drive long-term economic growth and competitiveness.

Should We Stop Measuring Productivity If We Want To Optimize It?

Measuring productivity in knowledge work has long been a challenge for managers and a frustration for employees. The tension between leaders wanting to perfectly quantify results and efforts and employees seeking refuge from judgment and stifling dashboards can lead to endless debates about what the right measure is to tell whether productivity is improving. Joe Procopio's solution? If you want to optimize productivity, stop measuring it and optimize leadership instead.

I look forward to his elaboration on how this might be done.


Creating a Culture of Improvement

Respect at Work Returns to a Record Low

“Respect for People” is crucial in an improvement culture because it fosters empowerment, collaboration, trust, and ongoing engagement, all of which drive continuous improvement and innovation. Gallup reports that only 4 in 10 workers feel respected at work, consistent across many demographics. Leaders – you need to foster respect before you can improve. If employees do not feel respected, they will not feel empowered to improve. 

Why Your Employees Don't Invoke Their “Stop Work Obligation”

Most organizations will declare that safety is important or that there is a “Safety First” culture. Most will tell you, “See something, say something,” only to find in investigations that people were reluctant to speak up or stop the work. Why? No, it's probably not a lack of training or “lack of situational awareness”. It's much deeper and harder to solve for. Matt DiGeronimo implores leaders to wake up and address the actual underlying causes for underperforming safety cultures.

Leadership Training Should Begin In Medical School

I've spent much of my career in healthcare, where it's common for physicians to take on leadership roles, both formally and informally. However, hospitals and healthcare systems often make the mistake of placing a “brilliant jerk” in a key leadership position–someone highly skilled but lacking in leadership ability. This can have a disastrous effect on workplace culture and overall performance. To be fair, many doctors are thrust into leadership roles without any formal training or support, expected to navigate complex challenges on their own. It's time to change that. Leadership training should start in medical school.


Coaching – Developing Self & Others

Best of the Knowledge Project 2024

Mixtape readers already know that I am a huge fan of The Knowledge Project – a podcast I recommend without reservation to any continuous learners and continuous improvement enthusiasts. Not everyone has the time to spend 90 – 120 minutes listening to each episode, so Shane Parrish has offered up a compilation of the Best Conversations of 2024 to help you be even better in 2025.

Time Management While Running 3 Companies

I know, I know. Time management and productivity hacks are so 2018. However, the challenge remains for busy leaders to attend to their priorities while developing themselves and their teams, all the while leaving time for self-care and work-life balance. Jyoti Bansal runs three companies but doesn't get overwhelmed due to some key practices, such as the 30/70 rule and 30-minute mono-tasking. I'm a big proponent of having unscheduled calendars and focus time.


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Ryan McCormack
Ryan is an operational excellence professional with over 18 years experience practicing continuous improvement in healthcare, insurance, food manufacturing, and aerospace. He is an avid student of the application of Lean principles in work and life to create measurably better value.

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