Sitting Pretty: A Holistic Approach to Operational Performance
By David Asker & Greg VanKirk
Universal Advisor , 2005 Issue No. 2


There are four factors that affect operational performance: an organization’s people, the processes by which they work, the technology they use, and the facilities within which they function. Organizations continuously evaluate these components in an ongoing effort to maximize their operational performance; however, they oftentimes forget the most important effort — the holistic evaluation of all factors.

While all steps toward increased operational performance are beneficial, looking at people, processes, technology, or facilities independent of their combined synergy will not maximize the bottom-line benefits. Considering each factor in isolation not only clouds the focus of the overall needs of the organization but ignores the synergies and operating efficiencies that may be derived within an organization.

We believe operational performance requires a more holistic approach. Think of each of the four critical factors as a leg on a chair. Unless you consider all four, you may just topple over.

Why a Holistic Approach?

It’s important to examine technology while also considering processes and people. Technology is one tool designed and implemented to support an organization’s processes. When viewed holistically, technology designed and utilized efficiently will aid in creating an effective organization as opposed to the nonholistic approach, whereby an organization’s processes must bend around the demands and/or limitations of technology.

Likewise, many times clients are unable to make operational changes due to the physical space limitations within which their organization is housed. Through a holistic approach, space planning needs would be addressed but not without careful consideration of its relation to the overall facility planning. Remember that form must follow function; whether an organization owns or leases, the facility must meet your operational needs.

For example, maximizing space utilization may involve planning for open spaces as opposed to private offices. While this open concept promotes the greatest planning flexibility and efficiency through its extensive use of cubicles, it may not align with a company’s culture. Therefore, the best solution may be to recognize the culture and grant private offices as opposed to cubicles. An organization may then realize the rewards of content staff, which creates high staff retention, produces better service, and breeds happier clients — ultimately delivering a thriving bottom line.

In short, all four components — people, processes, technology, and facility planning — overlap; they’re very much a part of one chair.

A Client Example — Why Pay for It if You Don’t Need It?

Ann Arbor’s 15th District Court was beginning to look at physical space planning, as their current lease is due to expire in 2008. Plante & Moran Corporate Real Estate Service Advisors (CRESA) assisted the Court in establishing space and furniture standards while complying with the Michigan Judicial System requirements. In addition, Plante & Moran’s Process, Technology, & Operations team evaluated the Court’s technology needs and operations in tandem with the space planning process to best meet the court’s long-term operational needs.

Plante & Moran CRESA developed a space and furniture plan that accommodated each employee within the Court, now and going forward. Plante & Moran’s Process, Technology, & Operations team developed a set of recommendations to improve the Court’s processes and technology, including a new court management system, improving payment methods, and facilitating a team environment. The two teams worked collaboratively to assure that the court would be using the new space as efficiently and effectively as possible and that the processes and technologies complemented the plan; for example, at the Court, the clerk’s office will be located in close proximity to the courtroom to facilitate easier ticket payment.

It’s one thing to construct space; it’s another thing to think through how you’re going to operate to make the best use of it. Thanks to Plante & Moran’s holistic approach, the Court is now able to move forward with operational changes that will increase their efficiency and effectiveness. This results in a better use of resources and saves the Court money going forward. Why pay for it if you don’t need it indeed?

Sitting Pretty

People. Processes. Technology. Facilities. All must be given appropriate consideration when analyzing operational performance. Any steps toward increasing operational performance will yield some results; however, to maximize operations, it’s important to look at the various components holistically. Only then can you sit comfortably, knowing you’re positioned for success today, tomorrow, and into the future.