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Operational Excellence Index (OEI)

An observation-based assessment on the maturity of the management system and its ability to drive business results

Operational Excellence Index (OEI)

An observation based assessment on maturity of the management system and ability to drive business results

What it is

The OEI is used to assess your organization’s current state, no matter where you are in your journey (beginning or several decades in), to give you feedback and set your next improvement aspirations

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Why choose the OEI

Improve faster by establishing a roadmap for improvement cycles to reach business targets

Build leadership capabilities to improve the management system

Share best practices across the organization to accelerate growth

Scale-up capabilities globally and benchmark with industry peers

Who can benefit?

Organizations…

…looking to baseline their ​ continuous improvement journey

…looking for ways to build or continue continuous improvement momentum

…stuck in the status quo and seeking to frame and benchmark the next steps to achieve your aspiration

A growing global community is using the OEI to accelerate progress, including quarterly forums to advance learning and growth among leaders

Improvement on OEI scores has led to:

50%

productivity improvement

25%

quality improvement

21%

increase in employee morale

14%

decrease in cost

13%

increase in customer satisfaction

Our process to conduct the OEI assessment has four main steps

Preparation

3 weeks

Prepare calendar and agenda for assessment

Determine session locations (and confirm virtual capability)

Collect performance data and other necessary information

Launch leader self-assessment (LSA)

Assessment

2-3 days

Kick-off assessment

Observe operations (can be done remotely)

Conduct individual and panel interviews

Calibrate and summarize observations

Highlight opportunities and strengths as a basis for next round of improvement

Leadership workshop

2 hours

Share observations

Identify possible actions/steps on how to achieve the next level of performance improvement

Improve

Ongoing

Monitor and track progress

Train leaders in OEI to expand impact of OEI assessments and embed methodologies in daily practice

Our process to conduct the OEI assessment has four main steps

Preparation

3 weeks

Prepare calendar and agenda for assessment

Determine session locations (and confirm virtual capability)

Collect performance data and other necessary information

Launch leader self-assessment (LSA)

Assessment

2-3 days

Kick-off assessment

Observe operations (can be done remotely)

Conduct individual and panel interviews

Calibrate and summarize observations

Highlight opportunities and strengths as a basis for next round of improvement

Leadership workshop

2 hours

Share observations

Identify possible actions/steps on how to achieve the next level of performance improvement

Improve

Ongoing

Monitor and track progress

Train leaders in OEI to expand impact of OEI assessments and embed methodologies in daily practice

The OEI explores 39 interconnected organizational capabilities that we can assess and improve

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Note: McKinsey proprietary.

The assessed area receives OEI scores for each management discipline, comparing it to benchmarks and driving recommendations for improvement

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The OEI score​ is a quantative measurement of the continuous improvement progress

Interactive reports​ compare sites’ performance to peers and McKinsey’s growing global benchmarking database (over 1200 assessments across multiple sectors and functions)

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Breakdown of scores​ by management discipline, compared to previous scores to track improvements

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Strengths and opportunities provide detailed, actionable, synthetized advice​ and insights to drive improvement

OEI provides a series of progressive offerings to enable continuous learning and growth in organizations over multiple years of practice

Outside-in assessment

Assessment conducted by McKinsey OEI experts to provide an external perspective and benchmarks

OEI benchmark database subscription

Independently conduct assessments at scale (w/o McKinsey) by accessing to OEI tools and services to keep growing the aspiration and leaders capabilities

Apprenticing

Apprenticeship on the job of future OEI assessors through joint assessments including debriefs, coaching & feedback, including how to perform a Mini OEI

Here are some client examples

A leading steel processing company achieved significant gains in productivity and morale

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An asset management organization grew three times faster than peers by improving OEI scores, which in turn directly affected multiple KPI dimensions

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Learning to assess the management system became an insurer’s leadership development program and kicked off continuous improvement

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The OEI helps companies track progress and keep momentum going by generating impact year after year

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By working with us, you will have access to

Experts

Our industry and functional experts will be on the ground where and when you need them.

Helpdesk

Our helpdesk will keep doors open and commit to addressing your concerns efficiently and effectively.

Training

We offer coaching and build capabilities for your teams to deliver sustained improvements.

Implementation

We partner with you and co-create a firm path to implementation as part of the project.

Connect with us to find out more

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