The TIPS model was first developed by Dr. Hole to secure efficiency in turnaround cases, but can be used to strive for operational excellence in an organization.
The concept of the TIPS model:
The four componets of the TIPS model is
- Intellectual Capital
Strategy: The model starts on the bottom where Strategy is the purpose driver of the organizations. It is the road map of to the future for the organization. Business excellence is a strong and clear vision and a logical, applicable strategy, comprehensible to everybody inside and all partners outside of the organisation, to adopt.
Processes: Is the second parameter of the TIPS model. To support and the strategy, the organization need to have a end to end value stream of their work processes, it need to be measured, customer adapted, standardized methods and tools is needed.
Intellectual Capital: Is the third parameter. The employees needs skills and training, be aware of their roles and responsibilities, learning on how to cope with and be part of a continuous improvements culture. The organization need to drive HR development of its employees.
Technology: Is the fourth and last parameter. Technology needs to support the work processes of the organizations and not vice versa where the technology comes first and then working processes. The technology is also a support tool for employees, it is as much about organizational change and new ways of working, where IT and technology is support functions for the organization.
Transforming your corporate organization requires time and patience, investment in people (I, intellectual capital, TIPS model) and technology (T, TIPS model) and commitment from executive leadership, middle management, and the workforce.
The TIPS model and Continuous improvement is a way of ruling, a way of working and a way of thinking – which contribute to increased value in the short and long term for clients, employees, owners and society. It’s about the organization manages to have two thoughts simultaneously:
- Completion of work processes in the right way
- Daily improvement of the way the work processes performed on
- Some key principles for successful Continuous Improvement
The TIPS model and Continuous improvement must be anchored at board level to ensure understanding of the importance of continuous improvement efforts. For example, as the board of directors of the Norwegian Insurance company Storebrand has decided that continuous improvement (Lean) is a strategic business area that is equal the insurance business.
Management must engage themselves and all employees in the development and continuous improvement
One must treat causes, not symptoms, often we see that organizations treat symptoms rather than the underlying causes
Focusing on the customer and see it from the customer’s perspective (Lean thinking).
Focus on achieving value-creating flow and reducing waste (not value-added services, from LEAN) and variety
Decisions must be based on facts and data and not emotions
A system to improve the performance of a process, a product or an organization
Think A – Z, from end-to-end processes and systems
Implementation and training is critical to building a culture of continuous improvement
We see time and again that one cannot succeed in a process of change. In the implementation of a process of change that continuous improvement is, there’s a risk of getting lost. It is important that you work from a standard that Lean and ISO. On the other hand, it is important not to become “regular riders’ ie that all the focus will be on tools, methodologies, templates and structure and where you lose focus on what actually matters – creating lasting results through reel change. Most of us have probably been involved ‘rule riders “who should only follow a template, fill out paperwork from A – without understanding what it is all about. Then it is also no change in the organization when such persons sitting as process managers.
In order to be able to create a culture that works with continuous improvement must add a significant resource in training to provide an understanding of why and how to work with this. Through this training you will be able to create a fertile ground for the continuous development of the organization.