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 four components of the TIPS model are
- Intellectual Capital
Strategy: The model starts at the bottom, where Strategy is the purpose driver of the organization. It is the road map to the future of the organization. Business excellence is a solid and clear vision and a logical, applicable strategy, comprehensible to everybody and all partners outside the organisation to adopt.
Processes: This is the second parameter of the TIPS model. To support the strategy, the organization need to have an end-to-end value stream of their work processes, it needs to be measured, and customer-adapted, standardized methods and tools are needed.
Intellectual Capital: This is the third parameter. The employees need skills and training, be aware of their roles and responsibilities, and learn how to cope with and be part of a continuously improved culture. The organization need to drive the HR development of its employees.
Technology: This 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 the working processes. Technology is also a support tool for employees; it is as much about organizational change and new ways of working where IT and technology support 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, working and 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 are performed on
- Some fundamental principles for successful Continuous Improvement
The TIPS model and Continuous improvement must be anchored at the board level to ensure an understanding of the importance of continuous improvement efforts. For example, the board of directors of the Norwegian Insurance company Storebrand has decided that continuous improvement (Lean) is a strategic business area that is equal to the insurance business.
Management must engage themselves and all employees in the development and continuous improvement.
One must treat causes, not symptoms; organisations often treat symptoms rather than the underlying causes.
Focusing on the customer and seeing 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 are critical to building a culture of continuous improvement
We repeatedly see that one cannot succeed in the change process. In implementing a process of change that involves continuous improvement, there’s a risk of getting lost. You must work from a standard that Lean and ISO. On the other hand, it is essential not to become “regular riders, i.e. that all the focus will be on tools, methodologies, templates and structure and where you lose focus on what matters – creating lasting results through reel change. Most of us have probably been involved as ‘rule riders “who should only follow a template and fill out paperwork from A – without understanding what it is all about. Then there is no organisational change when such persons sit as process managers.
Creating 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 can create a fertile ground for the organisation’s continuous development.