The tool and the methodology behind it is a masterpiece for driving systemic accountability and engagement in the strategic and operational planning process. Used correctly, it builds valid goals and buy-in at as many levels as desired throughout an organization. My client used it for the first time and told me they never had as much success in reaching operational goals as with Dieter Legat's method. As a result, I recommend Dieter's book and approach to every client that is doing operational or strategic planning.
With the help of this method we developed new, deeply customer-focused strategies to dramatically increase HP‘s business in Russia and to make a con- tribution to the market in general, our top accounts and partners.
The implementation of these plans and monitoring them through to comple- tion was a key advantage of this methodology. Without this tool we could not have handled the complexity of our plan, which was made for a multi-billion dollar business in several business groups and implemented across 11 time zones.
As CEO I have used constraint focused operational planning to lead companies in several assignments.
We found the methodology very effective to focus the whole organization on the essential challenges to address—especially, as it makes visible the hurdles to execution and continuously helps to focus on the business goal and the vital few actions required to achieve it.
When I took over the Central and East European Region in July 2003, consis- ting of some 26 countries, we were only selling €131m.
Assembling the Regional team we used the methodology to set clear goals for the Region and individual countries and defined the critical success factors and necessary conditions to make this happen. This is a rigorous and iterative process leading my Region towards operational excellence. Execution was the key. We focussed on execution and reviewed progress monthly. Each year we repeated the formal planning process and again focussed on execution.
We achieved our goals each year and after 4 years reached a profitable reve- nue target of €631m. I cannot recommend more highly this methodology for achieving operational excellence.
Modern business management views a company as a value creating network and understands business leadership as achieving total focus on the market of that network.
The 5 Right methodology is a truly innovative holistic framework for this ad- vanced approach: it focuses management efforts on the (experience based) causal chain (causal analysis), thus increasing the success rate for achieving business goals.
By our experience we found this to be one of the few management metho- dologies that support both the strategic and the operational leadership system. In spite of the complexity of the task this approach serves business management as an easy to use and end-to-end management system.