Six Steps to Operational Innovation

Operational innovation is notoriously difficult. The power of creating and deploying new ways of performing fundamental business processes is indisputable; it has been the springboard to success for leading companies in virtually every industry. But many firms have failed at their efforts to make operational innovation work. What is the secret to success? The experiences of Schneider National, a transportation and logistics firm based in Green Bay, Wisconsin, provide an object lesson in how to get operational innovation right.

Founded in 1935, this privately held company has a long history of growth; by the late 1990s, it had become the largest full-load trucking firm in the country, serving customers such as Lowe’s, Wal-Mart, and Georgia-Pacific. The company had nearly $3 billion in annual revenue and more than 20,000 employees, and its orange tractors and trailers were fixtures on U.S. interstates.

But in 2000, Schneider’s growth slowed to a snail’s pace, productivity dipped, and return on capital dropped.

by Michael Hammer

Full Story: http://hbswk.hbs.edu/item.jhtml?id=4927&t=operations