Defining operational excellence can be a challenge in itself, let alone achieving it. Here’s a quick overview of what it is, why it’s important, and how it can be reached.
Operational excellence helps you stay ahead of the competition
Operational excellence is important for businesses of all sizes, in all sectors. At its heart, the aim is to work efficiently, effectively and consistently to meet (preferably exceed) customers’ expectations. Sustainability is important. This isn’t a one-off process, but a philosophy that should be at the heart of your operating model.
There are many benefits to be gained from operational excellence, from reduced costs to improved quality, performance and revenue. It can help drive results and achieve business goals. And it can make your business more prepared to respond and adapt to change.
You’ll need to collaborate at all levels
To reach operational excellence you must involve your whole organisation. Share processes and give everyone the skills and permission to anticipate and resolve problems.
This will not only add value for customers, but will free up senior leaders to focus on strategic decisions. It could involve some cultural change, depending on how the business has previously been run.
How to implement operational excellence
Achieving and maintaining operational excellence can be complex. It may require you to go through a business transformation journey, which covers areas such as:
- Understanding and improving processes to make sure they’re being used accurately and effectively
- Scenario modelling to test and compare alternative situations using your key metrics
- Evaluating progress, timelines and expected outcomes using transformation maps and dashboards
- Proactively managing reputational, financial and operational risks
- Collaborating to connect your teams and help them work together in the best way possible
Example of results from a scenario-modelling exercise
Ready to take the first step?
You may also like
A good business transformation framework supports you as you travel from strategy to execution. We outline the six key stages to include in your plan.
You can download the BusinessOptix white paper on operational excellence here.