The Goal of Operational Excellence

Definition of Operational Excellence

Before speaking to the goal of operational excellence, let’s define it. Operational excellence is a business management approach that focuses on continuously improving processes, optimizing resource usage, and enhancing customer satisfaction through a culture of continuous improvement and data-driven decision-making

The Goal

The ultimate goal of operational Excellence is to execute initiatives to create value that delights customers by meeting or exceeding their requirements while yielding a favorable sustainable profit for the business itself.

Today, we define “value” in numerous different ways. For simplicity, let’s just say that value is the delivery of the best services or products at the best price, and in the leanest, most streamlined way possible for the business. Getting this right has resulted in numerous businesses naturally winning and retaining competitive advantage and, thus, achieving long-term growth.

Key Metrics

To show results and progress, business owners and leaders need key metrics to measure, monitor, and improve. From experience, the success of operational excellence initiatives tracks across three sets of KPIs: financial, operational, and cultural.

Where are you on your operational excellence journey?