Operational Excellence refers to the controlling of the organizations’ operations to drive business growth. Hence focusing on gaining Process Efficiency, the creation of customer value and growing the business are three components that achieve operational excellence.
To achieve operational excellence, firstly the organization must define what substantiates each of these 3 components to the organization. That is, clearly define what the organization considers process efficiency, value for the customer and business growth.
Subsequently design a deployment plan. That is, what are the actions we will take to meet the strategic plan?
The crux of achieving operational excellence lies in two components. That is, firstly to have people in place with the right attitude, mindset, and the right competencies. These people must be in place to lead the process excellence initiative both as part of the process excellence team and on the business as usual operational floor.
Secondly the design of business processes. The operational processes must be well designed and efficient in aid of delivering best-in-class products and services. These best-in-class products and services must add add value to the customer. In addition, well-designed management processes ensure that the operational processes achieve their objective.
The key lies in the measurement of how the business currently operations and how it operates after the redesign. That is, measuring the process efficiency, customer value and overall business performance. Take these measures prior, intermittently and at the end of the redesign. Hence gaining an insight to assess if the outcomes align to the goals of the organization.