Excellence at Every Level
All organizations reach a point where ambition simply won’t cut it anymore. There are more goals to be achieved, more competitors in the market, and higher standards expected by customers every time. But those who will always find a way to stay ahead despite all these challenges will not be the companies with the most ambitious plans on paper. These are the companies which have been secretly perfecting themselves and their operations, their processes, and their people. That’s what the concept of operational excellence stands for.
Take Stock of Where You Stand Today
An organization cannot speak about operational excellence until it has conducted an honest evaluation of itself. What are the areas where it is stuck? What are the areas where time is being spent but no value is created? What are the areas that are over-stretched when others have too much capacity left idle? It is now time for action. Perform an internal audit this month and solve at least one structural problem before the end of the quarter.
Why Efficiency Alone Is Not Enough
It is a widely held misunderstanding that operational excellence amounts to nothing more than cost reduction or personnel cuts. Such an oversimplification is detrimental rather than beneficial. Operational excellence entails aligning the three P’s – people, process, and technology – in the pursuit of one goal or objective, such that each department has something valuable to contribute to the bigger picture. It is not about reducing what one does but about doing the right things and doing them well. When firms simplify operational excellence to cost savings alone, they end up being all bark and no bite.
The Human Element Cannot Be Ignored
No matter how much you change processes or automate, nothing will work if your people doing the job are not fully engaged or equipped. Creating operational excellence needs investment in training, role clarity, and the creation of feedback loops for your people to be able to identify issues without being afraid to do so. People working in an organization recognize the areas which need improvement far before any senior management does.
Technology as an Enabler, Not a Solution
The digital tools, the automation tools, and the databases can help in decision-making, but they cannot be substitutes for wisdom and priorities. So many companies invest heavily on sophisticated software believing that the software will solve the problem caused by inadequate communication and lack of accountability. The software is as good as the process used. Prior to acquiring any software, the managers should first know what they want and whether their processes are suitable to deliver what they need.
Aligning Strategy With Execution
The value of a strategy statement lies not in itself, but in the organization’s capability to implement it. Very frequently, strategizing occurs within an isolated environment by top executives and imposed on the rest of the company without taking into consideration the practicality of the goals set out. It is precisely at this point that ambitious strategies fall through. Organizations that do well are able to connect their strategy and operations from the very start of the process.
Measuring What Actually Matters
Metrics may serve to enlighten the path ahead, or create a mirage of success. Firms striving to grow may be blinded by vanity metrics that make them sound good in the boardroom but tell them nothing about their well-being. It would be wiser to measure things that really matter, such as customer satisfaction, retention of employees, error rate, and reliability.
Sustaining Momentum Over Time
Perhaps the biggest challenge in this quest is not getting started, but rather maintaining the discipline to keep it going. Organizations often embark on efforts to improve themselves with tremendous enthusiasm, but allow their efforts to wane once the urgency has passed. The achievement of sustainable success requires that operational excellence be built into the organizational culture and continually re-examined when new obstacles arise. This process is not just about achieving a particular goal; it is about setting a standard for all decisions moving forward.
A Path Worth Committing To
The growth of an enterprise is almost never a matter of chance. Rather, it involves a commitment to executing on a consistent basis, self-assessment, and prioritizing substance over style. An organization that understands this truth sets itself up for more than mere growth, but rather for sustainable growth in any conditions. Such a commitment to growing is available to any organization that wants to do it.
