Operational excellence is not a matter of opinion or just a slogan. It is a fact that businesses using the principles of operational excellence in earnest can deliver results in terms of consistent growth and profit performance in the long run. It can be created in any organization, but the central focus should always be on the consumer.
Delivering Value to Customers
Operational excellence can help in delivering the value your customers look for in your products or services. It will ensure that customers come back to relive the past experiences while doing business with your organization due to the satisfaction they have experienced owing to your excellent quality, service, price and delivery, and those small acts of personal touch.
Operational excellence involves using scientific methods to achieve the primary goal of a business, which obviously is to make money. This scientific approach to business enables people involved in the day-to-day operations of an organization measure facts, so that the causes and effects of every action can be measured. Armed with these insights, people can steer their companies to act in a way where there is a steady improvement in quality and yields, which mitigate waste and cycle time.
Improves Efficiency at All Levels
Operational excellence is not only about increasing productivity or efficiency, but it is also about creating flow, so that everyone in the organization understands how their specific activities will help flow the necessary material or information through several processes to the end user.
Managers and supporting staff members must know the direction their business is going at all times. Key personnel involved in a project must be able to provide projections based on carefully defined measurements of facts. Those who practice operational excellence at all levels will be able to translate their figures from operational into financial terms quickly.
Numerous Competitive Advantages
Companies whose various departments choose the path toward operational excellence will have a variety of competitive advantages. Their knowledge of what their customers need and will respond to will be clearer and more timely. The ideas that flow from insights of key professionals and analysts of an organization will drive a variety of experiments, each of which increases the company’s knowledge of how to make money flow faster in their markets.
Those organizations pursuing operational excellence will be able to identify operational bottlenecks and the financial impact of potential improvements in their processes. Interestingly, the risks they take are far less than others because they have established a series of proven processes, which ensure guaranteed results. This provides the top executives involved in the decision-making process the tools to move their business in the right direction, based on past successful experiences and future needs for growth.
Companies having operational excellence as a part of their functional process will have predictable performances across the board, which will make their finances more stable. Such companies will be able to attract top investors, who will be willing to invest more money in them than their competitors.