Let’s look at what Wikipedia says,
“‘Operational
Excellence’ or ‘Execution excellence’ is the execution of the strategy more
consistently and reliably’. Operational excellence is evidenced by results.
Operationally Excellent companies will have lower operational risk, lower
operating costs, and increased revenues relative to its competitors, creating
value for customers and shareholders."
Operational
excellence and continuous improvements are often used interchangeably. Continuous
improvement is an ongoing effort to improve products, services or processes incrementally. Operational excellence is about creating a mindset of continuous improvement by
adopting the right tools and principles to achieve execution excellence
Achieving
Operational Excellence requires successful implementation of an integrated business
execution system that effectively integrates four key building blocks:
- Strategy Deployment: Links strategy and execution. Can be also called as ‘Policy deployment
- Performance Management: Translates strategic initiatives into measurable goals
- Process & Service Excellence: Builds support systems and methodology to deliver best in class results
- High Performance Teams: Creates right mindset, competencies and culture to win
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