What is Operational Excellence?

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:

  1. Strategy Deployment:  Links strategy and execution. Can be also called as ‘Policy deployment
  2. Performance Management: Translates strategic initiatives into measurable goals
  3. Process & Service Excellence: Builds support systems and methodology to deliver best in class results 
  4. High Performance Teams: Creates right mindset, competencies and culture to win


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