Operational Excellence (often referred to as Business Excellence) involves improving customer outcomes and increasing productivity through the organisation’s key processes and is an integral part of organisational leadership and management.
More than just another “buzz phrase”, operational excellence underpins any successful company’s long-term strategy and growth.
If you want to take your business productivity and growth to new heights, you’ll need to implement a practical framework and proven approach for operational excellence.
Definition of Operational Excellence
Operational Excellence may be defined simply as: An integrated collection of proven practices for how a business should operate to become the best it can possibly be – i.e. world class.
Operational Excellence is applicable to all businesses whether private or public, for-profit or not-for-profit and small or large. It results in substantial net financial benefits.
Despite the Simple Definition, the Confusion for SMEs / SMBs is Understandable
Other popular integrated collections of proven practices advocated over the past 70 years include World Competitive Manufacturing, Just In Time, Best Practice, Total Quality Management (TQM), Six Sigma, Agile, Business Improvement, Process Improvement, Business Transformation and Lean Thinking. All of these overlap significantly with each other, and fit within the umbrella term “Operational Excellence” (or “Business Excellence”).
Not surprisingly, CEOs of SMEs / SMBs can get confused as to which methodology and language they should adopt.
Even within Operational Excellence there are slight variations around the world regarding the fundamental criteria for success. For example, Singapore, Australia and the United States promote 7-8 assessment criteria for Operational Excellence, whereas the Europeans promote 9 criteria.
Common Core of Operational and Business Excellence globally
Fortunately, all of the 76 or so active national Frameworks / Models have a common core.
This core may be summarised as 5 logical and memorable Prerequisites for SMBs seeking a practical implementation approach that is easy to understand. Not surprisingly, the overriding driver of all 5 Prerequisites (see below) is Customer Focus for both internal and external customers.
- Shared Strategic Direction
- Process Design & Improvement
- Performance Measurement & Feedback
- Knowledge Capture & Leverage
- Leadership & Management of Change
This implementation sequence maximises the return on investment. It eliminates the possibility of false starts and poorly focused efforts.
Operational Excellence for Small and Medium Sized Businesses
The attainment of Business and Operational Excellence for small and medium sized businesses is now a reality with the My Business Excellence approach.
And the business case for its implementation in your business is compelling!
We have created a dedicated calculator that shows you how My Business Excellence® helps you take control of your own business, save money and guarantee fast results.