Doing the everyday work of an organisation consistently well, and getting better at it all the time.
Operational excellence is the habit of running an organisation so that its strategy is delivered reliably, day after day, and so that the way of working keeps improving. It is more than cutting cost or fixing errors. It joins leadership, processes, people, measurement and technology into one way of working that serves customers well.
The idea has grown over several decades. It began with quality control on factory floors and has widened into an approach that fits any sector and any function, from the boardroom to the front line.
Organisations that run well tend to share a few traits. They stay close to what customers need. They trust people at every level to spot and solve problems. They base decisions on facts rather than opinion, and they treat improvement as a journey with no final stop. The benefits show up as steadier service, fewer surprises and a team that knows what good looks like.
A well-run organisation is also better placed when something goes wrong, because its processes are understood, owned and measured.
Operational excellence is often described through seven pillars. They support each other, so progress in one tends to strengthen the rest.
Leaders set a clear purpose, link improvement to the organisation’s strategy, back it with time and resources, and show the behaviour they expect.
Work is mapped, understood and owned. Waste and unnecessary complexity are removed, good practice is standardised and problems are traced to their causes.
The organisation listens to what customers need, turns it into clear requirements and checks regularly that it is delivering.
Staff are trained, trusted and recognised. Problems are treated as chances to learn rather than occasions for blame.
A balanced set of indicators shows how the organisation is performing, so decisions rest on evidence and trends are seen early.
Small, regular improvements become part of everyday work, with shared methods and routines that keep learning from being lost.
Automation, analytics and shared platforms are used to speed up work and improve decisions, with processes rethought rather than simply copied.
Operational excellence is about performing well in normal conditions. Operational resilience is about continuing to deliver critical services when conditions are not normal. Each needs the other: strong processes, clear ownership and good measurement make an organisation easier to protect, and a resilient organisation keeps its improvements from being lost to a disruption. That shared outlook is why ADOX, Advanced Operational Excellence, works across both.
To go further, see ADOX’s Operational Resilience page, the BCMS Framework and the BCM Maturity Model. Related guides: What is Business Continuity? and What is Operational Risk?
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Source: SixSigma.us, The 7 Core Pillars of Operational Excellence. This guide is ADOX’s own summary, written in its own words, and is not a SixSigma.us publication.