Operational excellence happens when an organization consistently and reliably outperforms the competition through constant improvement and a dedication to customer value. When two companies have the same strategy, the operationally excellent company will have higher revenues, lower cost, and less risk. This type of execution is only possible with a combination of outstanding leadership and a culture that supports problem-solving and transparency.
Sep 25, 2019 10:42:50 AM
Aug 8, 2019 8:32:00 AM
“Culture isn’t just on aspect of the game – it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.” Lou Gerstner Jr. – IBM.
These days it is a little bit embarrassing to admit that I eat fast food from time to time, but there you have it. I like French fries, and I cannot lie. And as everyone knows, McDonald's French fries are objectively the best. One of the founding principles of McDonald’s was that the food would taste the same no matter which location you visit. I’d say they have generally achieved this aim even though most locations are franchises run by hundreds of different owners across the country.
But while the food is relatively consistent, the quality of customer service is not. The employees from one McDonalds to another are paid about the same. The employees come from the same labor market. The functional job requirements are the same. So why do some locations operate efficiently with friendly and engaged employees, while others have workers who are indifferent?
Jul 11, 2019 8:11:00 AM
The dictionary defines “principle” as “a fundamental truth or proposition that serves as the foundation for a system of belief or behavior or a chain of reasoning. Principles help us see the positive and negative results of our actions. They enable us to make smarter decisions about what we choose to do.
In business, when leaders, managers, and team members understand the principles of operational excellence, they are better able to align systems and reward ideal behavior. This creates a sustainable culture of improvement in which achieving the desired results is standard, rather than exceptional.
Topics: Operational Excellence
Jun 5, 2019 9:43:57 AM
Dr. Ethan Burris is a Professor of Management and the Chevron Centennial Fellow at the McCombs School of Business at the University of Texas at Austin. He is also the Director of the Center of Leadership Excellence for the McCombs School. He earned his Ph.D. in Management from Cornell University and has served as a Visiting Scholar at Google and Microsoft. He teaches and consults on topics relating to leadership, managing power and politics, leading groups and teams, and negotiations.
Dr. Burris’ current research focuses on understanding 1) the antecedents and consequences of employees speaking up or staying silent in organizations, 2) leadership behaviors, processes and outcomes, and 3) the effective management of conflict generated by multiple interests and perspectives. In particular, he has investigated how leaders shape employees’ decisions whether to speak up or stay silent and how leaders evaluate those who speak up.
We were pleased to have him join us at our annual user conference in Austin last year. This post is a recap of his presentation; we highly recommend that you watch it to learn more about the science behind which ideas for improvement are more likely to get promoted by managers.
Apr 10, 2019 7:37:44 AM
Starting a quest for operational excellence is one of the most significant steps an organization can take. Operational excellence involves focusing on the customers' needs, keeping the employees engage and empowered, and continually improving processes in the workplace. It requires effective problem-solving, collaboration, and leadership.
While the concept of operational excellence is not new, today’s most competitive companies take a modern approach to achieving excellence by leveraging software designed to help manage the journey toward perfection. The most helpful solutions include each of these thirteen key capabilities.
Mar 15, 2019 7:11:00 AM
The urgency to improve organizational performance is at an all-time high. Today’s customers expect more value for every dollar, knowledgeable employees are difficult to find and retain, competition is fierce, technology and data grow increasingly complex, and business models evolve ever more quickly. Given all of that and the complexity of modern organizations, a scatter-shot approach to improvement is not enough. Organizations need a systematic approach to incremental change that will drive them toward the ultimate goal of performance excellence.
The Baldrige Framework, which was developed in 1987 as a public-private partnership to be managed by the Department of Commerce, specifically the National Bureau of Standards (now called the National Institute of Standards and Technology – or NIST), provides a structure that organizations can use to diagnose weaknesses and set priorities for improvement. The approach has been proven to help organizations transform with respect to customer satisfaction, employee engagement, leadership effectiveness, resource optimization, and ultimately performance excellence.
Feb 12, 2019 8:17:00 AM
No executive in the world would turn down operational excellence if you handed it to them on a platter even if they don’t exactly know what it is. It just sounds like something awesome. But operational excellence isn’t like an hors d'oeuvre you can pluck off a tray. In order to be achieved, it must be clearly understood, injected into the culture, and supported with a methodology to guide decisions. The principles of excellence must become ingrained in everyday activities. Getting there isn’t easy, but it is operationally excellent companies that can achieve rapid growth and sustain a leading market position.