The 3 critical elements of Operational Excellence (2024)

I recently read an article by the Institute of Operational Excellence, entitled ‘Operational Excellence starts with Culture’. It’s a four-page article, so if you don’t have time to read it, here’s the summary…

To achieve Operational Excellence, the existing corporate culture must be addressed head on.

Whilst I agree with this, and many other points made in the article, I can’t help but think there were a couple of other words missing from the title. Culture is actually one of three essential elements that make up a company’s individual journey to Operational Excellence. The other two are Leadership & Strategy and Continuous Improvement. When all three elements are addressed together, the journey to excellence becomes much more achievable.

Leadership & Strategy

The 3 critical elements of Operational Excellence (1)

Operational Excellence is a strategic plan that requires effective leadership from the very highest level, through middle management, right down to the shop floor.

Leaders who can drive transformational change in an organisation are worth their weight in gold. They possess the skills, ideas and insights required to create the vision and direction for an organisation. Most leaders aren’t born with all these skills, but they can be developed with exposure to the right learning opportunities.

[Pic Above: Leadership Keynote: Adam Friedrick, Plant Manager, Beckett Gas, Ohio, USA - Leadership in the Value Stream - Napoleon's Corporal]

Culture & Engagement

The 3 critical elements of Operational Excellence (2)

Every employee at every level of the organisation must understand their role in the value chain and why their contribution matters. People must feel empowered to make changes if something isn’t working.

[Picture: Kevin Robinson, Asst. General Manager, Toyota Motor Manufacturing (UK)- Keynote: Leadership Culture is at the heart of TPS]

It’s all about engaging the hearts and minds of your people to turn your vision and ideas into sustainable change. The aim is to reach a point where every person in the organisation can see the flow of value to the customer, and fix that flow before it breaks down.

Continuous Improvement

The 3 critical elements of Operational Excellence (3)

There are many Lean management tools available to take with you on your chosen path: Lean, Six-Sigma, TPS, and TOC, to name a few. The challenge is selecting the right ones for your organisation, knowing how to use them, when to use them, and in what situation. A commitment to continuous improvement is not enough on its own. It requires supportive leadership and the buy-in of your people.

[Pic Right: Lean Keynote: Dr. Torbjørn Netland, Chair of Production and Operations Management, ETH Zurich Getting Your Corporate Lean Assessment Right]

Interlocking blocks

All three of these core elements are interlinked and should be given equal considered in the quest for Operational Excellence. Different organisations may have different starting points, but a deep understanding all three areas is the best preparation for the ride.

So perhaps the article title should have been ‘Effective leaders drive change and promote a culture of continuous improvement to achieve Operational Excellence!’ Doesn’t exactly roll off the tongue, does it!

Journey to Excellence 2017

The 3 critical elements of Operational Excellence (4)

Whether you’re about to begin, re-launch or trying to sustain your own journey to Operational Excellence, the True North Excellence conference is the place to discover everything you need to know about the three key elements.

Journey to Excellence 2017, 21-22 June, Old Trafford, Manchester, UK, is a two-day conference offering best practice learning experiences, knowledge, experience and practical insight. With international keynote speakers, case studies and practical workshops from brands such as Toyota, Porsche and Philips, plus the opportunity to visit the factories of Jaguar Land Rover and Milliken, to name just two, the conference is your ideal travel companion for the challenging journey ahead.

The 3 critical elements of Operational Excellence (5)

Visit the True North Excellence website to learn more and take advantage of our mega early bird booking rate.

The 3 critical elements of Operational Excellence (2024)
Top Articles
Latest Posts
Article information

Author: Pres. Carey Rath

Last Updated:

Views: 6432

Rating: 4 / 5 (41 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Pres. Carey Rath

Birthday: 1997-03-06

Address: 14955 Ledner Trail, East Rodrickfort, NE 85127-8369

Phone: +18682428114917

Job: National Technology Representative

Hobby: Sand art, Drama, Web surfing, Cycling, Brazilian jiu-jitsu, Leather crafting, Creative writing

Introduction: My name is Pres. Carey Rath, I am a faithful, funny, vast, joyous, lively, brave, glamorous person who loves writing and wants to share my knowledge and understanding with you.