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Operational Excellence is a business philosophy and approach that focuses on continuously improving the performance and efficiency of an organization's operations. It involves identifying and implementing best practices, processes, and technologies that can help the organization to reduce waste, improve quality, and increase productivity.

The goal of Operational Excellence is to create a Culture of Excellence within the organization, in which every employee is committed to continuously improving their work and the work of the organization.

This can be achieved through a variety of means, such as implementing Lean Manufacturing principles, adopting Six Sigma Quality Management methods or using Data & Analytics to identify opportunities for improvement. Additionally, Operational Excellence often involves empowering employees to suggest and implement improvements, and providing them with the tools, training, and support they need to excel in their roles.

Operational Excellence is an important management approach that can help organizations improve their performance, efficiency, and competitiveness. By implementing best practices and empowering employees to drive Continuous Improvement, organizations can create a Culture of Excellence that drives long-term success and growth.

We also have published an in-depth article on Operational Excellence, which breaks down its 4 building blocks:

1. Strategy Deployment
2. Performance Management
3. Process Excellence
4. High Performance Work Teams

To achieve and build Operational Excellence requires the successful implementation of an integrated Business Execution System that effectively and seamlessly integrates these 4 building blocks.

For effective implementation, take a look at these Operational Excellence best practices:

• Operational Excellence: Operational Interoperability (23-slide PowerPoint deck)
• Operational Excellence Design Process (43-slide PowerPoint deck and supporting PowerPoint deck)
• Maintenance Excellence for Operations (82-slide PowerPoint deck and supporting ZIP)
• 003_Variation and DMAIC Overview (27-slide PowerPoint deck)
• Operation Management TQM, QMS, ISO 9000 & Six Sigma (56-slide PowerPoint deck)

Related Management Topics

• Six Sigma Project
• DMAIC
• Quality Management & Assurance
• ISO 9000
• Supply Chain Analysis

Related Flevy Management Insights: Case Studies

• Operational Excellence Reformation Project for a Fintech Company
• Operational Excellence Improvement Initiative for a Global Retailer
• Operational Excellence Improvement Program for a Rapidly Growing Tech Organization
• Operational Efficiency Enhancement in Renewable Energy
• Operational Excellence in High-End Hospitality Services
• Operational Excellence Enhancement in Semiconductor Industry