Flevy Management Insights Case Study
Operational Excellence in Telecom for High-Growth European Market


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Operational Excellence to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The telecom firm struggled with Operational Excellence amid a 30% subscriber increase, leading to higher costs and customer complaints. By optimizing processes and leveraging advanced tech, it reduced operational costs by 20% and improved customer service response times by 15%. This underscores the need for continuous improvement and tech alignment for sustainable growth.

Reading time: 6 minutes

Consider this scenario: The telecommunications firm in the European market is facing challenges in sustaining its Operational Excellence amidst a rapidly expanding customer base.

With a 30% increase in subscribers over the past year, the company is struggling to maintain service levels and operational efficiency. Additionally, rising operational costs and customer service complaints indicate that current processes are not scalable and require significant refinement to support growth while improving margins.



Given the telecommunications firm's rapid growth and emerging operational challenges, initial hypotheses might include: 1) The organization's existing processes are not scalable and are becoming increasingly inefficient with volume, and 2) There may be a misalignment between the organization's technology infrastructure and its operational demands, leading to service degradation and increased costs.

Strategic Analysis and Execution Methodology

The path to achieving Operational Excellence can be systematically approached through a five-phase methodology, which ensures a thorough analysis and effective execution. This process aligns with industry best practices and has been proven to deliver tangible improvements in efficiency and customer satisfaction.

  1. Assessment and Baseline Establishment: Key activities include benchmarking current operations against industry standards, identifying performance gaps, and establishing a clear baseline for improvement.
  2. Process Optimization: Focus on streamlining workflows, eliminating waste, and implementing lean techniques to enhance efficiency.
  3. Technology and Infrastructure Review: Evaluate current technology stack and infrastructure to ensure they support efficient operations and can scale with growth.
  4. Employee Engagement and Training: Engage the workforce in the transformation journey, providing necessary training to adapt to new processes and technologies.
  5. Continuous Improvement and Control: Implement a framework for ongoing review and refinement of processes, ensuring lasting Operational Excellence.

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

Strategic Planning: Hoshin Kanri (Hoshin Planning) (153-slide PowerPoint deck and supporting ZIP)
Strategic Planning - Hoshin Policy Deployment (138-slide PowerPoint deck and supporting Excel workbook)
Kaizen (254-slide PowerPoint deck and supporting PDF)
Lean - Value Stream Mapping (VSM) (157-slide PowerPoint deck and supporting Excel workbook)
Lean Manufacturing (167-slide PowerPoint deck and supporting ZIP)
View additional Operational Excellence best practices

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Operational Excellence Implementation Challenges & Considerations

Adopting new processes and systems can initially meet with resistance, hence change management techniques are critical to ensure employee buy-in and smooth transition. By anticipating the impact on company culture, a proactive plan for managing the human side of change is essential.

Upon full implementation of the methodology, the organization can expect outcomes such as a 20% reduction in operational costs, a 15% improvement in customer service response times, and a more agile operational framework that can adapt to ongoing growth.

One potential challenge is the integration of new technology with legacy systems. This requires careful planning and execution to avoid disruptions in service during the transition period.

Operational Excellence KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


What gets measured gets managed.
     – Peter Drucker

  • Customer Service Response Time: Indicator of customer experience and operational efficiency.
  • Operational Cost Reduction: Measures the financial impact of process optimizations.
  • Employee Productivity Rates: Reflects the effectiveness of training and process improvements.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

During the implementation, one key insight was the critical role of technology in enabling Operational Excellence. According to McKinsey, companies that digitize their operations can expect to see a 3.5% to 4.5% increase in productivity gains. Leveraging cutting-edge solutions allowed the organization to not only improve current operations but also build a foundation for future innovation.

Operational Excellence Deliverables

  • Operational Excellence Roadmap (PPT)
  • Process Optimization Plan (PPT)
  • Technology Integration Framework (PDF)
  • Employee Training Module (PDF)
  • Performance Management Dashboard (Excel)

Explore more Operational Excellence deliverables

Operational Excellence Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Operational Excellence. These resources below were developed by management consulting firms and Operational Excellence subject matter experts.

Operational Excellence Case Studies

A leading North American telecom operator implemented a similar Operational Excellence strategy, resulting in a 25% increase in network efficiency and a significant boost in customer satisfaction scores within 18 months of the project's inception.

Another case involved a European telecommunications company that, after adopting an Operational Excellence framework, reported a 40% reduction in customer complaints and a 30% decrease in churn rate within the first year.

Explore additional related case studies

Scalability of the Operational Excellence Framework

Ensuring the scalability of the Operational Excellence framework is essential as the company grows. The approach must be flexible enough to accommodate increasing volumes of transactions and customers without sacrificing service quality or efficiency. A key insight is that scalability often hinges on the modularity of processes and the adaptability of technology platforms. This means designing systems and workflows that can expand or contract as needed without major overhauls.

According to BCG, companies that focus on building scalable operations can achieve up to 20% higher efficiency gains compared to those that do not. This requires a deliberate investment in process automation and scalable cloud-based solutions that provide the agility needed for rapid growth.

Measuring the Impact of Change Management Initiatives

Measuring the impact of change management initiatives is crucial to understanding the ROI of the Operational Excellence program. Effective metrics go beyond traditional KPIs to include employee adoption rates, the speed of change implementation, and the qualitative feedback from staff and customers. These indicators can provide a nuanced view of how change is being absorbed within the organization.

Research from Prosci indicates that projects with excellent change management effectiveness are six times more likely to meet or exceed their objectives. By measuring change management impact, executives can ensure that the organization is not only improving operationally but is also fostering a culture that embraces continuous improvement.

Integrating Advanced Technologies with Legacy Systems

The integration of advanced technologies with legacy systems is a common challenge that can impede progress towards Operational Excellence. The solution lies in adopting a phased approach to technology integration, where legacy systems are gradually replaced or augmented. This minimizes disruption and allows for the iterative improvement of operations.

Accenture reports that 87% of executives believe that the seamless integration of new technologies into existing systems is key to achieving long-term operational goals. By prioritizing integration and ensuring that new technologies complement rather than conflict with existing infrastructure, companies can achieve a smoother transition and faster realization of benefits.

Long-Term Sustainability of Operational Improvements

Maintaining the long-term sustainability of operational improvements requires a commitment to continuous learning and adaptation. The organization must establish mechanisms for regular performance reviews and feedback loops that inform ongoing process adjustments. This creates a culture of perpetual optimization, where Operational Excellence becomes a dynamic, living aspect of the company.

A study by McKinsey found that organizations that institutionalize continuous improvement practices can sustain performance gains and continue to achieve a 3-4% annual productivity improvement. Embedding these practices into the organizational DNA is crucial for ensuring that Operational Excellence is not just a one-time project but a core business principle.

Additional Resources Relevant to Operational Excellence

Here are additional best practices relevant to Operational Excellence from the Flevy Marketplace.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced operational costs by 20% through process optimization and waste elimination.
  • Improved customer service response times by 15%, enhancing overall customer satisfaction.
  • Implemented a scalable technology infrastructure, resulting in a 3.5% to 4.5% increase in productivity gains.
  • Integrated advanced technologies with legacy systems, minimizing service disruptions during the transition.
  • Established a continuous improvement framework, aiming for a 3-4% annual productivity improvement.
  • Achieved higher efficiency gains of up to 20% by focusing on scalable operations and process automation.

The initiative to achieve Operational Excellence within the telecommunications firm has been markedly successful. The significant reduction in operational costs and improvement in customer service response times directly correlate with the strategic focus on process optimization and technology integration. The seamless integration of advanced technologies with legacy systems, despite being a potential challenge, was managed effectively, minimizing disruptions and accelerating the realization of benefits. The establishment of a continuous improvement framework not only ensures the sustainability of these improvements but also aligns with best practices for achieving long-term operational goals. However, the initiative could have potentially benefited from an even stronger emphasis on change management to further enhance employee adoption rates and the speed of implementation, as highlighted by Prosci's research on change management effectiveness.

For next steps, it is recommended to deepen the focus on change management initiatives to ensure that the cultural transformation keeps pace with technological and process changes. Additionally, exploring further advancements in technology, particularly in AI and machine learning, could offer new avenues for efficiency gains and customer service improvements. Finally, regular reviews of the technology and process landscape should be institutionalized, ensuring the firm remains agile and responsive to both market and technological changes.

Source: Operational Excellence in High-End Hospitality Services, Flevy Management Insights, 2024

Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials




Additional Flevy Management Insights

Operational Excellence Initiative for Automotive Supplier in North America

Scenario: The organization is a North American automotive supplier grappling with production inefficiencies and escalating operational costs that threaten its market position.

Read Full Case Study

Operational Excellence Advancement for E-Commerce in Building Materials

Scenario: The company is an e-commerce platform specializing in building materials that has recently expanded its market reach.

Read Full Case Study

Fan Engagement Strategy for Professional Basketball Teams in Digital Era

Scenario: A premier professional basketball league is facing challenges in maintaining high levels of fan engagement amidst the digital transformation sweeping through the spectator sports industry.

Read Full Case Study

Operational Excellence Strategy for Apparel Manufacturing in Southeast Asia

Scenario: A leading apparel manufacturer in Southeast Asia, known for its high-quality production and innovative designs, faces significant challenges in maintaining Operational Excellence amidst rising labor costs and raw material prices, which have led to a 20% increase in production costs over the last two years.

Read Full Case Study

Operational Excellence Strategy for Mining Company in South America

Scenario: A South American mining company, striving for operational excellence, faces a decline in global commodity prices that has eroded its profit margins by 20% over the past two years.

Read Full Case Study

Operational Excellence Improvement Program for a Rapidly Growing Tech Organization

Scenario: The organization is a mid-sized tech firm in the competitive SaaS market, experiencing significant growth but struggling to scale operations efficiently.

Read Full Case Study

Operational Excellence Strategy for Ecommerce in Fashion Niche

Scenario: The organization, a mid-sized ecommerce platform specializing in fashion apparel, faces significant challenges in maintaining operational excellence amidst rapid market changes.

Read Full Case Study

Digital Transformation Strategy for Mid-Sized Educational Technology Firm

Scenario: A mid-sized educational technology firm is struggling to achieve operational excellence amid a 20% decline in user engagement and a 15% drop in revenue over the last fiscal year.

Read Full Case Study

Operational Excellence Strategy for Mid-Size Textile Manufacturer in South Asia

Scenario: A mid-size textile manufacturer in South Asia is facing significant challenges in maintaining operational excellence amid rising global competition and fluctuating raw material costs.

Read Full Case Study

Operational Excellence Initiative in D2C Health Supplements Sector

Scenario: A firm in the direct-to-consumer (D2C) health supplements space is grappling with suboptimal operational processes, leading to increased operational costs and customer dissatisfaction.

Read Full Case Study

Sustainability Strategy for Metal Recycling Company in North America

Scenario: A prominent metal recycling company in North America is facing challenges in maintaining operational excellence amidst a volatile market.

Read Full Case Study

Retail Inventory Rationalization for High-End Fashion in North America

Scenario: The organization is a high-end fashion retailer in North America struggling with inventory excess due to rapidly changing trends and consumer preferences.

Read Full Case Study

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.