What is Operational Excellence?
The term “operational excellence” (OpEx) has become commonplace today, but there remains a lack of consensus on what it actually means.
At EON, we have a concise definition that incorporates many different viewpoints. Simply put,
Operational excellence is creating a sustainable competitive advantage through operations management.
The word "sustainable" reinforces the idea that OpEx is not an outcome achieved through good fortune; an operationally excellent organization has a continuous and demonstrated
The phrase “competitive advantage” is important because it grounds OpEx in reality;
The final phrase, "through operations management," explicitly states where the competitive advantage is derived. In this case, it comes from the way Operations is managed – including business processes, work practices, and the likes.
How is OpEx Measured?
At one level, the answer to this question is simple. If the organization is outperforming its peers on key operational metrics and winning business as a result, then it can claim to be operationally excellent.
But external benchmarks only tell part of the story because the performance bar is always shifting and no business is standing still. That’s why it’s also critical to monitor the leading indicators to
- What's the addressable "gap to perfect performance" and the financial value of closing that gap?
- How many improvement initiatives is the organization undertaking, what's the estimated value of those initiatives, and the status of each?
- How much value has been delivered to the business from driving operational improvements?
- How operationally mature is the organization and how do you know?
Our Core Competency: Strategic OpEx Management
Every organization progresses through a staged OpEx Journey. At each stage, it's critical to consider four key workflows:
1. Align OpEx to the business - creating and evolving an OpEx vision, strategy, and resource model that engages leadership.
2. Implement the improvements - having a disciplined and rigorous approach to identifying opportunities to improve and making the improvements.
3. Develop the capabilities - introducing the right methods and tools, educating the workforce, and applying new skills and behaviors.
4. Measure performance - selecting and tracking the right OpEx success metrics at all levels.
The 5th workflow, Manage the OpEx Function Purposefully, is foundational and applies across all stages. A well-managed OpEx function has a clear sense of direction, a strong connection to the business, and a highly engaged team with access to the proper resources.
Our Solution: EON®
EON is specifically designed to help OpEx leaders and teams be more productive, generate impact and sustain the gains. We provide value three ways:
1. The platform: a comprehensive platform that helps facilitate strategy deployment and encourages business process standardization/improvement, among other things.
2. The playbooks: we provide access to dozens of plug n play OpEx implementation toolkits, hundreds of templates and flowcharts, and simple gap assessments.
3. The services: our service team provides configuration of client-specific maturity models, and assists with deployment planning, execution, and administration.
Learn more here...
Opex professionals to guide you down the path and serve as a "FORCE MULTIPLIER" for your team.
Prewritten & configurable implementation models used to identify opportunities and close the gap.
Cloud software created by improvement leaders for improvement leaders to help you ALIGN Opex to the business, IMPLEMENT the improvements, DEVELOP the
Want a better understanding of Strategic Operational Excellence?
Explore our Advancing OpEx ebook that defines the core elements of a well managed OpEx function.