Coping with operational excellence: a problem with a hands-on solution

Operational costs and profits are two elements that any organization monitors carefully on a regular basis. Operational efficiency is a powerful metric that takes into consideration both costs and profits within a company’s operations. Operational efficiency is also closely monitored as any manager should get to know to what extent his business is capable of producing, processing and delivering services or goods to its clients and at what cost.

Operational efficiency is also closely related to waste in terms of time, expenses, human resources etc. Minimizing waste is the goal of operational efficiency and one part of operational excellence too. Operational excellence is focused mainly on minimizing waste and at the same time maximizing the value of operations. Focusing on growth is what it is all about, but in order to achieve that growth a plan is neededwith the objective that the most appropriate and well-structured operational strategy is being crafted.

Operational efficiency and operational excellence all focus on the value that is derived from the customer. In other words, the value here is defined as what the customer really needs and wants and what the customer is willing to pay for their need. The value streams that are projected by the organization should be part of the operational strategy. Operations are revenue-critical aspects within an organization. This is why the operational strategy should be focused on making structural decisions and developing the operational capability that is necessary to produce the right kind of value for customers.

The ultimate objective is to make the organization more competitive in the market. Operational efficiency and operational excellence are both depending on the strategy. Reassuring an organization achieves both at high levels is linked directly to the overall corporate strategy goals and directions. Also, it is linked to customer-driven elements throughout operational strategy, the utilization of the organization’s core competencies and the competitive priorities.

Operational excellence is one major focus of management consulting nowadays, as consulting firms are employing experts to offer specialized advice to companies, which find operational efficiency a challenging element of their corporate strategy. Those companies are actually the clients of those consulting firms as they are trying to find creative solutions to boost operational efficiency and transform it completely. Of course, lean management and six sigma consulting are vital parts of that kind of consulting advice offered to organizations. looking forward to minimizing waste and maximizing value, therefore boosting growth.

Operational excellence is basically translated into a cause-and-effect relationship between a company’s current operational efficiency performance level and the desired state of those levels. Deep analysis and research on “why” this kind of performance is not at the desired levels along with many years of expertise on finding the most appropriate ways to achieve operational excellence are two important tasks that a consultant will take over. Some examples of that kind of consulting services, dedicated to make the best out of a transformed operational strategy are: exploring cost-effective tools, assessing the impact of service/product delivery models, developing new modernized procedures that will cut time and costs (i.e. waste) and discover the best utilization of human resources to improve the value delivered to customers. Developing the right culture within the corporate strategy might be another key to achieving operational excellence.

Management consulting is also focused on learning and development so that the culture is transformed. Combining operational excellence tactics and methods with lean management and six sigma consulting practices is what will assist organizations minimize waste and maximize value. BizXL Solutions offers all kinds of consulting assistance in order to help organizations achieve operational excellence. Discover more at: https://www.bizxlsolutions.com/operations-management/