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What is Operational Excellence and How is it Measured?

Written by Jaysica Mistry | Feb 9, 2023 10:04:08 AM

What is Operational Excellence?

It’s a term that is heard a lot across organisations. Operational Excellence (or OpEx as it’s often abbreviated to) is not only a set of core tools and techniques, it is also a cultural transformation that allows organisations to optimise performance and achieve their strategic objectives. It may sound simple, but it’s a method that has far reaching benefits for any organisation.

Operational Excellence is a framework to support organisations improve how they work. This includes developing a clear set of core operational measures to effectively manage and track performance in line with customers’ expectations and a set of management routines that ensure every team is focused on those outcomes. This helps to embed a structured approach to effective demand and resource management and continuous improvement.

Operational Excellence is more than a set of tools. The application of these techniques accounts for only 20 percent of the core implementation, the other 80 percent comes from your people and culture. This is a significant cultural shift and therefore needs to be effectively deployed to ensure you have maximised engagement and set your people up for success.