5 Big Benefits of Improving Operational Excellence

Operational excellence is defined as an umbrella term that "is often used when discussing strategies to maintain or enhance business performance. It occurs when an organization implements and executes its day-to-day business operations better than its competitors in their market or industry."

In other words, operational excellence is the result of business leaders intentionally streamlining the three essential elements of process, people, and technology in the context of their company's specific circumstances and goals.

Of course, the implementation of strategies that contribute to operational excellence requires time, planning, and effort. Clear and consistent communication with stakeholders is vital and must be diligently cultivated. Leaders must adapt to new technologies in order to stay ahead of competitors. And progress must be measured according to the right KPIs.

It's a lot of work. However, improving your business' operational excellence can yield several huge advantages over industry peers. Here are five key benefits.

1. Operational Excellence Yields More Productive Employees

Your employees are the "beating heart" of your company. You may have advanced technology and efficient processes. However, it's ultimately up to your employees to make your operations successful.

Improved operational excellence may involve extensive training of your new hires and your seasoned pros. Many organizations choose to implement more consistent one-on-one sessions with their team members. This approach not only coaches them on opportunities. It also helps them receive insights into how to optimize efficiency.

The overall effect? You can count on a noticeable increase in productivity from all of your employees, no matter their department.

2. Achieve Higher Profit Margins & ROI

Improved operational excellence almost always equates to higher profit margins. For example, a manufacturing improvement program can help workers meet their quotas more consistently. This might happen through increased training or enhanced technology. 

Simply put, operational excellence is an investment in itself. However, its objective is to maximize the return on business investments you've already made.

3. Streamlined Processes Benefit Employees and Customers

Processes are the binding force between people and technologies. Efficient processes yield two big benefits. First, there will be minimal friction for employees as they go through each workflow. And second, customers will have a better experience as they interact with your brand. 

In addition, using the right metrics as part of your operational excellence initiative will help clearly measure your progress. You'll also gain an easy way to identify process bottlenecks in the future.

4. Operational Excellence Leads to Reduced Waste

Waste is the great enemy of efficiency. In turn, it's the great driver of unnecessary costs. You can reduce the amount of waste your processes generate by applying operational excellence strategies to your company's particular situation. 

For example, using the Lean Six Sigma methodology can help define, measure, analyze, and improve your processes. Ultimately, you will control any problems associated with them (this is known as the DMAIC approach).

5. More Time for Management To Focus on Bigger Initiatives

Employees who are under trained, and need a certain amount of "hand-holding;" processes that are inefficient and confusing; technological tools that are sluggish and outdated — what do all of these elements have in common? They all demand attention from management — attention that could be spent on mapping out bigger initiatives for company growth. However, when leaders commit to operational excellence, they're actually giving themselves more space to strategize and plan for the future.

If you'd like to learn more about how to improve your organization's operational excellence, reach out to our team at MetaExperts today for more information. We can help you to implement positive and long-lasting change throughout your company in a short time.