Operational Excellence
2.4 CornerstonesWhat operational excellence looks like is really a consistent way of working. So it’s really a set of culture, behaviours, mindsets and daily practices that is intimately tied to the organisations reason for being
What is operational excellence?
Definition
The structure and practice of doing the right thing, at the right time, every time
Purpose
To create a culture and framework within an organisation that consistently achieves superior performance and efficiency
What operational excellence is in practice
Operational excellence is about striving for optimal performance, or doing the right things, at the right time, every time (even when no one is looking).
Operational excellence can be broken down into two major components:
- An integrated management system
- Operational discipline
Integrated Management System
One of the purposes of the CUBE® framework is to create the foundation for an effective and fully integrated management system.
From an operational excellence perspective, the integrated management system is the backbone that should in a clear way describe how the company shall operate. It should be designed in such a way that everything the company does is designed for optimal efficiency, including how to manage deviations.
Operational Discipline
Once it’s clear how the organisation shall operate in the optimal way, everyone involved must act according to the integrated management system. Discipline in this context is not about punishment, but the systematic behaviour and integrity of doing the right things, at the right time, every time.
This does not imply that people should behave as high performing machines following a predefined algorithm. It means that every part of the organisation understands the processes that they contribute to and not only fulfil their responsibilities, but also supports each other to correct deviations and identify improvements throughout the process.
Next Step
Read more about the next Cornerstone, Continual improvement…