Building Operational Excellence
Since 2005, KLM Technology Group along with our senior group of consultants has been hosting regional conferences, teaching at universities as adjunct professors, and conducting in-house training on Building Operational Excellence. In September 2005 KLM Technology Group hosted a regional conference titled “Building Operational Excellence in the Hydrocarbon Industry” (title courtesy of Mr. Jeff Gray). Since 2015, Operational Excellence has become the next phase of Lean Manufacturing – you can thank or curse us later.
A generally recognized definition of Operational Excellence is:
Operational Excellence is the execution of the business strategy more consistently and reliably than the competition. Operational Excellence is evidenced by results. Given two companies with the same strategy, the Operationally Excellent company will have lower operational risk, lower operating costs, and increased revenues relative to its competitors, creating value for customers and shareholders.
Some interpretations of this management philosophy are based on earlier continuous improvement methodologies, such as Lean Thinking, Six Sigma, OKAPI and Scientific Management. However, the focus of Operational Excellence goes beyond the traditional event-based model of improvement toward a long-term change in organizational culture. Companies in pursuit of Operational Excellence do two things significantly differently than other companies: they manage their business and operational processes systematically and invest in developing the right culture.
Operational Excellence manifests itself through integrated performance across revenue, cost, and risk. It focuses on meeting customer expectation through the continuous improvement of the operational processes and the culture of the organization.