Operational Excellence

The Journey to Operational Excellence (OE), like any journey, starts with a Roadmap
- Signposts along the way indicate waypoints of Risk (weaknesses and threats) and Excellence (strengths and opportunities)
The first stop on the journey is “Risk”
- Risk Management is the identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks
- An organization may use risk assumption, risk avoidance, risk retention, risk transfer, or any other strategy (or combination of strategies) in proper management of future events
The final stop on the journey is “Excellence”
- Operational Excellence is a philosophy of the workplace with a practical application where problem-solving, teamwork, and leadership results in ongoing improvement leading to accelerated growth and increased profitability
- The process involves focusing on the customers’ needs, keeping employees positive and empowered, and continually improving the current activities in the workplace
The journey has a “Destination”
- The destination is reached when every member of the organization can see the flow of value to the customer and every member of the organization can fix the flow before it breaks down

The OE Journey Roadmap

Value Protection – relates to protecting people and assets of the company
Value Extraction – focuses on operating assets to generate improved returns
Value Creation – entails improving sustainability and shareholder returns by promoting people and environment