Process Improvement and Operational Excellence

Process improvement and operational excellence lead to lower operational costs, increased efficiency, and higher quality. Process improvement involves management setting goals, employees adapting to achieve those goals, and management subsequently setting new objectives.

A company can only reach its goals if its roadmap is clearly defined. Every employee must know the next step, have indicators showing they are moving in the right direction, and recognize when they have reached the target. Often, Process Improvement and Operational Excellence are used interchangeably. But what do these terms actually mean?

What is Operational Excellence?

Operational excellence is an approach consisting of principles, systems, and tools designed to ensure the sustainable improvement of key performance metrics. It is an integral part of organizational leadership.

What is Process Improvement?

Process improvement takes a holistic approach, focusing on how processes and workflows should be supported within the company’s culture. It ensures that employees understand how the organization operates and have the necessary structures in place to resolve issues as they arise. This is a critical element in enabling employees to add value to the company.

Key Takeaways from These Concepts

• Operational Excellence is more practical and application-focused.

• Process Improvement is more analytical, involving process maps, data, and charts.

• These concepts can be interpreted differently depending on the perspective of individuals and organizations.

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However, one thing is certain: Both concepts define the journey toward excellence and the mindset needed to achieve sustainable efficiency in a company.