Operational Excellence

Operational Excellence (OE) enables an enterprise or organisation and its leadership to continuously improve all aspects of performance to drive profitability and create growth.

Taylor & Taylor can enable companies and organisations to transition through to Operational Excellence. Benefit from our expertise and experience to help your enterprise establish a destination to OE and build a roadmap to that destination. Once there, you'll be able to leverage operations to achieve business growth, sustainable competitive advantage and be operationally excellent by offering products and/or services that keep on attracting customers.

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There are certain principles that help explain why some firms consistently out-perform others over the longer term. Perhaps it is that winning companies have a focused, clear and convincing value proposition that enables them to convince customers to buy from them and not from their competitors. These companies at the same time will have organisational capabilities and competences that help them deliver what they promise to their customers. Value propositions may well be based on the best price and/or convenience to customers. Also, it can be taken, that a journey of continuous improvement will lead to OE, or to the point at which each and every employee can see the flow of value to the customer, and that the flow will be fixed before it breaks down and the customer has gone elsewhere, never to return.

Value Proposition

Companies that have a compelling value proposition based on 'price' or 'access' are among the cheapest and/or the easiest to deal with in their market. That's how customers are attracted and keep coming back. These companies are continuously managing their costs and, at the same time, optimising their business processes across geographical disparate, functional and organisational boundaries to allow them to operate extremely efficiently and effectively (operational excellence). They will have adopted an OE model in pursuing and gaining operational excellence.

Companies that pursue OE using an operational excellence model (there are many) are focused on cost management, quality management and process management.

Journey To Operational Excellence

Defining and agreeing the destination is critical to success (if you don't know where you're going, then it doesn't matter how you get there!), as is developing the roadmap and obtaining stakeholder buy-in (everyone in the company or organisation). Competences are key in operationally excellent organisations, where they will have developed specific competences directly related to cost management, quality management and smart process utilisation and control. Supporting the developed competences are purpose-built systems, structures, values and cultures. To be successful over the long term, companies must adopt the right strategy and take the appropriate actions to support that strategy. Leadership must be clear about the vision and mission, setting direction and goals, effective communication, employee engagement, organisational development and behaviours, smart operational processes, support processes, and evaluation and control processes.

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Wherever an action is undertaken in one management area, it must be supported and reinforced by actions taken in the other areas. In those companies and organisations that are operationally excellent, this leads to processes and systems that are constantly reviewed and improved (fixed before they are broken), that stimulate process excellence, cost consciousness and that have a focus on quality.

Developing operational excellence processes, systems and competences takes some expense, time and effort, though the effort to take market share and still be in business in the future will be worth it.

Contact Taylor & Taylor Consultants if you'd like further assistance.