Cultural change and new models of operations underpin operational excellence

15/06/2023

If you look at companies that have been successful, in any industry, they have generally been able to do both: a cultural change and a new way of thinking.

We also see that society at large is changing its priorities and that these new priorities can become part of a company’s purpose and link well to operational excellence practices. Many companies have tried to do that, but they have not succeeded very well, and a large part of that is because two things have been missing: one is cultural change and the other is a new way of thinking about how to do things.

If you look at companies that have been successful, in any industry, they have generally been able to do both: a cultural change and a new way of thinking.

The way of doing business has changed a great deal over the past 10-20 years, and the changes are in increasingly rapid cycles. Indeed, the pace of change is likely to get faster and faster with the large-scale deployment of new technologies (think of the impact of generative AI in recent months, GPT-4, BARD) and more and more people online. Operational excellence therefore means doing things better, but also faster and cheaper, getting more value from the resources already available.

To remain competitive in this new environment, companies must be able to adapt quickly. This means having a well-defined purpose to which all members of the organization tend, which they deeply understand and are motivated by.

Adaptation also means having technological tools to help achieve goals efficiently, effectively, and in the shortest possible time.

Companies that achieve the most success in operational excellence are those that understand that they need to be able to predict what will happen, so they can plan for it. They are constantly looking for ways to improve their processes and for new operating models that take advantage of automation and the spread of technology throughout all layers of the organization.

It is also certainly necessary to have the right infrastructure in place to make quick decisions when things change. This includes a strong culture and a great team of people who are committed to the end goal. One must be able to measure the company”s performance against its goals and adjust those goals based on what is happening in the marketplace.

The premise is to create a culture based on high performance that values speed, innovation, and customer service. That means making sure that staff are well trained, motivated and able to do their jobs properly. With the right technology, you can be more agile and responsive to changes in the environment in which you operate, you can make better decisions more quickly, because you have access to relevant data and information at the time when you actually need it.