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Operational Excellence Definition and How to Achieve It

4 min read

Attaining operational excellence should be the primary goal of the business as it provides an environment for sustainable growth. Technology can help you achieve this state.

To be successful, a company needs to stay on top of its game. They need to achieve operational excellence to deliver maximum performance and grow optimally. Although achieving that state is not an easy feat, the management should strive for that as there are various benefits offered to the business with it.

What is the Definition of Operational Excellence?

The concept is defined as a combination of adaptive problem solving, stellar team efforts, and good leadership that leads to the company's sustainable growth, improving its competitiveness in the market. It can achieve that optimum state through various means, such as:

  • Answering customers' demands.
  • Empowering the company's employees with a positive mindset and attitude.
  • Trying to improve the operations.
  • Increasing the quality of communication within and outside of the organization.

What is the Example of Operational Excellence?

It might be easier to see how a successful business implements this concept. Walmart is an excellent example of that. It is a US-based retail company with thousands of stores spread across the globe. Yet, despite competitors' threats, it remains the most robust retail chain.

The company has managed to maintain an optimum level of business operation. As a result, its profit margin grows as years pass by. To achieve such a strong standing, Walmart exercises various efforts, including:

  • Offering quality products at a meager cost.
  • Making product provision smoother and faster.
  • Service efficiency (minimum customization).

What are the Benefits of Operational Excellence for Your Business?

Although such a state of excellence is difficult to attain, it is something that every company must try to get. There are so many proven benefits of obtaining a high level of operational efficacy to the business:

1. More productive employees

Because the company manages to empower its employees with a great attitude, productivity will soar high. Moreover, productivity of employees translates into revenue. Thus, the company should motivate its workers to show their best shots.

2. Efficient use of resources

When a company successfully practices the best practice of business operations, it will use resources more efficiently. There will be less product and money wasted. This fund can instead be used to enrich the company in other departments. For example, the management may use the extra fund to train its human resources or do an extensive R&D program

3. Highly loyal customers

Customers are more loyal to companies that can provide them with the best services or products. Building a solid and loyal customer base is pivotal for the business's longevity. They are going to help the company maintain its strength in the market. Loyal customers are also likely to recommend products to others.

4. Quick detection of business problems

A company with a well-established operation will be able to detect problems quickly. It is because the system is very smooth that a slight bump will be easily recognized. Problems must be identified quickly to prevent them from growing more prominent and then disturbing the company as a whole.

5. Ease of business expansion

The exemplary operational efficacy provides a safe environment for the company to expand. Company management is no longer busy with repetitive operational tasks, and it can divert its attention to opportunities for innovation instead. Businesses can then expand the product lines or even the scale of their operation.

How to Successful Achieve Operational Excellence?

Seeing the many different benefits of achieving that level of operation, you should make sure that you have the right ingredients to attain that goal. Top-down and bottom-up processes must happen simultaneously. Therefore, employing technology explicitly designed to perform this function is essential.

Nimbly is a mobile application designed to make business processes more streamlined. The frontline employees can make real-time updates on their own devices, and managers will be able to monitor these activities. It is a go-to app used by many Asian companies. There are many benefits of using this auditing app:

  • Cutting down the cost of printing reports on paper.
  • Ensuring more effective communication between managers and employees.
  • Digital Checklist to ensure all tasks have been performed.
  • Reliable storage system to store all of the company's essential data.
  • Admin Dashboard to provide analytical insights about the company's situation.

Learning the operational excellence definition and the method to achieve it will open your eyes to the direction the business should take to go forward. A smart tool like Nimbly can handle the challenges of running a smooth operation. It has helped many companies attain excellence that might seem impossible.

Improve issues resolution time by 86% with Nimbly.

Tentang Nimbly

Nimbly mengubah proses audit operasi manual menjadi daftar periksa berbasis aplikasi bagi pekerja untuk menghasilkan laporan secara instan, memusatkan wawasan secara real-time, dan memastikan penyelesaian masalah secara menyeluruh.

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