Is operational quality improvement all about efficiency?
During my career and while working on quality and operational excellence programmes at two different companies, I have encountered hesitation stemming from a prevailing perception that operational quality revolves around "old-fashioned" ideas of efficiency, cost reduction, and risk management.
But is this perception correct?
Consider the Lean Startup methodology or the deeper Lean manufacturing principles developed by Toyota, which emphasise avoiding overburden, or "muri". When we reflect on these concepts, they appear to contradict traditional notions of cost-cutting. Why would an organisation launch new initiatives if its primary goal is to cut expenses? Shouldn't employees simply work harder and complain less in a "lean" environment where workforce reductions are inevitable?
While many consider the primary benefits of operational quality to be improved efficiency, cost reduction, and risk management, I argue that the true value of operational quality lies in how it enables organisations to operate better, seamlessly, and in collaboration with customers and their needs. It is about organisations being better able to adapt to changing market conditions.
In this light, the definition of operational excellence expands to cover:
- Customer-centricity: Operational quality emphasises understanding customer needs and delivering solutions that provide value. By aligning processes with customer expectations and feedback, organisations can develop products, services – and the processes to maintain and improve them – that not only meet but exceed customer requirements, fostering satisfaction and loyalty.
- Increasing and improving innovation: Operational quality creates a culture of continuous improvement and learning, providing fertile ground for innovation. Empowering employees to propose ideas and solutions leads to creativity and innovation in product and service design, features, and functions.
- Flexibility and adaptability: Operational quality promotes the agility to respond to changing market dynamics and customer needs. By monitoring customer behaviour and feedback and adapting processes accordingly, organisations can stay ahead of competitors and seize new opportunities.
With this shift in focus, operational excellence becomes a rather fascinating concept from a management perspective.
What do you think?
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