Lean Corner

Pillard of Operational Excellence

Operational Excellence is a widely used concept, particularly in international companies. As with many popular terms, its true meaning is often vague, sometimes misunderstood, and frequently far from its original intent.

The dictionary defines excellence as “the quality of being excellent, of the highest possible standard.” In short, excellence is the very best. Nothing above it. Nothing better.

The term operational refers to execution — the activities related to production, delivery, or the creation of direct value for customers or beneficiaries.

Therefore, Operational Excellence means achieving the highest possible level of execution: flawless, on time, at optimal cost, and with no concern required from the customer.

It represents both a destination — reaching a high level of sustainable performance — and a journey — a structured and continuous improvement process. Today, many organizations rely on digital Lean practices and platforms such as iObeya to make performance visible and engage teams in their pursuit of Operational Excellence.

Operational Excellence is not just a goal to achieve, but a coherent and living system. It is both an ambition — to reach top-tier performance — and a method — a structured approach to continuous improvement.

It rests on five foundational pillars that together help organizations build lasting differentiation. These pillars can be reinforced by Lean practices and by digital Visual Management solutions .

Active listening to customer needs must be a permanent habit. This means:
  • Understanding expectations through surveys, direct feedback, or observation of real product and service usage.
  • Defining goals aligned with those expectations, to ensure internal efforts are focused on what truly matters to the customer.
  • Measuring perceived results, using both quantitative indicators (customer satisfaction, complaints) and qualitative ones (comments, feedback, verbatims).
  • Continuously adjusting practices to maximize perceived value and adapt to changing needs and behaviors.

It is the responsibility of leadership to ensure consistency across strategic, tactical, and operational levels.

This alignment relies on:

  • A clear cascade of objectives, from company vision down to concrete actions on the shop floor.
  • A process-based approach that cuts across silos and enables a transversal view of value creation.

Good alignment enables each employee to clearly understand how their work contributes to the overall strategy. This boosts engagement, facilitates decision-making, and enhances organizational agility. Collaborative platforms such as iObeya support this cascade of objectives through digital rituals like AIC or SQCDP, ensuring consistency across all organizational levels.

Operational excellence is only achievable if all levels of the organization move in the same direction, with shared priorities.

Organizations can no longer operate in silos. They must integrate their stakeholders into their strategy: customers, suppliers, partners, subcontractors, shareholders.

Overall performance is measured:

  • Upstream, by the ability to leverage the environment (reliable suppliers, controlled logistics flows)
  • Downstream, by the impact of the company’s actions on others (perceived quality, customer service, brand reputation)
Working closely with the ecosystem also means embracing a co-performance mindset, where success is collective. This is especially crucial in globalized and complex value chains.

Empowering the field, listening to employees, and creating a positive work environment are essential conditions to mobilize teams.

This includes:

  • Recognizing operational intelligence — the ability to solve problems, optimize actions, and secure deliveries.
  • Developing skills, enabling everyone to grow and contribute more.
  • Building trust, which is critical for teams to raise issues, share ideas, and take responsibility.

More than a method, Continuous Improvement is a mindset. A cornerstone of Lean Management, it involves progressing step by step, regularly, based on facts and frontline feedback.

This approach allows teams to:

  • Correct issues without delay, addressing deviations as soon as they arise.
  • Experiment at small scale before broader deployment.
  • Capitalize on shared experience to learn from both successes and mistakes.

By combining customer orientation, strategic alignment, ecosystem integration, people empowerment, and continuous improvement, organizations build a strong foundation for sustainable performance. These pillars are not isolated — they reinforce one another. And above all, they require consistency between words and actions. In Operational Excellence, it is not the discourse that matters, but the tangible results that can be seen and measured on the ground.

By leveraging digital Lean practices with solutions like iObeya, organizations accelerate their transformation and make Operational Excellence both accessible and sustainable. For real-world examples, explore our customer testimonials.

Lean Corner

Pillard of Operational Excellence

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