Operational Excellence is not easy to define. Some descriptions are too broad. Others are so narrow that the ultimate definition seems too focused in scope. Often, we end up with definitions that seem plausible in an academic sense, such as “Being world class,” “Being the best globally,” or, “Excellence in everything we do,” but these are difficult to translate into specific practices.
To properly define Operational Excellence, there is value in looking at the evolution of the term.
In “The Discipline of Market Leaders – Choose your Customers, Narrow your Focus, Dominate your Market“, Michael Treacy and Fred Wiersema described three distinct value propositions or disciplines an organization could choose to compete in their market or industry – Operational Excellence, Product Leadership, and Customer Intimacy.