Operational excellence is a term used to describe the process of executing a business strategy better than your competition. Doing so positions you for increased revenue, lower operational risk, and lower operating costs.

If the last few years have shown business owners anything, it is that operational excellence is a crucial part of your management strategy.

Operational excellence is a term used to describe the process of getting the most from your people, your resources, and your assets. While there are many components to this, the bottom line comes down to working in partnerships with customers, staff, and suppliers. A failure to understand the needs of your customers, both internally and externally, means you may wind up wasting time, money, and resources – producing the wrong products at the wrong time, making the wrong quantities of a product, or making too much or not enough of something.

Today, more than two years after the global pandemic was declared, business operations are still being affected by production slowdowns, supply chain disruptions, and logistics nightmares. On top of that, there is worldwide pressure on oil and gas prices and unstable supply and pricing for many key commodities. This is impacting the supply and pricing of everything from a loaf of bread to computer chips for new cars and trucks.

Turmoil, inflation, and unrest may be the standard for business for the foreseeable future, meaning that successful companies will be the ones who fully understand each step in their supply chain, work with suppliers, and constantly review inventory, delivery, and internal and external capabilities. This will rely on clear, effective communication and the ability to react quickly to any changes. To do this, people must be well trained, highly motivated, and uniquely empowered to identify and solve problems quickly and permanently.