CHAPTER 1
THE NEED FOR A NEW DEFINITION
ORGANIZATIONS HAVE USED THE TERM operational excellence for years, although there is no common understanding of what it really means. Is it a methodology or a mind-set? Is it focused on processes or results? Where do customers and employees fit in? Until recently, operational excellence has generally been associated with manufacturing and production, but that is changing.
The old connotation of operational excellence—focused on manufacturing throughput, standardizing processes, and eliminating waste—is a relic. It’s time has passed. Our world is too complex, too interconnected, and too fast moving to focus solely on solving problems and standardizing processes. Today’s customers are well educated, and today’s ...
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