Operational Excellence

A strategic approach focused on delivering products and services with minimal cost and inconvenience to customers. Organizations pursuing operational excellence strive to lead their industry in price and convenience by minimizing overhead costs, eliminating intermediate production steps, reducing transaction costs, and optimizing business processes. This strategy, described by Treacy and Wiersema, requires rigorous process management, continuous improvement capabilities, and cost control discipline. In RBPM, organizations pursuing operational excellence must define appropriate risk appetite levels related to efficiency initiatives, cost reduction, and process standardization.