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Achieving operational excellence

Richard Summerfield | FINAncier Worldwide | 18 JULY 2017

Peter Sirman, an operational excellence expert at PA Consulting Group, is quoted in an article in Financier Worldwide.The article looks at how a successful operational excellence (OpEx) programme can benefit companies in many industries.

Peter believes that substantial gains can be made by focusing on OpEx. He says: “There is a strong correlation between companies that deliver using OpEx methods and having above average overall returns to shareholders. It is hard to establish true cause and effect, but there is a clear logic that companies that deliver better services and products, more quickly and cheaply than their competitors, will be more successful.”

Peter goes on to say: “Since OpEx companies are focused on delivering improvements in the areas of service, cost, quality and speed of delivery, they outperform their competitors. OpEx is a legitimate business strategy; a company can compete by being more efficient than anyone else and as a consequence is able to invest the savings into better services and products.”

The article goes on to look at how technology – specifically IT departments – can help organisations achieve OpEx.

Peter explains that ultimately, technology must be cost effective and related to driving improved business operations: “From robots on the production line to artificial intelligence in back office processes, technology has always been a core part of business operations. Some of the benefits include cost, predictability of performance and consistency of quality.”

He continues: “However, technology is sometimes deployed with a short-term and cost-driven focus rather than as part of an end-to-end value stream. For example, technology might be used to automate a process that is not required in the first place. It is important therefore to consider how technology supports the value chain in the most effective way, rather than delivering quick-fix solutions.”

Find out more about our work in operational excellence.

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