Different Notions of Excellence (Pex, OE, Business Excellence)

hose terms are quite similar, it is thus quite commun to get confused, here is a short summary in order to learn the difference between them. 

Process excellence 

Process excellence is about process effectiveness and efficiency. It requires processes to be designed and improved for consistent delivery with minimum variation and minimum waste. It is the domain of Six Sigma and Lean.Process Excellence is concerned with the process itself – making processes more efficient and effective through design and testing. The main goal is to deliver consistent, positive outcomes with minimal variation (which Six Sigma tackles) and waste (which Lean deals with).

Operational Excellence (OE)

Operational excellence is broader than this. It builds on the concept of end-to-end process flows in core and support processes, including organisation’s culture (and with it HR) in its domain. It requires the organisation to ensure staff understands how the organisation works as a value creation system, and to have structures and empowerment that enable people to fix problems when necessary.The latter is concerned with process, but operational and transactional environments have more going on within them than simply processes.Operational Excellence encompasses not simply processes throughout the organization, but also brings within it several other ingredients, notably culture and how the organization is viewed from a value creation perspective. How people, technology, tools, and other resources combine and interact with each other, and with your processes, all form key components of the Operational Excellence mix.

Business Excellence 

Moving to a more macro view, Business Excellence encompasses both PEX and OPEX with the perspective of achievement of results.Business Excellence also includes overall business strategy, investor, customer, partner, and stakeholder communication, and overall development of the organization into the future. Process by itself is no guarantee of success, as you may have excellent processes in situ, however they may be taking you in completely the wrong direction. Further, if business strategy is weak or wrong, then efficient and effective processes may take you over the cliff that much faster. Business Excellence requires an holistic outlook of the whole organization, all set within the overriding context of delivering results. It encompasses the whole organization, including strategy, communication with all stakeholders, and – critically – the organization’s results. An organization can have excellent processes and products but if its strategy is wrong or if its results are poor, it still has a long way to go to achieve Business Excellence.

Thank you for your attention, 

John&Partners team 




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