As stated in earlier posts, properly defining XELLZ Operational Excellence (XOE) is one of the crucial elements in our organization’s journey to project logistics industry-leading performance. With actionable and measurable definitions of XOE, it is impossible to align our organization around a new way of doing business and focus them on achieving results.
It is also important to remember that XOE alone does not guarantee results. XOE is focused on dependable and consistent execution. it does not involve making the strategic decisions to compete in, what services to provide, how to execute the project, etc. These decisions define a company’s strategy. It is the combination of a Sound Strategy AND Operational Excellence that yields the XELLZ industry-leading performance.
Sound Project Planning & Strategy
x
Effective Project Execution
=
Project Leading Performance
Notice how our equation shows Project Leading Performance as the product, not the sum, of Sound Project Strategy and Effective Project Excellence – a great strategy without XOE, or XOE with a weak strategy, will end in a deficient performance.
Aligning your project strategy with your operational capabilities is vital for success.
XELLZ Operational Excellence eradicates uncertainty and provides an actionable and measurable guide:
- XELLZ Operational Excellenceis the execution of the project strategy more reliably and consistently than the industry standard in today’s world.
- XELLZ Operational Excellence is demonstrated by results. Assumed two projects with the same strategy, the XELLZ Operationally Excellent project will havelesser operational risk, lesser operating costs, and increased returns relative to any other project, which generates value for our customers and their shareholders.
“Reliably and consistently” means that your project implements a project strategy as planned on a constant basis. It is continued, controlled project deliveries that leads to project excellence.
Besides stipulating measurable features of XOE, our definition discloses 2 other important characteristics. First, project excellence is qualified and can change over time. What looks like project excellence today, may not be tomorrow. Best-in-class, IT technology, and management models all progress. XELLZ Operational Excellence demonstrates itself through combined performance across, cost, and risk. Achievement in just one or two of these areas is deficient. The path of XOE is less about matching a supposed trade-off between cost and risk, and more about a well-organized method that leads to improvements across all three.
