Operational excellence is a concept that was initially developed in the 1970s by Dr. Joseph Juran, who was consulting with business leaders in Japan to help them become stronger and more competitive in the global marketplace. He eventually developed the basis for the Shingo Model, a framework for achieving operational excellence in manufacturing facilities. Today, operational excellence is a concept that can be applied to any type of business to improve efficiency, streamline processes, support sustainable growth, and better serve customers. (1) For home services companies, achieving operational excellence is critical for competing in an ever-changing marketplace with continually evolving technologies.
In this article, we’ll take a deeper look at operational excellence as it applies to home services companies (specifically plumbing, HVAC, and electrical) and the practices that will help you successfully adopt an operational excellence framework.
Michael Sony of the Namibia University of Science and Technology defines operational excellence as follows:
Operational excellence in simple words is organizations making improvements to attain a competitive advantage. Modern day organizations not only maximize the benefits for [their] organizations, but also the customer and other stakeholder’s needs are taken care [of]. (2)
In other words, operational excellence is a means of streamlining and improving daily operations to outshine competitors, while at the same time offering the fullest benefits to customers and company stakeholders. There are many different models for operational excellence that cater to different industries and operational functions.
On a more detailed level, operational excellence aims to address pain points that increase the costs and resources required to deliver specific services. For example, a plumbing company may adopt appointment booking software that automatically sends customers service reminders, follow-up emails, and maintenance reminders as part of their operational excellence framework. Using software to automate various aspects of customer relationship management can free up time for office staff and help streamline scheduling to reduce issues like overbooking.
For any element of operational excellence, sustainability is key. Many companies will implement changes and initially see great results, but those results will not be consistent over time. That’s because businesses operate in complex environments with dynamic factors to consider. Therefore, operational excellence should not be viewed as a single goal but rather as an ongoing process for continual improvement.
Related: Best Ways to Streamline a Business: Processes & Workflows
Operational excellence is a term that is often used interchangeably with process excellence, but the two are not exactly the same. Operational excellence focuses on optimizing individual operational tasks within a business, while process excellence — or business excellence — is a bigger picture approach focused on improving the overall performance of a business. (3)
Operational excellence is generally divided into four pillars of success. (4) It is important to consider each as you implement an operational excellence framework within your business.
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While operational excellence has traditionally been perceived as a corporate initiative adopted by large organizations, it can be an equally effective practice for small businesses like local plumbing, HVAC, and electrical companies. (5) Adopting the ideology of operational excellence includes several key steps:
Related: Creating Your Plumbing Business Plan: Your Roadmap to Success
Operational excellence can set your business apart as a market leader in the home services sector, but you may need additional support, leadership, and resources to truly unlock the benefits of operational excellence for your company.
That’s where P3 Services can help. As a strategic partner and parent company of a growing network of local plumbing, HVAC, and electrical companies throughout the US, we provide the leadership support, employee training, recruitment solutions, data analysis, and technological resources you need to bring your company to the next level. As a P3 partner company, your business will continue to operate under the same brand but join a family of companies that share in your commitment to innovation, growth, and market leadership.
Interested in learning more? Reach out to our team today.