Operational Excellence Deployment - Cardinal Sin #1: Copy What Other Companies Do

In the pursuit of operational excellence, many organizations make the mistake of attempting to replicate the practices of successful companies in the hope of achieving similar results. This might seem like a logical step—after all, why reinvent the wheel when you can follow the lead of industry leaders? However, copying what other companies do is one of the most common and detrimental mistakes in deploying an operational excellence program. While learning from others can provide valuable insights, blindly replicating their practices without understanding the unique context of your own organization often leads to failure.

In this article, we’ll explore why copying other companies is a major pitfall, discuss the risks involved, and offer strategies for developing an operational excellence program tailored to your organization’s specific needs and circumstances.

1. The Allure of Copying Other Companies

In the world of business, it's easy to look at companies that have achieved operational excellence and think, "If it worked for them, it should work for us." After all, case studies and best practices from renowned organizations are widely published, often detailing the steps those companies took to improve efficiency, reduce waste, and enhance overall performance.

This mindset can be tempting because it seems like a shortcut to success. It allows organizations to bypass the trial-and-error process and, instead, implement solutions that are already proven to work elsewhere. Additionally, it can be reassuring for executives and decision-makers to point to external success stories as a justification for adopting certain practices.

However, copying what others do is fraught with risks, particularly when the nuances of the adopting organization’s environment, culture, and challenges are overlooked.

2. Why Copying Fails: The Contextual Trap

Every organization is unique in its culture, processes, structure, customer base, and market conditions. What works for one company may not work for another, even within the same industry. Blindly copying another company's operational excellence program often leads to failure because it ignores these critical contextual differences.

Here are some reasons why copying doesn’t work:

a. Misalignment with Organizational Culture

Operational excellence programs thrive in organizations that have a culture aligned with continuous improvement and lean thinking. If a company tries to adopt practices from another organization without first ensuring that their own culture supports those practices, the effort will likely fail.

For example, a company with a highly hierarchical and bureaucratic culture may struggle to implement agile or lean methods copied from a company that fosters a flat, collaborative environment. Employees may resist changes that don’t fit with their established ways of working, leading to friction and failure.

b. Ignoring the Specifics of Internal Processes

Operational excellence programs are often deeply intertwined with a company’s specific processes and workflows. When companies attempt to replicate another organization’s practices, they may not account for how their own processes differ. As a result, the copied solutions may not address the actual inefficiencies or pain points in their own operations.

For example, a manufacturing company may copy an automated inventory management system used by a tech company, only to find that it doesn’t align with their supply chain complexities or labour force capabilities.

c. External Factors: Market and Industry Differences

Even within the same industry, external factors such as market dynamics, regulations, and customer demands can vary significantly. A company operating in a highly regulated industry may not be able to adopt certain operational improvements that worked for a company in a less-regulated space. Additionally, geographic or economic factors may play a significant role in determining whether certain practices are feasible.

d. Overlooking Root Causes

Companies that focus on copying solutions often miss the opportunity to understand the root causes of their own challenges. Operational excellence is not about adopting surface-level tactics—it’s about digging deep into the root of inefficiencies and continuously improving them. Without conducting this internal analysis, copied solutions may address symptoms of problems but not the problems themselves.

3. The Risk of Stifling Innovation and Growth

Another risk of copying other companies’ practices is that it can stifle innovation. Operational excellence is built on a foundation of continuous improvement, where employees are empowered to identify inefficiencies, propose solutions, and drive changes. When organizations focus too much on implementing external practices, they may fail to encourage this internal innovation.

Moreover, operational excellence programs that are designed specifically for an organization’s unique context tend to foster greater buy-in from employees. Employees are more likely to engage in and support initiatives that feel relevant to their own experiences and needs. By contrast, copied practices may feel imposed and disconnected from the reality on the ground, leading to disengagement.

4. The Right Way: Learn, Adapt, and Tailor

While copying other companies wholesale is a mistake, learning from them is not. In fact, benchmarking and studying best practices from industry leaders can provide valuable insights that help organizations shape their own approaches to operational excellence. However, the key is to adapt and tailor these practices to fit the unique context of your organization.

Here’s how to approach operational excellence without falling into the trap of copying:

a. Conduct a Thorough Internal Assessment

Before implementing any operational excellence initiatives, start by conducting a detailed internal assessment of your organization’s current state. Identify pain points, inefficiencies, and areas where improvements can be made. Involve employees at all levels in this process to ensure you’re gathering a complete and accurate picture.

b. Customize Best Practices

When looking to other companies for inspiration, focus on understanding the principles behind their success rather than simply copying their specific practices. For example, a company may find success with lean manufacturing principles such as reducing waste and improving flow, but the specific ways they achieve these goals will differ based on their industry and context. The key is to adapt these principles in a way that works for your organization.

c. Engage Employees in the Improvement Process

Operational excellence cannot be achieved without the input and engagement of your employees. Encourage your team members to propose solutions based on their first-hand experiences. This not only generates buy-in but also results in solutions that are grounded in reality and more likely to succeed.

d. Pilot and Iterate

Instead of implementing new practices across the organization all at once, consider piloting changes in smaller areas of the business. This allows you to gather data, test the effectiveness of the changes, and make necessary adjustments before scaling up. A willingness to iterate is crucial in developing a successful operational excellence program.

5. Conclusion: Building Excellence from Within

The allure of copying what other companies do is understandable, but it is one of the cardinal sins in the pursuit of operational excellence. Effective operational excellence programs are not one-size-fits-all solutions—they must be carefully tailored to the unique context of each organization. By focusing on understanding your own processes, adapting best practices, and engaging employees in continuous improvement, your organization can develop an operational excellence program that drives meaningful and sustainable success.

Operational excellence is not about replicating what others do; it’s about building excellence from within. By avoiding the trap of copying and instead fostering a culture of innovation, ownership, and adaptation, your organization can achieve operational excellence in a way that is authentic and enduring.