Is operational excellence merely about efficiency?

Throughout my career and across two different companies’ quality and operational excellence programs that I worked with, I have often encountered hesitation stemming from the prevailing notion that operational excellence revolves around 'old-fashioned' ideas of efficiency, cost reduction, and risk management. But is this perception accurate?

Consider the lean startup methodology or the deeper principles of lean manufacturing pioneered by Toyota, which emphasize the avoidance of overburdening, or 'muri.' When we contemplate these concepts, they seem to conflict with traditional notions of cost-cutting. Why would an organization embark on new initiatives if it's primarily focused on slashing expenses? Shouldn't employees simply work harder and complain less in a 'lean' environment where labor cuts are inevitable?

While many perceive the primary benefits of operational excellence to be efficiency gains, cost reduction, and risk mitigation, I argue that its true value lies in how it enables organizations to function better, seamlessly, in collaboration with customers and their needs. It's about becoming more adaptable to shifting market conditions.

In this light, the definition of operational excellence expands to encompass:

1.?????? Customer Focus: Operational excellence emphasizes understanding customer needs and delivering value-added solutions. By aligning processes with customer expectations and feedback, organizations can develop products, services - and processes to maintain and improve them - that not only meet but exceed customer requirements, fostering satisfaction and loyalty.

2.?????? Innovation Enablement: Operational excellence cultivates a culture of continuous improvement and learning, providing a fertile ground for innovation. Empowering employees to contribute ideas and solutions leads to creativity and innovation in product and service design, features, and functionalities.

3.?????? Flexibility and Adaptability: Operational excellence fosters agility in response to changing market dynamics and customer demands. By monitoring customer behavior and feedback, and adjusting processes accordingly, organizations can stay ahead of competitors and seize emerging opportunities.

With this shift in focus, operational excellence becomes a rather intriguing concept from a leadership perspective. What are your thoughts?