Survey: Operational Excellence Budgets See Increase

Business transformation is booming business, according to our sister publication PEX Network’s special report on the global state of process excellence.

The annual survey takes the pulse of operational excellence managers globally to understand how companies are approaching process improvement.

According to the network’s most recent survey (2021), nearly a quarter (21%) of companies are increasing their budgets for operational excellence in the year ahead. The percentage of companies expecting their operational excellence budgets to decline fell from 30% in 2020 to 19% in the latest survey.

Similarly, the scope of process improvement is widening to include an enterprise-wide focus. Nearly half (44%) of respondents said that the scope of their process excellence efforts is enterprise wide. That’s up from 35% in 2020.

Meanwhile, creating a culture of transformation topped the list of key focus areas at 39% of respondents.

READ: Operational Excellence as a Competitive Advantage

It is not surprising that transformation and improving the way we work is drawing renewed attention. The last two years have seen extreme disruption to all aspect of our lives – both personal and professional.

Companies have responded by doubling down on technology to help workers remain connected despite social distancing requirements and mandatory stay at home orders.

The global pandemic has put an even stronger emphasis on the importance of operational excellence. As companies adapt to the new normal to build resilient, efficient, and sustainable operations on an enterprise level.

But the explosion of digital devices and rapid change means that process inefficiencies are amplified and the way that things used to be done may no longer work in an era of scare labor, retiring workers and hybrid working.

The challenge is that companies can be seduced into thinking that merely implementing technology will be a “quick fix” to all their problems.

As we wrote in 7 Things You Must Do to Prepare for Digital Transformation, ensuring that your processes are in order is one of the key steps you must take before digital transformation.

“Probably one of the worst things you can do is solidify a bad process,” says Jason Gislason, Chief Digital Officer at Chevron Phillips Chemical Company.

Behavior is the other element that needs to be addressed with any process or technological change. If your workers don’t follow a process or use a technology, it doesn’t matter how well designed those processes or apps are, they’re useless in the context of supporting your business.

WATCH ON DEMAND: Data-Driven Operational Excellence: Predictions for the Year Ahead

Survey respondents indicated that “change management” was the number one tool in their OpEx toolkit ahead of all other technologies and process improvement techniques and approaches.

Other key findings include:

• Reducing costs was the top aim of operational excellence followed closer by improving productivity and efficiency, and driving growth
• Embedding data capabilities into operational excellence is emerging as a new area of focus with 43% of respondents stating that they were looking to invest in data analytics and business intelligence tools.

It all points to an exciting time to be in operational excellence as innovative technologies and capabilities redefine work as we know it.

Companies that can successfully combine process improvement with emerging technology, data analytics and behavioral insight will be well place to boost productivity, operationalize sustainability and capture the value from digital transformation

Interested in learning more?

Join over 200 of your peers and over 30 world class transformation thought leaders at the Pan Pacific Hotel in Toronto 17-20 October 2022 at Operational Excellence Week Canada 2022. Hear from industry experts and professionals on how to deliver rapid and sustainable step change improvements in operational performance. Find out more here.