1.2 Introduction

You know the following brands: Amazon, Disney, Toyota, UPS, and Walmart. What do these diverse companies have in common? Consider some possible responses.

• Each creates unmatched customer value.

• Each offers a clear value proposition and promises to deliver.

• They are all industry leaders.

And now, another question: What has made these companies winners? Answer: Their business models—and their long-term success—rely on operational excellence.

Perhaps you’re thinking, “That makes sense. I trust each of these companies to meet my needs. I can count on them to deliver on their promises. But, what is operational excellence?”

Operational excellence emerges when each and every employee can see how customer value is created. When things are going well, everyone is expected to consistently improve the company’s value-creation processes. When things break down, employees are empowered to solve problems and fix processes.

Operational excellence is rare. When you find it, you find a company that is relentlessly customer focused and relies on a disciplined, creative decision methodology—think Lean Six Sigma. Lean Six Sigma is the go-to approach for companies seeking operational excellence. Great companies embed Lean Six Sigma behaviors into their culture, making operational excellence hard to copy and a source of sustainable advantage. To leverage operational excellence for a competitive edge, you need to know what customers value. You also need to appreciate the operating context where customer value is created and Lean Six Sigma is applied! Let’s take a look.