---
title: The Operational Excellence Dictionary - Key Principles and Definitions
description: Our Operational Excellence Dictionary, featuring key principles, industries and resources. Read the main principles of Operational Excellence including resource
---

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# Operational Excellence Definitions

Our Operational Excellence Dictionary, featuring key principles, industries and resources.

## **The Global State of Operational Excellence: Critical Challenges & Future Trends**

130 pages of the most comprehensive study of critical challenges and future trends within Operational Excellence.

## [![RESEARCH REPORT 20212022](https://insights.btoes.com/hs-fs/hubfs/RESEARCH%20REPORT%2020212022.png?width=282&name=RESEARCH%20REPORT%2020212022.png)](https://insights.btoes.com/download-research-report-2018/19-the-global-state-of-operational-excellence-critical-challenges-future-trends)

 

# ![A-Z Of the Main Principles of Operational Excellence](https://insights.btoes.com/hs-fs/hubfs/Screenshot%202017-09-11%2021.32.23.png?width=810&name=Screenshot%202017-09-11%2021.32.23.png "A-Z Of the Main Principles of Operational Excellence")

Welcome to our A-Z of the main guiding principles of Operational Excellence. Click a link below for a full description of the principle/definition. If you'd like to submit a definition of your own, please click [**here**](https://insights.btoes.com/operational-excellence-insights/form/contribute-to-btoes-insights).

 

**[Agile & Agility](https://insights.btoes.com/resources/operational-excellence-agility-and-agile)**

 

What's the difference between **Agile** and **Agility?** Our contributor **Andrew S. McCune** states the following:

**"What do these two words mean?** A quick check in on the definition of these words.

**agile**, adjective, English: 1. **marked by ready ability to move with quick easy grace** \<an agile dancer\> 2. **having a quick resourceful and adaptable character**, \<an agile mind\>

**agility**, noun, English: 1. **the quality or state of being agile, nimbleness, dexterity**. \<A gymnast whose agility on the parallel bars has won several medals\>

**[Read more about Agile vs. Agility in Operational Excellence](https://insights.btoes.com/resources/operational-excellence-agility-and-agile)**

## [Business Intelligence](https://insights.btoes.com/resources/what-is-business-intelligence-definition-introduction)

Business Intelligence, or BI, refers to technologies, applications and practices for the collection, integration, analysis, and presentation of business information, with the intention of supporting **Better Decision Making.**

[**Read more about Business Intelligence and Operational Excellence**](https://insights.btoes.com/resources/what-is-business-intelligence-definition-introduction)

## [Change Management](https://insights.btoes.com/resources/what-is-change-management-an-introduction)

**Change Management** (CM) refers to any approach to transitioning individuals, teams, and organizations using methods intended to re-direct the use of resources, business process, budget allocations, or other modes of operation that significantly reshape a company or organization. More and more, these processes are being integrated into achieving the goal of embedding a Culture of Operational Excellence within organizations, and are understood as a cornerstone of the **[Continuous Improvement journey.](https://insights.btoes.com/business-transformation-operational-excellence/article-continuous-improvement-high-tech-or-high-touch)**  

**[Read more about Change Management as an Operational Excellence Principle](https://insights.btoes.com/resources/what-is-change-management-an-introduction)**

 

## [Customer Experience Excellence](https://insights.btoes.com/business-transformation-operational-excellence/what-is-customer-experience-excellence)

For companies practising Operational Excellence, there is a [**fine line to walk between streamlining to maximise efficiency, and quality of the product/service**](https://insights.btoes.com/risks-robotic-process-automation-pragmatic-solution-or-dangerous-illusion) - **a key example of this would be in the case of areas such as [Customer Experience.](https://insights.btoes.com/business-transformation-operational-excellence/what-lies-beneath-empowering-customer-experience-with-your-portal-and-apps)** 

Simply put, the 'Customer Experience' marks the product of an interaction between an **organization** and a **customer** over the duration of their relationship.

[**Read more about Customer Experience & Operational Excellence Principles**](https://insights.btoes.com/business-transformation-operational-excellence/what-is-customer-experience-excellence)

# ![Operational Excellence principles & definitions](https://insights.btoes.com/hs-fs/hubfs/Screenshot%202016-11-30%2021.44.10.png?width=1024&name=Screenshot%202016-11-30%2021.44.10.png "Operational Excellence principles & definitions")

## [Culture Transformation in Operational Excellence](https://insights.btoes.com/resources/operational-excellence-and-company-culture-transformation)

**[Corporate culture](https://insights.btoes.com/business-transformation-opex-insights/article/how-to-create-a-culture-to-sustain-5s)** is the collection of **values, visions, missions, and day-to-day aspects of communication and operational goals** that create the atmosphere that permeates and determines how employees work in their organization.

**[Read more about the Operational Excellence Principle of Culture Transformation](https://insights.btoes.com/resources/operational-excellence-and-company-culture-transformation)C**

## [Gemba: Definitions and tools](https://insights.btoes.com/resources/what-is-going-to-gemba-lean-kaizen-definition-introduction)

***Gemba*** (現場, also spelt less commonly as ***genba***) is a japanese term meaning "the real place." Japanese police could refer to a crime scene as *gemba,* and TV reporters often refer to themselves as reporting live from *gemba.* 

**[Read more about the Gemba Principles](https://insights.btoes.com/resources/what-is-going-to-gemba-lean-kaizen-definition-introduction)**

 

## [Hoshin Planning](https://insights.btoes.com/lean-resources/what-is-hoshin-kanri-hoshin-planning-and-policy)

Hoshin Kanri, also known as Policy Deployment, is another aspect of Lean that is designed to ensure the **strategic goals of a business are driving progress and action - at every level.**

 

[**Read more about Hoshin Planning & Hoshin Kanri**](https://insights.btoes.com/lean-resources/what-is-hoshin-kanri-hoshin-planning-and-policy)

<https://insights.btoes.com/lean-resources/what-is-hoshin-kanri-hoshin-planning-and-policy>

## [Innovation Excellence](https://insights.btoes.com/resources/operational-innovation-excellence-strategy-execution)

More and more, innovation is becoming a **necessary component of all Operational Excellence-focused Organizations.** As with Agile, Innovation and a solid strategy for encouraging it allows companies to continuously adapt and change, rather than stagnating in the mid-range alongside their competitors.

[**Read more about Innovation Excellence**](https://insights.btoes.com/resources/operational-innovation-excellence-strategy-execution)

 

## [**Jidoka & Operational Excellence**](https://insights.btoes.com/lean-resources/what-is-jidoka-toyota-production-system)

The Toyota Production system was a major precursor of **Lean Manufacturing,** founded on two conceptual pillars: '**Just-in-time'** and **'Jidoka'**. Jidoka, otherwise known as  Automation with a Human Touch, was first built off the approach created by the founder of Toyota, Sakichi Toyoda and his son, Kiichiro Toyoda.

**[Full definition of Jidoka](https://insights.btoes.com/lean-resources/what-is-jidoka-toyota-production-system)**

**![Kaizen as a key principle of Operational Excellence](https://insights.btoes.com/hs-fs/hubfs/Screenshot%202017-09-11%2021.59.47.png?width=1024&name=Screenshot%202017-09-11%2021.59.47.png "Kaizen as a key principle of Operational Excellence")**

## [**Kaizen in Operational Excellence**](https://insights.btoes.com/resources/what-is-kaizen-definition-lean-principles)

One of the most important tenets of kaizen is that [big results come from many small changes accumulated over time](https://uk.kaizen.com/consulting/process-improvement-lean-project.html). Continuous, incremental changes that take at every level from the shop floor to the c-level are credited for the success of Kaizen 'events'.

***READ MORE: [Our Top 10 Kaizen Books](https://insights.btoes.com/business-transformation-opex/lists/the-best-10-kaizen-books)*** 

**[Read more about Kaizen as an Operational Excellence Principle](https://insights.btoes.com/resources/what-is-kaizen-definition-lean-principles)**

 

## [**Lean**](https://insights.btoes.com/resources/what-is-lean-definition-tools-and-examples)

**Whilst there is no single definition of Lean Methodology, there are a number of key tools, concepts and principles that can round out our view of Lean process, production and thinking:**

- [**Lean Six Sigma Certifications**](https://insights.btoes.com/lean-resources/which-lean-six-sigma-operational-excellence-program-should-i-choose)
- [**Lean Healthcare Resources**](https://insights.btoes.com/resources/lean-operational-excellence-healthcare-case-studies-resources-examples)
- [**Lean Manufacturing**](https://insights.btoes.com/resources/lean-manufacturing-principles-lean-tools-introduction-examples)
- [**Lean Product Development**](https://insights.btoes.com/resources/lean-production-and-product-development)
- **[What is Lean Six Sigma?](https://insights.btoes.com/resources/what-is-lean-six-sigma-an-introduction)**

 

## [**Operational Excellence**](https://insights.btoes.com/resources/what-is-operational-excellence-an-introduction)

**At heart, Operational Excellence** is an element of organizational leadership that stresses the application of a numerous methodologies and tools, with a focus on the sustainable improvement of outstanding performance metrics.

Much of this management philosophy is based on earlier continuous improvement methodologies, such as **Lean, Six Sigma**, and the combined methodology of **[Lean Six Sigma](https://insights.btoes.com/business-transformation-opex/lists/top-books-on-lean-six-sigma)**. The focus of Operational Excellence goes beyond the traditional event-based model of improvement, toward a **[long-term change in organizational culture](https://insights.btoes.com/long-article-what-can-organization-leaders-do-to-create-manage-culture-change)**.

**[Read more about the core principles of Operational Excellence](https://insights.btoes.com/resources/what-is-operational-excellence-an-introduction)**

**![Our Main Principles of Operational Excellence ](https://insights.btoes.com/hs-fs/hubfs/Screenshot%202017-09-11%2022.04.31.png?width=1024&name=Screenshot%202017-09-11%2022.04.31.png "Our Main Principles of Operational Excellence ")**

 

## [**Performance Excellence**](https://insights.btoes.com/resources/what-is-performance-excellence-criteria-baldrige)

According to the 'Baldridge Glossary' (2002) “the term ‘performance excellence’ refers to an integrated approach to organizational performance management that results in the three following outcomes:

**1. Delivery of ever-improving value, to customers and stakeholders, that contribute directly  to organizational sustainability;**

**2. Improvement of overall organizational effectiveness and capabilities**

**3. Organizational and personal learning.**

[**Read more about Performance Excellence in Operational Excellence**](https://insights.btoes.com/resources/what-is-performance-excellence-criteria-baldrige)

 

## [Process Architecture: Definitions and Examples](https://insights.btoes.com/resources/what-is-process-architecture-modeling-and-mapping)

Process Architecture is essentially a commonly understood, **shared view of all the business processes that an organization may carry out** in order to deliver a product or service to their customers and clients. As business capabilities expand and demands change, processes can become overly complex, garbled or disorganized as they are re-jigged and edited - the nature of a **strong process architecture is to ensure these processes remain at their optimal state.**

[**Read more about Process Architecture & Operational Excellence**](https://insights.btoes.com/resources/what-is-process-architecture-modeling-and-mapping)

 

## [Process Excellence vs. Operational Excellence](https://insights.btoes.com/resources/what-is-process-excellence-difference-operational-excellence)

Process Excellence is often confused with Operational Excellence - in fact, many online sources will conflate the two to the point that finding a seperate definition for Process Excellence can sometimes seem impossible. However, Process Excellence, as the name suggests, can be defined as focusing more heavily on the **analytical, strategic aspects of Operational Excellence.**

[***ARTICLE: What will Process Excellence look like in 2025?***](https://insights.btoes.com/business-transformation-operational-excellence/article-what-will-process-excellence-look-like-in-2025)

**[Read more about Process Excellence](https://insights.btoes.com/resources/what-is-process-excellence-difference-operational-excellence)**

 

## [RAPID Decision Making](https://insights.btoes.com/lean-resources/what-is-rapid-decision-making-tool)

RAPID is a decision-making tool designed to help **leaders get questions answered, and provide solid conclusions to discussions.** This is done by mapping out every stage of the decision making proccess and identifying what is required for a final decision to be made, and made well.

**[Read more about RAPID](https://insights.btoes.com/lean-resources/what-is-rapid-decision-making-tool)**

**![Operational Excellence Decision Making Principles](https://insights.btoes.com/hs-fs/hubfs/Screenshot%202017-09-11%2022.10.31.png?width=810&name=Screenshot%202017-09-11%2022.10.31.png "Operational Excellence Decision Making Principles")**

 

## [**Robotic Process Automation**](https://insights.btoes.com/resources/what-is-robotic-process-automation-examples-and-definitions)

Robotic Process Automation is transforming how companies maximise their efficiency across all industries. **Using AI robots and software, businesses are able to replicate the behaviours of a human worker with a near 0% defect rate**. However, for companies practising Operational Excellence, there is a **[fine line to walk between streamlining to maximise efficiency, and quality of the product/service](https://insights.btoes.com/risks-robotic-process-automation-pragmatic-solution-or-dangerous-illusion)** - for example,  in the case of areas such as[Customer Experience](https://insights.btoes.com/business-transformation-operational-excellence/what-lies-beneath-empowering-customer-experience-with-your-portal-and-apps)

[**Read more about Robotic Process Automation**](https://insights.btoes.com/resources/what-is-robotic-process-automation-examples-and-definitions)

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