In our perception the “Operational Excellence” concept as described by Treacy & Wiersema is a source of confusion.

“Operational Excellence“ is frequently considered as a synonym of “Enterprise Excellence“ and stands for an environment that continuously improves in delivering products or services and provides a way of engaging and responding to customers and other stakeholders [Wikipedia, the Shingo Institute]. The related actions to reach this goal are all internally oriented.

The Market sees a priori the Externally Oriented Strategy.

For this reason, we propose an actualised view on Competitive Strategies, based on the original Competitive Strategy Handbook of Michael E. Porter, the concepts as described by Treacy & Wiersema and the insights of the Shingo Institute.

We see 3 possible externally, market oriented, Competitive Strategies as the standard 3 Dimensions. The fourth dimension helps the company to strengthen the chosen Competitive Strategy from inside the company. The information in the picture should be self-explaining.

Conclusion: whatever your chosen strategy, you should work on Enterprise/Operational Excellence in order to maximize your added value for all stakeholders! In other words: Operational excellence is NOT a competitive strategy that is competing with Customer Intimacy or Product Leadership, as defined by Treacy & Wiersema!