Why Operational Excellence Will Kill Your Company (and How to Survive)

Every large organization is focused on Operational Excellence—the relentless pursuit of doing things better and cheaper to improve today’s profits. As an economist and strategic advisor, I understand the value of this. Operational excellence generates your profits today.

But here is the hard truth: In the long run, you cannot survive by just doing the same things better.

Better and cheaper newspapers could not stop digital news. Better and cheaper postal services could not stop email. Better and cheaper stores could not stop e-commerce.

While Operational Excellence wins today’s battle, only Innovation Excellence will win tomorrow’s war. New technologies, regulations, and startups will disrupt your market. If you aren’t looking for “next practices,” you are already falling behind.

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The Courage to Challenge the Status Quo

As a real innovator, your role is to be a rebel with a cause. You must question present “best practices” and challenge your team to find the “next practices” that will truly differentiate you.

The best time to break patterns? When people are already nervous—when profits drop, a major customer leaves, or new government rules threaten your stability. That is the moment to stick your neck out and lead the change.

Listen to the Misfits

Remember the famous Apple “Think Different” campaign: “Here’s to the crazy ones. The misfits. The rebels. The troublemakers… Because the people who are crazy enough to think they can change the world, are the ones who do.”

Start listening to the rebels and troublemakers in your organization (and be one of them). They are the ones who will lead you toward Innovation Excellence and your profits the day after tomorrow.

There are no old roads to new destinations. It’s time to think differently about Strategic Governance.

Author of “Commanding Innovation” | Board Advisor | ISO 56000 Expert

Innovation is no longer a creative luxury; it is a mandate of strategic governance. I am here to help you take the helm and turn knowledge into market power.

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Frequently asked questions

Can operational excellence damage a company?

Pursued alone, yes. It optimises the existing business toward efficiency while leaving no capacity to build the next one, which is how efficient companies become irrelevant ones.

How do the two disciplines coexist?

By running them as a deliberate portfolio with protected resources, rather than letting efficiency pressure absorb the budget for exploration.

What does listening to the misfits mean?

That the people least aligned with current process are often the first to see where it stops working. Dismissing them removes an early-warning signal.

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