If you want to get ahead of your competitors and stay there, you must acknowledge that operational excellence is vital to executing your strategy, write Raffaella Sadun, Nicholas Bloom and John Van Reenen for Harvard Business Review.
What is the key to becoming a major player in your industry? The obvious, and most common, answer: strategy – formulating a grand plan that will ensure you are doing something different to the competition. But strategy alone is not enough.
Research conducted by the three academics suggests that operational excellence is a “crucial complement to strategy” and that investing in hiring the right people and putting in place the right processes leads to better performance.