Why operational excellence is no longer about efficiency alone

In recent years, the definition of operational excellence has been fundamentally challenged. For decades, organisations focused on efficiency: lean processes, cost optimisation, and just-in-time supply chains designed to eliminate waste and maximize productivity. In a stable global environment, these models delivered strong results.

However, the past few years have exposed a structural weakness. Systems designed purely for efficiency often lack resilience when disruption becomes the norm rather than the exception.

The global pandemic, ongoing geopolitical tensions, supply chain bottlenecks, and volatile energy markets have fundamentally changed the operating environment for companies across Europe. What were once isolated shocks are now part of a continuous cycle of uncertainty.

As a result, organisations are rethinking how they design and manage their operations. Nicolas Liénart, Consultant Interim Management at global talent solutions specialist Robert Walters, explains.

From efficiency to resilience

The volatility of modern supply networks illustrates the scale of this shift. Research shows that approximately 55% of supplier relationships change from one year to the next, highlighting how dynamic and fragile global supply chains have become.

Nicolas: “In such an environment, highly optimised but rigid operating models are increasingly exposed. Many companies that relied on single-source suppliers or globally stretched supply chains discovered during recent disruptions that efficiency alone is not enough.”

According to McKinsey & Company, nearly 90% of supply chain leaders experienced significant disruptions in recent years, forcing organisations to reassess traditional operating models. As a result, operational excellence is evolving: efficiency remains essential, but resilience has become equally critical.

Rethinking supply chain strategy

Organisations are increasingly adopting strategies that balance cost efficiency with risk management. These include supplier diversification, regionalisation of production, and the introduction of strategic inventory buffers.

“While these approaches may slightly increase operational costs, they significantly reduce exposure to systemic disruptions and improve long-term stability”, Nicolas says. “At the same time, digitalisation is transforming operational decision-making. Real-time data platforms, predictive analytics, and digital supply chain monitoring tools enable organisations to detect risks earlier and respond more effectively.”

Research from MIT Sloan Management Review shows that companies with advanced supply chain visibility capabilities can respond significantly faster to disruptions than those relying on traditional planning systems.

The role of leadership in operational transformation

As operational models become more complex, leadership requirements are also evolving. Organisations increasingly rely on experienced executives capable of managing transformation in highly uncertain environments.

According to Robert Walters’ recent survey, 65% of organisations expect to hire interim managers to support operational transformation, particularly in sectors undergoing rapid technological and regulatory change. “Interim operations managers often play a key role in this context. Their cross-industry experience allows them to quickly assess operational weaknesses, implement structural improvements, and drive execution in complex environments” Nicolas explains.

A new definition of operational excellence

Operational excellence is no longer defined solely by cost efficiency. The organisations that succeed in the coming years will be those that can balance efficiency with resilience and agility.

“In practice, this means designing systems that not only perform under stable conditions but can also adapt quickly when circumstances change. Disruption is no longer an exception. It has become a permanent feature of the global economy.”

Building resilient operations

To navigate this shift, many organisations are turning to experienced interim operations managers who combine operational expertise with hands-on execution capability. Their role often focuses on strengthening supply chains, improving procurement performance, and leading complex operational transformation programs.

“In periods of operational uncertainty or structural change, such external leadership can provide both stability and momentum, particularly when organisations need to accelerate decision-making and implementation”, Nicolas concludes.

More information

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