What’s the Difference between PEX, OpEX, and Business Excellence?

Business language frequently conflates terms and jargon, with phrases thrown around like conjoined confetti, and in the world of Process we’re just as guilty. Ask 100 people what the difference between Process, Operational, and Business Excellence is, and you’re guaranteed to get 100 different answers.

These three terms are not the same, but they are frequently misused, one for any other.

The reality is that Process, Operational, and Business Excellence form a hierarchy, starting with Process Excellence as a subset of Operational Excellence, and itself as a subset of Business Excellence.

Process Excellence (PEX)

Process Excellence is concerned with the process itself – making processes more efficient and effective through design and testing. The main goal is to deliver consistent, positive outcomes with minimal variation (which Six Sigma tackles) and waste (which Lean deals with).

Process and Operational Excellence are frequently used interchangeably, but this is not wholly accurate.

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Operational Excellence (OpEX)

Operational Excellence is a broader concept than Process Excellence. The latter is concerned with process, but operational and transactional environments have more going on within them than simply processes.

Operational Excellence encompasses not simply processes throughout the organization, but also brings within it several other ingredients, notably culture and how the organization is viewed from a value creation perspective. How people, technology, tools, and other resources combine and interact with each other, and with your processes, all form key components of the Operational Excellence mix.

[Note: OPEX is accounting for Operational Expense, OpEX denotes Operational Excellence]

Enterprise collaboration andtalking business peopleBusiness Excellence

Moving to a more macro view, Business Excellence encompasses both PEX and OPEX with the perspective of achievement of results.

Business Excellence also includes overall business strategy, investor, customer, partner, and stakeholder communication, and overall development of the organization into the future.

Process by itself is no guarantee of success, as you may have excellent processes in situ, however they may be taking you in completely the wrong direction. Further, if business strategy is weak or wrong, then efficient and effective processes may take you over the cliff that much faster. Business Excellence requires an holistic outlook of the whole organization, all set within the overriding context of delivering results.

JobTraQ enables true task management collaborationSummary

Process Excellence (PEX)creating effective, efficient processes delivering consistent output with minimal variation and waste.

Operational Excellence (OPEX)PEX plus culture, people, resources, systems, and how they can optimally work together.

Business Excellencefocused upon delivering overall results in a pragmatic, consistently successful fashion.

 

JobTraQ is the Lean BPM pioneer, delivering exceptional process management and improvement capabilities which require no specialist coding or development skills.

For a no-pressure conversation on how your business pain can be relieved, contact us today:

US: +1.866.640.2633 (toll free)

UK: +44.(0)203.598.5156

Australia: +61.2.8015.2995

Email: info@JobTraQ.com

 

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