In today’s fast-paced, multi-location business landscape, operational excellence has become a key driver of sustainable growth. For Chief Operating Officers (COOs), top priorities are delivering consistent customer experiences, increasing efficiency, and scaling without compromising quality.
But what does operational excellence really mean in practice—and how can COOs lead the way in making it a reality?
This blog addresses five of the most frequently asked questions about operational excellence, helping COOs cut through the noise and focus on what matters most.
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What’s the difference between operational excellence and operational efficiency?
These terms are often used interchangeably, but they represent different concepts.
- Operational efficiency is about doing things right—maximizing output while minimizing input. It focuses on reducing waste, saving time, and cutting costs.
- Operational excellence, on the other hand, is about doing the right things, right—consistently. It’s a strategic mindset focused on continuous improvement, value delivery, and long-term scalability.
Example:
An efficient team might process 100 franchise applications a month. But a brand striving for operational excellence would ensure those applications are not only processed quickly, but also accurately, with clear communication, seamless onboarding, and a frictionless experience for franchisees.
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What are the key principles of operational excellence?
While the approach may vary by industry, most frameworks for operational excellence share these core principles:
- Customer Focus – Deliver consistent value at every touchpoint
- Continuous Improvement – Promote an ongoing culture of innovation and iteration
- Process Optimization – Streamline and standardize workflows
- Data-Driven Decision Making – Use KPIs and performance metrics to guide improvements
- Leadership Alignment – Ensure leaders model and reinforce desired behaviors
These principles work together to create a business culture that prioritizes not just performance—but sustainable success.
Real-world tie-in:
Franchise brands that integrate audit data with guest sentiment and operational KPIs are already embodying these principles. They’re using insights to not only fix issues—but to anticipate them.
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What KPIs should COOs track to measure operational excellence?
Tracking the right performance indicators is critical to evaluating your progress. While every brand is unique, here are some high-impact KPIs COOs should monitor:
- Operational cost per unit or location
- Time-to-open for new units
- Customer satisfaction (CSAT) or Net Promoter Score (NPS)
- Employee productivity and engagement
- Compliance and audit pass rates
- First-time resolution or quality assurance rates
Example:
Let’s say your goal is to reduce time-to-open by 20%. If that timeline drops from 90 days to 72, you now have a replicable process that improves brand rollout speed—and gives you a competitive edge in market expansion.
- How does technology support operational excellence?
Technology is no longer a nice-to-have—it’s the engine that drives modern operational excellence.
Here’s how it empowers COOs:
- Analytics platforms deliver real-time insights across locations, revealing performance trends and operational bottlenecks.
- Audit and compliance tools standardize checklists, track issues, and ensure accountability across the network.
- Training systems enable location teams to stay current on processes, protocols, and brand expectations.
Practical example:
A brand using integrated audit tools can instantly identify which locations are underperforming and tie it back to training gaps, allowing them to deploy corrective actions at scale.
Bonus: Automation reduces the manual burden on field teams and improves consistency—especially important for businesses operating across hundreds of units.
- Is operational excellence only for large enterprises?
Not at all. Operational excellence is equally, if not more, critical for emerging and mid-sized brands.
Why?
- These brands are often growing fast and need scalable systems to maintain quality.
- Early adoption of operational frameworks helps avoid costly inefficiencies later.
- It ensures that every new location or franchisee receives the same level of support, training, and oversight—regardless of size.
Example:
An emerging franchise with 10 locations that adopts a structured approach to lead management, onboarding, and training is far more likely to scale to 50 or 100 locations successfully than one that relies on spreadsheets and ad hoc processes.
Final Thoughts: Why COOs Must Champion Operational Excellence
Operational excellence is a broad concept, but at its core, it’s about building a business that runs smarter, not harder. It’s not a one-time initiative—it’s a long-term mindset that prioritizes data, continuous improvement, and strategic execution.
For COOs, the path forward is clear:
- Focus on the principles that drive performance
- Leverage the right tools and insights
- Align people, processes, and strategy across the organization
By doing so, you can ensure your brand is ready to scale with confidence, adapt to change, and lead with consistency.
Download the COO Playbook for Operational Excellence—your guide to proven strategies that help COOs drive efficiency, consistency, and sustainable growth across franchise and multi-location businesses.
Ian Walsh
