Few things can sink a business faster than inefficiency. It elevates costs, decreases productivity, and frustrates the workforce. If left unaddressed, inefficiency makes long-term business growth impossible.
Operational excellence is the antidote to inefficiency. It empowers business processes that streamline efficiency and maximize profitability.
“Operational excellence is the difference between a company that grows sustainably and one that collapses under its own weight,” says Armando Soto, Creator of Break 2 Success. “Many businesses focus on growth but lack the infrastructure and efficiency to handle it. True operational excellence means having optimized systems, financial clarity, and leadership alignment so the business runs smoothly and profitably.”
Armando Soto is an entrepreneur, business advisor, and investor with over 15 years of experience guiding CEOs through business growth, scaling strategies, and initiatives that turn around struggling companies. He has successfully facilitated more than $1 billion in transactions and financings, partnering with executives to tackle complex challenges and achieve long-term sustainable success.
Avoiding the practices that threaten operational excellence
Achieving operational excellence requires a shift in mindset. Rather than settling for systems that are “good enough,” companies pursuing operational excellence must make a commitment to continuous improvement. Any inefficiency, no matter how small or isolated, must be addressed.
One common cause of inefficiency is the lack of standardized processes. Without a well-understood and carefully adhered-to standard, execution is slow, and output is inconsistent.
“Companies that struggle with standardization are stuck with overcomplicated workflows, redundant decision-making, and unclear accountability,” Soto says. “Any of those factors can lead to lost revenue and increased costs.”
Poor internal communications also threatens operational excellence. Time is wasted and efforts are duplicated when intel and updates aren’t shared efficiently — or at all.
Bad tracking and reporting also keeps companies from identifying and addressing inefficiencies. “When businesses fail to track key performance metrics, they operate blindly, unable to fix problems proactively,” Soto says.
Taking steps to optimize operations
Operations improve when companies clearly identify inefficiencies and commit to implementing streamlined processes to address them. Soto cites data-driven decision-making, automation, and leadership alignment as keys to pursuing operational excellence.
“Companies that use real-time financial and operational data can track performance and identify areas for improvement,” Soto says. “Automating repetitive tasks reduces costs and increases productivity. Leadership must be aligned with operational goals, ensuring the company’s vision translates into daily execution.”
Soto’s experience in guiding companies toward higher levels of efficiency and profitability has also shown him that operational excellence is easier to achieve when a company’s leaders are healthy.
“A business cannot operate at its highest level if its leadership is burned out, stressed, or unfocused,” Soto explains. “Leaders set the tone for operational efficiency. If they are overwhelmed, disorganized, or lacking in energy, it reflects throughout the organization. Executives that want to see operational excellence in their organizations must develop the clarity, discipline, and structure needed to lead effectively.”
Developing leaders who can drive operational excellence
Leaders can set the tone for operational excellence by committing to structured decision-making. This involves setting clear decision-making frameworks, using data over emotion, and having a system for evaluating options.
“High-stress environments often push leaders into reactive choices, which can lead to poor long-term outcomes,” Soto points out. “Implementing a structured approach allows leaders to maintain clarity even under pressure. When leaders embrace this practice, they experience reduced anxiety, improved confidence in their choices, and a stronger ability to navigate challenges without second-guessing themselves.”
Prioritizing physical and mental resilience also puts leaders in a better place to drive operational excellence. Some recent reports suggest today’s leaders are “quiet quitting” under the strain they face — providing only the bare minimum needed to keep the company afloat.
“Many executives believe they can push through stress indefinitely, but neglecting their well-being leads to burnout, fatigue, and diminished cognitive function,” Soto warns. “Implementing daily habits such as regular exercise, proper nutrition, intentional downtime, and structured sleep patterns helps leaders sustain high performance. Leaders who adopt this practice see increased energy levels, sharper focus, and a greater ability to handle adversity without being overwhelmed.”
To effectively make these changes and stay committed to them, leaders must implement structured routines and continuous learning. Leaders benefit their organizations most by constantly refining their leadership skills, optimizing their decision-making processes, and maintaining their physical and mental well-being.
“Leaders who prioritize ongoing development, both personally and professionally, are better equipped to sustain high performance,” Soto says. “They can lead with clarity and ensure that their business continues to grow in a way that aligns with their vision and values.”
Operational excellence sets the stage for improved performance at all levels of an organization. As inefficiencies are identified and addressed, companies experience enhanced employee engagement, improved customer satisfaction, and increased profitability.
