4 pillars of a strong OPEX culture

The importance of an effective operational excellence (OPEX) culture should not be underestimated. McKinsey estimates that companies waste US$2.7 trillion annually on failed operational initiatives. The culprit isn’t bad strategy or poor technology – it’s culture.

In 2025, as digital transformation accelerates and supply chains face unprecedented volatility, OPEX can no longer be relegated to a department. It must become organizational DNA.

Why traditional OPEX programs are failing

After leading operational transformations across three continents and multiple industries – from Singapore’s high-tech manufacturing to Canada’s pharmaceutical contract development and manufacturing organizations (CDMOs) – I’ve observed a consistent pattern: companies that treat OPEX as a toolkit achieve 15-20 percent improvements. Those that embed it as culture achieve 40-60 percent sustainable gains.

The difference? Cultural integration versus programmatic implementation.

4 pillars of an OPEX culture that delivers

1. Purpose-driven performance

Don’t just measure what’s easy – measure what matters. At Roche’s CDMO operations, we replaced 47 disparate KPIs with eight strategic metrics directly tied to patient outcomes. The result: CHF 400,000 in cost savings and 30 percenr faster decision-making.

2. Leadership as living examples

Executives can’t delegate culture creation. When Thermo Fisher’s site leadership began conducting daily Gemba walks with smartphones capturing improvement opportunities, productivity jumped from 40 percent to 95 percent in six months. Leaders weren’t just sponsors, they were active problem-solvers.

3. Learning at the speed of business

Traditional training happens in conference rooms; real learning happens at the point of work. We digitized problem-solving workflows using artificial intelligence (AI) powered dashboards that turned every process deviation into a learning opportunity. This approach trained over 40 Green and Black Belt professionals while delivering $900,000 in verified savings.

4. Technology as an amplifier, not a solution

AI and internet of things (IoT) should amplify human intelligence, not replace it. Our smart manufacturing initiatives at Jabil didn’t just collect data – they empowered frontline workers to make real-time adjustments that reduced work-in-process by 92 percent.

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The flywheel effect: Culture compounds results

Here’s what happens when culture takes root. A Malaysian electronics manufacturer embedded OPEX principles into their hiring, onboarding and performance review processes. Within 18 months, employee-generated improvements increased 300 percent and the need for external consultants dropped by 80 percent.

OPEX in 2025 isn’t about having better tools – it’s about creating better humans who naturally think in terms of value, waste and continuous improvement. Culture eats strategy for breakfast, but it devours operational programs for lunch.

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