Why 70% of Operational Excellence Projects Fail (And How to Beat the Odds)

Across FTSE 250 companies, billions are invested in operational excellence initiatives, yet research shows that nearly 70% fail to deliver lasting impact. For COOs and operations leaders, this failure rate is more than academic—it is a direct threat to performance, competitiveness, and shareholder value.

The root causes are not lack of ambition or resources, but deeper organisational issues: leaders mistaking methodology deployment for cultural transformation, quick-win obsession crowding out system-wide change, and engagement without true commitment. Too often, organisations improve processes in isolation rather than redesigning systems for sustainable excellence.

The companies that succeed take a different path. They embed continuous improvement into daily operations, build governance frameworks that align resources with strategy, and invest in cultural and capability transformation rather than toolkits alone. They measure not just project completion, but ROI, system impact, and long-term value creation.

For senior executives, the lesson is clear: operational excellence is not a programme, it is an operating model. Organisations that make it part of their DNA will unlock resilience and competitive advantage. Those that don’t will continue to join the 70% that quietly fail.