Achieving Operational Excellence: Why 100 Percent Is the Only Standard That Works

In an environment where margins are tight and competition is intense, many leaders seek new products, markets, or technologies to drive growth. In this recent episode of Profitability Playbook: The Simple Numbers Podcast, hosts Brandon Gray and Mike Maxson sit down with operations expert David McClaskey, who has trained more than 15,000 leaders and helped seven organizations earn eight Malcolm Baldrige National Quality Awards, to discuss operational excellence.

According to David, the most powerful path to competitive advantage is something almost every business overlooks. It is the commitment to consistently deliver what you already promise to customers. Operational excellence means getting your product or service right every time. Not most of the time. Not almost always. Every single time. Companies that achieve operational excellence experience repeat business, strong employee cultures, higher efficiency, and financial results that competitors struggle to match.

The Mindset Shift That Starts It All

For most businesses, “mostly right most of the time” becomes an unspoken norm. David stresses that the first step toward excellence is not new systems or new technology but a change in mindset. He states, “An organization never produces at a higher standard than what the management accepts.” When leaders accept mediocrity, even unintentionally, they reinforce it. When they raise expectations and believe 100 percent is possible, belief spreads through the organization.

This concept is echoed by performance coaches, who emphasize that internal beliefs drive external results. David notes that leaders often claim their business is too complex, yet the real barrier is not complexity; it’s belief.

The Ritz-Carlton and Pal’s Sudden Service Prove It Is Achievable

David often points to organizations that have already reached these standards. The Ritz-Carlton operates hotels across multiple countries and cultures. Despite this complexity, the company sets a clear standard. As Horst Schulze put it, he did not want “any guest to ever be disappointed from a Ritz-Carlton experience.” Their pursuit of excellence resulted in two Malcolm Baldrige National Quality Awards, and David worked directly with their team to help document and strengthen their systems.

Pal’s Sudden Service demonstrates the same commitment in an entirely different industry. Pal’s made a foundational decision “to get 100 percent of our orders right every time.” They were once told this goal was impossible, but within a few years, they achieved one complaint per 3,500 orders. David explains they are “10 to 50 times more accurate than their national class competitors,” “four times faster,” and have “four times the repeat business.” Their consistency does not come from having a simple business model. It comes from holding themselves to a higher standard and designing their systems to meet that standard.

The Power of the Final 15 Percent

David explains that most companies already operate within about 85 percent of what they need to deliver consistency. The missing piece is the final 15 percent. “The difference between most and all is only 15 percent,” he says. Organizations do not solve this gap with dramatic change. They solve it by refining what already exists, clarifying requirements, and eliminating ambiguity. In many cases, this shift requires time and intention rather than significant financial investment.

When companies begin consistently delivering their existing products and services to their own standards, the results can be dramatic. David notes that customers often tell him, “We will increase our revenue 30 percent with our existing products and services” if they achieve 100 percent reliability. This growth comes without new products or new markets. It comes from consistently delivering what customers already expect.

Why Leaders Overlook the Opportunity

Despite the potential, leaders rarely identify “getting things right every time” as a core growth strategy. When David facilitates strategic planning sessions, he observes that organizations tend to focus on new ventures, new offerings, or new expansions. Very few people propose simply making their products right every time. The idea feels too simple and obvious, leading leaders to underestimate its power.

The simplicity can be misleading. David reminds leaders that just because something is simple does not mean people see it. He says leaders have already convinced themselves that 100 percent is impossible, and that belief becomes a blind spot. Organizations like Pal’s and The Ritz-Carlton demonstrate that excellence is achievable when the mindset changes first.

The Importance of Conditions of Employment

A key part of operational excellence is hiring and employee alignment. David teaches organizations to create clear conditions of employment that remove ambiguity and establish 100 percent expectations. During the discussion, he gives examples such as “you cannot hit your customers,” “you actually have to show up at working time,” and “you need to come with the right uniform.”

These conditions are not guidelines. They are commitments employees make before joining the team. When expectations are clear and enforced consistently, people understand what excellence looks like and how they contribute to it. This clarity strengthens culture and supports reliable performance.

Excellence Is Possible When Organizations Aim Higher

David frequently references Vince Lombardi’s insight that “perfection is impossible, but if you strive for perfection, you catch excellence.” Operational excellence does not mean that mistakes never occur. It means the organization’s systems, people, and expectations are designed to achieve 100 percent. When leaders set that standard, organizations rise to meet it.

The Ritz-Carlton, Pal’s Sudden Service, and the organizations David has guided show that excellence is not theoretical. It is practical, teachable, and repeatable. It is a mindset that becomes a system and ultimately becomes a culture.

Ready to Build a More Reliable and Profitable Organization?

If you want support in putting the right people, structure, and accountability in place to achieve consistent, scalable profit, the Simple Numbers team is here to help. Connect with our advisors and begin creating a path to sustainable, data-driven profit.