Critical Failure Factors of Operational Excellence in Manufacturing Companies: A Leadership Model for Sustainable Performance

Organizations operating in dynamic and complex environments increasingly adopt operational excellence (OPEX) to improve performance, adaptability, and sustainability. Despite its widespread implementation, OPEX initiatives often fail. Existing research mainly identifies isolated failure factors but lacks integrative, practice-oriented frameworks that translate these findings into actionable strategies. This study addresses this gap through a systematic literature review focused on leadership and management aspects of OPEX adoption. Using structured searches across major scientific databases and defined eligibility criteria, empirical and case-based studies were analyzed. Failure factors were synthesized using grounded theory-based qualitative coding, resulting in three primary organizational dimensions: top management commitment and support (TMCS), training and education deficiencies (TED), and poor organizational culture (POC). Among these, insufficient top management commitment and support is indicated as the most frequent determinant of OPEX failure. Based on these findings, a leadership framework is proposed to mitigate identified failure factors. The framework combines practical strategic deployment through Hoshin Kanri with operational alignment via Gemba Walk practices, emphasizing organizational structure, cross-functional collaboration, and knowledge transfer. By bridging strategic intent and operational execution, the model aims to improve the effectiveness of OPEX initiatives, strengthen managerial awareness, support, and commitment toward OPEX adoption and enhance the successful adoption of sustainability initiatives.