Over the past year and a half, a phrase often pops up in business discussions: "the new normal." Concepts have changed in the investment world; credit is tighter and Congress is going to bring their wisdom to bear in shaping the financial environment of the future. (I hope that last part is not the new normal or we are really in for a treat.)

My concern is that the concept seems to be used as a catchall for past bad management practices. I disagree with the premise that financial woes have caused us to reshape our business strategy. The new normal may be the result of the new environment, but it seems to be more a way of excusing past mistakes. Some companies use the excuse of the recent financial crises for their renewed emphasis on operational improvement. However, being overstaffed, allowing for cumbersome work processes, and ignoring inefficient organization structures were not caused by the market meltdown nor will they be corrected by the ongoing comeback. Management's inattention to the basics caused bad performance, and the investment environment just magnified the situation.

Strong, successful companies run their operations with a set of management practices and principles focused on operational effectiveness. Management must rely on a sound set of work structures that meet and exceed customer needs and an organization structure that supports those work structures and facilitates communications between departments. There is now an added focus on administrative expenses, something Nolan has always tried to reinforce in good times and bad, but companies should constantly revisit their strategy for operational excellence.

What does all this mean? It means focusing on the fundamentals—all the time—is a great operational strategy. Reviewing processes, examining productivity analysis and staffing models, and evaluating new technology to ensure that redundant steps in old processes are removed are just a few of the basics that companies should focus on every day. Long-term success is the goal. Being able to respond quickly to external events and constantly improving the internal service delivery model are the marks of today's best-in-class financial services companies. Are you one of them?