Sustainable Organization Growth and Profitability through strategy content and operations Management
Most organizations are in business to survive, grow and thrive. This requires organizations to develop the capability to effectively manage its strategy and operations simultaneously. Strategic management is concerned with decisions on improving the business long-term performance and growth, while Operations management is concerned with the day-to-day decisions in running of the business. Model-based strategy content management enables establishment of effective context to guide operations management decisions thus enabling collaboration between strategic management and operations management processes. This interplay between strategic and operations management functions leads to improved strategy execution and sustainable organization growth and profitability.
Making Good Strategy Visible
The concept of a strategy can be made explicit as a set of goals and major policies statements. While the notion is easy to grasp, working out an agreed-upon documented strategy statement is challenging. Managers must identify precisely what is meant by a goal and a major policy in order to develop a good strategy statement.
A model-based approach to expressing strategy in terms of strategy content model - abstract strategic goals and policies based on objectives that provide concrete expressions of the abstract goals. This helps managers clarify the concept and develop consensus on how the company intends to conduct its business to be profitable.
Properly documented strategy statement satisfies the needs of employees and stakeholders that cooperate to keep the organization alive and successful. It ensures strategy determination does not degenerate into solemn recording of platitudes, useless for either the clarification of direction or achievement of consensus; and has significant fundamental contribution to the future success of the organization.
Making Strategy Work
Strategic management is concerned with decisions (strategic choice) that determine the future viable strategy of an organization, and its implementation and execution. Strategic choice refers to the decision that addresses the question "where are we going?" It involves strategic decision-making to select from among alternatives, the strategy which will best meet the organization's objectives.
A model-based approach for capturing strategy content enables incremental analysis of strategic alternatives subject to defined selection factors - objective analytical and subjective factors - leading to assessment of the alternative which is the most viable/suitable under the assumed conditions.
Strategy implementation and execution involves strategic decision-making concerned with improving a company's strategic position through the creation of new, or the strengthening of existing strategic assets (that close the strategic performance gaps), employed in operations to create and deliver value that satisfies customers' expectations.
Production Effective Capacity
Operations management is a basic business organization function which has both strategic and operational aspects. The strategic aspects involve long-term capacity planning and structuring of work to establish effective capacity of the Operations System for production of goods and services.
The Operations System is the joint configuration of resources and processes such that the resulting competencies are aligned with the organization's desired competitive position. The Operations System is utilized to provide the best match of supply (capacity) with demand and inform management decisions in the creation and delivery of goods and services to customers while meeting stakeholders' expectations.
Operations management decisions in determining effective capacity for producing goods and services for a given product mix can be supported and informed by the simulation of the organization's Operations System model.
Copyright Enterprise Design Labs 2005 - 2018