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 to improve the business long-term performance and growth, while Operations management is concerned with the day-to-day decisions in running of the business. An effective approach to aligning strategic and operations management enables collaboration to improve strategy execution leading to sustainable profitable growth The approach of creating explicit models of corporate and business strategy and their mapping to functional strategy to ensure proper execution helps make strategy visible and "tangible" to those in the organization that would intervene to make strategy work.
Making Strategy Explicit and 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. It requires managers identify precisely what is meant by a goal and a major policy in order to develop a good strategy statement.
Creating a strategy content model of corporate and business strategy expressed in terms of strategic goals dependent social systems model and policy statements based on the objectives derived from the abstract goals that provide concrete expressions of the abstract goals. The strategy content model helps managers clarify the concept of strategy and develop consensus on the direction and how the company intends to conduct its business to be profitable.
The strategy model helps in properly documenting the strategy statement that satisfies the needs of employees and stakeholders that cooperate to keep the organization alive and successful. And ensures strategy determination does not degenerate into solemn recording of platitudes, useless for building consensus.
Interactive Strategy Execution
Most initiatives set up to execute strategy fail due to failure in managers to properly identify and prioritize the intangible factors - such as employee engagement - as opposed to the tangible factors - structure, process and governance - that present challenges to successful execution in a turbulent and uncertain world.
Strategy execution model makes both the tangible and intangible aspects of the execution system explicit, thus helping managers make better decisions in prioritizing strategic issues and the factors that influence execution success or failure. Strategy execution model is an interactive participation model involving a two-way open dialogue between executive management and employees resulting in improved understanding of the strategic issues that present obstacles to successful execution.
Operations Strategy & Systems
Operations management has strategic and operational aspects. Strategically, it is concerned with operations strategy design to ensure appropriate structuring of work and operations systems configuration with resulting competencies that are aligned with the organization's desired competitive position. Operationally, it is concerned with utilization of the Operations System to provide the best match of supply with demand 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