Sustainable Organization Growth and Profitability through Model-based design of viable strategy and operations system
Most organizations are in business to survive, grow and thrive. This implies organizations have to be effective at strategic and operations management in creating viable strategy and operations system. Model-based design of viable strategy and operations systems enables the effective interplay of strategic and operations management in directing the organization to successfully adapt to changing environments resulting in sustainable organization growth and profitability.
Model-Based Strategy Design & Evaluation
Intended strategy a pattern of deliberate and purposeful set of actions that managers have set out in advance and intend to do as part of crafting a strategy in strategic planning..
Crafting a strategy that is by design consistent with the organization's mission, represents an adaptive response to changes in the environment, provides value in contributing to meeting agreed upon goals, and creates competitive advantage requires owners and managers exercising entrepreneurship and strategic thinking in strategic issues diagnosis to identify solutions to problems in the form of viable strategy.
Model-based strategy design informs managers' decisions in crafting a viable strategy that's company specific, customized to the company's own situation and performance objectives. A viable strategy is forward looking, helps distinguish the organization from others, serves as a common frame of reference, and guides organization actions
Model-Based Realized Strategy Evaluation
Realized or actual strategy of an organization is the combined result of the executed part of the intended strategy (planned actions) and emergent strategy - unplanned, as-needed reactions to unanticipated developments. Strategy implementation and execution implies putting the organization strategy into action and making it work as intended.
Strategy implementation is concerned with the development of a comprehensive plan that clearly outlines the objectives for execution and the activities and resources needed. Strategy execution is concerned with translating implemented strategy into day-to-day management tasks. It is concerned with creating "fits" to close the implementation gap.
Model-based evaluation of realized strategy informs management's decision on viable strategy consistency, feasibility, timing and flexibility. In addition it informs managers' decisions and actions to close the implementation gap.
Model-Based Operations System Analysis
Operations management strategically, involves the long-term planning and structuring of work to establish production effective capacity. Operations function is responsible for managing the resources needed to produce the organization's goods and services, so it can make the best use of its resources
Operations strategy focuses on how best to enable and implement the organization's strategy. The task of operations strategy is the design of the Operations System - 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 by operations management to provide the best match of supply (capacity) with demand.
Model-based analysis of the operations system through process simulation informs operations management decisions in operations strategy design.
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