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. Operations management is concerned with decisions on the day-to-day running of the business, while strategy management is concerned with decisions on improving the business long-term performance and growth. Model-based strategy content management enables collaboration between strategic management and operations management, effectively enabling the interplay between strategic and operations management functions leading to improved strategy execution and sustainable organization growth and profitability.
Effective and Viable Strategy Design
The notion of a strategy as a set of goals and major policies, is easy to grasp, but working out an agreed-upon documented strategy statement that makes the strategy explicit is challenging.
Managers must identify precisely what is meant by a goal and a major policy in order to develop a strategy statement. A model-based approach to expressing strategy design in terms of strategy content enables effective strategy statement documentation and helps managers clarify the strategic and mission goals, and how the company intends to conduct its business to be profitable. Policies are modeled as part of the statement of objectives and provide concrete expressions of the abstract strategic goals that satisfies the needs of the significant groups - employees, stakeholders, etc., that cooperate to keep the organization alive.
Properly documented strategy statement has significant fundamental contribution to the future success of the organization. It also ensures strategy determination does not degenerate into solemn recording of platitudes, useless for either the clarification of direction or achievement of consensus.
Model-Based Strategy Execution Analysis
Strategies have to be implemented and executed to be of use to the organization. Strategy implementation is concerned with the development of a comprehensive action plan that identifies the strategic initiatives to pursue to close the implementation gap. It also clearly outlines the objectives for execution of these initiatives and the activities and resources needed for successful implementation and execution.
Strategy execution is continuous strategic decision-making process concerned with improving a company's strategic position through the creation of new, or the strengthening of existing strategic assets, employed in operations, that close the strategic performance gaps - resulting from identified strategic issues.
A model-based approach for evaluating the actual realized strategy provides feedback on top-down and bottoms-up execution - combining executed part of intended strategy and unplanned, as-needed reactions to unanticipated developments that emerges - to inform the decisions and actions of managers and workers involved in making the strategy work as intended.
Effective Production Systems Design
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.
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