Driving Sustainable Growth and Profitability Through Interplay of Strategic and Operations Management
We provide model-based approaches to creating holistic view of an organizations as system with policies, processes and procedures as means of defining organization behavior in creating and delivering value; and strategy as a means of enhancing and/or acquiring new capacity to ensure achieving the organization's mission and attaining its vision. The organization system model can be simulated to support and inform strategic management and operations management. Strategy and Operations simulation help leaders and managers better understand the outcome of the interplay between strategic management and operations management within the framework established by corporate governance to shape their future and drive successful business forward.
Strategic Management
Strategic Management is concerned with strategic decisions through which management intentions are realized. Strategic decisions can be identified by the strategic 'issues', events or factors that trigger them. These triggers may include observed issues such as:
Strategic Management process is more than a set of rules to follow; it requires upper management to think strategically first then apply that thought to a managerial process consisting of a set of managerial decisions and actions that determine the long-run performance of the organization. Strategic decision-making is an ongoing cognitive process whose outcomes are usually contingent on the behavior of other actors (individuals or organizations) affected by the decision’s outcomes. Strategic decision-making involves "issue" comprehension, concepts structuring, and concepts formulation into cause-effect relations model. While the cause-effect relations model is a deductive reasoning model, the issues comprehension that triggers it, involves choice of assumptions which is to some extent arbitrary and inductive in nature.
Simulation of performance enables managers and leaders to better understand the impact of their strategic decisions and inform their decision-making related to adjustments in strategic direction, objectives, and strategy.
Strategic Management is concerned with strategic decisions through which management intentions are realized. Strategic decisions can be identified by the strategic 'issues', events or factors that trigger them. These triggers may include observed issues such as:
- decrease in sales or sales growth,
- a new product entry by competitor(s); and
- events such as request for action from executive management, or simply
- a regular planning cycle.
Strategic Management process is more than a set of rules to follow; it requires upper management to think strategically first then apply that thought to a managerial process consisting of a set of managerial decisions and actions that determine the long-run performance of the organization. Strategic decision-making is an ongoing cognitive process whose outcomes are usually contingent on the behavior of other actors (individuals or organizations) affected by the decision’s outcomes. Strategic decision-making involves "issue" comprehension, concepts structuring, and concepts formulation into cause-effect relations model. While the cause-effect relations model is a deductive reasoning model, the issues comprehension that triggers it, involves choice of assumptions which is to some extent arbitrary and inductive in nature.
Simulation of performance enables managers and leaders to better understand the impact of their strategic decisions and inform their decision-making related to adjustments in strategic direction, objectives, and strategy.
Operations Management
Operations management focuses on carefully managing the processes to produce and distribute products and services that realize strategic decisions to capitalize on opportunities. Operations Management involves operations decisions are concerned with the running of the day-to-day operations of a business or other organization as effectively and efficiently as possible. Operations decisions are based on ideas with very precise and established relationships between them enabling the firm to find, given certain premises, programmed, algorithmic solutions through formal analysis or computational methods. Operational decisions relate to the daily operations of an organization and help move organizations towards their strategic goals. Operational decisions because of their frequency and the time constraints can be expressed as a firm’s standard operating procedures (SOP) such as in:
- Production
- Invoicing,
- Issuing salary notifications, or
- Problems of optimization, i.e., setting a stock policy.
Operations processes define an organization's current value chain of activities that drive the delivery of business objectives in core areas such as production, logistics, marketing, sales, service, etc. Operations simulation results inform Operations Management decisions in the following areas:
- How do we currently produce our products and services?
- How do we currently respond to customers' demand?
- How do we improve efficiencies in our value creation and support systems?
- How do we drive costs down, and maximize profitability?
- How do we sell our current customers?
In all these cases, problems are simple enough to enable us to find “one best” solution, given certain premises, out of the exhaustive exploration of all the space of possible solutions.
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