Model-Based Approach To Managing Strategy and Operations to enable Effective and Sustainable Organization Performance
Solutions to strategy development and execution problems require interplay of strategic management and operations management managerial functions. Strategic management function is concerned with managing the process of developing (formulating and implementing), and executing a strategy. It involves analysis (risk and uncertainty, and financial), planning, organizing, directing/leading, and controlling all the resources needed to successfully develop (formulate and implement) and execute a company's strategy in improving the strategic position of the organization. Operations management is a basic business organization function responsible for managing the process of creating and delivering value, in the form of goods and services, to customers. It involves analysis, planning, organizing, coordinating, and controlling all the resources needed to produce a company's goods and services.
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Strategic Decision-Making Analysis
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Strategy Formulation
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Strategy Implementation
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Effective Capacity Design
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Model-Based Strategic Decision-Making Analysis
A strategic issue is essentially an issue - an unresolved question (i.e., a fundamental policy question) or critical challenge needing a decision or waiting for some clarifying future event. It is strategic in that it affects or has an major impact an successfully achieving the organization's mission. A strategic issue is an issue that must be resolved if the organization is to achieve its mission.
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Strategy management focuses on the creation, evolution and control of the means - strategy - by which organizations achieve mission goals and objectives. A valid strategy for an organization can gain extraordinary results for an organization with an average general level of competence and leadership.
Most managers in organizations have difficulty developing valid strategy statements without the determination process degenerating into solemn recording of platitudes, and trappings of strategy which is useless for either clarification of the direction or achievement of consensus among managers.
The strategy management process viewed within the larger framework - planning, organizing, leading, and controlling (P-O-L-C) requires managers to first think strategically and apply that thought to a set of managerial decisions and actions that determine organization valid strategy, and the long-run performance of the organization.
A strategic issue is essentially an issue - an unresolved question (i.e., a fundamental policy question) or critical challenge needing a decision or waiting for some clarifying future event. It is strategic in that it affects or has an major impact an successfully achieving the organization's mission. A strategic issue is an issue that must be resolved if the organization is to achieve its mission.
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Strategy management focuses on the creation, evolution and control of the means - strategy - by which organizations achieve mission goals and objectives. A valid strategy for an organization can gain extraordinary results for an organization with an average general level of competence and leadership.
Most managers in organizations have difficulty developing valid strategy statements without the determination process degenerating into solemn recording of platitudes, and trappings of strategy which is useless for either clarification of the direction or achievement of consensus among managers.
The strategy management process viewed within the larger framework - planning, organizing, leading, and controlling (P-O-L-C) requires managers to first think strategically and apply that thought to a set of managerial decisions and actions that determine organization valid strategy, and the long-run performance of the organization.
Strategy Formulation
Strategy formulation is one of three (3) stages in the systematic discipline of strategic management including strategy implementation and execution, and strategy evaluation and control. It involves the process of determining and establishing the goals, mission, and objectives of an organization, and identifying the appropriate and best courses or plans of action among all available alternative strategies/strategic options to achieve them.
Strategy formulation is concerned with creating the framework which guides strategic decision-making in the specific courses of action to follow, or establishing the confines on how to act in order to achieve a desired end - the organizational goals.
Strategy Content Model
Strategy Dynamic Model
The dynamic model of strategy is a goals model of the aspects of strategy. The model defines an integrated hierarchy of the different levels of strategy through the corresponding goals models for each level. Model-based approach to strategy design and evaluation involves developing an explicit model of the organization's mission and vision, and strategy in terms of a set of strategic goals and major policies. The strategic goals define expected outcomes or results the organization wants to change to better meet the organization's mission. The strategic goals correspond to the various levels/layers at which strategy concept exists in the organization i.e., corporate, business, and functional levels. The strategy concept at each layer is the means of achieving the results defined by the strategic goals for that layer e.g., corporate strategy, business strategy, and functional strategy respectively.
Vision Statement and Goals
Corporate level goals are indications of what the organization as a whole is trying to achieve and to become. In stating what the organization hopes to achieve, it is necessary to state what it hopes to do with respect to its environment - external "systems" such as markets, industry, the economy, the community, and other social systems.In each case there are unique relationships to observe (e.g., with competitors, municipal leaders, congress, etc.). In stating what the organization hopes to become, it is essential to view this in abstract terms as the satisfaction of the needs of significant groups which cooperate to ensure the organization's continued existence. These groups may include customers, managers, employees, stockholders, etc.
The key to organization success is its ability to identify the important needs of each of these groups to establish some balance among them, and work out a set of operating policies which permits their satisfaction. This set of policies, as a pattern, identifies what the organization is trying to become. A policy states how goals are to be attained. It tells people what they should and should not do in order to contribute to achievement of corporate goals.
Documenting The Strategy
While the notion of strategy is easy to grasp, working out an agreed-upon strategy statement (formulation) for a given company is very difficult. A valid strategy statement, however, can be a fundamental contribution to an organization's future success. The model-based approach enables and supports managers in the process of strategy determination and developing valid strategy statements which clarifies the strategy in terms of direction and achievement of goals. An explicit model of the strategy allows effective analysis to ensure processes are coherent and strategy is sound and viable, and effective management to ensure successful strategy implementation and execution.
Making strategy explicit has the following benefits:
Strategy formulation is one of three (3) stages in the systematic discipline of strategic management including strategy implementation and execution, and strategy evaluation and control. It involves the process of determining and establishing the goals, mission, and objectives of an organization, and identifying the appropriate and best courses or plans of action among all available alternative strategies/strategic options to achieve them.
Strategy formulation is concerned with creating the framework which guides strategic decision-making in the specific courses of action to follow, or establishing the confines on how to act in order to achieve a desired end - the organizational goals.
Strategy Content Model
Strategy Dynamic Model
The dynamic model of strategy is a goals model of the aspects of strategy. The model defines an integrated hierarchy of the different levels of strategy through the corresponding goals models for each level. Model-based approach to strategy design and evaluation involves developing an explicit model of the organization's mission and vision, and strategy in terms of a set of strategic goals and major policies. The strategic goals define expected outcomes or results the organization wants to change to better meet the organization's mission. The strategic goals correspond to the various levels/layers at which strategy concept exists in the organization i.e., corporate, business, and functional levels. The strategy concept at each layer is the means of achieving the results defined by the strategic goals for that layer e.g., corporate strategy, business strategy, and functional strategy respectively.
Vision Statement and Goals
Corporate level goals are indications of what the organization as a whole is trying to achieve and to become. In stating what the organization hopes to achieve, it is necessary to state what it hopes to do with respect to its environment - external "systems" such as markets, industry, the economy, the community, and other social systems.In each case there are unique relationships to observe (e.g., with competitors, municipal leaders, congress, etc.). In stating what the organization hopes to become, it is essential to view this in abstract terms as the satisfaction of the needs of significant groups which cooperate to ensure the organization's continued existence. These groups may include customers, managers, employees, stockholders, etc.
The key to organization success is its ability to identify the important needs of each of these groups to establish some balance among them, and work out a set of operating policies which permits their satisfaction. This set of policies, as a pattern, identifies what the organization is trying to become. A policy states how goals are to be attained. It tells people what they should and should not do in order to contribute to achievement of corporate goals.
Documenting The Strategy
While the notion of strategy is easy to grasp, working out an agreed-upon strategy statement (formulation) for a given company is very difficult. A valid strategy statement, however, can be a fundamental contribution to an organization's future success. The model-based approach enables and supports managers in the process of strategy determination and developing valid strategy statements which clarifies the strategy in terms of direction and achievement of goals. An explicit model of the strategy allows effective analysis to ensure processes are coherent and strategy is sound and viable, and effective management to ensure successful strategy implementation and execution.
Making strategy explicit has the following benefits:
- Improves a company managers' awareness of the strategy underlying their success/failure and makes it easy for a coherent effort to improve the strategy.
- Guides and informs strategic decisions in successfully growing the company through diversification and M&A.
- Improves and informs managers' assessment of the strategy's viability - i.e., is the strategy right for your company?
Strategy Implementation and Execution
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This is model-based evaluation tool that allows organizations to create models of crafted strategy to reify an intangible concept and enable managers to develop shared understanding of the underlying assumptions and logical decisions flowing from those assumptions so they can each understand the basis of their decisions and the relative importance and prioritization of strategic issues.
Good business ideas are one of the foundation elements of a sound strategy - corporate and business level strategy. Crafting a sound strategy is an exercise in entrepreneurship and strategic thinking. The challenge is for managers to keep their strategies responsive to changes in the business environment.
A strategy model that is company specific, customized to the company's own situation and performance objectives. It is comprised of component options that address such concerns as how to grow the business, how to satisfy customers, how to out-compete rivals, how to respond to changing market conditions, how to manage the organization's functional areas, and how to achieve strategic and financial objectives.
compete competitors, in converting They are converted to corporate and business strategy. Corporate strategy is concerned with choices regarding strategic positioning and direction, and sets the context for business strategy which is concerned with choices regarding competitors, and the nature of competition.
Creating integrated goal models of corporate and business strategy collectively define the organization's strategic direction and intent in terms of the outcomes, achievements, or goals a business wishes to achieve over a specific time-frame. The strategy model can be visually analyzed enabling managers to assess the acceptability of the strategy to the managers and its potential effectiveness of achieving intended strategic mission goals..
exhibiting entrepreneurship and strategic thinking in crafting adaptation of intended strategy to development in the external and internal environment of the organization and necessary adjustments to keep them in tune with changing circumstances.
[TBD]
This is model-based evaluation tool that allows organizations to create models of crafted strategy to reify an intangible concept and enable managers to develop shared understanding of the underlying assumptions and logical decisions flowing from those assumptions so they can each understand the basis of their decisions and the relative importance and prioritization of strategic issues.
Good business ideas are one of the foundation elements of a sound strategy - corporate and business level strategy. Crafting a sound strategy is an exercise in entrepreneurship and strategic thinking. The challenge is for managers to keep their strategies responsive to changes in the business environment.
A strategy model that is company specific, customized to the company's own situation and performance objectives. It is comprised of component options that address such concerns as how to grow the business, how to satisfy customers, how to out-compete rivals, how to respond to changing market conditions, how to manage the organization's functional areas, and how to achieve strategic and financial objectives.
compete competitors, in converting They are converted to corporate and business strategy. Corporate strategy is concerned with choices regarding strategic positioning and direction, and sets the context for business strategy which is concerned with choices regarding competitors, and the nature of competition.
Creating integrated goal models of corporate and business strategy collectively define the organization's strategic direction and intent in terms of the outcomes, achievements, or goals a business wishes to achieve over a specific time-frame. The strategy model can be visually analyzed enabling managers to assess the acceptability of the strategy to the managers and its potential effectiveness of achieving intended strategic mission goals..
exhibiting entrepreneurship and strategic thinking in crafting adaptation of intended strategy to development in the external and internal environment of the organization and necessary adjustments to keep them in tune with changing circumstances.
Effective Operations Capacity Design
Operations Management involves administrative and management process focused on operational control of the organization's capacity to efficiently carry out the tasks set forth by strategic and middle management decisions and decision-makers. Operations management focuses on how to best use the organizations production resources, capabilities and competencies to create and deliver value to customers.
Operations system is the joint configuration of resources and processes with the resulting competencies ...
Operations management focuses on the control of the means - processes and resources - by which organizations create and deliver value
It involves structured decision-making, concerned with how efficiently and effectively resources are utilized and how well operations units are performing. Operations management takes place within the context of broad policies and objectives set out by strategic decision-making.
Operations Management involves administrative and strategic decision-making processes focused on Operations Strategy design, Operations Systems design, operations process design and operations control systems design.
Operations Management involves administrative and management process focused on operational control of the organization's capacity to efficiently carry out the tasks set forth by strategic and middle management decisions and decision-makers. Operations management focuses on how to best use the organizations production resources, capabilities and competencies to create and deliver value to customers.
Operations system is the joint configuration of resources and processes with the resulting competencies ...
Operations management focuses on the control of the means - processes and resources - by which organizations create and deliver value
It involves structured decision-making, concerned with how efficiently and effectively resources are utilized and how well operations units are performing. Operations management takes place within the context of broad policies and objectives set out by strategic decision-making.
Operations Management involves administrative and strategic decision-making processes focused on Operations Strategy design, Operations Systems design, operations process design and operations control systems design.
- Operations Strategy design decisions are concerned with choices and commitment to organization operations infrastructure, operations structure design.
- Operations System for the organization's production unit - This is the joint configuration of resources and processes with the resulting competencies ...
- Tactical Decisions - Tactically, Operations Management focuses on utilizing the Operations System to carefully manage the processes and resources, of the organization to produce and distribute products and services to customers which in turn realize strategic decisions to capitalize on opportunities.
- Operational Control Decisions - Operational control decisions involve determining which organization units will carry out the tasks, establishing criteria for completion, resource utilization, and evaluating outputs. Operations decisions, unlike strategic decisions, are repetitive, routine and involve definite procedure for handling so they do not have to be treated each time as if they were new.
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