Operational Strategy

 

“There is a fundamental distinction between strategy and operational effectiveness”.

– Michael Porter, renowned operational strategy guru at Harvard

Even the brightest of strategic and corporate business plans are bound to come to naught if they are not backed up by the appropriate operational strategies. In setting up and running operations, the slip that organizations usually make is to follow the routine definition of operations, i.e implementation of processes, organizational set ups and quality assurance. At the outset, by following this behavior your organization is eliminating the possibilities of finding a unique competitive advantage in operations against the competitors, especially if the products and services of all the players happen to be more or less the same. Instead, applying a conscious operational strategy methodology allows your organization to come up with different and unique methods of setting up business operations. The resulting unique differentiation in the operations can become the sustained source for growing your organization’s market shares, revenues and earnings. Operational Strategy is all about translating the strategic business plans into an operations reality, creating a strategic competitive advantage in the process.

Operational strategy methodology can surface micro aspects of the operations around which the unique competitive advantage can be build. Critical analysis of the existing ‘business process’ can lead to a unique ‘reengineering’ of these processes for setting up more cost effective, efficient and IT based supply and value chains. It can in turn provide the platform for establishing the most efficient and appropriate HR organization with effective performance monitoring systems. As a decision making manager in your organization, you need to ask yourself what is your operational strategy and how is it different from your competitors. How is it contributing to your top and bottom lines? In today’s business world if you don’t rethink business operations as operational strategy, you are putting your organization at the risk of losing an indigenous source of sustained growth in earnings and shareholders and market share value.

OliveLit Businesses have industry experts with international Ivy league academic as well as FTSE-100 corporate experience, having developed and successfully implemented operational business strategies for large corporates, SMEs as well as new entrants globally. We help organizations plan, develop and incubate operational strategies with sustained revenues and earnings.