Operational Strategy Essay

2569 Words11 Pages
Operational Strategy Objectives: How to develop capabilities in process execution that will yield competitive advantages. i.e., to apply strategic management concept at operational level. 3 important elements of OS: a. TQM and Core process reengineering b. Guidelines for managing TQM and CPR efforts, c. Emerging best practices in each of 3 three generic core process: viz., product development, demand management, and order fulfillment. a. TQM: focuses on encouraging a continuous flow of incremental development from the bottom of the organization’s hierarchy. Core process: Product development, Demand management, and order fulfillment. It’s a Top-down approach, aimed at more radical changes in how processes are designed. E.g., Procter and Gamble. The need / utility of TQM and CPR: • Encourages strategic approach at the operational level. • Managers can get the expected results • These processes work equally well both for White and Blue collars • Organizations can get several ‘enabling’ developments • An orientation stage toward interorganizational collaboration. Criticism of CPR: • Two thirds / or 36% of the managers of all US managers believe process improvements in their organizations have failed to produce the expectred results. Why negative or Why TQM and CPR fail? Two reasons. • Process improvement is difficult. Change is required from individual functions to cross functional processes. Managers can’t do that easily. • Expectations from TQM and CPR is too much. Because, CPR has its own limitations. So, what do you do? Should you take it or leave it? • Ray Sata (CEO of Analog Devices) says “Process improvement essentially involves attention to processes, commitment to customers, involvement of employees, and benchmarking of
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