Operations Strategy:Threading the Vision to the Customer                              Dr. Philip E. Burian, CM  - Presente...
The Process View Can Be A Little ConfusingSo many choices to increase efficiency, improve operations, and   bolster shareh...
Basic research is what Im doing when I dont know what Im doing -- Wernher Von Braun                Business Leader ViewThe...
Research Approach A Participatory Action Research model was used because of the operationalcomplexity of the problem, need...
Inspiration•   Shared Vision (Senge)•   Core Assets/Values (Senge & De Bono)•   Visions and Visioning (Yukl)•   Team Learn...
Operations StrategyOperations Strategy is the integration and optimization of operational              functions and proce...
Operations Strategy Framework  The Operations Strategy Framework can be used as an effective decision-making tool that ass...
Business Direction• A clear vision, objectives and strategies serve as the foundation and blueprint for  the entire organi...
Support Functions•   Technology, human resources, legal, procurement, quality and vendor products and    services are leve...
Real Capabilities• Facilities, people, technology, organization, and even core  processes are used to support the delivery...
Product Offerings•   Offerings are the products and services an organization markets to customers and consumers•   Based o...
Strategic Information• Performing a thorough competitive analysis and analyzing customer requirements  can provide the mar...
Discriminators• There are a number of key items that separate or distinguish an organization  from its competitors• Cost, ...
Performance & Metrics•   Performance and metrics should be used to include costs, flexibility, speed, quality to    measur...
Summary•   Broadens the traditional view of an organization to include    vision, objectives, strategies; people, process,...
Upcoming SlideShare
Loading in …5
×

Ops Strategy Research

290 views
200 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
290
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Ops Strategy Research

  1. 1. Operations Strategy:Threading the Vision to the Customer Dr. Philip E. Burian, CM - Presented to the University Industry Advisory Board (2010) – over 40 organizations represented - Presented at the July 2011 American Society for Training and Development (ASTD) Meeting in Sioux Falls - Presented to the Briar Cliff University Business Faculty (2011) in Sioux City - Presented to the CxO Technology Symposium in Sioux Falls (2012) - Journal Article and Conference Presentation under development for The Clute Institute of Academic Research (2013) The grand aim of all science is to cover the greatest number of empirical facts by logical deduction from the smallest number of hypotheses or axioms. – Albert Einstein
  2. 2. The Process View Can Be A Little ConfusingSo many choices to increase efficiency, improve operations, and bolster shareholder value. Most are descriptive and not prescriptive.Transformation Business Process ReengineeringProcess Improvement JIT DSDM ISO 9000 SCMPMI Malcolm Baldrige 6-SigmaIntervention Quality Process Improvement I have not failed. Ive just found 10,000 ways that wont CMMi work. -- Thomas Edison
  3. 3. Basic research is what Im doing when I dont know what Im doing -- Wernher Von Braun Business Leader ViewThe following is a derived list of key business imperatives from industry leaders 1) Have a Vision (not the same as mission although the two are often confused) 2) Focus Efforts 3) Have a Short-Term and Long-Term Plan 4) Establish Your Brand to Match Your Products 5) Invest in Value-Added Products and Services 6) Know Your Strengths and Weaknesses 7) Know your Core Competencies 8) Know and Monitor Your Competitors 9) Create a Culture of Innovation and Creativity and Invest in it 10) Build and Maintain Solid Business Processes and Practices and Eliminate Inefficiencies 11) Choose the Right Management Team, Eliminate Antiquated Management Practices and Remove Bureaucracy 12) Establish a Continuous Environment of Improvement for Strategy, Organization and Culture 13) Learn from Other Companies Successes and Failures 14) Target Markets and Customers Carefully 15) Measure What Needs to be Managed 16) Partner with Organizations that can Deliver Customers 17) Execute, Execute, Execute Business Weeks Strategy Power Plays (2006)
  4. 4. Research Approach A Participatory Action Research model was used because of the operationalcomplexity of the problem, need for colleague collaboration, and for industry leader participation Original Problem Collaboration & Workshop Identification Interaction Development (Kolb, 1984)
  5. 5. Inspiration• Shared Vision (Senge)• Core Assets/Values (Senge & De Bono)• Visions and Visioning (Yukl)• Team Learning (Senge)• Personal Mastery (Senge & De Bono)• Self-Organizing (De Bono & Whyte)• Systems Thinking (Senge)• Focused Organizations and Management (Mintzberg)• Competitive Advantage (Porter, Senge)• Stewardship (Block)• Productivity (Zukav)• Sustainability (Laszlo and Zhexembayeva)• Economics (Ip)• Steve Jobs (Jobs)Economists come in two flavors - mathematicians that wanted to be economists andeconomists that did poorly in math. – Phil Burian
  6. 6. Operations StrategyOperations Strategy is the integration and optimization of operational functions and processes with market and customer requirements Operations Strategy Framework Creates a thread from the Vision to the Customer Captures the “as-built” state of the organization Facilitates identifying the gaps and inconsistencies throughout the organization Provides a tool that can feed strategic planning and optimize operations [O]ld beliefs die hard even when demonstrably false. -- Edward O. Wilson
  7. 7. Operations Strategy Framework The Operations Strategy Framework can be used as an effective decision-making tool that assists in determining the integration and connectivity throughout the entire organization Strategic Information Competitive Customer Market Analysis Requirements Discriminators Products & Services New Existing Modified Enterprise CorePerformance & Metrics Real Capabilities Costs R&D Technology People/Skills Facilities Organization Processes Flexibility Speed Quality Support Functions Systems HR Financial Legal Procurement Inventory Quality Vendor Vision, Objectives & Strategies (Burian, 2008)
  8. 8. Business Direction• A clear vision, objectives and strategies serve as the foundation and blueprint for the entire organization• A vision is not a mission statement and it does have an end-point, it’s a vision…• Objectives are the goals the organization wants to achieve• Strategies are how the organization will achieve those goals. These may need to change as markets and customers needs change• All of the strategic information, products and services, real capabilities and support functions should be aligned to support the vision, objectives and strategies of the organization• Clear business direction must be cascaded down throughout the entire organization in order for people, process and technology to be aligned
  9. 9. Support Functions• Technology, human resources, legal, procurement, quality and vendor products and services are leveraged to support the real capabilities of the organization• Real capabilities must be optimized to support the effective and efficient delivery of products and services• Supply-chain systems are a vital component of the support function that must be aligned to the operation strategy objectives and vision• Human Resources (people) must understand and support the organization’s vision, objectives, and strategy – communication becomes the key• Many inefficient and ineffective operations can be hidden in these functional areas and as a result increase overall costs and directly impact the delivery of products and services
  10. 10. Real Capabilities• Facilities, people, technology, organization, and even core processes are used to support the delivery of products and services• Real capabilities are the true production and delivery assets and tools of the organization• Having the correct balance of resources and people with proper training and skills that leverage technology are extremely important to sustain the organization• The use of performance and metrics are critical in order to determine both economies of scale and scope
  11. 11. Product Offerings• Offerings are the products and services an organization markets to customers and consumers• Based on strategic information and analysis, an organization must assess whether a new, existing, or modified product or service will fill the need of the customer• Products and services need to be targeted and sometimes tailored to meet customer needs• They can also be bundled or unbundled to provide greater or enhanced value to the market• New products should be strategically planned and forecasted only when existing products and services cannot adequately fill requirements in the market• A longer range planning cycle should be considered when developing new products and services to allow greater development, testing, and introduction time before the product or service is ready to market
  12. 12. Strategic Information• Performing a thorough competitive analysis and analyzing customer requirements can provide the market discriminators an organization needs to be competitive• This competitive analysis must be reviewed and updated on a consistent basis in order to observe changes in a competitor’s behavior, actions and product offerings• Customers should be even more frequently sampled to determine changes in needs and purchasing trends• Performance and metrics should be applied to all strategic information that is gathered. This will help an organization compare itself to its competitors
  13. 13. Discriminators• There are a number of key items that separate or distinguish an organization from its competitors• Cost, flexibility, quality, and speed are the minimum criteria that determine/drive competitive advantage• Discriminators must be carefully analyzed to determine how an organization’s competition will respond to market and customer reaction and stimulus• Analysis of strategic information is a continuous process and not a one-time event• The information must be inserted back into the framework and assessed
  14. 14. Performance & Metrics• Performance and metrics should be used to include costs, flexibility, speed, quality to measure organizational effectiveness both internally and externally• These metrics can help compare the organization against strategic information about competitors, customer expectations, and how the products and services compare to similar ones in the market• Internal metrics can also determine how effective and efficient an organization’s real capabilities and support functions are performing with respect to the market and the product and service it is delivering• More importantly, the proper use of metrics can highlight imbalances and unproductive operations and processes throughout the organization
  15. 15. Summary• Broadens the traditional view of an organization to include vision, objectives, strategies; people, process, technology; and performance, innovation and productivity• Provides an approach that can be used to “thread” the organization• Captures the “as-built” state to help determine the gaps and inconsistencies throughout the organization• Provides a very strategic/top-level operational view of the entire organization and also serve as a strategic planning tool If we knew what we were doing, it wouldnt be called research, would it? -- Albert Einstein

×