Operations Strategy implementation

1. OPERATIONS STRATEGY
IMPLEMENTATION

2. OPERATIONS STRATEGY IMPLEMENTATION
• Operations strategy implementation is the way that strategies are operationalised or
executed.
• Strategy remains a document only until it is implemented.
• Strategy implementation depends on many factors like environmental and
organizational conditions, nature of change implied by the strategy etc.

3. LINE OF FIT
• One way of thinking about the underlying purpose of an operations strategy implementation is to use
the ‘line of fit’, or alignment.
• This model gives us a starting point for understanding the operation’s degree of change involved
in the strategy implementation. It is important to be clear regarding how much change is intended.
• Referring to the model of alignment, point A is the current operations strategy and point B is the
intended operations strategy, it is necessary to develop an understanding of current and intended market
requirements and operations resource capabilities.
• But there is a problem. During the implementation from A to B in Figure, the balance between market
requirements and operations resource capabilities may not always be maintained. Thus strategy
implementation is not a straight forward task.

5. WHO IS RESPONSIBLE FOR IMPLEMENTATION
• Organisational relationship that can have a profound impact on strategy implementation is that between those in
the operations function who have responsibility for formulating strategy and those who run the day-to-day
operations tasks.
• These two sets of people may be one and the same.
• In large organizations, a ‘central operations’ function/department is made which formulates the way of
managing operations and resource allocation.
• This distinction between central operations and day-to-day operations managers is often termed ‘staff’ and
‘line’ roles.
• Staff roles: monitoring, planning and shaping role. They are the ones who are charged with building up the company’s
operations capability. They may look forward to the way markets are likely to be moving, judge the best way to develop
each part of the operation and keep an eye on competitor behaviour. These people constitute ‘central operations’.
• Line roles: those who run the day-to-day operations. Theirs is partly a reactive role, one that involves finding ways round
unexpected problems: reallocating labour, adjusting processes, solving quality problems and so on. They need to look
ahead only enough to make sure that resources are available to meet targets. They have a necessary routine.

6. FOUR CENTRAL OPERATIONS FUNCTION

7. IMPLEMENTATION RISK
• Every task of implementing an operations strategy involves some potential risks which
can throw the implementation off track.
• Monitoring and controlling help to be prepared for any event that could cause
implementation deviation.
• Although there are various types of risks involved in strategy implementation but we’ll
focus on:
• The risk of market and operations performance becoming out of balance

8. THE RISK OF MARKET AND OPERATIONS
PERFORMANCE BECOMING OUT OF BALANCE
• During implementation, when changes occur in both market positioning and operations
resources, it causes deviation from the ‘Line of fit’.
• For example, delays in the implementation of a new website means that customers do not
receive the level of service they were promised. A firm may plan to install and debug a new IT
system before it starts to use its potential to make promises to its market.
• The deviation from alignment between market requirements and operations resources is exposing
the firm to risk called Operations risk.
• ‘Operations risk is the potential for unwanted negative consequences from an operations related
event.’

11. OPERATIONAL APPROACHES TO IMPROVE DELIVERY
SYSTEM