Three Envelopes Education is the ability to listen to almost anything without losing your temper - Robert Frost
The Technical Leader LensEach decision must consider these key areas as well as the impact to the organization Technical Business Blueprint Cost Optimization Revenue Generating Financial Impact Solid Solutions Partnership Operational People Sense of Urgency Focus Solid Support Alignment DR/BC Proactive
Technical AspectTechnology needs to be a business driven decision and not a technology decision Up Solutions that enhance and support the revenue stream Strategic blueprint or roadmap Careful vendor and consultant use Down Solutions that are riddled with problems Process change centered around technology Hard to use capabilities
Business AspectTechnology cannot be the center of the business model and process change Up Business, product, organization, customer, and process understanding Expense and capital cost optimization Technology that improves competitive advantage Down No idea of NPV, ROI, Break-even, and CBA Lack of partnership/relationships Not involved in Capital Planning process Outsourcing based on financial decision only
Operational AspectTechnology needs to be easy to use and have high availability Up High availability and up-time Solid and integrated support organization Disaster recovery and business continuity Down No sense of urgency to operational outages and issues Service interruption and revenue generating impacts No change/release management
People AspectTechnology needs to provide real capabilities that are used to drive and leverage competitive advantage Up Staff is customer/client focused Organization aligned to support the business Community involvement and activities Proactive and self-starting Down The “No” organization Downward directed initiatives Staff selection
Operations Strategy FrameworkOperations Strategy is the integration and optimization of operational functions and processes with market and customer requirements This element focuses on the key items that Discriminators separate you from your Competitive competitors Cost Analysis Flexibility Quality Speed PerformanceThis element focuseson having a solid andclear business vision Resources Business Direction Technical Business Processes Vision Facilities Objectives People Strategies Operational People Technology Organization This element focuses on the resources that Customer are required to support Offerings the product and/or Needs service offerings Products This element focuses and/or Operational on the specific products Services and/or services that are offered Metrics to customers (Burian, 2008)
Operations Strategy Assessment The Operations Strategy Assessment 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 & ServicesPerformance & Metrics New Existing Modified Enterprise Core Costs Flexibility Real Capabilities Speed Quality R&D Technology People/Skills Facilities Organization Processes Support Functions Systems HR Financial Legal Procurement Inventory Quality Vendor Vision, Objectives & Strategies (Burian, 2008)
Business Direction• A clear vision, objectives and strategies serve as the foundation and blueprint for the entire organization. Without these critical elements the organization does not have an objective or target state• 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 to support the effective and efficient delivery of products and services to the customer
Support Functions• Technology, human resources, legal, procurement, quality and vendor products and services are leveraged to support the real capabilities of the organization• These are every bit as critical as the real capabilities and 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 to the involvement of people in the strategy process• 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.
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 and efficient processes are extremely important to remain as an effective and efficient organization• The use of performance and metrics are critical in order to determine both economies of scale and scope
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• Can be categorized as new, existing or modified• 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
Strategic Information• Performing a thorough competitive analysis and analyzing customer requirements can provide the market discriminators an organization needs to be competitive in the market• 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.
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
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.
SummaryYou can make the best buggy whip more efficiently than anyone and not realize it’s 2012 • Technical Leader Lens • Four Critical Aspects • Operations Strategy Framework • Operation Strategy Assessment