Having a clear Operations path for capital investments and cost management ensures that customers and other stakeholders are satisfied. Ultimately this also drives long term success. But often, Operations seems to be forgotten when it comes to setting strategy.
How much time does your organization spend on finance, marketing and commercial strategy and execution? What about operations? Does it feel as if your operations functions are getting in the way of success? Are you sacrificing front-end initiatives due to poor financial performance from operations? What is your level of operational confidence? These are great questions to ask when answering the question, why do I need an Operations Strategy?
In a perfect world, a multi-site organization would have “carbon copies” of processes and services at each location. Unfortunately, that perfect world scenario is rather costly and potentially leads to poor customer satisfaction. A diversified industrial manufacturer who developed a clear operations strategy not only saved money, but also enhanced their core competencies.
The manufacturer was a good producer of goods, but much better at product development! Historically, they tried to duplicate manufacturing processes at all locations which not only cost them time and money, but it took focus away from their strongest business core competency … product development. The manufacturer needed a clear Operations Strategy to become more agile to streamline operational execution and investment. A SWOT analysis was conducted for each location. From that assessment, version one of the strategy was completed as core competencies for each location were identified and strengthened. Now each location has a finite purpose which makes business investment, volume allocation and overall execution consistent and easy to determine. As a result, less time and money is wasted duplicating processes and capabilities. Each location’s strengths are fully utilized. The business has grown, product development and other commercial functions needs are being met as customers receive new products in the timeframe they value.
