Operational Implementation 3

8/8/2019 Operational Implementation 3

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Operational implementationOperational implementation

By

Ankita Sutreja

Arup Chakrobarty

Valay Bhatt

Aniket Bhathawala

Ankit Bhatia


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Operational ImplementationOperational Implementation

y Final aspect of strategy implementation

y Adopted by an organization to achieve

operational effectiveness

y Deals with the nitty-gritty of strategy

y The stage at which the most tangible

work gets done


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Operational EffectivenessOperational Effectiveness

y Performing similar activities better than

rivals perform them Porter

y Refers to number of practices that allows

a company to better utilize its inputs.

i.e.: reducing defects in products or

developing better products faster


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Areas of Operational EffectivenessAreas of Operational Effectiveness

y Four areas of operational implementation

Productivity

Process People

Pace


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ProductivityProductivity

y Measure of the relative amount of input

needed to secure a given amount of

output

y Ratio of the quantity of output to the

quantity of input

y Inputs are resources such as finance, raw

materials, information, time, managementy Outputs are the products and services


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ProcessesProcesses

y Courses of action used for operational

implementation

y Often implemented through systematic

and orderly procedures

y Its purpose is to achieve optimum

utilization of resources


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PeoplePeople

y Stakeholders in the organization

y Most significant people are investors,

employees, suppliers and customers


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PacePace

y Speed of operational implementation

y Measured in terms of time

y

Efficiency is the parameter used toexpress pace of operational

implementation

y Efficiency is the amount of work done per

unit time


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Profitability

One of the aspect that matters at the level of

operational implementation Several small activities that make up operational

implementation contribute to profitability

Practices Within one area we include practices that primarily

relate to that area

One practice also contributes to more than one areadue to integrated nature of operational implementation

i.e.: a productivity practice may also contribute to betterprocess and it usually leads to faster pace


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Operational implementation plays aOperational implementation plays a

key role in achieving effectivenesskey role in achieving effectivenessStrategic Plan

Activating Strategies

Managing Change

Achieving Effectiveness

Evolution and Control Monitoring

Operational Effectiveness

Productivity

Process

People

Pace

Operational

Implementation

Functional

Implementation

F

E

E

D

B

AC

K


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The four Ps of OperationalThe four Ps of Operational

ImplementationImplementation

Productivity

PacePeople

Processes

Operational

Effectiveness


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ProductivityProductivity

It is the measure of relative amount of input needed to

secure a given amount of output.

Inputs are resources such as finance, raw material,

machinery and equipment etc. Out puts are products and services.

Work study methods by Frederic Taylor is one of the

earliest method of operational effectiveness.

The modern practices of productivity are:

Just in - time manufacturing (1970)


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ContCont

Cycle time reduction (1980)

Group technology (1980)

Mass customization (1980)

Optimized Production technology (1980)

Flexible manufacturing technology (1980)Total productive maintenance (1984)

Concurrent engineering & processing (1990)

Lean operation (1990)

Productivity is especially relevant for business strategies of

COST LEADERSHIP, DIFFERENTIATION AND FOCUS.


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ProcessesProcessesThey are courses of action used for operational implementation with

the purpose to achieve optimum utilization of resources.

All management are processes only, starting from Strategic

management to functional areas, such as marketing, finance, operation

and HR.

Modern practices related to process are: Quality management system (TQM & 6sigma- 1986)

Business process reengineering (1993)

Enterprise wide resource planning (ERP 1990)

Benchmarking (1990s)

Supply Chain management (1990s)

Outsourcing (late -90s)

Benefits of process improvement are lower cost, better quality, lesser

waste, lower production time, higher productivity.


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PEOPLE :PEOPLE :

y Operational Implementation with regard to people

management assumes wider scope when strategies

have to address an extended body of stakeholders

y Includes not only the people within (employee) butalso outside ( customers )

y The people factor become a critical contributor to

operational effectiveness

y Indicated by empowerment, team building,

multiskilling, human capital, knowledge management

etc.


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Major Practices related to PeopleMajor Practices related to People

managementmanagement

1. Strategic Recruitment and Selection

2. Performance Management

3. Training and Development4. Performance Appraisal & Retention Management

5. Separation Management

y Also focusing on customers through survey,feedback, market research, CRM


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Pace..Pace..

y Pace stands for speed of operationalimplementation.

y In terms of value chain it is defined as

performing activity faster than the rivalsto gain strategic advantage.

y Operational implementation makes itpossible to speed up activities.

y Its importance cam into existence aftertime was recognized as essence forstrategy implementation


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HistoryHistory

y Time study by Taylor in 1900

y Nature of managerial work by Mintzberg

in 1973

y Network analysis and activity charts 1970

y Time based management 1980 and time

based competition of 1990.


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Importance of IT..Importance of IT..

y Most significant factor to provide pace.

y Information management achieved via IT.

y It helps in data flow between people/units

y IT is augmenting immensely capability of

organization to enhance operational

effectiveness.

y Most significant contribution is in terms

of speed of processing & dissemination of

data what we refer here as PACE.


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CHOICE OF OPERATIONALCHOICE OF OPERATIONAL

IMPLEMENTATION PRACTICESIMPLEMENTATION PRACTICESyWide array of practices, methods and

techniques

y Managers face difficulty in choosing the mostappropriate of all

y Choice further made difficult due to certainother factors

y Effective presentations with blitzkrieg ofpublicity


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Contd.Contd.

y Choose techniques indiscriminately and

disappointment results

y Often choose the latest technique and it

does not works

y Problem lies not with the technique but

in the way it is chosen and applied


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Contd.Contd.

y Hence organizational analysis must be

carried out initially

y Identify the areas requiring improvement

y And finally the appropriate technique

must be selected


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APPLYING OPERATIONALAPPLYING OPERATIONAL

IMPLEMENTATION PRACTICESIMPLEMENTATION PRACTICESy Every technique has a history, background,

context and requirements

y Hence cannot be applied blindly

y Prerequisites and consequences must be

considered

y Eg. Application of SCM


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ContdContd

y Managers need to understand theory,

concept and model behind a technique

y Must also have an in-depth understanding

of their organization

y A proper match of the both is required

for enhancing operational effectiveness

and effective operational implementation


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THANK YOU..THANK YOU..

Documents

Operational Implementation 3