LINKING STRATEGY TO OPERATIONS FOR COMPETITIVE ADVANTAGE

Presented To ~ Mr. Prayas Tarani

Presented By~ Ankit Dangi Anurag Goswami Gauri Shankar Sandeep Yadav

DEFINITION

Michael Hammer, a visionary leader of reengineering and process management, concurs: High performance operating processes are necessary but not sufficient for enterprise success.

A senior strategic planner at a Fortune 20 company reinforced Hammers view: You can have the best processes

in the world, but if your governance processes dont provide

the direction and course correction required to achieve your goals, success is a matter of luck.

MARRIOTT VACATION CLUB INTERNATIONALS EXECUTION PREMIUM

Operating profit rose from $149.3 million in 2003 to $306 million in

2007, a 20 per cent annual increase.

The number of customers rating MVCI as being easy to do business with rose 70 per cent from the 2003 level.

Organizational alignment improved; the percentage of MVCI employees who reported that they understood the companys strategy and how their role contributed to it increased from74 per cent to 90 per

cent in 2007.

Strategy management: State-of-the-art practices

The management system: Linking strategy to

operations

Step- 1 Develop the strategy

Clarify your mission, values, and vision Conduct strategic analysis Formulate the strategy

Step- 2 Plan the strategy

Create strategy map Select measure and targets Choose strategic initiatives Establish strategy Create theme teams

Step 3- Align the organization

Business units Support unit Align employees

Step 4- Plan operation

Improves key processes Sales forecasting Resource capacity plan Operating and capital budgets

Step 5- Monitor and learn

Hold operational review meeting Hold strategy review meeting

Step 6- Test

and adapt the

strategy
Profitability analysis Strategy correlations Emerging strategies

THE OFFICE OF STRATEGY MANAGEMENT

The six management process

Strategic Planning

Different parts of the organization

Play three important roles
Architect, Process owner, Integrator

THE ROLE FOR LEADERSHIP: NECESSARY AND SUFFICIENT

In management processes six stages provide leaders with a comprehensive, system for managing the development, planning, implementation, review, and adaptation of their strategies