Operational implementation…

By –
Ankita Sutreja
Arup Chakrobarty
Valay Bhatt
Aniket Bhathawala
Ankit Bhatia
Operational Implementation

Final aspect of strategy implementation

Adopted by an organization to achieve
operational effectiveness
Deals with the nitty-gritty of strategy
The stage at which the most tangible
work gets done
Operational Effectiveness
“Performing similar activities better than
rivals perform them” –Porter
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
Areas of Operational Effectiveness
Four areas of operational implementation
– Productivity
– Process
– People
– Pace
Productivity
Measure of the relative amount of input
needed to secure a given amount of output
Ratio of the quantity of output to the
quantity of input
Inputs are resources such as finance, raw
materials, information, time, management
Outputs are the products and services
Processes
Courses of action used for operational
implementation
Often implemented through systematic
and orderly procedures
Its purpose is to achieve optimum
utilization of resources
People
Stakeholders in the organization
Most significant people are investors,
employees, suppliers and customers
Pace
Speed of operational implementation
Measured in terms of time
Efficiency is the parameter used to
express pace of operational
implementation
Efficiency is the amount of work done per
unit time
 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 area due
to integrated nature of operational implementation
i.e.: a productivity practice may also contribute to better
process and it usually leads to faster pace
 Operational implementation plays a
key role in achieving effectiveness
Functional
Strategic Plan Implementation

Operational
Activating Strategies Implementation
F
E
E
Managing Change D
Operational Effectiveness
B
Productivity
A
Process
Achieving C
People
Effectiveness K
Pace

Evolution and Control Monitoring

The four P’s of Operational
Implementation

Productivity Processes

Operational
Effectiveness

People Pace
Productivity
• 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)
Cont…
• 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.
 Processes
• They 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.
PEOPLE :
Operational Implementation with regard to people
management assumes wider scope when strategies
have to address an extended body of stakeholders
Includes not only the people within (employee) but
also outside ( customers )
The people factor become a critical contributor to
operational effectiveness
Indicated by empowerment, team building,

multiskilling, human capital, knowledge management

etc.
Major Practices related to People
management

1. StrategicRecruitment and Selection

2. Performance Management
3. Training and Development
4. Performance Appraisal & Retention Management
5. Separation Management

Also focusing on customers through survey,

feedback, market research, CRM
Pace…..
Pace stands for speed of operational
implementation.
In terms of value chain it is defined as
performing activity faster than the rivals
to gain strategic advantage.
Operational implementation makes it
possible to speed up activities.
Its importance cam into existence after
time was recognized as essence for
strategy implementation
History…
Time study by Taylor in 1900
Nature of managerial work by Mintzberg
in 1973
Network analysis and activity charts 1970
Time based management 1980 and time
based competition of 1990.
Importance of IT…..
Most significant factor to provide pace.
Information management achieved via IT.
It helps in data flow between people/units
IT is augmenting immensely capability of
organization to enhance operational
effectiveness.
Most significant contribution is in terms
of speed of processing & dissemination of
data what we refer here as PACE.
CHOICE OF OPERATIONAL
IMPLEMENTATION PRACTICES
Wide array of practices, methods and
techniques

Managers face difficulty in choosing the

most appropriate of all

Choice further made difficult due to certain

other factors

Effective presentations with blitzkrieg of

publicity
Contd….
Choose techniques indiscriminately and
disappointment results

Often choose the latest technique and it

does not works

Problem lies not with the technique but in

the way it is chosen and applied
Contd….
Hence organizational analysis must be
carried out initially

Identify the areas requiring improvement

And finally the appropriate technique

must be selected
APPLYING OPERATIONAL
IMPLEMENTATION PRACTICES
Every technique has a history,
background, context and requirements

Hence cannot be applied blindly

Prerequisites and consequences must be

considered

Eg. Application of SCM

Contd…
Managers need to understand theory,
concept and model behind a technique

Must also have an in-depth understanding

of their organization

A proper match of the both is required for

enhancing operational effectiveness and
effective operational implementation
THANK YOU…..