Strategic Operations

Management
Session 27
Implementation of Operations
Strategy
 Implementing operations strategy

The process of achieving sustainable

alignment of market requirements with
operations resources

The process of using The process of implementing

substitutes for strategy operations strategy
 Implementing an operations strategy that involves moving from A to B means
understanding current and intended market requirements and operations resource
capabilities so that the extent and nature of the change can be assessed

Intended
market
requirements B

Extent and nature of

operations resource
capability change
Level/nature of
market
requirements

Current A Extent and nature of operations

market
requirements resource capability change

Current resource Intended resource

capability capability
Level/nature of operations resource capability
Implementing a strategy that moves an operation from A to B may
mean deviating from the line of fit and therefore exposing the
operation to risk

Level of market
requirements
B

External operational
Internal operational risk (Market needs
risk (excess exceeding current
capability for current level of capability
market needs means means risk of failing
risk of unexploited to satisfy the market)
capabilities) A

Level / nature of operations resource capability

 Pure risk has only negative consequences (A to C).
Speculative risk can have both positive (A to B) and negative
(A to D, or A to E) consequences

Level/nature of
market
requirements
D
B

C
Speculative risk can
A
Pure risk has only have both positive
negative and negative
consequences consequences

Level/nature of operations resource capability

 U-form organisations give prominence to functional
groupings of resources

Group
headquarters

Marketing Operations Finance

Dept.A Dept.C
Dept.B

Dept.A Dept.C Dept.A Dept.C

Dept.B Dept.B
 The M form separates the organisations resources
into separate divisions

Group
headquarters

Division A Division B Division C

Marketing etc.
Operations
Marketing etc. Marketing etc.
Operations Operations
Matrix form structures the organisations resources so
that they have two (or more) levels of responsibility

Group
headquarters

Division Division Division

A B C
Marketing

Operations

Human resources

Finance
 N form organisations form loose networks internally between
groups of resources and externally with other organisations

Organisation
A
headquarters

Org D Org B
Group A Group F

Org E Org C
Group B Group E

Group D
Group
C
 Programmatic
Trainer Top Governor
down
Instructing operations in the development and Controlling the performance of the
deployment of their capabilities through operations by setting clear priorities and
standardised improvement methods measuring performance against targets

Roles: Roles:
Central operations Teacher/consultant Central operations Messenger/Judge
Business operations Pupil/Client Business operations Recipient/Defendant

Performance
Capabilities

Operations Market
resources requirements
Facilitator Curator
Enabling operations in the development and Nurturing the performance of the operations
deployment of their capabilities through shared by collecting performance data and
advice, support and learning. distributing comparative performance
information
Roles:
Central operations Mentor Roles:
Business operations Member of a Central operations Recorder/Analyst
community Business operations Source of
Bottom information
up

Emergent
A typology of the Central Operations function
Information relationships for the four types of central operations
functions
Programmatic
Top
TRAINER GOVERNOR
down
Top-down

Performance Focus
Capabilities Focus

Operations Market
resources requirements
FACILITATOR CURATOR

Bottom-up
Emergent

Power Communication Relationship

Dominant Predominantly one-way Strong
Subservient Predominantly two-way Weak
 The reduction in performance during and after the implementation
of a new technology reflects adjustments costs
New technology planned to
be on-stream
Operations performance (Quality levels)

Start of new
technology
implementation
Forecast performance
Planned
performance

Actual performance
Planned
implementation
period

Time
Implementation project difficulty is determined by scale,
complexity and uncertainty

Relatively
difficult
implementation
projects
Strategy novel
and ground
breaking Uncertainty

Strategy different Affects more than

from previous Relatively easy one organisation
implementation
projects Affects all of the
organisation
Strategy similar Affects part of the
to previous Scale organisation
Small Large
implementation implementation
 The Power/Interest Grid

High

Keep satisfied Manage closely

Stakeholder
power
Monitor Keep informed
Low

Low High
Stakeholder
interest
 Stages in the project planning process

Adjust as
necessary

Estimate Identify the

Identify the times relationships Identify time Fix the
the and and and schedule
activities resources dependencies resource for time and
in the for activities between the schedule resources
project activities constraints
 Work breakdown structure for an implementation project
to design an information interface for a new sales
knowledge management system in an insurance company

Design information interface

for new sales knowledge
management system

Training Installation Testing

Form and Specify Install Design Test Modify

train user sales systems initial screen interface in interface
group training interface pilot area
 Gantt chart for the implementation project to design an
information interface for a new sales knowledge management
system in an insurance company

Activity
a) Form and train user group
b) Install systems
c) Specify sales training
d) Design initial screen interface
e) Test interface in pilot area
f) Modify interface
0 10 20 30 40 50 60
Time (days)
Learning potential depends on both resource and
process distance
Process
pioneer Potential for learning is
limited too many
things change
Process distance

Potential for learning

Process is relatively high
modification
Modification to Pioneering new
existing resources resources
Resource distance