Operations

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The Execution

Your organization has the vision, has the Strategic Plan, has the financial resources and the skills required to address the plan, but .... that is not all you need to have a good probability of success.  Execution of the plan is often overlooked as an essential part ... just as essential to the overall success as the plan itself.

Operations, in the generic sense, is typically associated with the day to day running of the organization.  Tasks such as warehousing, distribution, administration and sometimes accounting services are assumed to function day after day.  The goal here seems to keep a low profile and minimize mistakes.  In some situations, it is viewed as a necessary but unattractive component of the organization.

Operations Is The Business

We have a very different view of operations.   We value the operational component of an organization as one of the keys to success.

Operations is tasked with delivering the Strategic Plan.  This is not a trivial assignment.   The initial tasks are to develop some levels of migration plans that describe how to re-align the current operational environment.  This is a relatively easy task if it were not for that fact that we are now dealing with "real" entities.  Expansion requires lead time for acquiring resources, training, securing facilities and equipment and possibly requiring materials, warehousing and distribution channels.  The impact could be on current cash restrictions, availability of skilled resources, lead time to secure facilities and legal relationships, especially in the international arena.  Rationalization or downsizing could have just as many external influences on the execution of the plan.

Balancing Act

Operations is a day to day balancing act while at the same time pushing ahead with very specific goals and objectives.  The execution of the plan, in essence, is balancing conflicting priorities.  Some of the more common areas are:

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cash flow vs. immediate expenditure

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quality vs. rapid delivery to market

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functionality vs. costs

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service vs. production

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distribution  vs. inventories

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efficiencies vs. changing priorities

Execution is one of the few skills not effectively taught in our business schools, nor are the text and papers on the topic capable of preparing the reader.  Effective execution is based on solid hands-on experience.  There is no substitute.

 
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Last modified: August 19, 2005