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Five Dimensions of an Effective Operations Strategy

There is no one-size-fits-all solution to create an effective operations strategy. But successful strategies consist of five tightly integrated dimensions:

  1. Business Alignment and Scope of Network. How can operations be aligned with the overall business strategy and drive competitive advantage for each region and business line?
  2. Location and Global Advantage. Where can manufacturing facilities be set up to best achieve strategic objectives, gain market access, and capitalize on regional and factor cost advantages?
  3. Ownership and Partnerships. Should the company make or buy products, processes, and technologies—and which partnerships should it form?
  4. Supply Chain Capabilities and Organization Structure. How can the internal and external network components be connected with resources across the value chain to deliver high quality and service at appropriate cost?
  5. Operational Excellence. How can the company drive operational improvements and develop capabilities for the future?
The close interplay among inputs to operational excellence is complex and requires a structured approach. The inputs are partnerships, people engagement, location, performance management, network scope, business strategy, network optimization, and organization.
The close interplay among inputs to operational excellence is complex and requires a structured approach.
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