Written by: Mutita Panmook, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
When running a business, it is essential to have business processes so as to meet international standards like ISO 9001 and increase credibility. However, before creating any process hierarchies, you must seek some strategies that guide you to systemize all of them the most effectively. In this article, we would like to introduce you to an “Operational Strategy” that will help your organization stay focused and achieve its goal.
What is it?
According to Indeed, operation strategy is a set of long-term management plans and methods decided by each business for the manufacturing of products and services in order to approach market needs, build competitive advantages, and improve organizational efficiency.
Why is it necessary?
Having an operational strategy is like drafting a plan of action for your business, which makes you get ready for what will happen in the future. Moreover, it helps you be aware of what your organization lacks, and needs to be fulfilled or customized, such as supply chains, financial and human resources, facilities, etc.
Here are the importance of having operation strategy:
Meet common objectives
By establishing this tactic, it can guarantee that every employee will have a collective understanding of the code of conduct that they must put into practice. Furthermore, it will help them work systematically because they know the scope of duties.
Challenge employees
This can be the stimulation of their work performance since it requires problem-solving, decision-making, and conflict resolution skills. Hence, they have to be proactive and keep improving.
Answer customers’ needs
Planning operation strategy helps your organization stay alert to the new trends and consider customers’ feedback, so it will make you thoroughly understand the needs of customers.
Manage resources effectively
This strategy will let you know what departments highly demand resources and which one is suitable for them. Evaluating the cost can also help you prepare sufficient resources in advance.
Create a positive working atmosphere between colleagues
Teamwork and collaboration skills are needed when implementing operational strategy. If they can maintain common rules, there will be no conflicts within the organization.
Increase competitive advantage
To control and develop the manufacturing will make your business run precisely and skillfully. Due to up-to-date innovation and technology, you will be one step ahead of other rivals.
In contrast, you may encounter undesirable consequences while structuring this strategy:
Complex processes and protracted duration
Owing to a lot of documents and information, processes often take longer to be approved, and can be changed all the time. Despite that, business is about adaptation, and you cannot always avoid these drawbacks.
Some inflexible rules may arise
When the world turns into the digital era, some regulations and policies change abruptly, which means your organization will face more hindrances and restrictions in creating this strategy.
5 main types of operation strategy
A corporate strategy focuses on the overall process of the organization that leads the way to mission and vision. Every department working together is regarded as a co-independent relationship.
To know what target customers really want, and catch up with ever-changing market trends, you should apply a customer-driven strategy.
A core competencies strategy emphasizes the company’s key strengths improvement and resources management.
A competitive priorities strategy helps enhance the cost and quality of products and services. It makes your business stand out from other competitors.
A product or service development strategy is about adding value in product design and service along with high-tech innovation.
TAKE A LOOK AT THIS EXAMPLE
The world-famous brands like McDonald's use a competitive priorities method from operation strategy which aims at modifying the price and quality of products and services to be cheaper, healthier, and quicker. The brand observes that market demands prioritize fast service, so using advanced equipment to provide ready-to-serve food makes them meet customers' needs. Moreover, their goal is to reduce price and operational costs. Thus, they use a low-cost supply chain system and energy-saving manufacturing, and their raw materials are mostly from direct sellers. Besides, their employees must be well-trained and understand what goals the brand wants to achieve. As you can see, operation strategy helps them function more efficiently.
How to begin creating it?
There are no fixed steps in business as well as operation strategy, but the easiest way you can do this is by identifying SWOT, vision and mission statements, and the organization’s goals. Then decide what can be the methods that help you accomplish those goals. Try to answer these questions: What does the target market want from you? How can day-to-day performance guide your operation? Which parts of the organization need improvements?
Let’s wrap up
An operational strategy plays a significant part in business operations. It is necessary for every department to create this common practice because it will be a key factor that contributes to the growth of your organization to become systematic, consistent and successful.
If you do not know where to start, you can get in touch with our Get Unstuck implementers. We can help you figure it out! Find more: https://www.helpyougetunstuck.com/
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Mutita Panmook, Executive Contributor Brainz Magazine
Mutita Panmook is a business operation strategist who’s as known as ‘The Time Queen.’ She believes that time is the number one commodity in the world that you can’t get back once it’s gone. Because of that, Mutita helps small business owners and entrepreneurs build and design efficient business that supports their lifestyle with the Get UNSTUCK Method. Mutita's mission is to help business owners and entrepreneurs get unstuck from working on the hamster wheel. The goal is to reclaim their time to be with their families, do what they love with joy, or even travel the world, whenever they want, wherever they want, with whomever they want, and let their business work for them. She is also a host of Get UNSTUCK Podcast which helps entrepreneurs get unstuck in their journey through the guest experts' experiences. Mutita's joy is when her clients keep making positive impacts on the world and become an unstuck table.
