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Is Your Strategy on Target?

By Don Dovgin

The Operating Strategy aims to close the tactical gap between business strategy and implementation. It translates the strategic goals into clearly defined implementation targets and aligns the execution process to the value proposition. This acts as the "bridge" to make a concept a reality.

The Operating Strategy consists of numerous parts starting with the operating business model as the basis for process, application, technical and human performance architecture. A masterplan then integrates those elements and lays out the timeline. Finally, a business case is created that is validated by the senior executives within the company.

An operating business model is the organization's essential logic for consistently achieving its principle objectives The desired outcome is to have a "road map" to carry out the operating plan.

Some of the key elements include:

• Identify required decisions and related issues for business processes (i.e., key business processes, management approaches).

• Provide innovative ideas for operating issues and to create new value opportunities.
  Define business process alternatives based on operational analysis.

• Define business process direction based on the overall vision (i.e., key decisions and guiding principles for key business processes and management approaches).
  Identify business process order-of-magnitude costs and benefits.

• Define an approach to close business process gaps and to realize business value.

• Properly strategizing supply chain changes takes a good plan to for successful implementation. TMG has the tools in place to make sure your changes are adding value to your organization.

Critical Success Factors

• Break down strategy by work area
• People that do the work are involved in building the operating strategy
• Consider risks for taking a new direction
• Getting team commitment

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