Operations strategy development and implementation: a self assessment matrix

Abstract

In both the increasingly competitve and the continuously changing business environment existing today, increasing pressure is placed on companies to maintain and improve their profitability. Managment teams are becoming increasingly interested in assessing the performance of their organisations for comparison on the global frontier. On the basis of this assessment, companies are placed in order of performance excellence and can therefore identify a rise or fall in the estimation of their peers. The challange to survive in this mutable business environment requires a strategic method which integrates with the business objectives of an organisation. Consequently, there is a need for an integrated strategic development process (S.D.P.) for both small and large companies. The relevance of S.D.P. arises from a recognition that without S.D.P. there would be a lack of best business practice integration between departments, also the risk of departmental short goals not mirroring the long temr objectives of the company would jeopardise the future of that company. The improvement in profitability which can be obtained by adopting a self assessment performance program is particularly relevant to companies striving to become world class businesses. In general, there is an increasing awareness that management must conduct strategy performance reviews to ensure that the company is operating competitively and profitably. There is a need for some companies to follow and anticipate strategic demands made by parent plants and customers. It is also necessary that these companies be conscious that good strategic management is a requirement for survival in today's competitive environment. A survey was conducted in 1996 involving five Irish companies to determine the existing methods used by these companies in the area of strategy development and to evaluate the outcome and effects of S.D.P. program (developed by University College Galway). The S.D.P. program was developed with the assistance of the 1996 M.B.A. students and makes use of Hayes and Wheelwright's scale of excellence. The program structure and contents are explained in this paper together with the results from the survey and the self-assessment matrix. The capabilities of companies to deal with strategy implementation issues and the current approaches to strategy implementation withing such companies are conducted in this paper. Moreover, the palce of training in tackling such issues are addrerssed. Ongoing investigation into the acquisition of a prize for the best performer resulting from the implementation of the S.D.P. program is underway by U.C.G.