Operations Strategy: Definition, Elements, and Advantages

operation-stratagy

All elements of your company’s operations–from the project planning and execution stages to sales and marketing–stem from having an operational strategy.

These are the critical decisions that key members of your company make about how your products and services will be positioned and ultimately delivered to customers.

Without a strategy, the same processes cannot be utilized every time, guaranteed, which can allow your company to fall into disarray.

This guide will explain succinctly what an operations strategy is as well as detail the five most important elements. We’ll also share the benefits of such a strategy, so keep reading!

What Is an Operations Strategy?

An operations strategy is defined as a set of principles or rules that guide your company’s decision-making in all the business choices you make.

It’s an outline and a breakdown of how your business obtains the materials that go into your products and services, which suppliers and distributors you work with, what it takes to design and manufacture products, and what the product delivery process looks like.

More so than just outlining this information though, an operational strategy is also a guide for implementing these steps as needed.

It’s a business plan that your company can rely on time and again when new operations are afoot.

An operational strategy is also a tool for analyzing the success of your current plan and then executing operations to be the most successful that they can be.

Jennifer Lopez Business GIF by American Idol
Source: Giphy

Operational strategies allow a company to devise measures to save time and money.

For instance, maybe they cut out a middleman here or begin doing something themselves there.

The outcome doesn’t change, in that happy customers receive the products they ordered, but getting from Point A to Point B can be modified for efficiency and cost-effectiveness.

The goal then of such a strategy is usually to pad a company’s bottom line, but the goals can be multiple.

Read also: 9 Customer Management Strategies to Supercharge Customer Loyalty

The Elements of an Operations Strategy

What kinds of elements should go into a working operational strategy? Here are five of them.

Resources

What kinds of resources are needed to pull operations together according to the rules outlined in the strategy?

Resources include any and every kind of resource, from human resources as well as mechanical and locational resources.

Companies usually factor in the resources that are already available to them when compiling this element of their operational strategy.

However, depending on the budget, further resources could be purchased or otherwise acquired and then factor into the strategy as well.

Technology

No strategy worth its salt omits technology.

We’re asking you to think beyond the scope of office computers running software and take this line of thinking a little bit deeper.

For instance, marketing forecast tools are an excellent example of the technology that drives operational strategies.

Production line automation is a more advanced means of technology that’s equally as important, as is machine learning.

Through machine learning, a system can become more intuitively intelligent, cutting down on extraneous processes and maximizing output given time.

Art Working GIF by ewanjonesmorris
Source: Giphy

Products/Services

All parts of the strategy are to make producing a service or product a more expedient process.

Thus, a company will gauge the lifecycle of the average product or service under its name as well as review market trends to determine what the lifecycle of the latest product looks like.

Modifying the product or service according to these data is the key to making goods more efficient.

Facilities

What kind of production facilities does your company have available for the manufacturing of products or services?

Are all the facilities in operable condition? More so, do they have an inventory management system, safety guidelines and protocols, and clear, reachable production goals?

These are all needed as part of your company’s strategy.

Production System

Most important of all is having a production system in place, as this system is used for resource planning in both the interim and longer term.

The best production systems consider supply chain management, quality control benchmarks, and workflows.

Read also: How to Master Modern Marketing Strategy Like Netflix

The Advantages of Having an Operations Strategy

Putting together an operations strategy isn’t an overnight process, but it’s worth expending time and effort into creating. Here are some benefits of doing such.

Helps to break down department silos

If your company has many departments that rarely intersect, an operational strategy will help create a more seamless cohesion between departments when the need arises.

These departments will have a roadmap to follow to work together. When everyone works as a unit, they can produce more comprehensively with the goal of increasing output and thus revenue.

Read also: 7 Proven Ways to Defeat Silo Mentality at the Workplace

Makes better utilization of resources

Resources are precious things and should be treated as such.

To allocate resources wisely and ensure that nothing is wasted, an operational strategy comes very much in handy.

Resources can be redirected, canceled, increased, or reduced depending on the needs of the operations of your business.

The costs of certain resources can be more clearly understood as well, which will help cut down on any needless waste.

Business Working GIF
Source: Giphy

Boosts efficiency and productivity

Employees are also bolstered by an operations strategy.

Each employee division will have clear-cut goals to abide by and team managers who will guide these divisions to success.

The overarching goals will keep teams motivated to do their best and work cooperatively with others as they have to.

Employees will use their skills and time better than they have in the past, increasing output, working more efficiently, and feeling like they’re doing more fulfilling work.

Read also: Operational CRM — A Complete Guide (+7 Best Tools)

Conclusion

An operations strategy is crucial in planning out your business processes from start to finish.

What such a strategy looks like and means to you will vary but should follow the basic guidelines that we outlined in this article.

By putting together an operational strategy, you’re investing not only in the present but the future of your company as well. That’s a decision that all employees and staff can feel good about 🙂

About The Author

Leave a Comment

Your email address will not be published. Required fields are marked *