Page 264 - Operations Strategy

oPERATIons ImPRovEmEnT 239
and operations resources itself implies ongoing cyclical readjustment. Market potential
responds to the capabilities that the operations function is capable of deploying. Con-
versely, the operation adjusts its resources and processes in response to the direction set
by the company’s intended market position. Also, within the operations function, opera-
tions capabilities are continually developed or evolved by learning how to use operations
resources and processes more effectively. Similarly, within the marketing function, the
company’s intended market position may be refined and adjusted at least partly by the
potential market positioning made possible because of operations capabilities.

Direct, develop and deploy
Figure 7.2 illustrates the strategic improvement cycle we shall use to structure this chap-
ter. It employs the three ‘operations strategy’ elements of direct, develop and deploy
described below, plus a market strategy element.

● Direct – A company’s intended market position is a major influence on how the oper-
ations function builds up its resources and processes. Some authorities argue that
the most important feature of any improvement path is that of selecting a direction.
In other words, even micro-level, employee-driven improvement efforts must reflect
the intended strategic direction of the firm.
● Develop – Within the operations function those resources and processes are increas-
ingly understood and developed over time so as to establish the capabilities of the
operation. Essentially this is a process of learning.
● Deploy – Operations capabilities need to be leveraged into the company’s markets.
These capabilities, in effect, define the range of potential market positions that the
company may wish to adopt. But this will depend on how effectively operations
capabilities are articulated and promoted within the organisation.
● Market strategy – The potential market positions that are made possible by an opera-
tion’s capabilities are not always adopted. An important element in any company’s
market strategy is to decide which of many alternative market positions it wishes to
adopt. Strictly, this lies outside the concerns of operations strategy. In this chapter
we shall restrict ourselves to examining the direct, develop and deploy elements.

Figure 7.2 the ‘direct’, ‘develop’, ‘deploy’ strategic improvement cycle

Operations resources Market requirements
DEPLOY operation’s
Operation’s contribution Market
capabilities potential
The strategic
DEVELOP operation’s operations Market
capabilities
through learning improvement strategy
cycle
Operation’s Intended
resources and market
processes DIRECT performance position
and prioritisation

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