Page 292 - Operations Strategy

dEPloyIng CAPAbIlITIEs In THE mARKET 267
operations resources to excel in the things in which the company needs to compete
effectively. The expectation on the operations function is to be ‘internally supportive’
by providing credible support to operations strategy.

Stage 4 – externally supportive
At one time, Stage 3 was taken as the limit of the operations function’s contribution.
Yet Hayes and Wheelwright capture the emerging sense of the growing importance of
operations management by suggesting a further stage – Stage 4. The difference between
Stage 3 and Stage 4 is admitted by Hayes and Wheelwright to be subtle, but nevertheless
important. A Stage 4 company is one that sees the operations function as providing
the foundation for its future competitive success because it is able to deploy unique
competencies that provide the company with the performance to compete in future
market conditions. In effect, the contribution of the operations function becomes cen-
tral to strategy making. Stage 4 operations are creative and proactive. They are likely to
organise their resources in ways that are innovative and capable of adaptation as mar-
kets change. Essentially, they are expected to be ‘one step ahead’ of competitors – what
Hayes and Wheelwright call being ‘externally supportive’.
Figure 7.14 brings together the two concepts of role and the contribution of the oper-
ations function. Moving from Stage 1 to Stage 2 requires operations to overcome its
problems of implementing existing strategies. The move from Stage 2 to Stage 3 requires
operations actively to develop its resources so that they are appropriate for long-term
strategy. Moving up to Stage 4 requires operations to be driving strategy through its
contribution to competitive superiority. Notice also how moving up from Stage 1 to

Figure 7.14 The four-stage model of operations contribution

STAGE 4
Redefining Give an
industry operations
expectations Increasing contribution of operations STAGE 3 advantage

Increasing strategic impact in the industry STAGE 2 Supporting Driving
Clearly the best
Link
strategy
strategy with
operations
As good as
Adopt
strategy
competitors
best
practice
STAGE 1
Holding the
strategy
organisation Correct the Implementing
worst
back problems
Internally Externally Internally Externally
neutral neutral supportive supportive
Increasing operations capabilities

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