Page 57 - Operations Strategy

32 CHAPTER 1 • OPERATiOns sTRATEgy

the operations strategy matrix

We can now bring together the two perspectives of market requirements and opera-
tions resources to form the dimensions of a matrix. This ‘operations strategy matrix’,
shown in Figure 1.12, describes operations strategy as the intersection of a company’s
performance objectives with its decision areas. It emphasises the intersections between
what is required from the operations function (the relative priority given to each perfor-
mance objective), and how the operation tries to achieve this through the set of choices
made (and the capabilities that have been developed) in each decision area.
Although sometimes complex, the matrix can, at the very least, be considered a
checklist of the issues that are required to be addressed. Any operation that claims to
have an operations strategy will presumably be able to have some kind of story to tell
for each of the intersections. It should be able to explain exactly how capacity strategy
is going to affect quality, speed, dependability, flexibility or cost. It should be able to
explain exactly how flexibility is influenced by capacity, supply network, process tech-
nology, development and organisation decisions and so on. In other words, the matrix
helps operations strategies to be comprehensive. Also, it is unlikely that all the intersec-
tions on the matrix will necessarily be of equal importance. Some intersections will be
more critical than others. Which intersections are critical will, of course, depend on
the company and the nature of its operations, but they are likely to reflect the relative
priority of performance objectives and those decision areas that affect, or are affected
by, the company’s strategic resources. The example of Pret A Manger illustrates how the
matrix can be used to describe a company’s operations strategy.
For a company such as Pret A Manger, it is possible to find some kind of relationship
between each performance objective and every decision area. However, in Figure 1.13
we have confined ourselves to some of the critical issues described in the example.
As in most analyses of this type, it is the interrelationship between the intersec-
tions (cells) of the matrix that are as important to understand as the intersections
themselves. 13

Figure 1.12 the operations strategy matrix

Resource usage

Performance objectives Dependability Operations Market competitiveness
Quality
Speed
strategy
Flexibility
Cost
Supply Process Development and
Capacity
network technology organisation
Decision areas

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