Operational Effectiveness Is Not Strategy
I. Operational Effectiveness Is Not Strategy
According to Porter, various management tools like total quality management, benchmarking, time-based competition, outsourcing, partnering, reengineering, that are used today, do enhance and dramatically improve the operational effectiveness of a company but fail to provide the company with sustainable profitability. Thus, the root cause of the problem seems to be failure of management to distinguish between operational effectiveness and strategy: Management tools have taken the place of strategy.
Operational Effectiveness: Necessary but Not Sufficient
Although both operational effectiveness and strategy are necessary for the superior performance of an organization, they operate in different ways.
Operational Effectiveness: Performing similar activities better than rivals perform them. Operational effectiveness includes but is not limited to efficiency. It refers to many practices that allow a company to better utilize its inputs.
Strategy: Performing different activities from rivals’ or performing similar activities in different ways. I. Operational Effectiveness Is Not Strategy
According to Porter, various management tools like total quality management, benchmarking, time-based competition, outsourcing, partnering, reengineering, that are used today, do enhance and dramatically improve the operational effectiveness of a company but fail to provide the company with sustainable profitability. Thus, the root cause of the problem seems to be failure of management to distinguish between operational effectiveness and strategy: Management tools have taken the place of strategy.
Operational Effectiveness: Necessary but Not Sufficient
Although both operational effectiveness and strategy are necessary for the superior performance of an organization, they operate in different ways.
Operational Effectiveness: Performing similar activities better than rivals perform them. Operational effectiveness
According to Porter, various management tools like total quality management, benchmarking, time-based competition, outsourcing, partnering, reengineering, that are used today, do enhance and dramatically improve the operational effectiveness of a company but fail to provide the company with sustainable profitability. Thus, the root cause of the problem seems to be failure of management to distinguish between operational effectiveness and strategy: Management tools have taken the place of strategy.
Operational Effectiveness: Necessary but Not Sufficient
Although both operational effectiveness and strategy are necessary for the superior performance of an organization, they operate in different ways.
Operational Effectiveness: Performing similar activities better than rivals perform them. Operational effectiveness includes but is not limited to efficiency. It refers to many practices that allow a company to better utilize its inputs.
Strategy: Performing different activities from rivals’ or performing similar activities in different ways. I. Operational Effectiveness Is Not Strategy
According to Porter, various management tools like total quality management, benchmarking, time-based competition, outsourcing, partnering, reengineering, that are used today, do enhance and dramatically improve the operational effectiveness of a company but fail to provide the company with sustainable profitability. Thus, the root cause of the problem seems to be failure of management to distinguish between operational effectiveness and strategy: Management tools have taken the place of strategy.
Operational Effectiveness: Necessary but Not Sufficient
Although both operational effectiveness and strategy are necessary for the superior performance of an organization, they operate in different ways.
Operational Effectiveness: Performing similar activities better than rivals perform them. Operational effectiveness