What is Operational Strategy?
“A goal without a plan is just a wish.”
I have a lot of potential clients say to me that they have a Business Coach and therefore do not need strategy work with me.
The thing is, you actually need more than one strategy in your business.
The Business Strategy is a high level framework of the business as a whole. This would include plans and subsequent decisions that detail the long term direction of the business. These high level goals are set at CEO level and include things such as:
The overall Vision and Mission
Market Analysis
Strategic Positioning
Competitors
Growth Strategies
If you then think of your business as a traditional corporate structure, you will then begin to identify the next level of strategy needed:
Operational
Sales and Marketing
Financial
Resource Management
And then within those categories you can go even deeper for example your Sales and Marketing Strategy will include a social media strategy, audience growth plan, brand development plan etc.
What plan would you give to the members in your team? You wouldn’t ask the Social Media Manager to just post whatever they felt like. You would provide clear guidance on the type of post / content, the brand voice, the measurable results, calls to action etc.
What is Operational Strategy?
An Operational Strategy is a plan for how you are going to execute the overall business strategy and plan. The overall Business Strategy is a high level plan but the Operational Strategy is about turning the plans into actionable steps.
The Operational Strategy is all about combining efficiency with productivity and value. Operation Strategy focuses on the day to day activities, processes and resources needed to achieve the overall goals and targets.
The key areas of an Operational Strategy focus on:
Process optimisation - optimising and documenting the processes required to complete tasks improving productivity, customer satisfaction and team growth
Performance management - establishing key performance indicators (KPI) or measurable targets to monitor and evaluate business performance
Resource development - ensuring the correct resources are used to achieve the high level results in the Business Strategy. This includes technology, software, finances, human resources and facilities
Risk management - identifying potential risks within the business and creating process to ensure sustainability
Workflow management - ensuring all of the integral cogs within the business are moving smoothly and without resistance
Effective co-ordination within the business of strategy is integral to achieving growth and development. A successful Operations Team will always be looking at the bigger picture to identify the potential snags, to adjust resources as necessary while always keeping the bigger picture in mind.
The Operational Strategy is of equal importance to the overall Business Strategy because a plan without execution is just wasted effort.
