Analyst insight: As the dominant component of operations strategies, supply chains serve as a bridge between business strategy and execution — and should always make alignments clear. Too often, this key success factor is misunderstood.
In the new world of digital commerce, business strategies are outpacing the operations needed to enable them.
Business outcomes are a result of aligned strategy — as well as leadership, culture and people. Each category affects performance, but results are driven by how a company executes or operates. In fact, the term “strategy” is often misused for operational mega-processes like planning, buying, making, moving, distributing and selling.
These processes must align across the supply chain for effective performance, supporting an operations strategy that, in turn, aligns with and enables overall business strategy.
Here are three questions business leaders should consider:
- Does your company have an operations strategy that enables your business strategy and goals?
- Does your operations strategy align with your business strategy?
- Are your supply-chain capabilities strong enough to deliver operational excellence as a strategic advantage?
Unless these requirements are in place and aligned, company strategy will not be achieved, and performance will suffer. This is true no matter how robust a business strategy is.
Outlook
Aligning business strategy and operations is becoming increasingly important for companies, and will grow more challenging in the years to come — as more dynamic business strategies demand more complex operations.
Gene Tyndall is chief strategy officer at Tompkins International.
