Strategy's important, but operations even more so

BALA SHANKAR

THERE is a new management thought that seems to push operational excellence, smartness and ingenuity ahead of strategy. Strategy has been the "darling" buzzword among business professionals and is touted as the key to an enterprise's momentum and growth. The pandemic has, in more ways than one, challenged that dictum. Corporates, governments and other organisations have had to scurry to look deeply into operational matters and seek urgent redesign and improvements. Some key areas are:

Supply chain – it used to be a fairly simple function, with companies optimising a few key things like price, quality and capability. Access, distance, reliability, shipping complexity, inter-dependencies with raw material supplies, etc had been reckoned as table stakes in the optimisation model. Not anymore. These very factors can influence whether you would have your raw materials and ingredients for tomorrow’s shift. Suppliers had to assume total responsibility for their performance and errant ones were replaced in pre-pandemic times. Supply chain is now an actively managed in-house activity.