Thestrategist.media – 13 April 2015 – The accountingToday talks about clubbing operational aspects with the strategic angle in a business firm.
The C.E.O. of the “Epic Group”, Mr. Greg Weismantel, writes about the importance of applying a “tree-year” strategic management plan at the outset which is often overlooked as the focus shifts to the operational aspects of an institution. The Epic Group is a consulting firm that advises on strategic management to small to large sized companies and firms. The strength of the said firm lies in analysing and dissecting the strategy of other companies so as to support an emerging business.
As mentioned above most companies get carried away with their operational features and consequently fail to benefit from the combined strength of strategic and operational facets. As per popular belief “strategic management is not necessary to have a successful company” and one would think most of the successful ones don’t have any such managerial strategy in place.
Nevertheless, according to Greg Weismantel, his experience has been quite the different. He says combining “strategy with operations” has been always successful for any C.E.O.s who applied it. In fact, it also creates a positive vibrancy and exciting work atmosphere as along with the constant competitive market survey, through the “game-changing events”, which will have a business, the companies themselves have to change and adapt to suit the market.
As a strategic move it is best to start combining strategy and operational aspects in the early days of the company which leaves it with the scope of maximum growth period, which needs to be maintained healthily till “the Maturing quadrant”.
The C.E.O.s should be able to “reinventing itself” as the company reaches its “Maturing quadrants” which will prevent the company from ageing and eventually perishing from the face of time. No doubt. It is a challenging feat for the executive figures therefore involves much time and strategies.
There are ample examples of successful companies who failed suddenly like Radio Shack, Eastman Kodak, Arthur Andersen, and Blockbuster. Weismantel points out that Eastman Kodak at some point of time used to hold ninety percent of market share in “the cellulose film market segment of photography”. The company began its career, namely in its “Emerging quadrant”, with the invention of “rolled paper film” by George Eastman. The said technology was used by the company way before any camera began to utilise “rolled paper films”.
Moreover, the company continued its growing pattern throughout its “Growth quadrant” by expanding its productions to keep it always number one, so that almost all camera manufacturers in a worldwide scale turned to the specifications of films set by Kodak. As it became a mature and established company as a ninety percent market shareholder, it failed to keep up with the changing trend of digital photography as no such strategic actions were taken to keep the dying culture alive. Consequently, by 2012 Kodak withered away.
Similar accounts in history show that operational management without any strategic vision doesn’t allow any firm to be aware of any competitive changing market trend and to take measures to always maintain the company at par.
References:
http://www.accountingtoday.com/news/firm-profession/combining-strategic-and-operational-management-at-your-firm-74230-1.html
The C.E.O. of the “Epic Group”, Mr. Greg Weismantel, writes about the importance of applying a “tree-year” strategic management plan at the outset which is often overlooked as the focus shifts to the operational aspects of an institution. The Epic Group is a consulting firm that advises on strategic management to small to large sized companies and firms. The strength of the said firm lies in analysing and dissecting the strategy of other companies so as to support an emerging business.
As mentioned above most companies get carried away with their operational features and consequently fail to benefit from the combined strength of strategic and operational facets. As per popular belief “strategic management is not necessary to have a successful company” and one would think most of the successful ones don’t have any such managerial strategy in place.
Nevertheless, according to Greg Weismantel, his experience has been quite the different. He says combining “strategy with operations” has been always successful for any C.E.O.s who applied it. In fact, it also creates a positive vibrancy and exciting work atmosphere as along with the constant competitive market survey, through the “game-changing events”, which will have a business, the companies themselves have to change and adapt to suit the market.
As a strategic move it is best to start combining strategy and operational aspects in the early days of the company which leaves it with the scope of maximum growth period, which needs to be maintained healthily till “the Maturing quadrant”.
The C.E.O.s should be able to “reinventing itself” as the company reaches its “Maturing quadrants” which will prevent the company from ageing and eventually perishing from the face of time. No doubt. It is a challenging feat for the executive figures therefore involves much time and strategies.
There are ample examples of successful companies who failed suddenly like Radio Shack, Eastman Kodak, Arthur Andersen, and Blockbuster. Weismantel points out that Eastman Kodak at some point of time used to hold ninety percent of market share in “the cellulose film market segment of photography”. The company began its career, namely in its “Emerging quadrant”, with the invention of “rolled paper film” by George Eastman. The said technology was used by the company way before any camera began to utilise “rolled paper films”.
Moreover, the company continued its growing pattern throughout its “Growth quadrant” by expanding its productions to keep it always number one, so that almost all camera manufacturers in a worldwide scale turned to the specifications of films set by Kodak. As it became a mature and established company as a ninety percent market shareholder, it failed to keep up with the changing trend of digital photography as no such strategic actions were taken to keep the dying culture alive. Consequently, by 2012 Kodak withered away.
Similar accounts in history show that operational management without any strategic vision doesn’t allow any firm to be aware of any competitive changing market trend and to take measures to always maintain the company at par.
References:
http://www.accountingtoday.com/news/firm-profession/combining-strategic-and-operational-management-at-your-firm-74230-1.html