๐ ๐๐ฉ๐๐ซ๐๐ญ๐ข๐จ๐ง๐ฌ ๐๐ญ๐ซ๐๐ญ๐๐ ๐ฒ ๐ ๐ซ๐๐ฆ๐๐ฐ๐จ๐ซ๐ค ๐ข๐ง ๐๐ฒ ๐๐๐ซ๐ฌ๐ฉ๐๐๐ญ๐ข๐ฏ๐ ๐ฏย
In the world of finance, it’s often about the numbers – revenue, costs, profit margins, EBITDA, and the like. However, as a CFO, I’ve learned that understanding operations is just as crucial. Operational efficiency directly impacts financial performance, and the bridge between the two is the ๐๐ฉ๐๐ซ๐๐ญ๐ข๐จ๐ง๐ฌ ๐๐ญ๐ซ๐๐ญ๐๐ ๐ฒ ๐
๐ซ๐๐ฆ๐๐ฐ๐จ๐ซ๐ค.ย
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1๏ธโฃ ๐๐ญ๐ซ๐๐ญ๐๐ ๐ข๐ ๐๐๐ฃ๐๐๐ญ๐ข๐ฏ๐๐ฌ: At the top of the framework, we have strategic objectives aligned with the overall business strategy. These objectives guide the operations strategy, whether it’s to reduce costs, enhance quality, speed up delivery, or increase flexibility. ๐ย
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2๏ธโฃ ๐๐ซ๐ข๐ญ๐ข๐๐๐ฅ ๐๐ฎ๐๐๐๐ฌ๐ฌ ๐
๐๐๐ญ๐จ๐ซ๐ฌ (๐๐๐
๐ฌ): CSFs are specific, tangible targets that support strategic objectives. They might include metrics like defect rates, order fulfilment times, or unit costs. It’s crucial these CSFs are measurable, achievable, and clearly communicated. ๐ย
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3๏ธโฃ ๐๐ฉ๐๐ซ๐๐ญ๐ข๐จ๐ง๐ฌ ๐๐๐๐ข๐ฌ๐ข๐จ๐ง๐ฌ: These decisions revolve around the 4Vs of operations – volume, variety, variation, and visibility. The optimal mix of these four factors depends on the nature of your business, market demand, and strategic objectives. ๐ย
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4๏ธโฃ ๐๐๐ฌ๐จ๐ฎ๐ซ๐๐๐ฌ ๐๐ง๐ ๐๐ซ๐จ๐๐๐ฌ๐ฌ๐๐ฌ: Finally, we come to the nuts and bolts – the resources and processes that carry out operations. This includes everything from personnel and technology to supply chains and production methods. These components must be managed efficiently to meet CSFs and ultimately achieve strategic objectives. ๐งย
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An effective operations strategy framework is not just about choosing the right objectives or making the right decisions; it’s about aligning every element to work in harmony. This alignment can drive operational efficiency, enhance financial performance, and deliver value to customers – a trifecta that every CFO strives for.ย
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Remember, strategy is not just about grand visions and big decisions. It’s also about the everyday operations that turn those visions into reality and those decisions into dollars.ย
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#finance #technology #supplychains #strategy #quality #workย
