An effective organization's operating vision must articulate a plan for success and serve as a north star for employees to work together toward a shared goal. To properly develop an operations vision and execution plan, the COO needs to understand the overall business strategy, how operations can drive that strategy, and what role it plays in delivering results. there is.
In a previous post, we outlined the importance of creating a COO agenda and the core elements listed below (the focus of this post is italic):
- vision—Clearly articulate business-wide goals and the COO's role in realizing them, consistently supporting the overall business strategy
- plan and execute—A concrete plan with clear actions and milestones to achieve your vision. Underpinned by a robust operating model that drives delivery excellence.
- Stakeholder engagement—A deliberate approach to effectively collaborating and engaging with a wide range of internal and external stakeholders
- Organization and human resources—Proactively unlock your organization's capabilities by engaging and activating the skills and talents of all your employees and future-proofing your succession planning.
- personal operating model—Manage your personal effectiveness, including your time, energy, and leadership style
The COO's vision starts with the overall business strategy
Company-wide missions, such as transformation, business recovery, and digital transition, can greatly shape the COO's vision. It is critical that this vision is clearly communicated and understood and reiterated by all operators, including those on the front lines. A high level of ownership and buy-in from this stakeholder group increases the likelihood of success. If your vision is too complex or fails to resonate with your employees, it is unlikely to inspire action.
An effective vision must be clear and open to interpretation. For one financial services company, that vision was expressed as the percentage of customers engaged through new channels by the end of the next year. The operational vision of the logistics company was expressed as achieving consistent production capacity in excess of forecast volumes without additional capital investment. In other cases, expressing a qualitative vision or “leadership intent” is important.1 is required. A transportation provider's vision called for achieving service levels comparable to top-performing competitors at lower customer costs.
A solid plan is essential to realizing your vision
A vision without a plan is just a wish. Time passes quickly and various distractions can hinder your progress. Moving forward, a solid plan intertwined with a vision to drive concerted action and track progress is essential.
There's nothing magical about the concept of “100 days” and there's no need to adopt a 100-day plan. But stakeholders expect her COO to act. The COO's vision also requires a long-term view and a plan to fit it, albeit with appropriate details.
To develop a robust plan, COOs need to assess and act on five areas:
- operation: What are your current performance and capabilities? Are operations aligned with your vision? If not, what will it take to achieve it?
- Persons involved: What do your CEO, CxO, board of directors, employees, customers, and other stakeholders expect?
- culture: What is the organization's culture? Does it need to change? If so, how can you influence those changes?
- team: Are the right team members playing the right roles? Does the organizational structure support the operational requirements, especially regarding the vision?
- yourself: What are my strengths? What are my weaknesses? Do I meet all the requirements for my role?
A thorough understanding of these five areas will enable COOs to quickly identify and prioritize gaps and challenges, and act quickly when clear changes are needed. As COOs develop and act on plans, they need a portfolio of initiatives that includes the desired impact, challenges to be overcome, and timeframes for action. For long-term initiatives, the COO can implement a plan that will pay off in six months, a year, or more. As one COO said in a recent interview, “Time is your friend. Invest in talent.”
Execute – Core Execution
Where core operations are within the COO's remit, the COO also has strong operational capabilities and is responsible for aligning the company's operational technology, technical systems, management systems, and organizational principles and actions with objectives and strategy. We are deeply involved in making this happen.
“Technical Systems” refers to the people, processes, tools, and materials needed to perform the work. As the person who oversees the fundamentals of operations, the COO must ensure that all parts work together to help the company execute its strategy. This includes not only the “hard” elements of operations such as equipment, inventory, and logistics, but also elements such as data management, digitization, and analytics.
A management system represents the mechanism by which the COO and his team monitor and coordinate operations. COOs need to have a clear view of the drivers behind desired outcomes, be able to monitor and question top-level metrics, and dig deep into root causes.
Organizational principles and behaviors are equally important. COOs need to set the tone, staying close to the pulse of the culture. The Gemba Walk, a classic lean management concept in which leaders spend time with employees to see how work is being done, provides a powerful platform for engaging with the field.
Vision and planning form the basis for all other elements of the COO's agenda, especially the organizational and personal operating model. And with a clear vision and plan, her COO is well-positioned to effectively execute business strategies.
1 Chad Storey “Managing uncertainty according to the commander's intent” harvard business reviewNovember 30, 2010.
