Operational effectiveness does not mean that the strategic.docVIP

 PAGE \* MERGEFORMAT 7 ‘Operational effectiveness’ does not mean that the strategic Many managers often ‘operational effectiveness’ (Operational Effectiveness, referred to as OE) and the ‘strategic’ confused. , Until now, companies in pursuit of productivity, quality and speed, has brought forth many well-known management tools and techniques such as TQM (Total Quality Management), Benchmarking (Benchmarking), Time Competition (Time-based Competition), Outsourcing (Outsourcing), partnership (Partner), business reengineering (Reengineering), Change Management (Change Management) and so on. Although the results of these activities can often be quite surprising, but many businesses have often because they can not put these advances into sustained profitability and disappointment. Thus, unknowingly, these management tools will be replaced by a ‘strategic’ status. When the manager pushing through these management tool, but rather to enable enterprise survival and development ‘competitive’ strategy of gradually diverged. 1, operating efficiency: necessary condition but not sufficient condition for The main objective of business is to reach a good performance, while the ‘operational effectiveness’ and ‘strategy’ is to achieve good performance elements. The problem is, this mode of operation between the two is not the same. Firms can competitors, provided that it can establish and maintain the difference between competitors. It must deliver greater value to customers, or to lower costs and create considerable value, or both. Excellent profitability of the algorithm is: to provide better value to require a higher unit price, or to achieve higher efficiency in order to achieve a lower average unit costs. Enterprises in the cost or price differences are business of all the final outcome of hundreds of business activities. These activities are aimed at the creation, production, sale and delivery of products or services, such as visiting clients, assembling products,