Aligning business operations with strategic goals

What does it mean to align business operations with strategic goals? It might sound complicated, but the principle is simple. It means linking an organisation's day-to-day operational activities (such as manufacturing or trading) with its overall strategic objectives and operational goals.

Operational alignment means decisions, processes, and activities are designed in a way that directly supports the strategic goals of the company.

Here's an example: If the strategic goal of a company is to increase its market share in a specific industry. They may choose to increase production capacity, improve product quality, or streamline supply chain processes within that industry.

What is operations management?

Operations management is all about planning, organising, controlling, and executing operations in an organisation. The basic functions of operations management include, but are not limited to:

• Planning for the production of goods and services
• Organising resources necessary
• Controlling the process
• Directing and managing the workforce
• Improving processes and systems

What are operational goals?

Operational goals are specific, short-term objectives that focus on improving the efficiency and effectiveness of a business's day-to-day activities. They translate the broader strategic goals of a business into actionable steps for departments and teams.

Why should operations be linked to strategic goals?

By linking operations with the overall business strategy, a business can ensure its resources are being used effectively, and that the team is working towards the objectives that really matter.

Improve efficiency

By aligning operations with the organisation's strategic goals, you can optimise the use of resources, improve productivity, and reduce costs. Greater efficiency can be achieved through measures like streamlining key processes, reducing waste in relevant areas, and improving the overall effectiveness and output of specific operations.

Gain a competitive advantage

Aligning business operations with strategic goals can also provide a competitive advantage by enabling the business to respond quickly to changes in the market, customer needs, or technology.

Make better decisions

Linking operations and organisational strategy helps to ensure that decisions are made in the best interest of the organisation as a whole, in accordance with the overall strategy, rather than in silos.

This approach allows for better decision-making across the board. It means everyone can understand the organisation's objectives, as well as how their operational activities directly contribute to them.

What are flexible operations?

If an organisation has flexible operations, this means they can adapt quickly and efficiently to changing market conditions, customer demands, and other variables. This flexibility can be achieved by implementing strategies like these:

• Agile production: Using technology and automation to ensure production processes can meet ever-changing demands.
• Cross-training employees: Enabling employees to be reassigned as needed.
• Outsourcing: Allowing the company to quickly and easily scale operations up or down as needed, without having to hire new teams.
• Flexible working arrangements: Allowing employees to work from home, part-time or with flexible hours.
• Lean production: Reducing waste and increasing efficiency in production processes. This can businesses quickly adjust operations to meet new challenges.

How Genus can help

As a Managing Director, CEO, or business owner, you are responsible for steering your business in a direction that meets its objectives.

The Genus team at Shorts can provide a personalised financial support package to help you achieve your goals, including long-term financial planning, enhancing financial analysis, supporting strategic investments, reducing unnecessary expenses, or securing funding. Our Tailored Financial Support service will help you move your business in the right direction.