Operations strategy is a long-term plan for the development and management of an organization’s operations in order to achieve its goals and objectives. It is a higher level concept that encompasses the overall direction and scope of an organization’s operations, and is often developed at the corporate level by top management.
Operations management, on the other hand, is the day-to-day planning, organizing, coordinating, and controlling of the activities that produce an organization’s goods and services. It is focused on the efficiency and effectiveness of an organization’s operational processes and is typically carried out at the operational level by middle and lower level managers.
There are several key differences between operations strategy and operations management:
- Scope: Operations strategy is a broad, long-term plan that encompasses the entire organization and its operations. It is concerned with the overall direction and scope of an organization’s operations, including its market focus, competitive position, and resource allocation. Operations management, on the other hand, is focused on the day-to-day planning and control of an organization’s operational processes in order to achieve efficiency and effectiveness.
- Level of decision-making: Operations strategy is developed at the corporate level by top management, while operations management is carried out at the operational level by middle and lower level managers.
- Time horizon: Operations strategy has a long-term time horizon, as it is concerned with the overall direction and scope of an organization’s operations over the long term. Operations management, on the other hand, has a shorter time horizon, as it is focused on the day-to-day planning and control of operational processes.
- Focus: Operations strategy is concerned with the overall direction and scope of an organization’s operations, including its market focus, competitive position, and resource allocation. Operations management is focused on the efficiency and effectiveness of an organization’s operational processes.
- Link to business strategy: Operations strategy is closely linked to the overall business strategy of an organization, as it is concerned with aligning the organization’s operations with its business goals and objectives. Operations management, on the other hand, is focused on the day-to-day planning and control of operational processes and may not always be directly linked to the overall business strategy.
It is important for organizations to have both a well-defined operations strategy and effective operations management in order to achieve their goals and objectives. A strong operations strategy helps to ensure that an organization’s operations are aligned with its overall business strategy and goals, while effective operations management helps to ensure that the organization’s operational processes are efficient and effective in meeting the needs of customers and other stakeholders.