Post on 06-Jan-2018
description
Aligning Organizational Goals and Operations Strategy
Oct. 30-31, 2002
Agenda
• Four Seasons Hotels and Resorts
• The Strategy Development Process
Four Seasons Hotels and ResortsService Concept
• What is the service concept?
• What distinguishes Four Seasons in the marketplace?
The Internet
• How should Four Seasons view opportunities presented by the Internet?
Technology and Four Seasons
• Conceptualize Four Seasons technology strategy.
• Is this a viable strategy?
The future – A Growth Company?
• What should Four Season do to become “one of the decade’s great growth companies?”
The Strategy Design Process(Kaplan and Norton)
• A template that helps executive teams describe their strategies
Strategy Development Process
Step 1 – Financial Perspective
• Revenue Growth Strategy– Develop new revenue sources (“Franchise
Building”)– Increase profitability per customer (“Better
Value”)• Productivity Strategy
– Reduce cost/unit– Improve asset utilization
Step 2 – Understand what the customer wants (Customer Perspective)
• What is our basis for competing?• Prioritize important competitive dimensions
that will allow us to compete on this basis– Those that relate to
• Operational Excellence• Customer Intimacy• Product Leadership
• Goal Understand how to satisfy the customer
Step 3 – Learning and Growth Perspective• Identify key:
– Strategic Competencies
– Strategic Technologies
– Culture – Climate for action
Step 4 – Internal Perspective (i.e. capabilities)• Optimize Key
– Innovation Processes (new products, core technologies)
– Customer Management processes (strategic control, integration between customer and supplier)
– Delivery Processes and Systems (optimize)
– Regulatory and Environmental processes
Need a comprehensive plan
• Short term (quick) – Implementation of productivity related changes
• New techniques for doing things.• Relocate/outsource processes
• Longer term– New products– New customer markets
• Measures to track success and failure– Balanced Scorecard approach (Kaplan)
Summary
• Contrast between developing operations strategic capabilities – high volume, low cost vs. low volume, high service.
• A comprehensive process for strategy development.
Operations Strategy• Alignment of capabilities with strategy
requirements.• Capabilities – product/service delivery
processes, management and control systems, other organizational capabilities.
• Competitive priorities – qualifiers, winners.• Strategy design process – financial,
customer, internal perspectives – key competencies. Alignment of plan with goals.