Operational excellence and risk management as the foundation for strategic success
Journal Title: Zarządzanie i Finanse - Year 2013, Vol 11, Issue 4
Abstract
Strategic success definition extends into new CSR areas of business operations requiring new learning and competences. Global environment changes create new challenges perceived as risks or opportunities. New research evidence (HBR) indicates that on the long-run only few enterprises managed to build and sustain unique results... Success was due to persistent compliance to 3 rules in strategic decision making on assets allocation among diverse initiatives: better before cheaper, revenues before costs, and there is no other rules. Value creating growth is more likely to happen as a result of non-price factors enabling higher prices and volume than low price strategy based on permanent cost reductions. Precious assets should be allocated to the most promising opportunities. Understanding the nonsystematic risk nature and acquiring competences in its management are indispensable to overcome barriers, thus releasing the new revenue streams and capturing profits to sustain growth. Growth requires courageous investments in operational excellence, continuous improvement of products and processes as well as breakthrough innovations in technologies. It creates chance to overcome the dominance of low price /low quality offerings creating wastes and illusion of welfare. To build capability for profitable growth businesses should follow the logic of the stretch model improving their operations, organization, strategic levers and then expanding in any direction that offers prospects for profitable growth also in the extended meaning of a company success incorporating business, social and environmental areas as new opportunities. In the era of global change there are still more questions than satisfying answers.
Authors and Affiliations
Grażyna Leśniak-Łebkowska
Keywords
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