Infrastructure Elements: Managing for Results

Infrastructure Elements: Managing for Results

Operational Planning

Operational planning involves the strategies implemented to successfully function on a daily basis. To achieve operational effectiveness, certain steps need to be followed. Clearly defined strategies should for example be supported by steps that are practically viable. The organization's strategic direction should thus be clear to all involved. Management focus should be maintained while operational planning is implemented. Bedrock, bridge, or visionary strategies are used to achieve this focus.

Bedrock strategies are mostly related to operational issues such as core services investment, marketing, branding, business systems and operational effectiveness. These strategies are usually implemented below the executive suite and relate to day-to-day business functions and decisions.

Bridge strategies enable issues such as acquiring capital, resources and capabilities. Financial management, resource deployment, recapitalization and fund-raising are core issues in this regard. Executive focus is required until these strategies are complete.

Visionary strategies bring the organization closer to attaining its goals and visions. Service line positioning strategies, facility and technology deployment, top-tier operational performance and new service/revenue development are at the core of these strategies. They also require a large amount of resources and time, as well as a great degree of executive oversight.

Ongoing management responsibilities usually require less time in terms of planning than strategic business initiatives. Effective and appropriate planning is at the core of every business, and thus operational planning should focus on the best and newest strategies to bring about the greatest degree of operational functioning.

For all of the above strategies, an impact analysis is important. Capital and resource requirements for example may be identified, as well as taking into account opinions of persons and organizations familiar with the specific issue. Risk and reward are important elements of planning that should be implemented. In this way an impact analysis recognizes the flexibility of especially the financial element of the transaction. While a lack of current finances may limit strategies, this could be a driving force for future financial realities. There is then a balance that needs to be maintained between the feasibility of a project and its desirability.

Performance Measurement System

In business, performance measurement systems are used to assess the difference between a company's goals as identified at the beginning of a year, and what was in reality achieved during that same year. These systems are then used in future planning practices in order to help the company move ever closer towards or beyond their goals.

Performance measurement is vitally important for the survival of a company, as it provides insight regarding both the operational and strategic level performance of a company. The specific performances to be measured will then relate to the specific company involved. When performance is measured, there is also a greater clarity of mission. This can then be modified according to the findings.

A clearly defined mission statement is then at the core of such a performance measurement system. Performance is measured against the goals set at the inception of the company. Stakeholders both inside and outside of the company are used for reviewing performances. Operational and strategic performance measures are developed after defining and implementing the mission statement.

Performance measurements can then occur at both the operational and strategic levels. At the operational level, managers use the results to plan and control the operational level of the business, while strategic performance measures are used to acquire a wider picture of the issues involved and the performance of the company.

Another advantage of performance measurement systems relate to everybody associated with the company, including the general public and customers. Company programs are related to the public in a way that is clearly understandable by means of performance measurement systems.

Costs also form part of a company's performance measurement. This includes evaluating the efficiency, effectiveness and equity of elements within the company. The cost would then be not only in fiscal terms, but also in terms of any lack of the above desirable qualities measured. Costs that relate to these qualities are often the result of a certain set of values relating to the best interest of the public or customer. Performance measures can then serve to also improve a company's service quality towards its customers.