Operations Plan
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Operations Plan Stephen Lawrence and Frank Moyes Graduate School of Business University of Colorado Boulder, CO 80309-0419
Management Team
Management 3
most important attributes of start-up Company Organization Management Team
Management 3
most important attributes of start-up
Management,
Company
management, management
Organization Management Team
Management 3
most important attributes of start-up Company Organization Organizational
structure Ownership structure Board of directors/advisors Management
Team
Management 3
most important attributes of start-up Company Organization Management Team Key
managers Duties and responsibilities Unique skills Compensation Planned additions to the team
Management 3
most important attributes of start-up Company Organization Management Team Length: ~2 pages
Management 3
most important attributes of start-up Company Organization Management Team Length: ~2 pages Examples See
sample plans on course website
Operations Plan
Operations Plan Introduction
(1 paragraph) Operations Strategy (~1/2 page) Scope of Operations (~1/2 page) Ongoing Operations (~1/2 page) Total Length: ~2-3 pages
Operations Plan
Operations Strategy
Added Value
Operations Emphasis
How will we use operations to add value for customers in our target market? How will we win in the marketplace on the dimensions of cost, quality, timeliness, and flexibility? Which dimensions will we stress and which will we de-emphasize?
What comparative advantages do we have with our operational design?
Operations Plan
Scope of Operations
Make vs. Buy
Partnerships
What will we do in-house and what will we purchase (make vs. buy?) Why does this make sense for our business? What will be our relationship with vendors, suppliers, partners, and associates?
Personnel
What kind of people will we need to hire?
When is Virtual Virtuous? Type of Innovation
Needed Capabilities
Autonomous Systemic …exist outside
…must be created
Go virtual
Ally with caution
Ally or bring in-house
Bring in-house
Chesbrough and Teece, “When is Virtual Virtuous,” HBR, 1996
Operations Plan
Ongoing Operations
Execution
Critical success factors
Describe ongoing operations Specific to your business – hard to generalize What will you be doing on a day-to-day basis? Key performance indicators
Include detail in an appendix, as necessary.
Operations Plan
Order in Plan
Introduction Operations Strategy Scope of Operations Ongoing Operations
Assignment Order
Introduction Scope of Operations Ongoing Operations Operations Strategy
Management Team
Management 3
most important attributes of start-up Company Organization Management Team
Management 3
most important attributes of start-up
Management,
Company
management, management
Organization Management Team
Management 3
most important attributes of start-up Company Organization Organizational
structure Ownership structure Board of directors/advisors Management
Team
Management 3
most important attributes of start-up Company Organization Management Team Key
managers Duties and responsibilities Unique skills Compensation Planned additions to the team
Management 3
most important attributes of start-up Company Organization Management Team Length: ~2 pages
Management 3
most important attributes of start-up Company Organization Management Team Length: ~2 pages Examples See
sample plans on course website
Operations Plan
Operations Plan Introduction
(1 paragraph) Operations Strategy (~1/2 page) Scope of Operations (~1/2 page) Ongoing Operations (~1/2 page) Total Length: ~2-3 pages
Operations Plan
Operations Strategy
Added Value
Operations Emphasis
How will we use operations to add value for customers in our target market? How will we win in the marketplace on the dimensions of cost, quality, timeliness, and flexibility? Which dimensions will we stress and which will we de-emphasize?
What comparative advantages do we have with our operational design?
Operations Plan
Scope of Operations
Make vs. Buy
Partnerships
What will we do in-house and what will we purchase (make vs. buy?) Why does this make sense for our business? What will be our relationship with vendors, suppliers, partners, and associates?
Personnel
What kind of people will we need to hire?
When is Virtual Virtuous? Type of Innovation
Needed Capabilities
Autonomous Systemic …exist outside
…must be created
Go virtual
Ally with caution
Ally or bring in-house
Bring in-house
Chesbrough and Teece, “When is Virtual Virtuous,” HBR, 1996
Operations Plan
Ongoing Operations
Execution
Critical success factors
Describe ongoing operations Specific to your business – hard to generalize What will you be doing on a day-to-day basis? Key performance indicators
Include detail in an appendix, as necessary.
Operations Plan
Order in Plan
Introduction Operations Strategy Scope of Operations Ongoing Operations
Assignment Order
Introduction Scope of Operations Ongoing Operations Operations Strategy
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