operations plan stephen lawrence and frank moyes graduate school of business university of colorado...

Operations Plan

Stephen Lawrence and Frank MoyesGraduate School of Business

University of Colorado

Boulder, CO 80309-0419

Management Team

Management3 most important attributes of start-upCompany OrganizationManagement Team

Management3 most important attributes of start-up

Management, management, managementCompany OrganizationManagement Team

Management3 most important attributes of start-upCompany Organization

Organizational structure Ownership structure Board of directors/advisors

Management Team

Management3 most important attributes of start-upCompany OrganizationManagement Team

Key managers Duties and responsibilities Unique skills Compensation Planned additions to the team

Management3 most important attributes of start-upCompany OrganizationManagement TeamLength: ~2 pages

Management3 most important attributes of start-upCompany OrganizationManagement TeamLength: ~2 pagesExamples

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

How will we use operations to add value for customers in our target market?

Operations Emphasis 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

What will we do in-house and what will we purchase (make vs. buy?) Why does this make sense for our business?

Partnerships 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?

Go virtualGo virtual

Ally or Ally or bring bring

in-housein-house

BringBringin-housein-house

Ally withAlly withcautioncaution

Type of InnovationType of Innovation

AutonomousAutonomous SystemicSystemicN

eede

dN

eede

dC

apab

ilit

ies

Cap

abil

itie

s ……existexistoutsideoutside

……mustmustbe createdbe created

Chesbrough and Teece, “When is Virtual Virtuous,” HBR, 1996

Operations Plan

Ongoing Operations Execution

Describe ongoing operations Specific to your business – hard to generalize What will you be doing on a day-to-day basis?

Critical success factors 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