Managing the Corporate Warriors

Article

Cross, Kelvin F.; Lynch, Richard L.   (1990, ASQC)   Gray-Judson-Howard, Cambridge, MA

Quality Progress    Vol. 23    No. 4
QICID: 12403    April 1990    pp. 54-59
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Article Abstract

An operational control system allows executives to link strategic planning with day-to-day business operations. The system works in concert with a business operating system (BOS), which covers cross-functional activities that implement a given business strategy. Successful implementation depends on a balance between performance (P) and expectation (E). Hence, customer service can be expressed as CS = P-E. A goal of the operational control system and the BOS should be to keep P-E positive. To do so, operational control and BOS focus on horizontal flow of work to the customer. A four-level pyramid demonstrates how the BOS links: corporate vision; objectives for each business unit; operating objectives and priorities; and customer satisfaction. This pyramid has some correspondence to Juran's pyramid of units of measure. In an operational control system, four measures of performance are cost, delivery, quality, and time. A performance report card of these four criteria can help the setting of priorities and the evaluating of actions.

Keywords

Customer expectation,Customer satisfaction (CS),Wang Laboratories,Strategic planning,Implementation


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