Subject: Tactical vs Strategic Improvement Strategies in OPSCM I recently came across an article that could be helpful in our efforts to improve efficiency in OPSCM. The report, titled "A Tale of Two Improvement Strategies: Tactical vs Strategic" by Paul Ericksen, explains the differences between tactical and strategic approaches to increasing work efficiency. According to the article, tactical work refers to the actions that support day-to-day operations. In contrast, strategic work has the potential to significantly improve the efficiency of tactical work by delivering step-function magnitude efficiency impacts. The author argues that while incremental improvements are essential, they cannot be the sole basis for achieving world-class performance. Instead, managers should also focus on strategic improvements that can change the competitive landscape in the long term. This article highlights a crucial issue in our efforts to adopt best practices in OPSCM improvement efforts. While making incremental improvements to various processes, we may be overlooking the potential for step-function enhancements that could significantly increase efficiency and give us a competitive advantage. Consequently, I suggest that we take a closer look at the current improvement strategies and evaluate whether they are focusing too much on incremental improvements at the expense of strategic ones. We should consider whether they are allocating more resources towards pursuing long-term strategic enhancements that have the potential to deliver step-function efficiency impacts. Of course, pursuing strategic improvements comes with higher risk and uncertainty. However, as the article points out, we may need more than incremental improvements to keep the process competitive. Importantly, it is better to be the game-changer than to be left behind by competitors introducing game-changing improvements. Moreover, talented and capable team that can take on the challenge of pursuing strategic improvements are critical ingredients in the entire chain. Companies should encourage and reward employees who are working on strategic projects that have the potential to deliver step-function improvements. This will require a shift in performance management approach to prioritize pursuing long-term strategic goals over short-term incremental ones. I would be happy to discuss this article further with the OPSCM 300 class and explore how to incorporate these insights into our improvement efforts. Adopting a more balanced approach between tactical and strategic improvements can help us achieve world-class performance and stay ahead of our competitors.

Reference Ericsen, P. (2015). A Tale of Two Improvement Strategies: Tactical vs. Strategic. Www.industryweek.com. https://www.industryweek.com/supply-chain/procurement/article/22007330/a-tale-of-two-improvement-strategies-tactical-vs-strategic

Discussion Questions 1. How can companies strike a balance between pursuing tactical and strategic improvements in their OPSCM processes? What factors should be considered in determining the allocation of resources towards these different types of improvements? 2. How can companies encourage and reward employees who are working on strategic projects that have the potential to deliver step-function improvements? What changes to the performance management approach may be necessary to prioritize pursuing long-term strategic goals over short-term incremental ones?

The author should provide a question about the memo and moderate the discussion to keep it active. Participation means answering the author's question and commenting on at least one answer from another student or the professor. You must answer your classmates answers to the two questions you provided. (Example: Hi mate! I like and agree with your point that adopting the best tools and techniques is they key to achieving success. Getting these tools set up early in the formation of a business is essential to be able to maximize competitive advantage.)

1) Classmates answer to question 1 & 2 Companies can strike a balance between pursuing tactical and strategic improvements by considering the specific needs and goals of the organization. Managers should prioritize incremental improvements in areas where there is a need for immediate impact while also allocating resources toward pursuing long-term strategic enhancements that have the potential to deliver step-function efficiency impacts. Factors to consider in determining the allocation of help include the company's current position in the market, available resources, risk tolerance, and the potential impact of different improvements on the company's bottom line. Companies can encourage and reward employees who are working on strategic projects that have the potential to deliver step-function improvements by providing them with the necessary resources, recognition, and support. Changes to the performance management approach may be required to prioritize pursuing long-term strategic goals over short-term incremental ones. This may involve setting long-term performance goals, aligning incentives with long-term strategic objectives, and providing ongoing training and development opportunities to support employees in achieving these goals. Additionally, companies should create a culture that supports risk-taking and innovation and recognizes and rewards employees driving strategic improvements in OPSCM processes.

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2) Classmates answer to question 1 & 2 1. The company's overall goals should be the primary consideration when determining the allocation of resources towards tactical and strategic improvements. If the goal is to improve short-term performance, such as reducing costs or increasing efficiency, then more resources may need to be allocated towards tactical improvements. If the goal is to achieve long-term growth or competitive advantage, then strategic improvements may take priority. Making sure that the right method is employed at the right time is the job of the team and managers and needs to be carefully considered. One thing that can be done is to run a cost-benefit analysis for each improvement opportunity. This can help determine whether it is a tactical or strategic improvement. Tactical improvements usually have a shorter implementation timeline and offer immediate cost savings, while strategic improvements may require more significant investments but have a more significant impact on long-term performance. Again, choosing the right one either tactical or strategic needs to be carefully considered. Things that need to be taken into account are what resources are available as well as what the improvements will look like from an financial standpoint so the company doesn't implement a strategy that wont be able to be completed due to a lack of either resources or financial backing.

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3) Classmates answer to question 1 & 2 How can companies strike a balance between pursuing tactical and strategic improvements in their OPSCM processes? What factors should be considered in determining the allocation of resources towards these different types of improvements? To balance the pursuit of tactical and strategic improvements in OPSCM processes, companies must consider several factors. These include aligning improvement efforts with business goals, considering resource availability, the urgency of the issue, risk tolerance, and the competitive landscape. By carefully considering these factors, companies can determine the appropriate allocation of resources towards tactical or strategic improvements. Balancing tactical and strategic improvements is essential for companies to achieve both short-term gains and long-term growth, and companies must continuously assess their OPSCM processes to ensure they remain competitive and adaptable. How can companies encourage and reward employees who are working on strategic projects that have the potential to deliver step-function improvements? What changes to the performance management approach may be necessary to prioritize pursuing long-term strategic goals over short-term incremental ones? Companies can encourage and reward employees working on strategic projects by offering incentives such as bonuses or stock options, recognizing their achievements through internal communication channels, and providing opportunities for professional development and growth. To prioritize pursuing long-term strategic goals over short-term incremental ones, companies may need to shift the focus of performance metrics towards longer-term goals, provide more frequent feedback and coaching, and create a culture that values experimentation and risk-taking. By adopting a performance management approach that prioritizes long-term strategic goals, companies can motivate employees to work on projects that have the potential to deliver step-function improvements and drive sustained growth.

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4) Classmates answer to question 1 & 2 I think that tactical improvement should be done by employees and lower level managers. Strategic improvement should be initiated by top management. As these assignments are delegated, both are more likely to happen. A cost-benefit analysis should be performed to evaluate whether an improvement will benefit the company overall, or will help in one area but actually hurt the work being done in another. This analysis will also help determine if the improvement being made is adding value. On another level, each change or improvement made should drive the company toward its strategic goal, so they all work together to improve it's profits.

Companies can encourage employee participation with awards, public acknowledgement, and a level of autonomy. Help them feel that they are the one who made the difference or could make the difference in something becoming better. If they own it, they will take more pride in it. To manage performance long-term, a celebratory lunch may not make much of an impact to continue employee behavior. Rather, put those employees on a path to management. If you start training people to be leaders from day one and c r e a t e a visible pathway to get there, their vision will often grow beyond the borders of their current role which allows them to see what improvements can be made and how it can benefit others and the company as a whole.

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