Operations Plan

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Operations Plan

• Stephen Lawrence and Frank Moyes
• Graduate School of Business
• University of Colorado
• Boulder, CO 80309-0419

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Management Team
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Management

• 3 most important attributes of start-up
• Company Organization
• Management Team

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Management

• 3 most important attributes of start-up
• Management, management, management
• Company Organization
• Management Team

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Management

• 3 most important attributes of start-up
• Company Organization
• Organizational structure
• Ownership structure
• Board of directors/advisors
• Management Team

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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

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Management

• 3 most important attributes of start-up
• Company Organization
• Management Team
• Length 2 pages

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Management

• 3 most important attributes of start-up
• Company Organization
• Management Team
• Length 2 pages
• Examples
• See sample plans on course website

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Operations Plan
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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

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Operations PlanOperations 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?

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Operations PlanScope 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?

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When is Virtual Virtuous?
Type of Innovation
Autonomous
Systemic
Go virtual
Ally withcaution
exist outside
Needed Capabilities
Ally or bring in-house
Bringin-house
must be created
Chesbrough and Teece, When is Virtual Virtuous,
HBR, 1996
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Operations PlanOngoing 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.

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Operations Plan

• Order in Plan
• Introduction
• Operations Strategy
• Scope of Operations
• Ongoing Operations

• Assignment Order
• Introduction
• Scope of Operations
• Ongoing Operations
• Operations Strategy