Don’t use organization structure as a strategy. You can’t just look down though a couple of different departments, and say, I am going to answer that. I mean you and I all know that strategy is more like the random walk theory where I have to get people involved in different parts of the organizations, even different nations, even different agencies, before I can come up with a comprehensive strategy to solve a problem.
Here is the chart we would like to put together. I call it a strategy profile chart, and it’s got emphasis over here on the Y axis and strategy success factors on the X axis. This is Southwest Airlines, basically the only profitable airline in the United States for many years. Look at the difference between their strategy as indicated by the success factors and other major airlines, they are almost opposite. Everything is almost exactly opposite. Southwest Airlines broke the model for air traffic, and they used the balanced scorecard and a very aggressive team to break that model and come up with a new way of doing business, and the results speak for themselves.
So you want to try something fun. Use this as a way of plotting your organization and its success factors against your competition, against best in class, against best practices as we find it as a very helpful tool for doing that. Strategy is vertical thinking, here back to that question when do we get to the budget process, all right here.
In operations you have horizontal thinking. If I am an operations guy, it’s how much money you are going to give me, what are the deliverables I need to make and how long do I have to do it. So it deals with inputs and processes and outputs and outcomes.
We can put our measurement stethoscope anywhere we need to to get useful information, useful performance information. And we need both, don’t we? We need strategic information, but we also need operational information.