Strategic Consensus in Operations Strategy Authors: Kenneth K. Boyer and Christopher M. McDermott Content Abstract Introduction Strategic consensus Research proposition Data collection Operational constructs Results Discussion/Conclusion Abstract Operations strategies of some companies are very detailed, but they do not have a good communication across the organization and they are not ready when its come to change. A good strategy should be appropriate , should have a good communication and understood throughout the organization. Most companies only have one informant for their business. Some companies invest more in technology than managers. Introduction During the past decade, in term of quantity and quality, many research of operation strategy has made significant progress. Many companies focus only in competition with other companies, but it is not the competition that gives companies success. To be successful, the critical operation strategies is how the company makes it priorities and how these priorities are translated to the organization. Any company should have a list of priorities and how it take these priorities. The goal of this study is to examine the need for strategic consensus within operations. Strategic consensus Strategic consensus is the level of agreement within an organization regarding the relative importance of cost, quality, delivery and flexibility to the organization’s operational goals, as well as the relationships between these competitive priorities and operational policies. Cost, quality, flexibility and delivery is the key of competitive priorities. Some searchers define manufacturing strategy as a sequence of decisions that enables a business to be successful. Many studies on operations strategy implicitly assume that some level of agreement is necessary for the organization, and a detailed plan is a critical component of a successful operation strategy. Strategic consensus Fig 1. Operations strategy model Fig 1 (A) shows that managers and operators have a good communication and how they view the company’s competitive priorities, structural and infrastructural decisions. Fig 1 (B) shows that the managers and operators have a bad communication. Managers and operators have different view of the company. Research proposition Searchers did their research to collect data and know where the problem of the company is, and they give three proposition: Proposition 1: the managers and operators have the same organization level, the same competitive priority Proposition 2: infrastructural improvement program such as worker empowerment, quality leadership and use of teams is the same based on the organizational level of the respondent. Proposition 3: a company investment in advanced manufacturing technologies is the same based on the organizational level of the respondent. Data collection The searchers use different research methods for the data collection. They use a combination of case study and survey-based so they can collect a valuable information. The survey’s questions was based to the competitive priorities of the plant, as well as the infrastructural and structural investments used to support this strategy. This survey used two different groups of respondents. The first group was the middle and upper level of managers who have authority over operational decisions and the second group consisted to the operational level employees. Table 1 provides the overview of plants participating in study. Data collection Operational constructs Competitive priorities The competitive priorities have four essential composition: cost, quality, flexibility, and delivery. The scales used to measure each of these four priorities are based on those used by the Boston University Futures Survey. Infrastructural policies To measure investments in infrastructure, three scales are drawn from three different sources: worker empowerment, quality leadership and the use of small teams. -The worker empowerment’ scales is labeled WEMP and consist of the average of the seven items. Operational constructs -The quality leadership scale was developed to measure the role of management in providing quality leadership within a Total Quality Control -Use of small team scale consists of the average of three items. Structural investments Advanced Manufacturing Technologies are used by three scales to measure structural investment. AMTs are used to collect numerous studies. It exists three type of AMTs: Design-based AMTs focus on the design product and processes; Manufacturing-based AMTs focus on manufacturing and physical transformation of the product; Administrative-based AMTs are used to track operations inputs and out Results Competitive Priorities Results Infrastructural investments Results Infrastructural investments Results Structural investments Discussion/Conclusion The theme of this study was to study the strategic consensus for seven companies. After examining seven manufacturing plants, the researcher noticed that managers and operators have different views on competition priorities in some companies. These companies are limited, such as a lack of strategy consensus. Researchers and managers should have a divergent viewpoint to form a complete holistic view of the firm. The results showed that the degree of strategic agreement is variable from company to company.