Top-down, bottom-up, or both? Toward an integrative perspective on operations strategy formation

Operations strategy is formed via complex processes that transpire in multiple directions at multiple organizational levels. While most previous studies focus on the “macro-level” process of strategy formation from the dominant top-down perspective, this study investigates the “micro-level” process of strategy formation that governs interactions among competitive priorities, objectives, and action plans within operations. Using 111 (59 top-down and 52 bottom-up) action plans collected from six German manufacturing plants, we build on Kim and Arnold's (1996) framework and propose an integrated process model of operations strategy formation that encompasses both top-down planning and bottom-up learning. We also identify a contingency factor that affects their balance: centralized versus decentralized organizational structure. Finally, based on the analysis of their respective strategic content, we provide evidence concerning the complementary roles of top-down and bottom-up action plans in operations strategy

Implementing operations strategy: how vertical and horizontal coordination interact

We study the implementation of operations strategy at six German manufacturers in mature businesses. Search theory argues that vertical coordination (i.e., unilateral top-down adjustment of lower-level search actions) balances stability against the improvement potential enabled by frontline search and also that horizontal coordination (i.e., bilateral adjustment among lower-level search actions) is required to ensure compatibility among the initiatives generated in various organizational subunits. Much less is known about how vertical and horizontal coordination interact in operations strategy implementation—that is the focus of this paper. We first study how horizontal and vertical coordination affect the compatibility and creativity of distributed search, triangulating our cross-level interviews with data on the manufacturers’ productivity gains and their strategic projects. We then examine whether and how vertical and horizontal coordination interact. Our case comparisons suggest that leaving either one of them “loose” and keeping the other one “tight” results in a useful balance between compatibility and creativity; in contrast, tightening both types of coordination suppresses creativity and loosening both types risks incompatibility of initiatives across units. These results lead to a theoretical framework that identifies vertical and horizontal coordination as partial substitutes for operations strategy implementation

Supervising projects you don’t (fully) understand: lessons for effective project governance by steering committees

Strategically important projects involve high stakes, uncertainty, and stakeholder complexity, with contingencies and risks typically surfacing repeatedly as the project evolves. This is challenging not only for the project team, but also in particular for the steering committee (SC), the top management oversight structure typically used to align a project with the organization’s strategic goals. Our paper explores how senior executives on steering committees can exercise leadership and effective oversight of strategic projects, although they have only limited time and often incomplete expertise. We identify five themes of oversight: steering committee composition, goal agreement, project team motivation and control, intelligence gathering, and managing surprises and change. We show that a SC can keep a project aligned, even with limited time, through focused understanding of the key logic and drivers of the project. The SC needs to manage the surprises and crises that inevitably arise in a difficult project through proactive analysis that goes to the bottom of the problem and by working with the project team to generate solutions. This article thus offers insights and actionable advice on a paradoxical challenge of executive work: providing meaningful guidance and governance in contexts where time is scarce, information is potentially unreliable, and you don’t fully understand the complexities and implications involved

Addressing the sample size problem in behavioural operational research: simulating the newsvendor problem

Laboratory-based experimental studies with human participants are beneficial for testing hypotheses in behavioural operational research. However, such experiments are not without their problems. One specific problem is obtaining a sufficient sample size, not only in terms of the number of participants but also the time they are willing to devote to an experiment. In this paper, we explore how agent-based simulation (ABS) can be used to address the sample size problem and demonstrate the approach in the newsvendor setting. The decision-making strategies of a small sample of individual decision-makers are determined through laboratory experiments. The interactions of these suppliers and retailers are then simulated using an ABS to generate a large sample set of decisions. With only a small number of participants, we demonstrate that it is possible to produce similar results to previous experimental studies that involved much larger sample sizes. We conclude that ABS provides the potential to extend the scope of experimental research in behavioural operational research

Testing in the incremental design and development of complex products

Testing is an important aspect of design and development which consumes significant time and resource in many companies. However, it has received less research attention than many other activities in product development, and especially, very few publications report empirical studies of engineering testing. Such studies are needed to establish the importance of testing and inform the development of pragmatic support methods. This paper combines insights from literature study with findings from three empirical studies of testing. The case studies concern incrementally developed complex products in the automotive domain. A description of testing practice as observed in these studies is provided, confirming that testing activities are used for multiple purposes depending on the context, and are intertwined with design from start to finish of the development process, not done after it as many models depict. Descriptive process models are developed to indicate some of the key insights, and opportunities for further research are suggested

Energy Flow in the Hadronic Final State of Diffractive and Non-Diffractive Deep-Inelastic Scattering at HERA

An investigation of the hadronic final state in diffractive and non--diffractive deep--inelastic electron--proton scattering at HERA is presented, where diffractive data are selected experimentally by demanding a large gap in pseudo --rapidity around the proton remnant direction. The transverse energy flow in the hadronic final state is evaluated using a set of estimators which quantify topological properties. Using available Monte Carlo QCD calculations, it is demonstrated that the final state in diffractive DIS exhibits the features expected if the interaction is interpreted as the scattering of an electron off a current quark with associated effects of perturbative QCD. A model in which deep--inelastic diffraction is taken to be the exchange of a pomeron with partonic structure is found to reproduce the measurements well. Models for deep--inelastic $ep$ scattering, in which a sizeable diffractive contribution is present because of non--perturbative effects in the production of the hadronic final state, reproduce the general tendencies of the data but in all give a worse description.Comment: 22 pages, latex, 6 Figures appended as uuencoded fil