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Knowledge Works: The Handbook of Practical Ways to Identify and Solve Common Organizational Problems for Better Performance by Jane McKenzie, Christine van Winkelen

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Section II

Enable operational effectiveness

Chapter 3 – Taking knowledge initiatives to the front line of the organization

Chapter 4 – Integrating knowledge practices into projects

Chapter 5 – Working collaboratively in partnerships

By “operations” we mean the systems and processes that give an organization its ability to deliver against its purpose. In other words, the ways that goods or services are produced for an external customer, client, or user by transforming raw materials or knowledge into something they need. Some commercial organizations work on a cost leadership business model; they manage operational process costs so tightly that they can charge customers less than their competitors for much the same product or service. Even if the business model is to deliver sufficiently differentiated products or services for which customers are willing to pay a premium, few businesses can afford to neglect the cost of their operations. For public services, the political climate in most countries has been driving cost reductions in operational activities for many years.

What Do We Mean by Operational Effectiveness?

Operational effectiveness means optimally sourcing, transforming, and using resources to produce goods or services as cheaply as possible, whilst still maintaining quality, delivery, and other customer satisfaction, environmental, or governance objectives. Knowledge is a production resource; in the case of a service business such as consulting, it may be the main resource. ...

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