Operations Management and Impact

Introduction

The purpose of this paper is to draw a connection between a well-run organization and the multiple levels of impact such an organization can have. Three specific areas of impact will be considered. The first area is the impact that a well-run organization can have on the lives of people all over the world while, at the same time, remaining sensitive to environmental concerns. Secondly, the impact will be considered from a balance perspective and will include the need for the organization to live out their mission while, at the same time, providing a high quality of life for its employees. The final impact area will involve the role that ethics, faith, core values, and biblical principles impact the aforementioned balance. Organizations such as Habitat for Humanity, Stand Up To Cancer, and Toms will be used throughout this paper to better define how this balance manifests itself differently in different organizations.

Impact on lives and the environment

“Operations management is the management of systems or processes that create goods and/or provide services” (Stevenson, 2015, p. 4.) That impact, however, continues to be redefined at the demand of consumers, employees, and investors. “At Toms, we believe we can improve people’s lives through business. We understand the imperative for our company to operate responsibly and know that you want to buy from a company that works hard to integrate sustainable and responsible practices into all they do” (Corporate responsibility at Toms, n.d.) Success seems to be paying off for Tom’s. In their last fiscal year, estimated revenue by Moody’s was $392 million (Buchanan, 2016.) Their “one for one” promise, however, ensures that profits for the organization translate into impact. Every time a pair of Tom’s shoes is purchased, a pair of Tom’s shoes is given to someone in need. Their “one for one” campaign now extends into eyewear, clean drinking water, safe birthing practices, and bullying in America. Tom’s has masterfully integrated impact on people’s lives across the globe into the products and services it offers while, at the same time, remaining keenly aware of current environmental concerns.

Balancing these needs with a high quality of life for its employees

Balance is the name of the game for today’s organizations. In addition to balancing the need to positively impact the lives of people all over the world while also being sensitive to environmental concerns, organization must also provide a high quality of life for its employees. To do this, three important strategies rise to the top. First, to balance these needs with a high quality of life for its employees, organizations must value people as well as profits. “Corporate responsibility at Toms provides focus on the environmental and social impacts of our products and operations, responsible giving and employee life” (Corporate responsibility at Toms, n.d.) From making a profit to making a difference, organizations operating in this new global marketplace are now including people (along with profits) in their success equation. Second, organizations must start thinking and acting globally. American-based Wal-Mart, for example, operates 10,700 stores in 27 countries. “With its size and reach, Wal-Mart is dictating standards that affect workers in all industries and all around the world leading to the race to the bottom for working conditions” (Walmart supply chain, 2013.) Reports of poor working conditions, disrespect for its global workforce, and a disregard for social responsibility are not only bad publicity but bad for business for the world’s largest retailer. Lastly, for an organization to successfully balance impacting lives of people across the globe, remaining sensitive to increasing environmental concerns, and providing a high quality of life for its employees, organizations should consider creating both a global and a local strategy. In his video Global Strategy Business Case, Professor Richard Lynch cited the following five reasons for creating both such strategies: local tastes and customs; local competition; local governmental policies; local franchise operations; local service quality” (Lynch, 2010.) These five reasons could be distilled down to one concept—cultural sensitivity. Cultural sensitivity includes an organization’s awareness of both the similarities and differences that exist between different groups of people and then the willingness to adapt. Providing a high quality of life goes beyond employees. It touches vendors, suppliers, and distributors. Being in business is bigger than generating revenue. It includes positively impacting lives and, to do so, two-pronged approach to strategy is critical. “The company needs to operate a strong local strategy alongside its global operations” (Lynch, 2010.)