Organizations need to develop the capability to remain in the market. Competition within the same industry is increasing day by day. For instance, an airline industry. Free entry in the group further competition at large. Another example is the restaurant business, where competition increases within the group. Service industries need to increase their capabilities to compete within a similar kind of industries.
Ability is strength. It appears in the form of capital, resources, and others, such as a business leader’s capability to perform a job within the set time frame. A leader’s ability to coach employees also has impetus in this regard. What will be the best effort to compete with the rivals even in a tough time like now? It is obviously a measure of improving overall organizational capacity to bring continued sustainability at a minimal cost.
Capacity is the inherent power existing within the industry. Increasing capacity means utilizing scarce core resources, judicially, and optimally. Similarly, sustainability is an effort to make effective use of available low inputs. The process leads to produce a production for now and in the future continually and equally. The proper use of technology will undoubtedly be an effective instrument to balance sustainability and capacity improvement. Such steps also get a positive revolution in people’s life, community, and society.
Inputs, process, and output are the usual activities every organization follow. Work is the result of the right input mix. In this context, one of the vital task organizations needs to know is applying the proper techniques to transform inputs into outputs. Designs might be the right portion of information, such as the quantity of capital and the number of people used to produce a certain production amount. At the time of difficulty, this is not the panacea but helps the organization maintain demand and supply equilibrium.
Processing and getting the desired outcome also depend on the existing capability of the company. As said, it also depends on the optimal mobilization and creation of human and financial resources. At the time of difficulty, the organization needs to redesign and restructure the structure, technology, and working style. The other way is that the organization needs to follow ‘what if’ policy to meet the complex and rapidly changing virtualized and cloud environment type. What if the guide says if such a thing happens, what will be the next steps to be completed? This is also the other way to get rid of the difficulty.
The proper use of technology will undoubtedly be an effective instrument to balance sustainability and capacity improvement.
Decreasing working costs and recovering delivery status back to the initial stage leads the organization to remove the difficulty. The maximum use of critical resources and adequate management of available capacity will be the other solution. The process will also help to bring demand balance from customers. It also helps to minimize customer waiting time. It helps to avoid unused capacity.
What organizations need to do at the time of a severe crisis? An organization must develop a fixed capacity even if the order is low. They must continue producing the product to make and keep the inventory level always full. The experiences show that service industries, such as haircuts and restaurants, face considerable demand uncertainty due to the disaster like COVID 19. Sometimes it is due to the seasonal variation as well.
Services are perishable by nature. For each day, those services are not put and store for profitable use. In other words, services cannot save. For instance, an airline company’s vacant seat on a journey cannot use on the next trip as an additional seat.
Strengths and weaknesses are the two different components. Strength boost production while weaknesses hamper production. Organization at the time of the disaster, like now, needs to access the data on strengths and weaknesses to maintain and know the organization’s capability level.
The capacity building process is the outcome of staff, installation, and equipment. Keeping the capacity at the maximum and anticipated level help to get a competitive advantage. Competitive advantage means producing quality products with the least cost so that profit can be earned at desired.
Strength boost production while weaknesses hamper production.
Loopholes can be controlled through matching goals, activities, and strategy. The structure of the organization also matters. The organizational structure must be workable. The right people in the right place principle should be adopted strictly. Function and system should focus on corporate values.
Generating capability depends on participatory management practice and imparting skill-oriented training to its working employees. Organizational goals and value-adding processes have a positive relation to each other. So, the plan should be linked with the value-adding process. Linking purpose, strategy, and structure is equally important as well. This way leads capability enhancement process as well.
Organization for their best should follow the activities such as exploration and exploitation. Exploration is searching for new ideas for enhancing capability. Exploitation is the maximum use of available resources. These two terms, when goes together, the organization will get rid of problems as arises from the uncontrollable and unseen enemy like COVID 19. Building new modeling and measuring capability amid uncertainty is also the urgent need of the hour.
Productivity is the prime driver of the economy. Business expert agrees that at the time of difficulty, the minimum staff model also works better. Maximum use of the available means can bring product revolution. Capacity optimization means reducing the high cost. In this direction, innovation can play a pivotal role in increasing the capability of the organization.
Building new modeling and measuring capability amid uncertainty is also the urgent need of the hour.
At a critical time like now, customer waiting time for services has been increasing. The solution to mitigate such a problem will be increasing efficiency and productivity so that a long waiting time for the service can be decreased. To minimize the waiting time, the organization needs to produce more units as well.
So, today’s organization needs to think of overcoming hurdles brought by the pandemic. The only way to mitigate limitations is to increase production efficiency. Productive efficiency means meeting the optimum production level using capacity enhancement resources such as labor, capital, and equipment. This principle will be the only overarching policy for the organization to suffer from a hard time, such as a pandemic.
Comment