65% of companies in the S&P 500 missed first quarter earnings by more than 5% due to operational missteps and strategic risk according to a recent article in the Wall Street Journal. The culprits included operational risks related to processes, systems and personnel, and strategic risks that contributed to “stress in operations.”
One approach to avoiding these kinds of missteps includes developing an operations strategy that is closely tied to the business strategy. A strong implementation process for the operations strategy as well as the agility to change your strategies in the face of evolving market conditions will help avoid the earnings misses prevalent in the S&P companies.
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