Operational level strategies

A plan that details how a business will use its production resources to achieve
its goals. This is the day-to-day strategy that is going to keep your organization
moving in the right direction. This level of strategy is perhaps the most
important of all, as without a daily plan you are going to be stuck in neutral
while your competition continues to drive forward. An operational strategy is a
necessary element for a business and supports the firm's corporate strategy

HUL has adopted various and numerous operational strategies over a long
period of time and I will discuss those which have had a significant impact on
the growth and prosperity of the organisation. The first out of these significant
operational strategies is

INSTITUTIONALIZING TALENT
HUL has institutionalized the process of attracting, developing and retaining top
talent. They have done it in a systematic process out of which some steps in this
process are:
1. Get them early-HUL identifies talent early and invests to build capability
& international exposure, within 12-15 months preparing them for bigger
responsibilities very early.
2. Train them well
3. Build careers
4. Encourage diversity
5. Reward top performance
6. Instil values
CAPABILITY BUILDING
HUL does capability building at every function and every level of the
organisation. For example, HUL has ‘skills-maps’ against which the workforce
in its manufacturing units and its sales force are benchmarked.
1. Besides on the job training, they undergo up to eight man-days of
training every year. On a conservative basis, this implies a staggering
one lakh man-days of training across the organisation every year. The
same emphasis on skills training is extended to sales and distribution
network invest another one lakh man-days of training every year.
Supply chain management
HUL prioritise speed and flexibility in its supply chain to deliver growth. HUL
are doing this through simple ideas.
1. For example, in some of its detergent factories HUL are running 'twin
track' on single production lines. This has helped us to nearly double its
production thus enabling better customer service while improving
operating efficiencies.
 2. Apart from this, today most of its production lines have developed the
capability of quick changeovers to meet the market demand.
3. Supply Chain service levels as measured by CCFOT (Customer Case Fill
On Time)
HULre the highest achieved in the recent past. IT solutions based on SAP
application systems led to significant improvements in planning and logistics
efficiencies
Return on marketing investments (ROMI) :
An area where we drive continuous improvement ROMI is about maximizing
the effectiveness of its advertising, promotional and trade investments.
1. HUL have developed advanced marketing mix modeling techniques that
allow us to assess all the marketing levers to drive growth and superior
yields from marketing investment.
2. For example, HUL have identified the media elasticity of each of its
brand which helps us to optimise its advertising spends

IT
1. As part of the backbone IT capability for Sales and Customer
Development, HUL successfully established a common transaction
system that is used by all Redistribution Stockists and that is fully
integrated with Company's systems. Distributor salesmen use a Hand
Held Terminals as an aid for taking retail orders.
2. In 2009, HUL have enhanced this capability for analytics and intelligent
sales calls. As part of the thrust of further improving its direct coverage in
rural areas, HUL are leveraging geospatial aids extensively. HUL have
also established an IT enabled consumer interaction centre for addressing
complaints and suggestions
3. HUL has deployed an end-to-end technology solution which helps reduce
inventory cycles while enabling optimum service levels.
4. All its salesmen are equipped with hand-held devices which help to
improve on-shelf availability of its products while also building
assortment at individual store level.
5. Similarly, HUL s merchandisers have been equipped with hand-held
devices to improve in-store display of products so that its products are
top-of-mind whenever a shopper makes a purchase.
6. This year, HUL rolled out a unique and innovative concept of 'Perfect
Stores' as part of its endeavor to win with consumers at the point of sale.