Operations executives are different from their counterparts in other functions. Their intimate knowledge of the processes from start to end of the value chain gives them a perspective that other functions lack. It is no surprise that when CEOs of midsized companies are asked which functional role they most identify with, they tend to choose operations. Operations is where value is created.

Of the 946 executives who participated in the 2008 Economist Intelligence Unit operational excellence survey sponsored by SAP, 216 (23%) come from the operations function. This paper-one of four functions specific papers-is based on the operations responses and follow-up interviews with operations executives. The other function-specific papers focus on finance, IT, and sales and marketing.