Which process is characterized by high strategic importance and high contribution to operational performance?

The process characterized by high strategic importance and high contribution to operational performance is retaining. Retaining involves maintaining critical assets, capabilities, or resources that are essential for an organization's core operations and long-term success. When an organization chooses to retain certain functions or resources, it typically indicates that these elements are crucial for sustaining competitive advantage and operational efficiency.

Retaining ensures that the organization can manage and control these functions effectively, leading to improved performance metrics and fulfilling strategic goals. By keeping vital resources in-house, organizations can better align their operations with their overall strategy, ensuring that they meet customer demands and adapt to market changes effectively.

In contrast, options such as outsourcing or forming strategic alliances may imply that aspects of the business are being externalized, which could potentially influence operational performance differently. Eliminating certain functions or resources is typically a reduction strategy that may not contribute positively to either operational performance or strategic goals. Understanding when to retain is essential for ensuring that the organization continues to perform optimally and can respond dynamically to challenges in its environment.