The Key to Effective Operations, part 2

By Laurie Mosse

In the first part of this series, we provided the definition of ‘operations’ and a general idea of how we determine the way the business is currently functioning.

Operations, directly or indirectly touches on every area and function of ‘the business’. This is why it is critical to be intimately knowledgeable with every aspect. Once this is accomplished, management will have the ability to exercise maximimum control, not only of the day-to-day activities but the ability to make on-going adjustments to meet the company’s ever-changing needs.

Getting to this point takes some time and resources, but the rewards of a successful outcome are substantial and will positively impact operational efficiencies and profitability. The question, is how do we meet the challenge of getting there?

As noted in part one, it is essential that we involve all stakeholders. The first and perhaps most crucial step is to advise everyone about the project and get them to ‘buy into it’. A clear explanation of why the company has decided to do this, what the goal is, how critical the information they provide is, and how the company and everyone working there will benefit. It is also important to ensure that people are comfortable and do not feel threatened. An open discussion that answers all questions and concerns should accomplish this.

Since we know human nature is to resist change, this is an essential starting point. Allowing-people the opportunity to be part of the process and contribute their ideas, knowledge and expertise will go a long way to ensure success. Providing this opportunity will instill a feeling that management has confidence in staff, a definite contributor to positive morale, teamwork and may even result in fostering the type of culture that many employees look for but do not always find. There is also a strong chance that management will learn things about the company and how it ‘really operates’ that they never, before, knew existed. The importance of having all this happen cannot be overstated.

We are living in a ‘Gig Economy’ where people, especially millennials, are often cycling between jobs every two to three years. Companies know how costly and difficult it is to replace staff and must do everything within their control to either avoid this or mitigate the impact by establishing an operation run with a clearly defined hierarchy, well-understood procedures and lines of communication and above all well-established, realizable goals.

It is not always possible to achieve this in a small or medium sized company where everyone is focused on his or her responsibilities and as the company grows so do the daily demands and challenges of keeping up with this success. Additionally, it is extremely challenging for management to continue running the business while simultaneously conducting an ‘internal review’ of such magnitude. To balance all this, consideration should be given to engaging outside resources.

Choosing the proper external resources is essential and can be tricky. There must be a close match between the experience being offered by these ‘resources’ and the company’s needs. Equally important is the chemistry between management and the ‘consultant’. Having the ‘right match’ will maximize the chances that the findings will be complete and communicated in a manner that is understood by all concerned. If this happens, the resulting recommendations will be embraced and acted upon successfully – this is the ultimate ‘game plan’.