5 Steps To Build an Organised Operational Management System
To thrive in the competitive work landscape, businesses have to face a variety of challenges - shifts in laws, and regulations, changing market trends, and economic conditions. However, with a well-organised operational management system, you’ll find fewer problems to worry about.
Operations management is an integrated set of requirements, responsibilities and business processes that create the highest level of efficiency possible within an organisation. It is an administrative process that strategises workflows and performance metrics in a streamlined manner, ensuring smoother coordination between different departments.
Many big corporations, medium-sized companies, and budding start-ups are implementing an operational process. Yet, they are struggling to keep organised in their operational management. This is why we have prepared this 5-step guide on how an operations manager can build an organised operational management system.
Let’s take a look at operations management through a step-by-step procedure.
1. Define Objectives and Goals
To successfully build an organised operational system, defining clear objectives and goals is the foundational step.
An operations manager must first consider identifying the purpose of incorporating this system. Maybe their purpose could be to streamline work processes, enhance quality control or check workplace performance.
Once managers determine the purpose they can easily break it into SMART objectives. SMART abbreviates to S- Specific, M- Measurable, A- Achievable, R - Relevant and T- Time-bound. For instance, a SMART goal of a company could be to reduce production costs by 10% within the next financial year. Setting such goals allows businesses to ensure alignment with operations management and drives effective and desirable outcomes.
2. Identify Existing Processes and Workflows
Initially, an operations manager must conduct a thorough research of the organisation’s structure.
By speaking to employees, managers can get valuable insights which they can document for implementing a reliable operations management system. This is because employees form the backbone of an organisation and are always on the front line.
Additionally, the operations manager can get information from data analytics, sales growth and key performance metrics (KPIs) to determine which area needs improvement. With this information, they can easily revamp their operations, tailor them to meet business goals and ensure they comply with the industry standards and regulations.
3. Develop Standard Operating Procedures (SOPs)
In order to construct an effective operational management system, it is essential to develop Standard Operating Procedures (SOPs).
An SOP is a step-by-step guide that outlines how specific tasks should be carried out within an organisation. Usually, operations managers assign a multidisciplinary team to document the purpose and scope of each SOP. Stakeholders, relevant investors and subject matter experts are consulted to gather insights, crucial for planning a structured work process.
Such cross-functional teams ensure that SOPs are structured to align with the industry standards and regulatory requirements. They also are expected to regularly review and update the SOPs to keep up with the changing trends and technologies. By doing so, they establish a robust framework within which employees thrive while achieving business goals.
4. Effective Resource Allocation
Primarily, an operations manager must prepare a well-planned strategy to effectively allocate resources to productive areas within a company.
By identifying critical components and areas of improvement based on their impact on the business, an operations manager can easily allocate resources. This gives them an idea of where the company can effectively channel resources to achieve business goals and get desirable outcomes.
Furthermore, when allocating resources managers are expected to utilise financial resources efficiently to procure technology, equipment, software, and infrastructure.
5. Implement Performance Metrics
In business operations, implementing performance metrics serves as a guide for companies to strive for excellence.
Key Performance Metrics (KPIs) provide objective data, allowing businesses to measure the progress of employees, identify inefficiencies and make improvements. In operational management, KPIs help managers ensure that day-to-day operations align with the broader organisational objectives.
Moreover, KPIs promote transparency, enabling operations managers to determine continuous improvement and highlighting areas that require improvement. For instance, if an employee is facing difficulty in delivering expected results, training programmes can be provided to such employees.
Choose Elston HR to Build an Operational Management System
As a result of its multifaceted advantages, establishing an organised operational management system is paramount. Operations management can be an effective tool that helps businesses streamline operations and work processes to achieve long-term success.
For many businesses, operations management can be pretty complex. That’s where Elston HR’s training programmes come in. As HR specialists, we excel at creating training programmes designed to educate leaders and company managers on how to build an efficient operational management system that helps them adapt to the ever-evolving business trends.
What’s more, along with operations management, our HR training courses also include concepts like performance management, conflict management, time management, and so much more!
To implement an effective and well-organised operational management system, contact us today!