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How To Operations
Operations is the efficient management of business practices to achieve a desired goal. Oftentimes the focus is to reduce costs and save time, however, it can also focus on delivering impeccable service for luxury brands or eliminating errors for a medical practice. A good operations manager will understand the end goal and design systems to meet that goal. I keep in mind the following steps when working within an operations department as a manager or as a consultant:
Identify > Build > Implement > Delegate > Repeat
Identify
First, identify the regularly repeated processes that occur within the business. For a restaurant this would be preparing meals and servicing customers. For a real estate company this would include listing property for sale and working with buyers. The key is to start working on the processes that you repeat most frequently.
Second, determine the primary goal for that process and any possible secondary goals. The primary goal almost always takes precedence when there is a conflict with any other goals for the system you’ll be designing. Making decisions is easier when you know what you want at the end.
Third, identify all the people that will be involved with this system as well as the people that will be impacted. It is important to get their input to gain a better understanding of how things are currently working. This also helps with implementing the new system later in the process.
Build
Systems usually consist of three parts: people, tools, and processes. The people doing the work will leverage tools for efficiency to complete the steps of a process. When building a system I typically start with the process which is essentially a checklist of everything that needs to be done to complete a task. To begin, make a list of all the tasks. Review your list and reorder as necessary or identify pieces that may be missing.
Once the process has been completed you then identify the tools that will be needed to execute the process. In some cases there may not be any tools required. You’ll also want to consider the type of people that will be doing the work so you pick tools that they may be more comfortable with. For example, administrative people tend to like working with spreadsheets but if I am designing a system for sales people, I am going to stay away from that as a potential tool or at least minimize their involvement.
Implement
Once the system has been created, it is time to implement it in the business. This isn’t something magical, you simply start using the new process and tools to do the work. What you are looking for are problems with execution or any ambiguities so they can be addressed. A good system will eliminate a lot of the thinking and decision making which slows work down. In smaller businesses you may be doing the work yourself, in other situations you may need to train new or existing people on the new system. Review the process, teach the tools, and ensure that everyone understands why the system is important. When people know what to do and why they are doing it, they’ll do a much better job.
Delegate
The final step is to delegate the oversight of the system that has been created. This may not be something that needs to be done immediately, but if you are in an organization that is trying to scale, the responsibility of running the system needs to be delegated. This will free up time for you to begin designing new systems for the organization. You’ll no longer be running the system but it is still your responsibility. This means you’ll rely on reporting from the person in charge of the system to keep you informed.
Repeat
Now you have time to identify the next system to implement. Look at the business to identify where the most time or money is invested to determine where you can make the most impact. Are there any recurring tasks that cause you particular frustration? Think about tasks that need to be done every day, week, month, quarter, or year. If nothing comes to mind, it may be time to grow, so think about sales, marketing, and recruiting and how you can make an impact there. The job is never done.