THE FIVE PERILS OF OPERATIONAL MANAGEMENT

As consumer expectations for ever improving service levels continues to grow, coupled with the need for businesses to improve efficiencies and reduce costs, the burden on operational management is reaching new heights.

Detailed below are five critical areas against which operational management often fail to deliver with the consequent impact on business performance.

Data driven decision making

The famous management guru, W. Edwards Deming once said ‘without data you are just another person with an opinion’. Sadly, many management decisions are taken based on ‘gut feel’ as opposed to empirical data. It is the responsibility of all operational management to ensure business decisions are taken based on hard facts, not opinions!

Delegation

Paradoxically, the art of delegation is in fact a science. Delegation is a skill that needs to be learnt. Too often operational managers either do not delegate at all or delegate poorly, giving little guidance or authority to the individual or team to whom they are delegating. Either way the quality of the decision making is poor with both parties feeling dissatisfied with the process. Good delegation sets out both the expectation and authority limits for all concerned.

Over promotion

Known as the ‘Peter principle’ over promotion is common in operational teams. The principle states ‘members of a hierarchy are promoted until they reach the level at which they are no longer competent’. Frequently, individuals are promoted based on their ability to perform well in their current position with little regard paid to their suitability for a more senior position.

Communication

As the method and choice of communication has grown, communicating in a clear, succinct and timely manner has become very important. 

Poor or inappropriate communication will lead to incorrect decisions, wasted time and frustration.

Use of the correct method of communication should be encouraged, with less reliance on email or other forms of messaging. Nothing beats a face to conversation!

New ideas

The ability to embrace new ideas or new ways of working is unfortunately not prevalent in all businesses. It is a known fact that continuing to do the same thing will only get you the same result, but many operational teams fail to recognise this and continue to use the same methods in the face of new challenges. High performing teams not only welcome new ideas and technology but actively seek out opportunities for improvement in all operational areas.