“Operations” are often wrongly viewed as the unglamorous part of a business – not strategic, not lucrative, no real intellect required, and, let’s be honest, a bit….grubby. This view is not just totally wrong but ignores the fact that companies that successfully build lean processes will be more successful, more valuable and much, much more profitable.
“Operational excellence” is not well understood but generally combines three aspects where the business operations:
The most successful companies have mastered the operational processes making it easier for the customer to do business with them. It’s no accident that Amazon’s “1 click” button is helping the cash flow in – customers are over 20 times more likely to repurchase where it is low effort to do so. Equally when businesses get it wrong, it can jeopardise performance – consider the brand impact of United Airline’s recent disastrous removal of a passenger from an overbooked airline.
Why do great operations make a business more profitable?
There are numerous reasons why operationally competent companies are much more profitable than competitor companies, for example:
5 Top Tips to Develop an Operationally Excellent business
There are a whole lexicon of improvement approaches that could be deployed to streamline an aspirational business’ operations but fundamentally successful and sustained improvement boils down to only 5 key activities. These are as follows:
Chris Lorimer is a highly experienced operational improvement consultant and a Director of South West Growth Service. For additional information on how you can improve your own operational processes contact Chris at email@example.com
Chris Lorimer is an
experienced consultant who has helped many organisations to grow through his unique 4 Ps approach.