Operations management is about increasing the efficiency of turning inputs into outputs, through planning, organising and supervising business operations.

Key building blocks of an operating model

Your business should establish relevant processes and practices in order to ensure business efficiency and long-term sustainability. Within your business, operational management will mainly encompass the management of areas relating to production, productivity, quality and cost.

An operating model shows how you use your resources in your day-to-day operations. In essence, it shows how you are creating and delivering your products and services to your customers.


·        Your business operations should be aligned to your strategic vision and goals and your operating model will help you break down roles, milestones, key performance indicators (KPIs) and deliverables over time by providing clear points on how every aspect of your business functions. For a small business, this may mean defining goals for each and every day.

If designed well, your operating model will help support rapid and effective change within your business.

·        Your business transformation can fail if your operating model cannot provide the support needed to manage the change. For example, switching to a new sales channel without having well-developed distribution processes may not work.

Learn about basic operating models.

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