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5 steps to build operation management process for enterprises

Operations management plays an important role in shaping and standardizing the organization’s work processes. A clear governance system creates internal stability and productivity improvement. However, this process requires a lot of time and expertise of the administrator. To make it easier to design a business operating system, the following article will provide you  guideline how to build an effective process. 

Operational management for business
Learn 5 steps to build an operational management process for your business. Source: Pinterest

1. What is Operations Management? 

Operational management is the process of planning, designing, implementing and controlling all activities of an organization to ensure the following objectives: 

  • Use resources properly and efficiently 
  • Develop a plan suitable to the base system as well as the short, medium and long term strategies. 
  • Risk control easily, timely adjustment 

2. 03 important factors to effectively build an operation management for SMEs

In order for the system to operate optimally, administrators need to design a process that balances the following factors: 
Develop detailed and specific operating procedures and policies: In order for the organizational system to be operated smoothly, the strategy must be clearly planned, ensuring close linkage between departments. 
Technology application in operation: With the rapid development, technology began to weave into every corner of the enterprises, bringing advantages as well as challenges to change and adapt in the operation. 
Effective human resource management: This is an indispensable resource in the enterprise, playing an important role in determining the success of the operating system. Therefore, managers need to use the right people to allocate work in the right places, facilitating them to improve their capacity.

3. 05 steps to build operation management process for enterprises 

Step 1: Design operating procedures 

  • Define job goals
    Set short and long term goals for the organization. What results will be achieved after each quarter, 1 year, 5 years… 
  • Apply the 5H1W model to determine the tasks 
    Why: Why do administrators build operational management processes?
    What: What is the work, the steps to do it?
    Where: Where will these jobs be deployed, in which departments?
    When: When to implement the plan, for how long and when to finish
    Who: Who is in charge and who is the final moderator
    How: How to do that work? 
5W1H model
Applying the 5W1H model to the planning process for the organization. Source: Pinterest
  • Apply the 5M model to identify efficient resources 
    Man: How many employees to perform, and what skills, experience, and qualifications do they need to meet the needs of the work?
    Money: How much is the preparation cost for the plan, the contingency if any costs arise?
    Material: For the plan to be implemented, what are the materials, what are the supporting tools, or who is the supplier?
    Machine: What machines and technologies will serve to execute the plan?
    Method: What method will the administrator apply to make the operation process smooth?

Step 2: Modeling the operation management process
If administrators want the process to be faster, they need to build a model. This is to ensure that junior managers, even employees, when looking at it, will feel easy to understand, can immediately visualize their steps and tasks in the operation stage.

In addition, when designing a clear model, enterprises will limit encountering problems or unnecessary errors due to overlapping, not closely linked in the work of employees and related departments. .

Step 3: Implement the business operation process
This is an extremely important stage that determines the outcome of the operation management process. Employees must constantly update progress, store data to help administrators promptly monitor progress and evaluate operational results. 

Step 4: Monitor and evaluate the process
It still has to be monitored and evaluated during the implementation process. A business can grow thanks to an effective operating process, but it can also stand still when the process is forgotten, not followed up from the top.

Therefore, administrators must constantly update the situation, monitor and evaluate whether the process is effective, where there are errors to take better actions for the next step.

In particular, in the development of current technology, many businesses have turned to management support platforms to help administrators operate the process smoothly. 

Continuous updates throughout the whole process
Continuously monitor and update the situation during the implementation process. Source: Pinterest

Step 5: Adjust and optimize the process 

This is an indispensable step for an organization that wants to build an effective management system. This depends on the mindset of the administrators but is influenced by the results of the performer. Therefore, it is necessary to have coordination and understanding between employees and administrators to achieve consistent results, help adjust the process, and optimize the plan as quickly and effectively as expected.

Hopefully, the above article has helped you better understand the 05 steps of building an operation management process for your enterprise. Feel free to contact BEMO via hotline 0865 994 039 or email support@bemo.cloud for detailed advice to apply a management solution and help your organization operate effectively.