Want to learn more about the building blocks of effective operations? From people to processes to technology, we'll show you how to make sure these core components are in place for your company to succeed. Read our article now and get your operations on the fast track to success!

“People, Processes, and Technology are the building blocks to every business” - Major Williams

The building blocks of operational effectiveness.

Building highly effective operations is essential for a company to scale and allow entrepreneurs to transition from working in the business to working on the business. To achieve this, there are many methodologies available to analyze and improve operations, from system thinking to lean six sigma. Learning and applying these methodologies can help an organization make tremendous improvements and unlock their potential for growth. With the right approach, companies can become more efficient, streamlined, and profitable.

However, most companies can make progress by simply focusing on the core components of effective operations. 

• People

• Process

• Technology

© MHRD Group Inc 2023

People

People are the foundation of all organizations, and even with the increase in automation, they are still the backbone of any successful organization. As the saying goes, "get the right people on the bus" (Good to Great, Jim Collins). The right people ensure the equipment is properly maintained and functioning correctly, as robots still rely on humans for maintenance. They will also take care of your customers. Did I have to say it? Whether you are B2B or B2C, your customers are also people. 

Furthermore, core values should be the driving force of an organization, and robots are not attracted to nor influenced by values. It is the people who must identify and relate to these values, and any organization that neglects values is doing a disservice to both their employees and customers. People who feel empowered and have autonomy tend to perform better than those who don't, making it even more important to get the right people on board. 

To quote George S. Patton, "good tactics can save even the worst strategy. Bad tactics will destroy even the best strategy. Studies show happy employees result in more satisfied customers and higher profits. infusedinovations.com More info here

Process

A business process is anything that consumes time, money and/or resources to produce a desired outcome. A meeting is a perfect example: it consumes time and resources, and incurs a cost for the business.  To calculate the cost of a meeting, simply multiply the hourly rate of each person in attendance by the amount of hours spent in the meeting. Add up all the rates and you'll have your cost. If more people take the time to track and consider the cost of their meetings, they'll be more inclined to make them more effective and efficient. 

This may even lead to shorter, more productive meetings in the future. Each process performed should align with the objectives of the company and more importantly the customer. There may be a few pork chops in your organization.  Not sure what a pork chops is? Read this article to learn more about the porkchop.  

Technology

Last but certainly not least, we come to Technology. As a firm believer that technology should not be treated as an end-all solution, technology should be used as an accelerator to help an organization reach its goals. When you have the proper personnel and techniques in place, implementing technology will enable the organization to maximize its potential. Unfortunately, if technology is brought in before the proper personnel and processes are established, it will likely lead to frustration and disappointment.

At the end of the day, regardless of methodology, one chooses to adopt to improve operations. A simple focus on people, processes, and technology will go a long way to building highly effective operations.

Have you invested in technology without first working on the people and process?  Share your experiences.  If you have any questions, feel free to contact me directly or leave a not in the comments.  I will get back to you as soon as I can.

Until Next time…