Five Skills Key to Successful Business Operations Management

Five Skills Key to Successful Business Operations Management

by | Business, Performance

You cannot be a good business leader unless you thoroughly understand the Business Operations in your organization and how it links to its performance. I have noticed one big reason business strategies fail – it is the unbelievable reality that senior leadership many a times doesn’t understand the basics of their business. How it runs and what makes it run. An operations mindset is extremely critical for all leaders – No matter how good you are at framing strategy; it also has to get executed successfully for an organization to succeed. This is where the business operations team can play a big role, by not only providing insights to the leadership on the ways to improve business performance through profitable growth and strategic management of costs and risks but also to reduce the gap between strategy and execution through disciplined process implementation. Quite a few big buzz words there. But it boils down to one thing – to succeed in business, you have to understand and be good at operations. I strongly believe an operational mindset is a mental “muscle” that can be developed. For all those who want to develop this muscle or are thinking of a career in business operations, this post is for them.

So without further ado, here are the five top skills/loves that I believe are must-haves for those who want to enhance the performance and productivity of organizations through understanding and improving their operations:

Must-Have #1 – You love people:

Lee Iacocca said: “In the end, all business operations can be reduced to three words: people, product and profits. Unless you’ve got a good team, you can’t do much with the other two.” Understanding people across multiple functions and roles and leveraging their strengths is extremely important to meet objectives – in an operational role where you have to work mainly in a matrix structure where you have lots of responsibility but not always the required hierarchical authority, this becomes paramount. You must know how to connect with people and energize and enthuse them. Communication skills, beyond the verbal and the written, the ability to listen and read between the lines is an useful asset to align people to your goals. And all this is not possible unless you have a genuine interest and love for people.

Must-Have #2 – You love numbers:

Does the idea of deciphering lots and lots of rows and columns of numbers spread across sheets give you the shivers ? As they say, the devil lies in the details and to be good at operations, making sense of numbers must excite you. Plenty of common sense plus and an ability to derive meaning out of the different ways numbers can be combined or dissected to arrive at the right performance metrics for early warning signals for the business as well as measuring the results is part and parcel of the operations role. Knowing your numbers and the different levers that can be applied to them makes you the master of the game.

Must-Have #3 – You love wearing multiple hats:

In operations, you have to be put yourself in the shoes of different functions on a day-to-day basis – sales, IT, finance, business, delivery – to be able to understand the requirements from all perspectives and execute on it. A specialist in operations with a generalist bent of mind to connect all the dots in the organization for the right solutions. You have to become the subject matter expert in many things at the same time. Quoting from an article by Vikram Mansharamani in HBR – there appears to be reasonable and robust data suggesting that generalists are better at navigating uncertainty. Professor Phillip Tetlock conducted a 20+ year study of 284 professional forecasters. He asked them to predict the probability of various occurrences both within and outside of their areas of expertise. Analysis of the 80,000+ forecasts found that experts are less accurate predictors than non-experts in their area of expertise. Tetlock’s conclusion: when seeking accuracy of predictions, it is better to turn to those like “Berlin’s prototypical fox, those who know many little things, draw from an eclectic array of traditions, and accept ambiguity and contradictions.” Ideological reliance on a single perspective appears detrimental to one’s ability to successfully navigate vague or poorly-defined situations (which are more prevalent today than ever before).

Must-Have #4 – You love solving puzzles:

Providing smart and creative recommendations for business process improvement is one of the key areas in which business operations team can be key contributors. As an operation person, you have to identify the problems, dig for knowledge in the vast amounts of available data and then analyze it to arrive at the areas of focus. As per research by Gartner, through 2012, 80% of organizations will struggle to recruit the talent required to meet their business analytics objectives. This needs an inquisitive mind, a persistent approach and deduction skills. If you are a crossword or Sudoku fanatic, you are in the right “zone” here ?

Must-Have #5 – You love WORK:

Back end work, strategic work, boring work, last-minute deadline work, grunt work, thinking work, transactional work, delegated work, filling in for someone else work – your work landscape in an operations role will constantly be changing and switching. So, you must have a great love for work by itself and in itself in all its myriad shapes and forms. If you are particular about doing only one type of work and consider certain types of work below you – this is certainly not the role for you. The duties and responsibilities in this role are fluid and are different from company to company or even business head to business head. I have rarely across a defined job description that remains constant over a period of time in my career. So, your guiding principles and measuring stick for your work should be based on what you want to achieve, not what type of work is needed to get there. A passion for work coupled with an ability to set your own standards for excellence is crucial in this role.
In addition to the above, a business operations person must be able to exude confidence, have conviction and be firm on what he/she believes is the right thing to do. It is only then that by focusing on some of the points where structure, processes, people and systems intersect, and engaging and influencing all the stakeholders involved to work on those critical junctions, the business operations team can release benefits that ripple across the organization.
What other skills do you think are necessary for successful business management and operations? What have I missed? Please share your experiences below. I would love to hear and learn from you.

Five Skills Key to Successful Business Operations Management – You Could be Great at Operations if..

Five Skills Key to Successful Business Operations Management – You Could be Great at Operations if..

by | Business, Business Operations, Career, Leadership, Management, Managing Yourself, Performance, Productivity, World of Work

You cannot be a good business leader unless you thoroughly understand the business operations in your organization and how it links to its performance. I have noticed one big reason business strategies fail – it is the unbelievable reality that senior leadership many a times doesn’t understand the basics of their business. How it runs and what makes it run. An operations mindset is extremely critical for all leaders – No matter how good you are at framing strategy; it also has to get executed successfully for an organization to succeed. This is where the business operations team can play a big role, by not only providing insights to the leadership on the ways to improve business performance through profitable growth and strategic management of costs and risks but also to reduce the gap between strategy and execution through disciplined process implementation. Quite a few big buzz words there. But it boils down to one thing – to succeed in business, you have to understand and be good at operations. I strongly believe an operational mindset is a mental “muscle” that can be developed. For all those who want to develop this muscle or are thinking of a career in business operations, this post is for them.

So without further ado, here are the five top skills/loves that I believe are must-haves for those who want to enhance the performance and productivity of organizations through understanding and improving their operations:

Must-Have #1 – You love people:

Lee Iacocca said:  “In the end, all business operations can be reduced to three words: people, product and profits. Unless you’ve got a good team, you can’t do much with the other two.” Understanding people across multiple functions and roles and leveraging their strengths is extremely important to meet objectives – in an operational role where you have to work mainly in a matrix structure where you have lots of responsibility but not always the required hierarchical authority, this becomes paramount. You must know how to connect with people and energize and enthuse them. Communication skills, beyond the verbal and the written, the ability to listen and read between the lines is an useful asset to align people to your goals. And all this is not possible unless you have a genuine interest and love for people.

Must-Have #2 – You love numbers:

Does the idea of deciphering lots and lots of rows and columns of numbers spread across sheets give you the shivers ? As they say, the devil lies in the details and to be good at operations, making sense of numbers must excite you. Plenty of common sense plus and an ability to derive meaning out of the different ways numbers can be combined or dissected to arrive at the right performance metrics for early warning signals for the business as well as measuring the results is part and parcel of the operations role. Knowing your numbers and the different levers that can be applied to them makes you the master of the game.

Must-Have #3 – You love wearing multiple hats:

In operations, you have to be put yourself in the shoes of different functions on a day-to-day basis – sales, IT, finance, business, delivery – to be able to understand the requirements from all perspectives and execute on it. A specialist in operations with a generalist bent of mind to connect all the dots in the organization for the right solutions.  You have to become the subject matter expert in many things at the same time. Quoting from an article by Vikram Mansharamani in HBR – there appears to be reasonable and robust data suggesting that generalists are better at navigating uncertainty. Professor Phillip Tetlock conducted a 20+ year study of 284 professional forecasters. He asked them to predict the probability of various occurrences both within and outside of their areas of expertise. Analysis of the 80,000+ forecasts found that experts are less accurate predictors than non-experts in their area of expertise. Tetlock’s conclusion: when seeking accuracy of predictions, it is better to turn to those like “Berlin’s prototypical fox, those who know many little things, draw from an eclectic array of traditions, and accept ambiguity and contradictions.” Ideological reliance on a single perspective appears detrimental to one’s ability to successfully navigate vague or poorly-defined situations (which are more prevalent today than ever before).

Must-Have #4 – You love solving puzzles:

Providing smart and creative recommendations for business process improvement is one of the key areas in which business operations team can be key contributors. As an operation person, you have to identify the problems, dig for knowledge in the vast amounts of available data and then analyze it to arrive at the areas of focus. As per research by Gartner, through 2012, 80% of organizations will struggle to recruit the talent required to meet their business analytics objectives. This needs an inquisitive mind, a persistent approach and deduction skills. If you are a crossword or Sudoku fanatic, you are in the right “zone” here 🙂

Must-Have #5 – You love WORK:

Back end work, strategic work, boring work, last-minute deadline work, grunt work,  thinking work, transactional work, delegated work, filling in for someone else work – your work landscape in an operations role will constantly be changing and switching. So, you must have a great love for work by itself and in itself in all its myriad shapes and forms. If you are particular about doing only one type of work and consider certain types of work below you – this is certainly not the role for you. The duties and responsibilities in this role are fluid and are different from company to company or even business head to business head. I have rarely across a defined job description that remains constant over a period of time in my career. So, your guiding principles and measuring stick for your work should be based on what you want to achieve, not what type of work is needed to get there. A passion for work coupled with an ability to set your own standards for excellence is crucial in this role.

In addition to the above, a  business operations person must be able to exude confidence, have conviction and be firm on what he/she believes is the right thing to do. It is only then that by focusing on some of the points where structure, processes, people and systems intersect, and engaging and influencing all the stakeholders involved to work on those critical junctions, the business operations team can release benefits that ripple across the organization.

What other skills do you think are necessary for successful business management and operations? What have I missed? Please share your experiences below. I would love to hear and learn from you.

Image courtesy – http://www.flickr.com/photos/michaelheiss/3090102907

Business Operations Performance Challenges – Five Barriers to Operational Excellence

Business Operations Performance Challenges – Five Barriers to Operational Excellence

by | Business, Business Operations, Leadership, Management, Performance, Productivity

~A company can seize extra-ordinary opportunities only if it is very good at the ordinary operations. – Marcel Telles~

Top-line (Revenue) and bottom-line (Profit) growth are the two priorities that consistently show up in all reports on 2012 business trends. So, how do you ensure that your profits are growing while staying focused on achieving revenue growth? This is where excellence in Business Operations  becomes critical. Operational Excellence is a philosophy of leadership, teamwork and problem solving resulting in continuous improvement throughout the organization by focusing on the needs of the customer, empowering employees, and optimizing existing activities in the process (From Wiki). When people, processes and systems in a business are operating at 100% efficiency and productivity, excellence becomes a given and business goals and priorities no longer remain a wish-list.

In an ideal world, this should be an easy to achieve state – after all why would anyone not want their organization to succeed or why would systems and process not work at 100% efficiency?   I have written about how Business Operations can drive strategy to implementation in earlier posts. Today’s post is focused on the barriers within the organization that limit companies from achieving operational excellence:

Barrier # 1 – Organizational Silos (or Lack of Collaboration): Continuous improvement can only occur and be sustainable if there is a well-coordinated exercise that combines discrete steps into a combined effort. This is very difficult to do if each function in an organization acts independently and does not take into account how and where other functions can contribute to their improvement plans. Duplicate efforts, battles for credit and “left hand does not know what right hand is doing” scenarios become common-place leading to confusion and counterproductive results. If only everyone could sit together and collaborate to build and act on one plan that has a common goal and clear accountability for the steps necessary to achieve that, operational strategies would be so much easier to execute.

Barrier # 2 – Lack of Granular Information: As Sir Arthur C, Clarke said, it is vital to remember that information — in the sense of raw data — is not knowledge, that knowledge is not wisdom, and that wisdom is not foresight. But information is the first essential step to all of these. Financial systems crunch revenues and costs into categories that work well for financial reporting but are not granular enough for effective operations management. Not knowing what you don’t know is a big barrier to do any kind of realistic performance management. Multiple data sources and non-transparency in the sharing of information lead to conflicting information and thus to incorrect planning.  A year-long data and knowledge management strategy is a must for the successful creation of any plan that depends on trends and analysis.

“Few, if any, forces in human affairs are as powerful as shared vision. – Peter Senge”

Barrier #3 – Not enough Senior Management Commitment and Buy –In: This is one area that needs the full support of senior management in terms of consistency in direction setting and the will to enforce the much needed discipline. The functions are usually not well-aligned to the overall business goals – for example, sales runs after revenue growth and does not care about profitable growth, finance pushes for bottom-line  at the cost of top line improvement, delivery gives meeting milestones priority over costs. The message from the powers above on the business priorities needs to be loud and clear and consistent throughout the organization to create a culture where responsibility for performance is pervasive, accountable, and aligned.

Barrier #4 – Poor Planning for Success: Flawed processes for the basic building blocks of planning, budgeting and forecasting throws the entire year out of balance. Too often, these processes are executed in a top-down manner with no tying-in of the strategic goals to the execution steps. People lose focus and direction when they can’t envisage exactly how they are contributing to the high level goals. Whether it be an annual or a quarterly exercise, clear guidelines for planning and execution of the plans goes a long way to ensure that you retain sufficient control over where and how operations needs to focus on during the period to meet the business goals.

Barrier #5 – Outdated Systems and Technology: Legacy performance management systems and spreadsheet-based processes bog down managers in endless detail and eat up large amounts of their time trying to shuffle between systems and sheets and integrate the output of multiple systems. They spend 80% of time getting the systems to work for them and 20% of time on actually executing on the information (Pareto at work again). This is a huge pain point, and one that champions of business performance management (BPM) initiatives often target first. Getting your technology updated to best support your business objectives is a good investment and worth every penny in the long run – as it frees up your resources to spend more time on analysis and execution.

That said, these barriers are not ones that cannot be overcome with a little bit of focus and a lot of effort. With the right tools in place supported by smart people, realistic planning, and the desire to catalyze positive change across the organization, it is indeed possible to make significant improvements to accelerate the journey towards operational excellence.

I would love to hear back from you on your experiences with performance initiatives? What worked and what did not? What were the barriers that you faced in implementing operational strategies?

Eliminating HR and Recruitment Bias with AI

Eliminating HR and Recruitment Bias with AI

by | Artificial Intelligence, World of Work

Some of the biggest challenges in the field of recruitment stem from HR (Human Resources) bias, which impact the crucial aspects of diversity, inclusiveness and equality in the world of work. These issues can be hard to resolve since a lot of times certain prejudices or biases are so deep-seated and normalized, that one doesn’t even realize they are being biased. With a judicious use of AI in recruitment and HR, we can hope to create and sustain a more equal and diverse work space. And here is how.

  1. Using AI to root out bias during recruitment

    This by far is one of the best uses of AI. While AI learns the patterns of recruitment by analyzing the past history, it is possible to mould the algorithms in a way so that while playing the necessary filters of finding probable candidates, it doesn’t stick to the past biases in recruitment. In this case, the result is having a much greater chance at a diverse work force, and at a fair recruitment process which keeps in mind only the necessary qualifications which defines the successful candidate. Thus, keeping at bay any and all biases related to gender, caste, class, religion, et al.

  2. Using AI to identify gender biased job descriptions

    Here is something Amanda Bell, Director of Recruiting at Lever, has to say about Gender biased job descriptions:

    “Luckily, this can be pretty easy. Review your job descriptions with the lens of “Who is the audience here?” If your answer is “any qualified candidate, regardless of gender,” you’ve done a good job! It’s not just about the presence of gender-specific pronouns – it’s also about using language that is inclusive of all genders. Stay away from phrases like “kick ass,” “ninja,” and, believe it or not, “brah.” You can also ask a few employees of various genders to read the descriptions and solicit feedback.”

    In fact, this problem is deeper and more pervasive than we think. Even seemingly harmless words have an impact on how gender inclusive the descriptions are. With the help of AI, we can move a step closer to creating gender inclusive job descriptions. This is often the very first step of recruitment. And getting the beginning right, helps ensure the standards of fairness all through the process.

  3. Using AI to see the “invisible bias”

    While bias in recruitment, and the way job descriptions are crafted can be identified to a certain extent, there are multiple other forms of biases which aren’t visible. These are often the more insidious ones. And are also often the mound of biases leading up to the formation of the glass ceiling.

    Turns out, it is very much possible to sniff these biases out with the help of AI. For example, Joonko, a new application powered by AI, acts as a diversity coach. Based on experiential learning of CEO and Co-founder of the product, Ilit Raz, she designed it after becoming aware of the several forms of unconscious biases she as a woman faced in her everyday work life. In contrast to the available AI tools which mostly look at recruitment biases, this tool aims at illuminating unconscious bias in workplace situations where very few people even think or feel it exists.  “We try to catch these ‘micro-events and point them out to managers and workers immediately.”, says the co-founder on what the product aims at.

    This is a beautiful way of blending technology and human understanding to create a truly inclusive and fair workplace.

  4. Using AI to eliminate biases from Performance Management Systems

    It is no secret that performance assessments are often shrouded by conscious and unconscious biases of the individual entrusted with the task. An unfair assessment of an individual’s contribution to the organization definitely impacts the overall work space environment, making it a less happy place for people to thrive and work in. A way of dealing with these biases is by using AI in performance management systems. It can take care of two main things that are often said to influence a manager’s decision making with respect to performance assessment:

    – Regency Effect: i.e., when a manager bases the performance of an individual on a recent event, rather than looking at his/her performance over a period of time, cumulatively.
    – Contrast Effect: i.e., when a manager compares or contrasts an individual’s performance against someone else’s, instead of comparing it to the pre-set standards for the given task role.

While the role of humans in the world of work can never be completely over taken by AI, there are things that AI can help humans do better. With the right balance, and insights, AI powered technology can help us move towards fairer, equal, diverse and happy work spaces.

5 Small Investments you Can Make to Boost Employee Engagement

5 Small Investments you Can Make to Boost Employee Engagement

by | Management, World of Work

Employee engagement is not just another buzzword or a metric that your organization needs to keep track of. It is all about creating a work space, where your employees can get up in the mornings and say, “Great, I’m going to work. I know what I’m going to do today. I’ve got some great ideas about how to do it really well. I’m looking forward to seeing the team and helping them work well today”. (source)

The best definition we could find on what employee engagement really means is this, “Employee engagement is a workplace approach resulting in the right conditions for all members of an organisation to give of their best each day, committed to their organisation’s goals and values, motivated to contribute to organisational success, with an enhanced sense of their own well-being” (source: engageforsuccess.org).

The process of employee engagement is a continuous one which begins during the on-boarding process – right at the outset, and carries on. And to really make employee engagement a continuous process, one of the best ways to go about it is through making small investments, which make a big difference.

Here are five proven ways of increasing employee engagement, without having to spend any money (or atleast not much).

  1. Creating a culture of Mentoring

    Bringing about changes to the organizational culture is often hard, but without a doubt, one of the best ways to bring about the change you want to see in your organization. Having a culture of mentorship or mentoring, within your organization is a great way to boost employee engagement. When your employees know they can reach out to trusted mentors within the work place to help them address issues they are facing at work, or help them be more productive with valuable guidance, it provides a definite boost to the levels of their engagement.

  2. Recognizing the value of Mental Health

    Making investments in caring for your employees’ mental health should not be an exception anymore, but a rule. While countries in the West have started taking mental health awareness and interventions with more seriousness than before, India though picking up pace, still has a long way to go. To let your employees know that their mental health comes before anything else, is an indispensable way of you showing that you care. And a place where employees feel cared for, will be a place they will devote their 100% to. Have you read our previous blogs on metal health yet? And do you believe that mental health should be your number one resolution for 2018? If you don’t, maybe you should have a look at this.

  3. Recognizing the value of Feedback

    Without a system of regular and consistent feedback, there can be no way for employees to know how they are faring. Their growth may be stunted, and despite possessing talent and skills to mature within the organization, they might begin to slack. This is the very reverse of what employee engagement aims for. Creating a system of feedback goes a long way in ensuring employee and employer satisfaction. Issuing constructive and timely feedback helps employees to stay focused and confident to do their best.

  4. Recognizing the value of Flexibility

    By giving your employees the gift of “choices”, you move towards creating a workplace with significantly higher levels of employee engagement. Making space for flexible conditions for work is a powerful way of boosting productivity. For example, many organizations still associate the option of working from home as one that triggers lower levels of productivity. Research though, has shown results quite contrary to this assumption.  Allowing your employees flexible schedules, and the option of working from home could actually be a win-win situation for both parties!

  5. Implanting Trust

    Trust perhaps, is the single most important investment you can make in your employees. Think back to the process of recruitment you may have, and you will realize how most of the process was in fact a scrutiny of whether you can trust the job you want to give out, at the hands of the person you are looking to hire. It is the same trust that must be preserved and nurtured after you complete the process of hiring and the recruit glides into his/ her role. Matters like choosing to delegate (and then letting go until the completion of the task!), being open to new ideas, being open to flexibility and feedback, are some small yet significant ways that help you show that you trust your employees. Could there be a better way of keeping them engaged, and happy? We think not!

Still wondering what employee engagement is all about?

Your employees can said to be truly “engaged”, when they are committed and motivated towards what they have been entrusted to do. And it leads to happier workplaces and happier bottom-lines.