Transformation of Operations
Transformation of Operations

A system is powerful. Methodical, sustainable and consistent development is impossible without systemizing behavior. It is the same in modern business governance as well – a well-organized operational system and optimized business processes are two of the milestones of the effective work of an organization.

Regardless of the field of operation, in order to successfully operate, an organization needs regular renewal of working processes, adaptation to changes and adjusting to the individual business model of the company to minimize all the factors hindering the continuality of a business and existing or potential losses. One benefit of the said process is that optimized business processes are directly connected to the most crucial goals of each company – effectiveness and profit maximization.

Company managers often write down entire processes of operational systems and ask their employees to follow them thoroughly. But what happens when the picture described on paper is one and the actual reality is different? Standards are set envisaging every minor detail, but it’s just on paper and not transferred to actual operations. There are cases when top management requires employees to fulfill those processes and procedures and work properly as “described on paper”. But for reality, the daily needs of the company and listed processes do not match, which results in frustration and disappointment among employees.

To somehow meet the operational standards “listed on paper” they have to fulfill extra or completely unnecessary work. Processes and systems are indeed crucial instruments for enforcement and should serve the growth of a company’s effectiveness. Well-organized processes are necessary to create the best product/outcome, but when they are not properly realized and adjusted to actual work, on the contrary, they may appear to be harmful. When they are loaded with too much “trash”, the quality of operational effectiveness and final outcomes are affected. Companies often forget that an operational system is strong not only when it is oriented on the outcome, but when it presents unity of the company’s vision, business strategy and individuals, who are assigned to fulfill those operations.

Operation system require updated / improvement, if: 

  • Quality of product/service gets worse – the main priority of every business is to create a high quality product/service and offer it to the customer. Quality assurance starts with when the product is created: when the process works properly and correctly, every required resource is mobilized and every possible risks is envisaged

  • Operation costs increase – resources are incorrectly estimated and selected in the company. Processes are overloaded with extra, unnecessary details and performance time is also miscalculated.

  • Employee outflow – employees are exhausted and often have to do extra work, their responsibility and influence domains are not defined. On the contrary, their workload is insufficient, and the company incorrectly uses their skills and talent.

  • Operation risks increase – clients are often dissatisfied with the quality of the product and the company has to ask it back. Because of the low quality or fault, the process is often terminated.

Through tight cooperation with the management team of the client companies, we create, update and optimize operations oriented on effectiveness. For the transformation of processes, we incorporate agile approaches and methodologies as we believe that in the modern reality only those organization will develop and keep sustainability that have flexible and effective operation system. We work on a variety of topics incorporating the lean methodology: optimization of main processes that create production cycle, service, product.

Transformation of main operations arrow

We assist companies in the transformation of the main operations such as: production, sales and supply, supply chain, service operations and product development.

The process of transforming operations: 

Studying and documenting the processes a company has in place 

Studying the internal processes of an organization is a starting point in the optimization of business operations. In this process, we tightly cooperate with a client company to study the organization structure, and its main business domains. As a result of the interviews and meetings with employees, we collect information on the processes. We also observe operations in real time and space. After an in-depth study, we document the existing system of processes.

Analysis of the documented processes, identifying the goal of each of the processes 

This stage of analysis is crucial in the optimization chain. This is when we visualize the existing processes which enables us to identify useless steps, repeated actions or other types of problematic aspects which prolong the process, requiring excess resources and decreasing the effectiveness of a business activity. At the same time, our team identifies the goal of each process and estimates how the specific goal is correctly set. In addition, in the case of a mismatch between the process and goal, we study what goal this process should actually serve and why that goal cannot be reached through the given structure.

Re-thinking the processes and systemic optimization  

After the analysis stage identifies useless steps, in an inclusive work format with a client company, we develop updated procedures that are best tailored to the organization’s business model and goals of the business domain

Implementation of optimized processes

Establishment of optimized processes free of defects and other problematic details is one of the final stages in company’s everyday life. When implementing this process, our team actively supports each business partner. Our joint effort and work ensures quick integration of updated processes in compliance with developed recommendations.

Testing, control, and monitoring

Finally, the optimization circle is closed by testing the updated process design and observing it closely. On the one side, it enables us to eliminate any defects of the new design, if any. On the other side, the monitoring phase enables us to see clear and vivid outcomes – how effective was the optimization of the process and specifically what amount of expenses were eliminated as a result of the optimization.

Transformation of Support Operations arrow

In today’s dynamic, modern world, the effectiveness of a company is not solely based on the strength of its main operations. Experience shows that to ensure customer satisfaction and to produce high quality product, it is not enough to optimize and normalize those operations that directly serve the production of the product. For example, if financial resources are miscalculated and costs are not effectively managed, while budgeting does not get enough attention, it will certainly reflect on the quality of the product. Incorrect HR processes and systems may also significantly damage the quality of the product or customer satisfaction. Unsuitable distribution of workload, unclear responsibilities or functions, absence of integration of new staff members or a dysfunctional system for employee promotion and incentives will most likely demotivate employees, decrease the effectiveness of their work and will affect the overall performance of the company.

Support functions (e.g., finances, marketing, HR, administration, etc.) are integral components of a full operation system and their effectiveness plays an important role in a company’s success.

Getting ready for the digital transformation arrow

The vision of the future and success nowadays is often associated with digital systems. Acceleration and simplification of a company’s digitalization processes is an important precondition for increasing effectiveness. Digitalization of operations is a long process involving every domain of the business. For effective digital transformation, systems need to be fundamentally flexible to easily adapt to new challenges and enable the re-design, update and optimization of systems easily.