What is operational management?
--- Operational management (OM) is the administration of business practices to create the highest level of efficiency possible within an organisation. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of the organisation. OM teams attempt to balance costs with revenue to achieve the highest net operating profit possible.
OM involves utilizing resources from staff, materials, equipment, and technology. Operations managers acquire, develop, and deliver goods to clients based on client needs and the abilities of the company.
An operations management professional understands local and global trends, customer demand, and the available resources for production. Operations management approaches the acquisition of materials and the use of labor in a timely, cost-effective manner to deliver customer expectations. Inventory levels are monitored to ensure excessive quantities are on hand.
Another large facet of operations management involves the delivery of goods to customers. This includes ensuring products are delivered within the agreed time commitment. Operations management also typically follows up with customers to ensure the products meet quality and functionality needs. Finally, operations management takes the feedback received and distributes the relevant information to each department to use in process improvement.
Adam Hayes - 2021
Thinking about the concept
A visual thesaurus search is always an excellent starting point to discuss a concept definition:
|Thesaurus - ENG|
|Thesaurus - Synonyms, Antonyms, and Related Words (freethesaurus.com)|
Relations of Operational management within Corporate futuring (and Organisational futuring)
There exists a close vertical relationship within Corporate futuring:
On the Other focus level, a close relationship exists with:
Corporate futuring and Organisational futuring intertwine, on the Other focus level, through:
In concrete terms, this means:
- The trio - 'Steering', 'Operational management' and 'Commercial management' - is inextricably linked.
- Your 'Operational management' contributes substantially to your 'Organisational structure' and your 'Performance'.
- To realise your 'Operational management' through your 'Organisational structure', you need a performant 'HR management'. Even so, to realise your 'Performance', you need the right 'Process management'.
Questions we can ask ourselves when contemplating our Operational management
- Is our 'Operational management' based on 'Steering'?
- Is our 'Operational management' robust enough to generate a viable 'Commercial management'?
- Is our 'Operational management' keen enough to create an 'Organisational structure'?
- Is our 'Operational management' capable to create 'Performance'?
- Is our 'Operational management' a collider or a mediator between 'Steering' and 'Commercial management'?
- Is our 'Operational management' a collider or a mediator between our 'Organisational structure' and our 'Performance'?