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Over the span of a 15 year career I have worked in the design and improvement of processes both in business services and product manufacturing.  One thing has struck me and it is this….in service organizations do we actually spend the time designing how we deliver to the customer?  It is by asking this question that has lead me to follow my current career path.

In many professions such as architecture, engineering, fashion (to name a few) a conceptual idea is developed followed by the creation of a layout, or design that will effectively realize its function.  To a certain extent we even design our cities, although when stuck in traffic I question how well the design was conceived and subsequently executed.

First, I think I have to define what I mean by operations design.  Operations are how an organization fulfills its promise to its customer.   As an example,  I worked in the manufacture of sugar for three years  and operations were defined by how sucrose was extracted from the raw material, sugar cane, and converted to sugar for our customer.  In this case the design is the conceptualization of the conversion process and the subsequent development of the idea into a tangible, cost effective reality. Sounds simple right?  Well, at its core it is….

Some businesses start small and are so focused on growth that the operations just happen.  They evolve through various growth periods and scrutiny only comes when glaring problems emerge like operational cost increases, or large enterprise technology implementations.   At which point, a massive effort ensues to document processes, reassess skill sets, integrate disparate technologies, or decommission home grown applications that have become inefficient to maintain.  However, these activities, for the most part, tend to be localized and not holistic in scope.

What if, at an early stage in the business cycle you design and document your operations similar to how an architect designs a building?  Continue to dream with me….

• Management could use the resulting design to adequately match operational activities with resource skills
• Strategy change implications could be seen by everyone in the organization and would be easier to execute
• Purchasing entities like strategic business buyers, could better understand how the target organization delivers value to its customers. These documented operations would be considered intellectual property
• Enabling functions such as IT would provide better service to the overall delivery of customer value
• Change within operations would be managed more effectively
• Project portfolios would be managed better because there would exist a more holistic view of how individual projects impact different operational activities

…..These are just a few benefits.

The first step in designing or rethinking your operations starts with documenting the largest components of your operation, which are your integrated core business processes.  Core business processes are those sequential activities that define how an organization delivers direct customer value.  Once your integrated core processes are defined, then rethinking innovatively how to do things differently can begin.  Clear processes can now facilitate the improvement of all elements of design such as; people skills, tools, technology, physical vs. virtual presence, etc).

So at what point should you begin thinking about your operation design?  If you are a small business struggling to find revenues then it is likely not front of mind however, when revenue streams stabilize, this is when you should take time to document how you deliver your services or products to your customer.  For mid to large organizations, the effort should begin prior to engaging in significant projects that require a holistic understanding of your operations (e.g. ERP implementations, acquisitions, mergers, expansions).  This will allow time to properly understand and improve operations without looming timelines and budgetary constraints undermining the efficacy of the exercise.

Operational design is a strategic activity that should precede operational management.  Once done well and documented it becomes an integral component of an innovative, effective and efficient organization.