The roles of the operations function

Any part of your organization will have their own role to play in achieving its success.  At the simplest level the role of each of these functions is reflected in its name.  In an era when operations are continually being outsource, the operations function will need to justify its continued existence within the business.

One role of the operation is to support business strategy.  It must develop its resources to provide the capabilities which are needed to allow the organization to achieve its strategic goals.  All important elements of the operation, its technology, staff and its systems and procedures, must be appropriate for the company’s competitive strategy.  The better the operation is at maintaining its infrastructure, the more support it is giving to the company’s strategy.  A different business strategy would require the operations function to adopt different objectives.

Companies continue to formulate some kind of strategy during its existence but it is the operation which puts it into practice.  Strategies are by no means tangible and all you can see is how the operation behaves in practice.  In essence, the most original and brilliant strategy can be rendered totally ineffective by an inept operations function.

Another role of the operations part of the business is to drive strategy by giving it a long-term competitive edge.  Different functions within the business have different effects on a company’s ability to prosper.  For example, if the finance function does not control cash flow accurately, the business could run out of cash and all business activity would soon cease or have a serious short term effect on business.  Poor marketing management will hamper the company in the medium term.  No amount of efficient financial and marketing management can compensate for poor operations performance though.  Sloppy service, slow delivery, broken promises, too little choice of services or an operations cost base which is too high will prove detrimental to company long term goals.  Any business which makes its services better, faster, on time, in greater variety and less expensively than its competition has the best long term advantage any company could desire.  All the things which promote long term success stems directly or indirectly from the operations function.  In effect, this function becomes the custodian of the organizaton’s competitiveness.  It ultimate role is to do things better and deliver services better than similar operations.

In conclusion, operations must support strategy by developing appropriate objectives and policies for the resources its manages, make strategy happen by translating strategic decisions into operational reality and provide the means to achieve competitive advantage.