Business operating systems (BOS) refers to the enterprise-wide collection of business processes. Many diversified industrial companies use it. The definition has been extended. It includes the principles and practices of business operations (Cohn & Hull, 2009).
Meeting rhythm, standard operating procedures, and processes. Information and hiring systems (Bolander et al., 2019; Samad & Ahmed, 2021), and all the items ‘between’ each department fit into BOS.
Establishing a Business Operating System
Creating a BOS for your company will clarify duties. It will establish precise systems for improving processes (Wang et al., 2015).
Knowing how to create an efficient BOS could help managers. They can become more effective leaders. They can prepare the company to scale its business operations.
But wait… what the heck is a BOS?
BOS is a workable strategy similar to a business playbook. It houses all your processes, policies, and procedures in one place. The goal is to help your business run like a well oiled machine.
With an extensive BOS, your business could run unaided. It could happen whether you’re there to supervise or not (Bokhari, 2005). It allows you to direct your time and efforts. It helps you focus on more productive tasks. In addition, it gives you an event to train your employees (Cohn & Hull, 2009).
Business Operations Factors
In order to succeed, you need an insight of business operations factors. There are different factors that drive business operations. This will allow you to make informed decisions about your business. It will help you avoid pitfalls (Huxham & Macdonald, 1992).
There are a number of key elements that can affect your business operations. It is important to consider each of them when making decisions.
Human Resource Management
Human resource management is an important factor in business operations. It ensures that employees are utilized. It guarantees they are able to work together to achieve goals (Rauch & Hatak, 2016). Human resource management develops and maintains good relationships (Jiang & Messersmith, 2017). Without HRM, it would be difficult for a company to function.
Human resource management is responsible for a variety of things in the business operations, such as:
- Hiring and firing employees (Bolander et al., 2019)
- Developing employee training programs (Ganesha & Aithal, 2020)
- Creating job descriptions (Vinchur et al., 1998)
- Conducting performance reviews (Vinchur et al., 1998)
- Providing employee benefits (Pandita & Ray, 2018)
- Managing payroll and employee records (Attridge, 2009)
- Ensuring compliance with labor laws (Liu et al., 2006)
- Collating customer feedback
Benefits of Human Resource Management
Human resource management is an important part of different industries. It is important in small businesses. Small businesses do not have enough resources or manpower (Crook et al., 2011). This can lead to a number of problems. Low turnover rates and morale are some examples. Having a good human resource management system can help avoid these problems. It can help small businesses run with ease.
There are different software programs that can help with human resource management. These programs can automate many of the tasks in human resource management. Performance reviews and employee tracking are examples. They can provide access to records from any computer with an internet connection. This can make tracking and updating easier.
Integrated Technology Management
The efficiency of business operations can be determined by many factors. The use of technology (Chaudhuri et al., 2011) is one way. In the era of software systems, almost all areas of human activity are being transferred to virtual spaces (Jiao et al., 2021). Business is no exception. The technological progress has entailed the emergence of new business trends. One such trend is the integrated management of technology (ITM).
ITM covers a range of activities aimed at streamlining the process of using technologies. It includes planning and budgeting for technology procurement. It involves managing tech assets and infrastructure. In addition, it helps develop and implement policies on technology use (Ahearne & Schillewaert, 2001).
The main goal of ITM is to ensure that technology is used in the most efficient way to achieve goals. To do this, ITM must take into account the specific needs of the group. It must align the use of technology with these needs. In other words, ITM must be tailored to the company’s business operations.
Benefits of Integrated Technology Management
There are many benefits from implementing an effective ITM strategy. The most important one is increased efficiency of business operations. When technology is used in an optimal way, it can help streamline processes. It can make business operations more efficient. This, in turn, can lead to cost savings and improved productivity (Ahearne et al., 2007).
Good ITM can help businesses keep up with the latest trends. It allows them to stay competitive and improve operations.
We can conclude that ITM is a very important aspect of modern business operations. Its importance should not be underestimated.
The effective management of resources is critical to business success. Businesses need to generate and use resources to achieve their objectives (Crook et al., 2008). The type and amount of resources a business has will determine what it can achieve. So, resource management is a key part of planning and decision-making (Chahal et al., 2020).
There are many types of resources or raw materials that a business might need to manage, including:
These are the tangible assets that a business owns or uses, such as premises, machinery, vehicles and stock.
These are the people who work for the business, including employees, contractors and volunteers.
These are the money and other financial assets that a business has available, such as cash, loans and investments.
These are data that a business needs to operate. Customer records is an example. It includes marketing materials and market research.
Benefits of Resource Management
Good resource management practices can help businesses to:
Allocate resources with efficiency
Save money by avoiding waste and duplication
Improve their competitiveness
Achieve their goals and objectives
To achieve these benefits, businesses need to place systems and processes for their resources. This includes planning how to acquire and use resources. It involves setting budgets and reviewing performance against targets.
Resource management is a key part of good business practice. It is something that businesses should be concerned with. By taking steps to improve management, businesses can be more efficient. They can be more competitive and more successful.
The purpose of performance management is to ensure that employees are meeting or exceeding expectations. It is to guarantee they are contributing to the group’s success (Samad & Ahmed, 2021). By setting clear goals, performance management helps employees stay on track. It can help them improve their capacity (Harter et al., 2002). Performance management can identify problems early on so that they can be addressed before they balloon.
Benefits of Performance Management
Performance management has many benefits for employees and for employers. For employees, performance management provides a clear insight of what is expected of them. It shows them how their work contributes to success. Regular feedback can help employees identify areas where they need to improve. It can provide them motivation to do their best. For employers, performance management can help improve employee capacity. It can identify training and development needs. It can reduce turnover.
When done correctly, performance management is a valuable tool. It can help groups achieve their goals. However, it is important to remember that it’s not a one-size-fits-all solution. Every group is different and will need to tailor its performance management system to its needs. It’s vital to remember that performance management is an ongoing process. It’s not a one-time event. Regular communication and feedback are essential for its success.
Owners and management can be so busy that no one is looking at what is being done.
For example, only 1 or 2 key employees know where everything is. There is no ‘company wiki’ or index of resources. Good people can’t execute. Or sales opportunities are lost due to inefficiencies in the supply chain. Inventory is over stock or under stock due to lazy systems. These issues require someone whose sole focus is smooth operations.
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It’s time to stop running your business without vision. It’s important to know what you do, how you do it, and why you do it. That way, everyone on your team has the information they need to own their role and live up to expectations.
Here’s How You Can Create A Business Operating System
Develop and document processes
Establish and document systems
Determine how you’ll measure business operation goals
Address the issues in your processes and systems
Differentiate the roles and responsibilities
Set clear expectations