A system to operate your business - The Daily PPILL #435
A computer operating system defines how frequently repeating operations are done. For example, managing the different resources available, managing, and prioritizing different tasks that are running concurrently, and the way the computer interfaces and communicates with the user and other computers. By doing so, it simplifies work for the user, and frees developers from having to program once and again each of these functions. An operating system brings order, stability, and simplifies things.
Similarly, a Business Operating Framework is a comprehensive framework and a set of processes that an organization can utilize to manage and streamline its operations, ensuring that it functions efficiently and achieves its strategic goals. It usually encompasses organizational structure (people!), processes & policies, and tools, including technology. It helps in aligning the business from its core values and mission to its day-to-day operations; and by using a common, shared language, enables seamless communication and collaboration among employees. It may include additional, higher-level processes, like a structured approach to decision-making, resource allocation, performance measurement, and even a way to conduct meetings. Business operating frameworks impact how a company adapts to changing market conditions, drives innovation, and maintains a competitive edge; and the same way that a computer operating system, it brings order, stability, and simplicity to its operation.
Do I need a Business Operating Framework?
The answer to this is: definitely YES. There is no way a business can function without one. This means you probably have one already. It may still not be the best one for you. Some signs that this may be the case, is if you are experiencing an environment in constant conflict, with frequent fire drills to be able to perform tasks that should be routine, and just a general feeling of dysfunction. Another important measure of the effectiveness of a business operating framework, is the degree to which your business is capable of functioning in your absence. Entrepreneurs and business leaders must be able to dedicate a significant portion of their time to work “on the business” instead of “in the business”, meaning that they should dedicate an important chunk of time to work on the development of strategy and to make any decisions that will help address any emerging threats or capitalize on new opportunities, instead of being immersed completely in sales, or in the daily operation responsible for any deliverable.
Even the smallest businesses can benefit from adhering to a business operating framework, as the establishment of repeatable processes, and policies that avoid the need for repeatedly making the same decisions over and over, can save time and effort, and deliver more consistently for customers.
Even if you have a pretty good business operating framework in-place, part of running on one is having feedback loops and a process for continuous improvement.