A company is only successful when the day-to-day operations are aligned with the larger goals of the business. Operational management is focused on how the business gets its work done, whereas strategic management sets goals for the long term. Professionals in many fields need to know the distinction between these two areas.
The management of an operation requires a range of skills, including communication, project planning and decision-making. Depending on the position it could also require the ability to use technology and knowledge of information management.
Operational Management is the process of planning, executing, and monitoring the daily operations of a business. This encompasses departments such as production, finance, and information technology. It includes setting priorities and making decisions that are based on the business goals, and aligning all of these areas to meet the overall goals of the company. This usually involves deciding how to allocate resources, such as staff or equipment, as well as materials.
One of the primary responsibilities is to ensure that the company’s workflow is in line with client demands and is cost-effective. It also involves creating quality control, evaluating progress and adjusting strategies when required. This typically requires analysis of the present and the future operating environment, including changing regulations or customer needs.
Other responsibilities can require the use of business process automation (BPA), which helps streamline and automate routine tasks and procedures to increase efficiency. It also involves communicating with other departments, like marketing and sales. Effective communication skills are needed like active listeners and the ability to recognize non-verbal signals. It can also include the creation of an environment that fosters teamwork and collaboration between employees of different backgrounds and cultures.