When it comes to running a business, several aspects or facets are to be handled. After all, a company is not made of one but several arms and divisions that make up its whole and one of them is operations. The thing is, many companies fail at this crucial aspect and that spells trouble and a pretty major one too. Mistakes are on from left to right and the occasional slips can make one dive head on first. Yikes! Here’s a list of operational failures to watch out from.
Failure Scenario: The One Man Show
Running a business all on your own is not only silly, it’s also a tried and tested route to failure. Organizations are composed of teams and teams are made up of people who work together towards a common goal. Failure to effectively disseminate tasks and micromanaging are a certified no.
Failure Scenario: One Day Millionaire
Resources have to be spent wisely, efficiently, timely and effectively. It is after all not easy to acquire resources. Cash is easy to spend and hard to earn. This makes it crucial to ensure that budgets are made, controls are set up, spending is managed and unnecessary and/or impulse spending is kept at bay.
Failure Scenario: Product Centered
There is nothing wrong about improving one’s products and services; however, putting products above customers would be an absolute blunder. Why do we sell? We want customers to buy and therefore products must be geared towards them, their needs and wants not the other way around.
Failure Scenario: Inventory Mismatch
Too much inventory can be a pain when it comes to overhead expenses. Too less on the other hand will call for shortages, missed deadlines and stock outs. Moreover, stocking up on unreasonable levels of inventory can create cash flow problems. There has to be a balance with all of these and proper inventory management is needed.
Failure Scenario: Map and Metric Absence
A goal is made up of a series of steps and these steps are a complex set of elements. Moving without a plan or a map will not only be confusing but it can also encourage lost of sight and focus. Also, businesses should audit, examine and measure their performance as they go says AABRS. This will help detect threats and problems faster thereby providing ample time and room for solutions.