New Trends in Operations Management in a Post-COVID World

 

When you’re running a business, there are two ways to increase profit:

1. Increase revenue
2. Decrease cost

Let’s focus on number two. Even seemingly insignificant savings can add up over time. Shaving just two cents off your landed cost per unit by increasing operational efficiency can add millions of dollars to your bottom line in the long run. This is why operations managers are so fundamental to a company’s ability to stay profitable. 

While the pace of technology innovation moves at breakneck speed and businesses rush to catch up to the latest trends, operations managers play an increasingly important role in carving out a competitive edge. As we embark on the “new normal” for businesses in a world that have been rocked by a global pandemic, operations managers are more important than ever. 

Operations is a broad job function. These leaders will be responsible for keeping the business running efficiently through the aftermath of COVID-19. They will also play a leading role in paving the way towards a new future for companies around the world. 

So, whether you’re planning an organizational overhaul to become more competitive in your market or merely seeking to cut down on your overhead costs, staying ahead of these seven trends will help deliver the results you need to meet your operations management goals in 2020.

1.  Streamlining Organizational Communication

There are countless communication tools for office workers: Slack, Teams, Flock, etc. But in reality, these tools only get half the job done. Workplace communication technology often leaves out frontline workers who represent 80% of the global workforce. Any employee who doesn’t work behind a desk needs a mobile communication solution in order to stay connected to the broader business, and do their job more effectively. 

What’s more, better communication can boost a manufacturer’s bottom line by 10%. This cost savings is the result of more timely communication between head office, team leads, and frontline workers. With less time spent in meetings, frontline managers can focus on leading their teams and improving performance, while eliminating non-value-added tasks.

Here are a few other ways that streamlining organizational communication can save time and money by reducing. . . 

• Time spent coordinating projects and tasks 
• Mistakes
• Time spent identifying and resolving issues

When teams are communicating, they get more done and they solve problems faster.

2. Mobile Communication Tools

Digitally enabling your frontline workforce is the singular most impactful investment you can make to optimize productivity, increase safety, and reduce costs in the current uncertain climate. 

If your business’s operations and internal communications are not mobile, you may be leaving a critical part of your workforce out of the loop — frontline workers. Whether you’re in the technology industry and rely on mobile devices to achieve sales targets, or you’re in manufacturing and the company is facing constraints on output, mobile accessibility will play a vital role in operations management for 2020.

Apart from today’s reliance on mobile devices for communication, consumers also turn to their smart devices for everything from household goods to travel accommodations and job applications. When it’s all said and done, your frontline workforce will expect the same access, ease, and utility from their tools at work.

While researching digital workplaces or tools to digitally enable your teams, it’s important to keep in mind that leadership and frontline workers might take different criteria into account as it relates to their scope of work and priorities. One way to successfully navigate this potential area of divergence is to make sure positive user experience is core functionality. 

3. Extreme Efficiency Through Automatization 

Research from McKinsey shows that up to 50% of all work performed today can already be automated with currently available technology.

Automating internal processes throughout your business can save money and increase overall efficiency. For industrial and heavy industries such as manufacturing, construction, and the energy sector, many companies are now exploring automation possibilities beyond the production line. 

Despite some initial hesitation around adoption, we predict that the use of digital tools to automate processes and streamline communication will rise in 2020. 

We expect to see increased use of automatic scheduling and delivery of targeted internal media campaigns, work schedule notifications, and read-receipt functions in the company, which will further streamline daily operations for the organization. 

4. Emphasis on Health and Safety 

As companies work through and recover from the impact of COVID-19, maintaining the health and safety of both employees and the public will be a top priority for operations managers. 

The number of health and safety issues reported each quarter is steadily increasing for many companies simply because employees don’t have access to the necessary information. 

What’s more, it’s often difficult for organizations to find evidence and keep updated records of safety-related issues and incidents.  

It will be important for operations managers to look for new ways to reduce the number of health incidents and workplace accidents. This means companies will need to understand new regulations around safety and compliance, and it will be up to operations leaders to implement swift changes to internal processes and procedures in order to remain compliant.