The Importance of Operations Management in an Organization

operations managementFrom the leadership to the front office, operations management is the lifeblood of an organization.

Here’s a story of how one company used an interim COO to not only improve its profitability but also to drive their growth with operations management.

Pam Wasley: Operations can impact all areas in the company from the top to the bottom of the P&L.
Kristen McAlister: And from the leadership to the front office. Operations management is the lifeblood of the organization. Coming up stay tuned for how operations leadership drives profitability and growth.

Pam, it’s no secret my favorite role in the company is operations.

Pam Wasley: Really?
Kristen McAlister: The smallest efforts can have the biggest impacts for profitability and the people.
Pam Wasley: Well then you’re really going to like this next story! And Interim COO was hired by this company to not only improve their profitability, but also to drive their growth. And after being there only 4 months, he increased inventory returns, he reduced vendor cost, he increased cash flow, he increased sales due to better pricing, quicker deliveries and better customer service.
Kristen McAlister: Wow sounds like Superman. My kind of a guy.
Pam Wasley: I know that’s exactly what the CEO and his team thought. They valued him so much, they never wanted to get rid of him. However, the interim COO convinced him that he was really no longer needed because all the processes were now in place, and he transitioned all that knowledge to the people internally.
Kristen McAlister: Who knew? Knowledge transfer. It does work.
Pam Wasley: Exactly. However, he did help the CEO hire a Director of Operations at one-third of the cost of a new COO. And the CEO was amazed at how quickly that new person came up to speed with everything now in place.
Kristen McAlister: See Pam, operations can make or break a company. Sometimes it doesn’t take much to turn it from bad to good. An interim operations executive can help get things back on track and show the team then how to drive it forward from there themselves.

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