Business Operations: The Chicken Before The Egg

There are a few businesses that do not have a need for managing their business operations. And they are just a few. So few, I can not think of a business that does not have some sort activity they do in business that could not be considered their business operation. Something as given as making a bank run or going to the office supply store or having new business cards and contracts made up, all could be considered business operations. If one of these activities was not done or done correctly how would it affect the business?

However, most businesses operations are much more complex. Especially where there are employees involved. Even then there should be a separation of operations and the human resources.

What is taken place today is more businesses are trying to do more with less. Business owners, in hopes of saving a buck, are doing away with operations managers and taking upon themselves to do the work of a COO. I consider and coach my clients that if there is a need to cut budget while evaluating strategies, to make the cut on the front end, not where the quality is produced.

One of the biggest mistakes made by business executives and owners is to take for granted the management of their operations. Too many business people put far too much emphasis on marketing and sales when operations need to play an equal or greater role.

Over the years I have sat in many meetings where the conversation come down to the 'Chicken or the Egg' theories. The sales groups claim that if it was not for their efforts to bring in the revenue there would not be a reason to generate a product. While operations saying that if there was not for them producing a quality product to show the client there would not be any sales made to generate any revenue.

And this debate still goes on today. Who wins? Well, as unpopular as it is for the high strung sales people to take, it is not sales that comes first.

Since the Chicken is the operation that produces the egg, you have to take care of the Chicken to insure there is a quality product. Once there is a product then it should be simple for sales to sale it, but not before then.

Yes, business' operations has to be established before a business knows what it is they are selling.