For many years, businesses defined success by higher profits, larger market share, or launching a new product or service. Recently, however, success has been redefined to encompass more. For example, organizations are also evaluated on the success of their operations.
Executive leaders are under pressure to:
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Communicate with stakeholders a commitment to environmental, social, and governance (ESG) initiatives.
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Show shareholders that the organization is resilient
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Run their business efficiently and on scale
Operations are always the life of the business. But now, employees, shareholders, customers, and other stakeholders want proof that operations are managed to achieve a more responsible, effective, and transparent business.
Different table stakes
With new market forces, delivery methods, and challenges emerging regularly, operations leaders are rethinking how to organize and manage enterprise operations. The table stakes have changed.
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If a company does not work well, its competitor can gain an advantage.
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If a business does not effectively manage risk, a cyberattack can put it in the spotlight for all the wrong reasons.
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If an organization does not invest in ESG, organizations that prioritize ESG may capitalize because customers see a commitment to sustainability as a competitive distinction.
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If a business isn’t driving strategic results, it will find others in the marketplace catch up with it.
Until decision makers think of ways for people to work together better, innovate, and reduce risks within reasonable boundaries, they often find it difficult to address any of these issues.
Enable operational efficiency
The key to connecting all areas of the enterprise is to break down traditional, siled enterprise operations where diverse departments — finance, HR, risk, legal, strategic planning — operate separately from each other. with its own goals, system, and set of metrics. Operational efficiency requires establishing a common, basic framework, connecting operational departments throughout the enterprise, and improving visibility.
It can be difficult for a chief risk officer to understand how their goals relate to the goals of the chief human resources officer (CHRO) or head of business services. But emerging C -level business initiatives clearly show how, in fact, goals are interrelated in seemingly separate areas of business operations.
For example, re-employment initiatives are often managed by CHROs. To achieve their goals of attracting and retaining talent and keeping workers safe in the event of a pandemic, CHROs need to work with counterparts managing corporate real estate and finance.
They need to make sure that enough systems and departments are connected to establish a baseline, so that they have the visibility to understand all the work going on throughout the enterprise to support the initiative. Without this baseline, it is difficult to continually improve or measure whether commitments are being met.
Where to start
For businesses looking for operational success, it can be daunting to specify where to start because it’s not a one-and-done effort. The first step is for C-level operational leaders to collaborate and have conversations about how to connect their goals and objectives with other teams within operations to enable better business agility.
If a company has already hired global business services (GBS), it makes sense to look to the head of GBS to assist with direct efforts. Their job is to look across the organization and work with different departments to catalog services, analyze workflow processes, and establish a framework to optimize services and operations. through tools, technology, people, and processes.
Then, this GBS framework can establish a baseline for operational efficiency in the departments that connect the business, empower employees, and support continuous change.
Learn more about enabling the power of operational efficiency. ServiceNow offers solutions across GBS, risk, ESG, and strategic portfolio management to help.
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