Business Operating System
A business operating system isn’t a new notion. Most business operating systems focus on increasing productivity, but they frequently include significant components of a company’s goal and culture. If you want to work in management, you need to learn how to set up a business operating system for your company. Companies may use business operating systems to clarify duties, create precise methods for resolving difficulties, and identify areas where they may improve. Understanding the best practices for developing a BOS will help you become a more successful leader and prepare your organization to scale and find career advancement prospects. One of the earliest instances of a BOS is the Toyota Production System (TPS) that was developed in 1948. Most of the TPS’s concepts have been generalized as LEAN Manufacturing, and many other businesses have adopted them.
In this article, you will learn about the business operating system with its purpose, features, uses, needs, and various features.
What is Business Operating System?
A Business Operating System (BOS) is your company’s distinct way of doing things that how it operates, goes to market, manufactures, and interacts with customers. It’s also known as a standard, enterprise-wide set of business processes various multinational industrial corporations employ. An effective BOS is more important because it transcends the people who do and handle the work. A BOS is designed to bring people together, increase communication, and promote a shared goal. Managers, executives, and business owners regularly collaborate to build BOS to guarantee that everyone in the organization understands their roles, has the same vision and is working toward the same goals. This Endeavour may result in a more harmonious workplace, where good people are retained and rewarded for their efforts.
Multinational companies such as Honeywell, Ingersoll Rand, and Danaher have adopted a standard, standardized set of business processes and its improvement approaches to manage strategy creation and execution. Danaher’s BOS is an integral element of the company’s culture and is regarded as the important driver of corporate performance.
Such systems aim to ensure that daily labor is focused on the organization’s strategic goals and completed most effectively. The systems deal with the questions “why” (purpose of the work), “what” (specific objectives of the work), and “how” (the processes used to do the work). For example, the Toyota Production System (TPS) focuses on building cars and how to improve the way cars are built. The other goal could be to improve the business system by identifying and refining the tools and practices that make it up.
What is the purpose of a Business Operating System?
The purpose of a BOS is to improve the efficiency of the company. It is driven by common values, clear objectives, and employee efficiency. A successful BOS may create a positive work culture where people feel valued for their time at work, their time is respected, and their efforts produce real results.
Key Components of a Business Operating System
Designing each BOS component is critical to be up or down and scalable for future expansion or contraction. The BOS components are interconnected with each other. As a result, effective leaders may manage all components and understand how they affect each other.
There are various key components of BOS. Some components of the business operating system are as follows:
1. Processes
The first business operating system component you create should be Processes. The most prevalent risk factor for developing businesses is underdeveloped work processes, which are the first item to sink a company in severe economic circumstances. In addition to standard work processes, you include other processes such as communication, decision-making, and conflict resolution. Companies that quickly adopt a new system often automate their inefficiencies. However, effective leaders have the self-discipline to prevent the delusions that a system will fix their problems and simplify manual processes before modifying the technical systems.
2. Systems
The systems component of BOS is a broad phrase that includes both hard and soft systems. For example, hard systems may contain your payroll or content management system, whereas soft systems may contain your staff advancement or compensation systems.
These systems should be well-thought-out and developed to promote predictability and stability in a successful business operating system.
3. Define Roles
In a business OS, roles are detailed job descriptions for positions in the company. When writing job descriptions, it’s best to concentrate on the company’s goals for the position rather than the duties of the existing employee. It’s an opportunity to find missing responsibilities and allocate duties that can be better suited with various positions. It’s also an opportunity to ensure that you’re networking with people who share your company’s ideals.
Some effective job roles are as follows:
- Written in plain language
- Pushing toward company goals
- Clearly distinguished
- Aligned with the company culture
- Outlined in the job description
- Planned with growth in mind
Managers frequently incorporate roles that the organization doesn’t yet require in their BOS. It guarantees that the organization is prepared to expand supervisory jobs and scale to a larger team if necessary.
4. Align Skills with roles
You may define the clear skills required to fulfill those roles when you have clear roles. It ensures that you recruit the best and most qualified applicants for the job and that they are placed in the most productive positions for your organization. Employees may become more productive with clear processes and systems.
5. Create an Overall Structure
A structure is a fundamental support for a business operating system’s processes, roles, and skills. Creating a structure ensures that the employee responsibilities, company environment, and company mission feel liberating rather than confining.
Key Areas of Business Operating System
There are various approaches to implementing an OS into your company. You may design your own, apply one of the well-known systems yourself, or employ a business coach or consultant to assist you. There are mainly six key areas that may be addressed by business operating system:
1. Vision
Defining your vision and ensuring that everyone on your team is on the same page.
2. Issues
As in an S.W.O.T, a process for smoking out and resolving issues.
3. People
Getting all of the right individuals on the bus and putting them in the right seats.
4. Process
All of your processes should be documented, and everyone should be trained and follow them.
5. Data
Managing your business based on data with a scorecard that you review on a weekly basis.
6. Execution
Meetings and quarterly targets are systematic techniques to ensure that your plan is on track.
Examples of Business Operating System
There are various examples of the business operating system. Some examples of the business operating system are as follows:
- Toyota’s Toyota Production System (TPS) is one of the earliest examples of the business operating system that was developed between 1948 and 1975.
- Fortive has the Fortive Business System (FBS), which is derived from the DBS.
- Danaher is another best example of a business operating system that is also known for its Danaher Business System (DBS).
- The Ingersoll Rand business operating system (BOS) was created to outline the six corporate focus areas and the company’s process improvement technique.
- John Deere Quality and Production System
- REC Production System
- Alcoa Business System
- Americold has the “Americold Operating System” (AOS).
Benefits of Business Operating System
There are various benefits of the business operating system. Some benefits of the business operating system are as follows:
1. Highlights important functions
Every company’s success may be boiled down to one core business function that they repeat over and over. AKA the day-to-day operations for which your organization is known.
A business operating system clearly distinguishes these functions, whether they be selling hamburgers or scheduling home cleaners. It also explains how you perform this function at your firm. As a result, everyone on your team consistently produces high-quality results.
2. Measures Success
It isn’t easy to track performance without defined measurable. As a result, the BOS must include individual, team, and organization-wide goals during each step-by-step procedure. For example, your sales team may be expected to sell $3k in services each week, but each player is only aiming for $800.
3. Ensures consistency
You’ve probably already gone through the trouble of figuring out the cheapest, quickest way to do those critical business operations. BOS outlines the one method your company does things for your staff. You also eliminate the best guesses. That way, everyone follows the same procedure.
4. Boosts employee retention
Most people don’t like being stuck in a work where they constantly wonder how they are performing. Your team members will automatically feel more inclined to do a good job if you break down the greater picture and how each individual’s effort contributes to it. They’ll be completely aware of their primary responsibilities and expectations. As a result, you’ll be more productive and satisfied at work.