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The Secrets of Operations Management THE SECRETS OF OPERATIONS MANAGEMENT An Operational Excellence E-Book By Tim Mclean FOREWORD One of the most important roles in any business is the operations manager. Often this person manages the greatest number of people and can have a huge impact on the success or failure of your business. So, what are the characteristics of a great operations manager and how do you find one? Equally, in a high-pressure role like this one, how do you make sure you have the right person and they are performing? This white paper will try and demystify some of the key questions around this important role in your business. ABOUT THE AUTHOR Tim Mclean has had a 25 year career focused on improving the operational performance of manufacturing business. Tim’s spend 16 years as an operations manager working for major companies across the chemicals, coatings, packaging and printing industries. His roles have included Operations and Supply Chain Director at PPG Coatings in Australia as well as General Manager of major packaging businesses for Carter Holt Harvey and Amcor. Tim has had a passion for Lean and continuous improvement since he was first employed as Continuous Improvement Engineer in the late 1980’s. In 2004 Tim turned this passion and experience into a business, establishing TXM Lean Solutions. TXM is now a leading global Lean consulting companies with consultants in Europe, North America, Australia and China and projects in over 20 countries globally. Tim is the author of two books, “Grow Your Factory – Grow Your Profits: Lean for Small and Medium Sized Manufacturing Enterprises” was published by Productivity Press in the US in 2014 and is a practical guide to achieving operational excellence in a growing manufacturing business. Tim’s second book, “On Time in Full” was published in 2017 also by Productivity Press. This book shares Tim’s three decades of practical experience in optimizing operations and supply chains to deliver customers what they need, when they need it. Tim is a sought after speaker who brings practical common sense insights on the challenges facing operations leaders everywhere. TABLE OF CONTENTS FOREWORD ................................................................................................................................................................ 2 ABOUT THE AUTHOR ................................................................................................................................................. 2 TABLE OF CONTENTS ................................................................................................................................................. 2 1: WHAT MAKES A GREAT OPERATIONS MANAGER? ............................................................................................... 3 2: HOW DO YOU RECRUIT A GREAT OPERATIONS MANAGER? ................................................................................. 7 3: FIVE CAREER LIMITING MISTAKES THAT OPERATIONS LEADERS SHOULD AVOID .............................................. 11 4: HOW TO AVOID THE SENIOR MANAGEMENT REVOLVING DOOR IN YOUR BUSINESS ....................................... 13 5: SEVEN REASONS NOT TO FIRE YOUR FACTORY MANAGER ................................................................................. 18 1: WHAT MAKES A GREAT OPERATIONS MANAGER? So, what are the signs that you have hired a really effective Operations Manager or General Manager in your business? They Prioritise Safety First and Then the Customer As an Operations Manager, they have a very direct responsibility for the safety of the people who work in your business. This responsibility translates to you as the business owner, CEO or Director as well. Therefore, the first thing a new Operations Manager is likely to do is to identify, assess and address any immediate safety issues. This also demonstrates their commitment to their team and provides them a chance to demonstrate that they are committed to the standards they set – so production never comes before safety. Next to safety, an Operations Manager should recognise that any business must always meet the needs of its customers. This means that the Operations Manager will address quality and delivery issues, before leaping in to cost cutting. It also means that an Operations Manager will use positive language about the customer and be curious to learn what customers really need and value from the product or service the business provides. They are Humble and Put the Team First Often, we look for Operations Managers who are bold, tough, confident and decisive. These characteristics can be useful, but in my experience the best Operations Managers constantly give the limelight to their team. When talking about the projects and achievements of their area, they will use “we” and “us” more than “I”. In presentations, they may often let their team present and take a back seat themselves. They will also stand up for their team and support them, even at some cost to themselves. However, they will be decisive, fair and consistent in managing the performance of the individuals on their team. They will value the experience around them and look to develop the people they have before turning over key roles. However, they will also be prepared to challenge complacency and entrenched views, which may include challenging some of your long serving subject matter experts. If you want to learn more, pick up a copy of “Good to Great”, by Jim Collins and read about “Level 5 leadership”. The TED Talk “Why Good Leaders Make You Feel Safe” by Simon Sinek is also a great explanation of what good leaders do. An Operations Manager who displays these traits will earn the respect of their team rather than expect it. This earned respect is typically rewarded with the team confidently following the direction the Operations Manager set and makes the team more at ease with deviating from “the way we’ve always done it”. Because, they are humble, they good leaders admit what they don’t know and ask for help when they need it. This should not be seen as a sign of weakness, but in fact is a sign of strength. It takes strength to reveal one’s weaknesses and vulnerabilities and ask for help. Rather than criticising or rejecting such requests, you should welcome them and try and provide the help and resources needed. They will also be respectful of others in the business. Behaviour like swearing, shouting or belittling staff have no place in the workplace under any circumstances, especially from leaders. They will Develop People and Won’t Feel Threatened by Peers and Subordinates In fact, they will actively develop their senior team members and provide them opportunities, including allowing them to step up in to the Operations Manager role during holidays and travel. They will be comfortable allowing their team to make decisions and take full responsibility for aspects of the business. They will support their team, even when their decisions go wrong (they will never throw a team member “under the bus”). However, they will ensure that their team also takes accountability for the decisions they make and the responsibilities they take on. They will work hard to develop peer relationships and invite feedback and involvement of peers. They won’t gossip about peers or criticise peers (especially to their team). They also will not tolerate “them and us” attitudes in their team that can erode relationships between functions and impact customer service. When Things go Wrong, They Ask Why Not Who A good Operations Manager is not going to spend hours whining to you about their subordinates or their peers. Their focus will be on the process, not the individual. When things go wrong, they will ask why and seek to find and address the root cause of problems. This can be difficult and time consuming at the start, when there are many problems (its much quicker just to blame someone!), but it in the medium term it is an investment of time you must make if your business to sustainably improve performance. They Set, Maintain and Improve Standards Excellent performance is achieved from establishing well thought out standard processes and then continually improving these processes. An effective Operations Manager will therefore focus early in their role on establishing standard processes and ways of doing things. This can include standardising the organisation of the workplace with 5S, standardising key tasks with standardised work, standardising business processes in the key business value streams and establishing formal or informal service level agreements (SLAs) with the functions with which operations interact (e.g. sales and purchasing). In doing so, they highlight the importance and required level of respect between internal suppliers and customers. Having set the standard, the effective Operations Manager will work to maintain the standard. They know that the “standard they walk by is the standard they accept” and so they will never “walk by” something that is not to standard without taking action. They will also expect you to comply with these standards as well. Therefore, if you have got in to habit of walking in the workplace without personal protective equipment or not observing 5S standards, expect to be told to comply – and make sure you do! Sometimes this focus on standards can seem like bureaucracy and slowing things down and you are allowed to ask “why” things are being done a certain way. The effective Operations Manager will be comfortable with having their processes challenged and be able to explain why the standard needs
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