Outdated Process Series

Previous articles in this series discussed the challenges of identifying outdated and inefficient processes and what tools are needed to successfully implement business process improvements.  This article will look at one other important component that must be taken into consideration when implementing change:  your Management Operating System.

The Importance of Your Management Operating System

The Management Operating System (MOS) is a set of tools or structures that allow for measuring, controlling, and managing a process, an operation, or a company.  The main purpose of MOS is to provide management with visibility that empowers their decision-making process.

MOS elements are usually divided into sub-categories which are dependant on the level of management and outlook they support, starting with business direction – the longest and most strategic outlook which requires the most sophisticated MOS – down to execution control elements, which capture real-time data about current activities.

Operating a business without a robust MOS is akin to walking around blindfolded: you may be able to get somewhere, but it will take you much longer to get there, and you may end up in the wrong place altogether.  Add to that the possibility that your competition is not blindfolded at all, and the result is not hard to predict.

Typical MOS Pitfalls

While the accuracy and quality of MOS varies greatly between organizations, many fall victim to one of these common deficiencies:

• Poor design is the most common pitfall, and results in an inadequate number and functionality of system elements to provide sufficient or accurate insight;
• Gaps created when MOS elements necessary for a given levels of management are either missing or insufficiently robust;
• System tools are not properly linked with one other and aren’t able to work together to paint an accurate picture; and
• Excessive or unnecessary elements are built in, and act as a distraction from key information, reducing the overall effectiveness of analysis.

The Gold Standard

While MOS elements will differ depending on the industry and on a particular company, the principles of its design remain the same.  The best Management Operating System should give just enough of the right information to steer all aspects of the business, without clouding insight by generating inaccurate or unnecessary information.  The data should be presented in a manner that promotes effective analysis and decision-making, and every element of the MOS should be used and useful in evaluating whether the company is on the right path to value creation.  

Having an optimal MOS is a key part of eradicating outdated processes from your organization.  However, the challenge of objectively evaluating your systems may get in the way.  Click here to find out how Trindent Consulting can work with your organization to find and overhaul your MOS limitations.