The operations manager is one of the most important stakeholders in the workplace as they take the lead in the management of all goods and services in the organization (Keong Choong, 2013). The operations department is in charge of the organization, planning, control, and coordination of all resources that contribute to the production of services and commodities the organization sells to the public (Richey et al., 2010). The manager in charge of the operations department ensures that everything in the organization runs smoothly, so that customer satisfaction is enhanced which helps create brand loyalty in the long-term. Therefore, the operations manager considers the following metrics important. They include:
Financial metric: The financial performance of the organization is a major concern for the operations manager since the numbers reflect the position of the firm regarding growth, profits, or direction the organization takes. Therefore, if the sales reported at the end of each financial year indicate an increase, then the operations manager has confidence that the organization went through a significant change from aggressive promotions (Richey et al., 2010). The operations department compares the sales performance in the previous years to indicate the growth that has happened and knows the amounts of profits the organization has made at the end of each financial year.
Strategic metric: The operations manager focuses on the deliberate plans the organization puts in place that will help reach the short-term and long-term goals. Realistic strategies allow the firm have a smooth transition as it pushes towards fulfilling its objectives. Therefore, the operations manager evaluates the strategies after some time to ensure that they are in line with the internal and external changes taking place in the firm. In addition, strategies should assist the organization in improving its performance and having a competitive advantage over the competitors so that the organization can maintain the lead in the industry.
Customer metric: The operations manager has concern over the customers that trade with the organization, as they are the main reason why a firm remains in business (Richey et al., 2010). Hence, the operations manager accesses the number of new customers that join the organization and identifies if there are changes that might reflect an action the management did not take that led to a reduction of clients. In addition, the operations management ensures that it motivates the production department to manufacture commodities that will offer the highest form of satisfaction to customers.
The Triple Bottom Line: The Triple Bottom Line is a notion that focuses its attention to the financial performance of an organization by highlighting the environmental and social activities the firm takes towards the society (Lacerda, Ensslin, & Ensslin, 2014). Hence, a socially responsible organization that factors in the society that lives around it as well as the environmental protection activities are considered to consider the Triple Bottom Line.
Each metric has an important role to play in the organization as it contributes to the financial performance of the organization (Hanson, Melnyk, & Calantone, 2011). For instance, the triple bottom line supports the financial aspect of the firm through sending a positive image to the public on the ability of the organization to take care of the environment and society that live around their workplace. It helps send a message that the organization is not only a moneymaking firm but also one that has concern for the people. More customers may identify with such an organization since they feel their needs are met (Keong Choong, 2013). On the other hand, the customer metric supports the overall financial performance of the organization through the ability to maintain and satisfy a large clientele base that creates brand loyalty and purchases items at the firm. The strategic metrics design paths that the firm will follow so that they can reach their fullest potential that helps in generating more incomes, which are reflected in the financial performance of the organization (Hanson, Melnyk, & Calantone, 2011). Some of the data that would be used to support the strategic metrics include the changes taking place in the organization that helps align the available resources with the goals and objectives. The operations management ensures that the workplace changes as need be to accommodate the external forces in an industry that necessitate the need for a transformation. Other types of data that support the customer, financial, and triple bottom metrics include the increase in clients and demand. Others include more profits at the end of each year, more corporate social activities taking place, and the ability of the organization to create awareness on the role they play to help protect the environment (Lacerda, Ensslin, & Ensslin, 2014).
The data analytics support the metrics identified as every change that takes place in an organization is brought by both internal and external factors. The management has an active role to play to initiate the change in an organization, which helps push for a better performance and increase in customer satisfaction. On the other hand, an organization must change depending on the industrial demands that necessitate firms to adopt new ideas that drive change (Keong Choong, 2013). A rationale for choosing the triple bottom line, strategic, financial, and customer metrics is because each of them affects the performance of an organization directly. In addition, the operations management has the power to control the direction they take even as they influence the workplace.
Hanson, J. D., Melnyk, S. A., & Calantone, R. A. (2011). Defining and measuring alignment in performance management. International Journal of Operations & Production Management, 31(10), 1089-1114.
Keong Choong, K. (2013). Understanding the features of performance measurement system: a literature review. Measuring Business Excellence, 17(4), 102-121.
Lacerda, R. T. D. O., Ensslin, L., & Ensslin, S. R. (2014). Research opportunities in strategic management field: a performance measurement approach. International Journal of Business Performance Management, 15(2), 158-174.
Richey, R. G., Roath, A. S., Whipple, J. M., & Fawcett, S. E. (2010). Exploring a governance theory of supply chain management: barriers and facilitators to integration. Journal of Business Logistics, 31(1), 237-256.
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