Leading business operations, or what I call workflow design, is not as flashy as innovation initiatives, transformations, or visionary plans, but in time, operations will ultimately determine the fate of the business. From colonial times through the industrial age, leaders were directly connected to the work as it was occurring. As the technology age emerged, leaders began to shift their focus to crafting visions and inspiration, to interacting mostly with other leaders rather than with the people who do the work. They thought that if we hired the right people, provided incentives, implemented performance management, and finally set aggressive, inspirational goals, this would be the ticket to success. Leaders need to be mindful that vision and inspiration do not directly generate revenue; workflow operations do.
As much as leaders need to keep companies moving forward, they shouldn't neglect how their companies operate altogether, or they could see their companies' ability to generate revenue severely impaired. Leadership today goes something like this: Vision, strategy, goals, manage by walking away, and carrot-and-stick. The design, management, and improvement of operational workflows are delegated or neglected by most leaders today. The flaw in this thinking is the impact of increasing complexity and accelerating change. These challenges require engaged leaders who drive workflow design and orchestration, support their people as they deliver value to customers.
More than half of the workforce today is experiencing burnout as transactional style leaders try to use brute force to overcome complexity and change. Brute force can be as simple as an aggressive goal coupled with performance management, but no real support, just incentives and punishments. This tactic worked much better during the Colonial and Industrial Ages, when things were simpler and changed less. When I started as a circuit designer, we used to have our circuit diagrams printed on 11” x 17” pieces of paper and organized in three-ring binders. If we tried this today, the binders would be too heavy to pick up, they would fill rooms, some buildings, and they would be useless to trace circuits through a semiconductor device. There can be billions of transistors today in semiconductor devices. Our world today is much more complicated than it used to be. Operational workflows, much like technology, have grown more complex over time.
Ultimately, operations deliver the goods. Innovation is one area that can buy a company time, but it isn’t a guarantee. A great product or service is just the start; ultimately, business operations must generate the value that creates the revenue. In 2022, Peloton's revenue fell 28% due to a backlog in orders and long delivery times. Tesla in 2016 introduced a new low cost Model 3, which built up great pre-orders, but ended up with 25% of customers requesting refunds as their operations struggled to deliver. Cost reductions or efficiency efforts usually cripple operations in some way. In 2007, Circuit City fired 3,400 of its highest-paid sales staff, which ultimately led it to file for bankruptcy. Sears degraded its brand by cutting operational costs through reduced maintenance and staffing. Nokia and BlackBerry struggled to innovate fast enough as their product development operations struggled, ultimately ending their transient reign.
In our everyday lives, we also experience differences in operational performance. At some restaurants, you can sometimes wait forever, then mistakes are made as they try to catch up. There is nothing worse than cold, burnt food. In other cases, the food still comes steaming hot or looking fresh, and you stop a conversation, a little surprised as they deliver your order quickly with a smile. You can see the difference in how different doctor offices deliver services. Some feel organized and coordinated, while others struggle to get you in and out, and you can spend days talking to their staff trying to get things right. Operations make a difference; if we get good service, then we usually return. If the service doesn’t meet our expectations, we usually don’t. If operations struggle for too long, businesses can be lost all together.
The most visionary and inspirational leaders without solid operations will struggle, and some will fail. Operations are the foundation of a business that delivers value to customers as information, data, and material flow across teams from concept to delivery. A leader can be on point with a vision and strategy, but if the operations aren't given attention, then there is no path to realize them. The goal for workflow execution is to make it look and sound like a world-class orchestra. Competent and coordinated with rhythm. If you want to stand out from the crowd, then step up the design of your workflow operations; it will serve you, your company, and your customers well.
Do something today to improve your work-life balance. You won’t regret it. Have a great day and good luck with your work-life journey.