What is Operational Control?
Operational control refers to the processes and procedures that entrepreneurs and business managers use to ensure that organizational activities are aligned with the business's strategic goals. It involves monitoring and managing the day-to-day operations of the business to ensure efficiency, effectiveness, and consistency.
Types of Operational Control
Operational control can be categorized into several types:1. Preventive Control: These controls are put in place to prevent errors and problems before they occur. Examples include training programs, quality standards, and preventive maintenance.
2. Concurrent Control: This involves real-time monitoring and corrective actions during the production or service delivery process. Examples include on-the-spot inspections and real-time data analytics.
3. Feedback Control: This type of control focuses on using data and feedback from completed processes to make improvements. Examples include customer feedback surveys and performance reviews.
1.
Define Clear Objectives: Clearly define what you aim to achieve with operational control. These could be related to
efficiency, quality, or customer satisfaction.
2. Establish Standards: Set measurable standards against which performance will be evaluated. These standards should be specific, measurable, achievable, relevant, and time-bound (SMART).
3.
Monitor Performance: Use various tools and techniques to monitor actual performance against the set standards. This could involve
key performance indicators (KPIs), dashboards, or real-time data analytics.
4. Take Corrective Actions: When deviations from standards are identified, take immediate corrective actions to bring performance back on track. This might involve adjusting processes, providing additional training, or reallocating resources.
5. Continuous Improvement: Operational control is not a one-time activity but an ongoing process. Continuously seek ways to improve processes and make them more efficient and effective.
Challenges in Operational Control
Entrepreneurs often face several challenges when implementing operational control:1.
Resistance to Change: Employees may resist changes to existing processes and procedures. Effective communication and
change management strategies are essential to overcome this resistance.
2. Resource Constraints: Small businesses may lack the resources needed to implement comprehensive operational control systems. Prioritizing key areas and gradually expanding control measures can help.
3.
Data Overload: With the increasing availability of data, entrepreneurs may struggle to identify which data is most relevant for operational control. Focusing on key metrics and using
business intelligence tools can help manage this challenge.
4. Keeping Up with Technology: Rapid technological advancements can make existing control systems obsolete. Entrepreneurs need to stay updated with the latest technologies and be willing to invest in upgrades.
Conclusion
Operational control is a critical aspect of entrepreneurship that ensures business activities are aligned with strategic goals. By implementing effective operational control measures, entrepreneurs can enhance efficiency, quality, and customer satisfaction. Despite the challenges, continuous improvement and adaptation can lead to sustainable business success.