What is Operations Consulting & 5 Signs You Need It

As a business leader, you know that efficiency and adaptability are key for success. Companies must continuously refine their operations to stay competitive, maintain profitability, and meet the dynamic demands of their markets.

This is why operations consulting (ops consulting) is important. Recognizing the need for operational improvements and knowing how to implement them effectively can be challenging. Working with an operations consultant allows you to improve operational efficiency and build lasting success.

What Is Operations Consulting?

Operations consulting, or ops consulting, is a specialized field within management consulting that focuses on optimizing the internal processes and operations of a business. The goal of ops consulting is to improve efficiency, reduce costs, enhance quality, and drive overall organizational performance.

Operations consultants work with companies to analyze their existing operations, identify areas for improvement, and develop strategies to implement changes that lead to measurable benefits. In some aspects, operations consultants are similar to corporate consultants and growth consultants.

Key Components of Operations Consulting

Operations consulting can be applied to a wide range of business operations and areas of expertise. Here are some of the key components of operations consulting. 

Keep in mind that your business process management may need support in one or several of these areas to gain a competitive advantage.

Process Improvement

Operations consulting services often involve analyzing and redesigning business processes to eliminate inefficiencies, reduce waste, and enhance productivity. Techniques such as Lean, Six Sigma, and Total Quality Management (TQM) are often used to streamline operations and achieve better operational performance.

Supply Chain Management

Supply chain management focuses on optimizing the flow of goods, services, and information from suppliers to customers. Operations consultants help businesses improve their supply chain efficiency, reduce lead times, manage inventory more effectively, and improve supplier relationships.

Operational Strategy

Operational strategy involves aligning your company’s operations with your overall business strategy. This includes developing long-term plans for operational growth, determining the best use of resources, and ensuring that your company's internal operations support your strategic objectives. 

You can only have functional business processes when they are aligned with your organization's bigger goals.

Technology Integration

Operational consultants can help you integrate the right information technology into your organizational operations. Your ops consultant will guide you through the process of selecting, implementing, and optimizing technology solutions that enhance your operational efficiency, from automations to customer relationship management (CRM) systems.

Technology integration is an important part of operations management that is often done incorrectly, so the expertise of an operational consultant can be invaluable.

Performance Management Systems

Performance management focuses on measuring and managing employee and organizational performance. Consultants help establish key performance indicators (KPIs), develop performance metrics, and implement systems to track and improve performance across your organization.

Cost Reduction

Cost reduction is a fundamental aspect of ops consulting. Consultants identify areas where costs can be minimized without compromising quality or customer satisfaction. This may involve negotiating better supplier contracts, optimizing resource allocation, or implementing more efficient processes.

Quality Management

Quality management ensures that products and services meet customer expectations and regulatory requirements. Operations consultants help businesses implement quality control systems, develop quality assurance processes, and continue to improve their services or products.

Change Management

Change management is the process of guiding and supporting companies and teams through organizational changes. Consultants provide strategies and tools to manage resistance, communicate effectively, and ensure successful implementation of new processes and systems.

Sustainability

According to research, 66% of shoppers care about sustainability. Working with an operations consultant helps you adopt sustainable practices, reduce your environmental footprint, and meet regulatory, stakeholder, and consumer expectations.

Risk Mitigation

Risk mitigation involves identifying, assessing, and addressing potential risks that could impact business operations. Consultants develop strategies to manage risks, ensure business continuity, and protect your organization from various threats.

5 Signs You Need an Operations Consultant

So, does your organization need operations consulting services? Here are the five signs that indicate it might.

1. Declining Profit Margins

If your business has declining profit margins, it could be a sign of inefficient operations or high operational costs.

Operations consultants can diagnose underlying issues, such as wasteful processes or poor resource allocation, and develop strategies to improve your organization's profitability. Streamlined operations and cost-saving measures will help your business regain financial stability and growth.

2. Inefficient  Processes

Visible bottlenecks and high operational costs often point to inefficient processes. Repetitive tasks, delays, and excessive manual work can hinder productivity and increase expenses.

An operations consultant can analyze your current processes, identify areas for improvement, and implement process optimization techniques. This can lead to faster turnaround times, reduced costs, and improved overall efficiency.

3.  High Employee Turnover

High employee turnover may indicate systemic issues with workflow or company culture. Employees might be leaving due to frustrations with inefficient processes, lack of clear goals, or a toxic work environment.

An objective perspective from an operations consultant can help diagnose these issues and recommend solutions to improve employee satisfaction and retention. This could involve restructuring workflows, enhancing communication, or fostering a more positive workplace culture.

4. Inability to Scale or Downsize Your Operations

Whether your company needs to expand or downsize, an inability to change the size of your operations effectively can be a major problem.

Rapid growth, turnarounds, or downsizing all require efficient processes and systems to handle the changes. An operations consultant can help streamline transitions so that your business can scale up or down smoothly without sacrificing performance or quality.

5. Difficulties Implementing Changes

If your company struggles to implement new technologies or processes, it may be due to a lack of expertise or resistance to change.

An operations consultant can support and guide you through successful implementation of different changes. This includes training staff, managing change resistance, and monitoring progress to ensure that new systems and processes are adopted effectively.

Benefits of Ops Consulting

Engaging an operations consultant comes with numerous benefits to your business:

• Increased Efficiency: Streamlined processes and optimized operations lead to better efficiency and productivity.

• Cost Savings: Identifying and eliminating wasteful practices results in significant cost reductions.

• Competitive Advantage: Improved operations help your business stand out from competitors by offering higher quality products or services.

• Customer Satisfaction: Better operational efficiency translates to better customer experiences and satisfaction.

• Better Decision Making: Access to expert insights and data-driven strategies helps business leaders make more informed decisions.

• Scalability: Effective operations allow your business to scale up or down as needed.

• Risk Mitigation: Proactive risk management strategies help protect your business from potential threats and disruptions.

• Higher Quality: Implementing quality management practices helps you produce products and services that consistently meet or exceed customer expectations.

But Is Operations Consulting Worth It?

Many companies strive to champion internal improvement efforts, but they don't have a thoughtful people & resource strategy in place. Without visibility into employee bandwidth, clear goals, targets, or expectations, in-house expertise, and an autonomous and empowered culture, there's a high risk of burnout and negative impacts on company culture and employee retention.

An operations consultant is an external resource that provides focused and dedicated manpower toward an improvement initiative so that it is executed effectively and efficiently. Operations consulting is an investment, but it's worth it for growth-stage companies that want to build sustainable success and a prosperous future.

Improve Your Operational Capabilities by Partnering with Solvers Collective

If your business is facing operational challenges and you recognize the need for expert guidance, Solvers Collective can help you unlock your organization's barriers and break through performance barriers. Learn more about our process development service.