Business Operating Systems: Definition, Purpose and How To Create One

What is a Business Operating System?

What’s the purpose of a business operating system?

An organization’s operating system seeks to boost productivity. Its driven by clear objectives, common values and employee efficiency. Positive work environments where employees feel their time at work is valued, their personal lives are respected, and their efforts yield noticeable results can result from a successful business operating system.

If your employer has given you the task of increasing business efficiency, you might be thinking about which departments in the company need the most assistance. Try posing the following queries to yourself to help you identify these areas:

If the answer to any of these questions was “no,” you can design an operating system for your business that is specific to it in order to clarify employee responsibilities, increase productivity, and strengthen the company’s financial position.

What is a business operating system?

An organization’s manual that outlines the what, how, when, and why of duties is known as a business operating system. To ensure that everyone in the organization is aware of their responsibilities, shares the same vision, and strives toward the same goals, managers, executives, and business owners frequently work together to write business operating systems.

A business operating system’s objectives are to promote a shared mission, clear communication among teams, and team unity. This effort may result in a more pleasant workplace that keeps talented workers and recognizes their dedication.

How to create a business operating system

Processes, Systems, Roles, Skills, and Structure typically make up Business Operating Systems. Here’s how to make the most of each component to develop an efficient operating system for your business:

1. Develop processes

Manual and social checklists for how a business completes a task are called processes. They allow you to create and track a plan. Process tracking makes inefficiencies simple to find and correct, allowing you to swiftly update and implement a more profitable plan.

Effective processes are:

Heres an example of a process in action:

Felix manages sales in a division that has productivity issues. He develops a productivity process for his team that includes a straightforward, step-by-step manual for the most effective productivity techniques for a particular task. He outlines the useful techniques he employs in his own work and discusses how he resolves typical problems.

He makes sure that each team member can easily access the guide. He also advises them to use the manual while working and use a timer to record how long they spend on each task. Finally, Felix offers to respond to inquiries and provide guidance as necessary.

Within a month, Felixs sales team increases productivity by 15%.

2. Establish systems

Systems specify the operational details of how a business completes a task. Typically, they discuss both the positive and negative aspects of technology, marketing, finance, and people. A soft people system frequently includes performance management strategies, hiring procedures, and compensation plans, whereas a hard people system may include instructions on how to carry out payroll and human resources duties.

Successful systems are:

Soft systems may also be negotiable. For instance, most companies use a compensation structure based on seniority and experience. However, workers frequently bargain for a higher salary during a promotion or following a favorable annual review.

Heres an example of a unified people system in practice:

Caitlyn is a human resources manager. Her team assists the hiring manager as he searches for a new graphic designer to develop marketing campaigns.

Caitlyn’s team creates a standard list of questions to ask candidates in interviews to assist the hiring manager in preparation. Additionally, they write examples of what sound like successful responses and offer samples of the kinds of graphics the design team seeks in a candidate’s portfolio. Finally**, Caitlyn’s team gives the hiring manager a flexible salary range to use when negotiating salaries.

Two main objectives are achieved by a well-designed and implemented system: it gives employees clear expectations so they can make effective plans and it inspires confidence in potential employees and customers.

3. Define roles

Roles are detailed job descriptions for positions in your company in a business operating system. It’s helpful to concentrate on the company’s goals for the job when writing roles rather than what the person doing the job does now. This is an opportunity to identify responsibilities that are missing and reassign tasks that may be more appropriately performed by other positions. It’s an opportunity to connect with staff members who share your company’s values as well.

Effective roles are:

Managers frequently include roles in their business operating system that the company doesn’t yet need in order to accommodate growth. This makes sure that when the business needs to scale, it is prepared to add supervisory positions and adapt to a larger staff.

Heres an example of this in action:

An unassuming organic pet food business employs Angelo as its finance manager. He oversees the accounting and finance team. However, the business is expanding, making it difficult for him to manage his team’s growing staff’s needs. Fortunately, the business operating system has outlined a position for an accounting manager.

The hiring manager interviews five candidates after posting a job ad. One applicant is a great fit for the position and the company’s values because she meets the job requirements and volunteers at an animal shelter in her spare time. She is employed by the company as the new accounting manager, distributing the workload.

4. Align skills with roles

It’s helpful to pair them with specific skills in order to get a full picture of the roles within the organization. To achieve this, you can forecast the skills that a particular role will require and develop a skill evaluation for current, productive employees. This evaluation may determine whether the skills you anticipate are appropriate for the position and assist you in identifying any additional skills needed for the job. When an employee moves on or gets promoted, hiring can be made simpler by matching skills with particular roles.

Well-matched skills include:

Here is an example of a job posting that includes role-appropriate skills:

To help our international executives with emails, meetings, and speech writing, we’re looking for a personable, well-organized translator who is fluent in both English and Japanese. People who are well-versed in both American and Japanese culture and have experience working in an international, corporate environment are the best candidates.

5. Create an overall structure

A structure is the underpinning support for processes, systems, roles, and skills in an organization’s operating system. Establishing a structure guarantees that the work environment, employee responsibilities, and corporate mission feel liberating rather than constraining.

An effective structure often:

Here is an illustration of the structure of a business operating system:

Paula oversees a daycare whose goal is to help kids learn how to think critically. Each day, her team of caregivers assists the kids in their charge with simple snack-making, puzzle-solving, and educational game play. Ca**retakers have a system for resolving disputes that is clearly laid out that they can use when communication problems arise. Each caretaker has a clearly defined role that is matched to a set of abilities, such as an art caretaker with a degree in art education and a teacher of decision-making with experience in negotiation.

Employees of Paulas know exactly whom to ask when they have questions at work. They feel backed up by their managers and superiors, which strengthens their alignment with the company’s values. Paulas staff members efficiently complete their daily tasks and frequently experience a sense of fulfillment in their work because their roles are clearly defined and their skills are well-matched to their positions.


What is an operating system in a business?

A business operating system is your organization’s distinct method of operation, or “franchise model.” It is a set of instruments and procedures that are employed consistently throughout the business. It defines how your business operates.

What are the types of Business Operating System?

Business operations come in three different flavors: service, merchandising, and manufacturing. Entrepreneurs must comprehend which business operation fits with their company and the responsibilities it entails in order for their business to run smoothly and productively.

What operating system is best for business?

10 Best Operating Systems in Market
  • Mac OS.
  • Fedora.
  • Solaris.
  • Free BSD.
  • Chrome OS.
  • CentOS.
  • Debian.
  • Deepin.

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