If a job in the business world interests you, then you likely already realize that you could pursue career paths across countless industries. The position of operations manager sits at the intersection of operations and management.
Below, we introduce the role and responsibilities of an operations manager while exploring the kinds of skills, education, and work experience typically required to work in this position.
What Is an Operations Manager?
An operations manager is responsible for planning, organizing, coordinating, directing, and improving business practices. Overseeing and coordinating all departments in an organization, these managers aim to optimize processes, practices, and policies to maximize efficiency, productivity, and profitability. While following the business’s strategy and working toward leadership’s future vision, operations managers help create budgets that optimize costs based on revenue in order to maximize operating profits.
Key Responsibilities of an Operations Manager
So, in detail, what does an operations manager do? Business operations managers handle a range of responsibilities across an organization. Some of their key duties include:
Overseeing Daily Operations
Operations managers set the pace and process for daily operations. They create and implement operational policies and procedures, manage resources, and coordinate between departments to ensure that daily tasks are completed — keeping the organization on track to meet targeted performance benchmarks and goals.
Managing Teams
In addition to helping coordinate interdepartmental teams, operations managers lead and motivate teams to help maintain performance and efficient collaboration. They also work with human resources to ensure employee motivation, satisfaction, and engagement for maximized performance through strategic compensation, benefits, and rewards programs.
Monitoring Performance Metrics
Operations managers measure, track, and evaluate a variety of performance metrics (also called key performance indicators or KPIs) that help them assess processes, procedures, costs, and overall productivity across departments. Some of the KPIs operations managers use frequently include:
- Gross profit margin
- Net profit margin
- Operating profit margin
- Operating cash flow
- Operational cost ratio
- Utilization rate
- Cost per unit
- Accounts receivable turnover
- Days sales outstanding
- Return per full-time employee
- Cost per full-time employee
- Absenteeism rate
These metrics enable operations managers to measure and assess how well an organization operates. Metrics also allow operations managers to identify and improve problems while replicating successful strategies. Ultimately, operations managers use KPIs to boost profitability (or maximize mission impact in a nonprofit).
Budgeting and Cost Control
Connected to all of an organization’s departments, operations managers have a keen understanding of the costs and needs associated with nearly every aspect of a business. This makes them pivotal in forecasting future expenses, identifying waste, cutting costs, and creating budgets.
Supply Chain and Inventory Management
Inventory and supply chain management are another key component of an operations manager’s job. They are responsible for tracking the flows of supply, inventory, and sales. Thus, operations managers should stay abreast of issues that could impact supply chains in addition to identifying patterns in demand that impact inventory needs.
Ensuring Regulatory Compliance
Operations managers work closely with compliance officers and/or corporate counsel to develop and implement operations, internal policies, and procedures that are ethical and adhere to all relevant laws and regulations. They also help to ensure proper employee training and education; this ensures that business operations are carried out legally to minimize risks.
Supporting Strategic Planning
Operations managers ensure strategic success by taking abstract strategic goals from upper management and transforming them into actionable plans implemented through day-to-day operations, process improvements, effective resource allocation, and smart budgeting.
What Is the Difference Between Operations Management and Project Management?
The main distinction between operations management and project management lies in the scale of what they are managing.
- Operations managers are responsible for coordinating and executing the operations of an organization across departments. They are involved in the ongoing success of an entire organization and its processes.
- Project managers manage individual projects within a larger organization by implementing project plans and coordinating a team of assigned employees. They work to ensure the success of individual projects and to achieve temporary goals within a limited time frame.
Essential Skills for Operations Managers
Operations managers are like conductors — except instead of directing musicians, they’re working to keep a whole organization running harmoniously. As a result, successful operations managers possess a variety of technical skills, soft skills, and other competencies that help them do the job effectively. Some of these essential skills include:
- Leadership – Operations management is a leadership position. Individuals should have the ability to understand, motivate, and lead individuals across an organization.
- Communication – Operations managers often act as liaisons between upper and lower management as well as laterally between departmental managers. So, good communication skills — written, verbal, and listening — are vital.
- Analytical thinking – Operations managers are responsible for large, complex systems. The ability to think analytically enables them to understand all the individual parts of these systems, along with how they function within the big picture. They can then identify patterns and problems to figure out what’s working and what needs improvement.
- Problem-solving – Once problems and areas for improvement are identified, operations managers leverage creativity, innovation, knowledge, and problem-solving skills to design and implement solutions.
- Time management – Operations managers work with packed schedules and a long list of responsibilities, making responsible management of time key to getting everything done and being effective on the job.
- Financial acumen – Operations managers play an important role in budgeting and resource management, meaning they need some financial acumen to understand how to maximize the return on money spent.
- Technical proficiency – These positions also require the use of advanced systems and tools, such as accounting software and enterprise resource planning (ERP) applications. Technical proficiency is necessary to quickly learn and adapt to these tools while understanding how to integrate them into the role.
Educational Requirements and Career Paths
Many operations managers begin their career paths by earning a bachelor’s degree in a relevant field like operations, supply chain management, or business administration. The coursework required to earn an undergraduate degree in business provides the opportunity to develop technical knowledge and core competencies that will be professionally relevant.
Aspiring operations managers sometimes proceed to earn graduate degrees, such as a Master of Business Administration (MBA) focused on operations management. While a graduate degree is not necessary, it can help you further develop your skills, acquire new knowledge, make valuable connections, and open yourself up to new opportunities.
Additional certifications can also help propel you along an operations management career path. To expand your credentials and education, seek relevant certifications in human resources, supply chain management, or even accounting software (like QuickBooks, NetSuite, or Sage Intacct).
Industries and Work Environments
Operations management jobs exist in every industry, sector, and size of organization — whether you want to work for a small business, large corporation, nonprofit, or government agency. Operations managers can find positions across industries, too, with opportunities in:
- Consulting
- Energy
- Finance
- Healthcare
- Hospitality
- Logistics
- Manufacturing
- Real estate
- Retail
- Technology
- Transportation
Career Outlook for Operations Managers
Between 2023 and 2033, the United States Bureau of Labor Statistics (BLS) projects faster-than-average growth rate for operations managers — estimating the creation of 210,400 new jobs. Plus, working as top executives (like the chief operations officer position), operations managers could see about 6% growth in the same period.
How to Become an Operations Manager
Career paths aren’t always straightforward; sometimes, they require twists, turns, and pit stops. However, the following general steps can help put you on the right path to becoming an operations manager.
Earn a Relevant Degree
Education is the first step. Earn a relevant degree, such as an undergraduate degree in business. You might also consider continuing your education with a graduate-level degree, such as an MBA.
Gain Entry-Level Experience
After earning a degree, you might not immediately step into the role of an operations manager. Instead, you may find greater success by first gaining work experience in entry-level positions. This can help you learn relevant skills and become more familiar with the roles, responsibilities, and challenges of working in a business environment. Consider seeking positions as an operations coordinator or business analyst, which can act as stepping stones to a management-level position.
Develop Key Skills
Work to develop skills that are crucial to operations management, such as:
- Understanding process optimization and workflows
- Data analysis
- Financial acumen and management
- Supply chain management
- Industry-based technical proficiencies
- Risk management
- Regulatory compliance
Earn Certifications
Because their roles and responsibilities require a broad knowledge base and understanding of business operations, across departments and levels, several certifications can benefit operations managers. Consider any of the following to strengthen your credentials and resume:
- Production and Inventory Management (CPIM)
- Supply Chain Professional (CSCP)
- Project Management Professional (PMP)
- Operations Manager (COM)
- Six Sigma
- Entrepreneurial Operating System (EOS) Implementer
- Postgraduate certificates in operations management
JWU Online does not endorse any specific certification or certifying organization. Individuals are encouraged to research each option thoroughly to determine which certifications align best with their career goals and industry requirements.
Advance to Management Roles
As you gain experience and relevant credentials, you can begin applying for more advanced positions along the pathway to management.
Is a Career in Operations Management Right for You?
If you’re motivated, highly organized, passionate about business — and you enjoy analytical thinking — a career in operations management might be a solid fit.
What Does an Operations Manager Do? Find Out Studying Business at Johnson & Wales University Online
Working to earn a Bachelor of Science in Business Administration – Operations and Supply Chain Management can provide the opportunity to develop soft skills and new technical skills that help you excel in the business world and along your path to becoming an operations manager. For those looking to advance even further, we also offer a Master of Business Administration – Operations and Supply Chain Management, designed to deepen your expertise and open doors to senior leadership roles. Plus, with JWU Online, you can pursue your degree while enjoying a flexible online curriculum and course schedules.
For more information about completing your degree online, complete the Request Info form, call 855-JWU-1881, or email [email protected].
