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The Twin Major Focus of Organizations

In: BCS
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Organization is composed of various departments such as Accounting, Finance, Legal, Operations, Sales, Marketing, Human Resources, Customer Service etc. Depending on the nature of the industry, the size of the organization and regulatory framework, an organization may have various departments. This you already know and that is not the focus of this section.

We would like to divide the organization into to major focus areas that is operational and development. The people who are responsible or entrusted with the activities that contribute the day-to-day running or functioning of the organization are called operational people. The rest are the development people. The development people are not involved with the daily activities of the organization but are responsible to take the organization to the next level.

Let us understand the operational and development aspect of the organization with an example of a toy manufacturing factory. Toys123 is a leading toy manufacturer with 5 toy manufacturing production lines with hundreds of injections molding and other machines. Toys123 employs around 250 people which includes manufacturing, accounts and finance, HR, sales and other departments. This company also has one senior business analyst and two business analysts reporting to the former. The senior business analyst reports to the CEO of the company.

The operational activities of Toys123 are as below:

  • Manufacturing of toys – carried out by manufacturing department
  • Sales and marketing of the toys to the toys distributors located on the various parts of the country – preformed by the sales department
  • Ensuring proper accounting, Profit and Loss Statement preparation etc. – done by the accounts and finance department
  • Deploying the proper skill set for all the departments including their pay, perks, incentives etc. – taken care by human resources department

The development activities of Toys123 are as below:

  • Continuously measuring and improving the product as per customer expectations
  • Market intelligence related to where the toys industry is heading
  • Analyzing how to take the operations of the organization to the next level

All these activities are performed by the three business analysts. You can see none of their activities are very important for the daily running of the organization, but it is very essential for the sustainability and growth of the organization. Absence of these business analysts will not create any problem for Toys123 today, but the survival of the company will become a question in the time to come.

In summary, the role of the operational people is to run the organization on daily basis to deliver the goods and services to the customer. On the other hand, the role of the development people is to take the organization to the next level, which is performed by the business analysts.

Fhyzics Business Consultants, an Approved Training Provider of BCS, UK offering Business Analysis, Artificial Intelligence, Business Consulting and User Experience certifications of BCS, The Chartered Institute for IT, UK. All the certifications come with Training, Preparation Material and Examination. The trainings are available in both classroom and online formats. For more details, please visit our website at www.iiscm.org or email us at cs@fhyzics.net or speak to us at +91-900-304-9000.

Written by Venkadesh Narayanan

Venkadesh is a Mechanical Engineer and an MBA with 30 years of experience in the domains of supply chain management, business analysis, new product development, business plan and standard operating procedures. He is currently working as Principal Consultant at Fhyzics Business Consultants. He is also serving as President, PDMA-India (an Indian affiliate of PDMA, USA) and Recognised Instructor of APICS, USA and CIPS, UK. He is a former member of Indian Civil Services (IRAS). Fhyzics offers consulting, certification, and executive development programs in the domains of supply chain management, business analysis and new product development.

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