Richard Jeffery, CEO ActiveOps
While UK businesses waved goodbye to another challenging year with a sigh of relief, the backdrop of uncertainty remains for many who continue to fight an uphill battle against the rapidly fluctuating work volumes. Demands are changing at a faster pace than ever, while expectations to do more with less are ever bigger. This leaves operations teams asking two main questions: how consumer preferences, economic factors, and industry trends will be influencing their business in the next year, and what are the most important learnings to help them set their organisation up for success in 2024?
Where are UK businesses at now?
According to the latest Opstracker report from ActiveOps, the standard in which operations are run in the UK has continued to decline for the fourth time in a row. UK organisations have been facing strong headwinds in the form of broader economic malaise which has dented activity and led to unpredictable changes in workloads. On top of this, and potentially as a result of these external stresses, resource planning has been made harder by the worst staff sickness levels experienced in over ten years.
On the other hand, there are a number of learnings that will help them drive a positive change on service operations in the year ahead, but it’s up to Ops leaders to make the changes they need.
Advanced AI is on the horizon
As AI tools continue to find practical applications in the real world, operational leaders are seeking an understanding of AI for their field. Although there is no doubt that advanced AI will alter the landscape of operation in one way or another, its transformative effects will take place over time, rather than being an overnight transformation.
The initial stage of advanced AI is expected to focus on adapting to human capabilities rather than substituting them. For example, employing generative AI to assist operations teams worldwide in crafting emails in English, as opposed to their native languages.
AI as a strategic ally
It is critically important that stakeholders are on board with the impact of AI on the business, and the many benefits it brings. Adopting AI is a significant investment, and operations in particular have historically been depicted as a money pit, so there is work to do to turn this narrative around. To overcome this challenge, Ops leaders can adopt a similar technique as IT leaders have done in the past by positioning operations as a business partner that can save the organisation money. The benefits of AI are clear: it can streamline operational performance by automating tasks. It empowers teams to boost productivity and effectiveness, ultimately contributing to cost savings throughout the entire business.
Hybrid working is a tale of two sides
As more organisations call on their workers to return to the office, in what could be described as a U-turn compared with the past couple of years, hybrid working continues to be a tale of two sides.
While the true impact of a home versus office working environment remains unclear, what has become clear is that ops teams that use workforce data to track employee performance are able to demonstrate if their hybrid working policies are working or not.
While many organisations have previously defined hybrid work in terms of employees’ physical location, some firms are now starting to think about it as a question of who is performing the work – humans or robots. Having greater visibility over demand, performance and agility will be key to answering these questions and unlocking efficiencies across the business.
Data can help or hinder your success
Operations teams are incredibly data rich. There is no shortage of data available, but where they experience challenges, is turning it into actionable insights that can positively impact business performance. To do this, it is essential that businesses say goodbye to the more traditional way of organising data in silos, and instead focus on new ways to achieve a more holistic view. When data is more visible, it is easier for teams to draw insights and improve areas such as planning and resource management. This is especially important for financial institutions, as regulatory pressures and the rise of advanced AI tools means those who don’t get their data in order will be left behind.
Team culture must always come first
While exploring the multiple ways AI can help re-engineer the way ops is run, operations leaders should not lose sight of the human side of the workforce. It is crucial to ensure that employees are actively involved in the transformation journey at all levels. This involves identifying influential figures within the business who can advocate for and invest in the cultivation and of team culture. Empowering individuals to express their opinions is essential in this endeavour.
If 2023 is anything to go by, the continued technological advancements, partnered with the advances in AI throughout 2024 are bound to have a compelling impact on service operations. 2024 will see further developments prompting operations leaders to upgrade their methods and contemplate the future of operations on a broader scale. The future is unknown, but forward-thinking ops leaders should also try to change the C-Suite’s perception of the service operations function so the department is viewed as a strategic partner that can help deliver profits rather than being seen as a resource burden.
