Top 10 Back Office Operations Management Myths

Back office operations management myths are elusive and complex.

However, for FTP Consulting they are also easily busted!

We’ve broken down the top 10 most common myths every manager should avoid.

Myth #1 Forecasting Is Often Inaccurate and a Waste of Time

Efficient forecasting will promote overall preparedness of the operation by closing the gap between actual and planned.

Back office operations are dynamic and constantly changing, so the more accurate the forecasting, the smaller the required realignment of management parameters, staffing allocation, processing hours, skills sets, etc.

Myth #2 Productivity Fluctuates With Volumes

Productivity is a relative constant. Therefore, production capacity, not production levels, should change by volume fluctuations.

If productivity decreases as a result of increased volume, there is a larger management issue at hand.

Myth #3 There Is a Trade-Off Between Productivity and Quality

Discrepancies in quality are directly correlated to training and procedural issues, rather than production capacity.

You can easily fix poor quality when you look at it from the perception of feasible output levels and proper productivity training.

Myth #4 Back Office Operations Is Only a Cost to the Business

This could not be farther from the truth. Performance, timeliness and quality of back office operations have direct impacts on customer service satisfaction levels.

These factors also ultimately contribute to your bottom line. Plain and simple, back office operations are a business necessity.

Myth #5 Intuition and Common Sense Are Sufficient Instead of Operations Training

Intuition and common sense are excellent skills for identifying and resolving some problems.

However, more complex issues require specific learned skills, in addition to analysis and business knowledge, in order to problem solve at a higher level.

Myth #6 It Is Normal to Have Higher Productivity on High Volume Days Than Low Volume Days

Productivity levels are directly related to how you pace your day. For example, on a low volume day, an employee may spread their work across an entire day.

However, on a high volume day, they can double their output. The key to pacing is to remain consistent in productivity, rather than allowing ebbs and flows.

Myth #7 Asking Questions Is the Most Efficient Means of Problem Solving

Asking questions is a double-edged sword. On the one hand, asking the right questions can lead to a resolution.

On the flip side, it can also result in simply naming and separating the symptoms of the problem, without identifying a solution.

Myth #8 Cross Training Has Limited Use as a Management Tool

Cross training is useful in providing a depth and breadth of knowledge.

Furthermore, it can also aid in predicting implementation times, as well as staffing requirements for new processes, applications or business.

Myth #9 Quality Management Is Expensive

Sacrificing quality creates risk for error. Every penny saved by avoiding errors directly impacts the bottom line.

The point of diminishing return will determine the necessary quality and cost management for a successful operation.

Myth #10 Problems Are Usually Undetected Until You Run a Monthly Performance Report

You should use monthly reports as a reiteration of a problem, not the first alert.

Use daily metrics and analysis to identify problems at the onset. Think proactive, rather than reactive.

Let us help you bust these myths for you! Learn more at FTPConsulting.com.

What myths have you found to be the biggest challenges for back office operations management? Have you busted the myths mentioned above? If so, let us know in the comments below!

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Top 10 Back Office Operations Management Myths
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Back office operations management myths are elusive and complex. However, for FTP Consulting they are also easily busted! We’ve broken down the top 10 most common myths every manager should avoid.
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