{"id":302025,"date":"2026-03-11T11:30:52","date_gmt":"2026-03-10T23:30:52","guid":{"rendered":"https:\/\/www.reckon.com\/au\/?p=302025"},"modified":"2026-03-17T17:30:16","modified_gmt":"2026-03-17T05:30:16","slug":"operations-management-guide","status":"publish","type":"post","link":"https:\/\/www.reckon.com\/au\/blog\/operations-management-guide\/","title":{"rendered":"The backbone of success: Why operations matter for small businesses"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.16&#8243; da_disable_devices=&#8221;off|off|off&#8221; global_colors_info=&#8221;{}&#8221; da_is_popup=&#8221;off&#8221; da_exit_intent=&#8221;off&#8221; da_has_close=&#8221;on&#8221; da_alt_close=&#8221;off&#8221; da_dark_close=&#8221;off&#8221; da_not_modal=&#8221;on&#8221; da_is_singular=&#8221;off&#8221; da_with_loader=&#8221;off&#8221; da_has_shadow=&#8221;on&#8221;][et_pb_row column_structure=&#8221;1_3,2_3&#8243; _builder_version=&#8221;4.23&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221; width=&#8221;100%&#8221; custom_padding=&#8221;||0px||false|false&#8221; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;][et_pb_column type=&#8221;1_3&#8243; module_class=&#8221;table-contents&#8221; _builder_version=&#8221;4.23&#8243; background_color=&#8221;#f3f2f6&#8243; custom_padding=&#8221;25px||25px||true|false&#8221; sticky_position=&#8221;top&#8221; sticky_limit_bottom=&#8221;section&#8221; sticky_position_tablet=&#8221;top&#8221; sticky_position_phone=&#8221;none&#8221; sticky_position_last_edited=&#8221;on|desktop&#8221; border_radii=&#8221;on|24px|24px|24px|24px&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text _builder_version=&#8221;4.23&#8243; text_font=&#8221;||||||||&#8221; global_colors_info=&#8221;{}&#8221; background__hover_enabled=&#8221;on|desktop&#8221;][\/et_pb_text][\/et_pb_column][et_pb_column type=&#8221;2_3&#8243; _builder_version=&#8221;4.16&#8243; custom_padding=&#8221;|||&#8221; global_colors_info=&#8221;{}&#8221; custom_padding__hover=&#8221;|||&#8221;][et_pb_text admin_label=&#8221;Intro&#8221; _builder_version=&#8221;4.27.6&#8243; header_2_font_size=&#8221;32px&#8221; custom_margin=&#8221;||0px|||&#8221; header_2_font_size_tablet=&#8221;30px&#8221; header_2_font_size_phone=&#8221;26px&#8221; header_2_font_size_last_edited=&#8221;on|tablet&#8221; global_colors_info=&#8221;{}&#8221;]Does it feel like your business is constantly putting out fires? Whether it\u2019s struggling with cash flow, piles of paperwork, staffing issues, or negative customer feedback, there\u2019s a good chance many of these problems are symptoms of poor operational management. You&#8217;re simply going through the motions of running a business instead of considering the best way of how to run your business.<br \/>\n<P><br \/>\nBy setting up structured, well-defined operations, you can run your business successfully and put out those fires.<br \/>\n<P><\/p>\n<h2>What is operations management?<\/h2>\n<p>[\/et_pb_text][et_pb_image src=&#8221;https:\/\/www.reckon.com\/au\/wp-content\/uploads\/2026\/03\/Operations-management-icon.png&#8221; alt=&#8221;operations management looks at four areas such as process, staff, tools used, and location&#8221; title_text=&#8221;Operations Management Icon&#8221; _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/et_pb_image][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<p>In a nutshell, <a href=\"https:\/\/www.reckon.com\/au\/glossary\/operations-management\/\">operations<\/a> are how you deliver your goods or services to customers. For instance, a cafe with great coffee and service has found the best way to deliver value to customers by refining its operations.<\/p>\n<p>Operations can be broken down into a few different sections of your business.<\/p>\n<ol>\n<li><strong>Process:<\/strong> How you deliver your product or service.<\/li>\n<li><strong>People:<\/strong> Who does what when delivering a product or service.<\/li>\n<li><strong>Equipment:<\/strong> What tools are needed for people to deliver a product or service.<\/li>\n<li><strong>Location:<\/strong> The space (WHERE) used to provide the people and equipment needed to deliver a product or service.<\/li>\n<\/ol>\n<p>You can expand and add details to these areas (or \u201csilos\u201d) as you develop your business. Over time, you can also refine them so that you deliver your product and service efficiently, and ultimately, profitably.<\/p>\n<p>It is also important to keep in mind that your operations will require administrative support, such as finances, <a href=\"https:\/\/www.reckon.com\/au\/accounting-software\/\">accounting<\/a>, and <a href=\"https:\/\/www.reckon.com\/au\/accounting-software\/payroll\/\">payroll<\/a>.<\/p>\n<h2>How to develop your business operations<\/h2>\n<p>Good operations reduce the barriers to making revenue, so that you can reach your goals faster. This means all of these silos need to work in tandem. If one core operation is out of sync with the others, it affects the whole business. To put this in perspective, let\u2019s look at an example.<\/p>\n<p>[\/et_pb_text][et_pb_text disabled_on=&#8221;off|off|off&#8221; admin_label=&#8221;Scenario&#8221; _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; text_text_color=&#8221;#0a004a&#8221; background_color=&#8221;#eeecff&#8221; custom_margin=&#8221;30px||||false|false&#8221; custom_padding=&#8221;20px|30px|30px|30px|false|false&#8221; border_radii=&#8221;on|20px|20px|20px|20px&#8221; box_shadow_style=&#8221;preset2&#8243; locked=&#8221;off&#8221; global_colors_info=&#8221;{}&#8221;]<\/p>\n<h3>Example: Marty, the cafe owner<\/h3>\n<p>Marty\u2019s cafe has a problem: his customers complain that the wait for coffee is too long. If Marty allows this problem to persist, he risks losing customers, which will lead to lost sales.<\/p>\n<p>To fix the issue, he looks at how he serves customers their orders.<\/p>\n<table style=\"width: 100%; border-collapse: collapse; border-style: solid;\" border=\"1\">\n<tbody>\n<tr>\n<th style=\"width: 50%;\">Process:<\/th>\n<td style=\"width: 50%;\">Customer orders at the window counter; a waiter (till operator) takes the order and money; the POS system prints the order docket; a barista receives the docket and makes the coffee.<\/td>\n<\/tr>\n<tr>\n<th style=\"width: 50%;\">People:<\/th>\n<td style=\"width: 50%;\">Waiter: operates till, services customers, cleans service areas, restocks, \u201cfloats\u201d (helps where needed)<br \/>Barista: Makes coffee, helps with orders, cleans station<\/td>\n<\/tr>\n<tr>\n<th style=\"width: 50%;\">Equipment:<\/th>\n<td style=\"width: 50%;\">POS &amp; Till system, coffee machine, sit-down plates, cutlery, and mugs, take-away cups and cardboard meal boxes\/cutlery<\/td>\n<\/tr>\n<tr>\n<th style=\"width: 50%;\">Location:<\/th>\n<td style=\"width: 50%;\">Street corner, \u2018hole in the wall\u2019 coffee shop, busy foot traffic, small operating space.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>So he has a basic template for the core operations for how to sell coffee. So what area is the culprit?<\/p>\n<p>After observing peak periods and slow periods over a couple of working days, Marty found that:<\/p>\n<ol>\n<li>The coffee machine was fine during slower periods, but the frother couldn\u2019t reach the required temperature fast enough to heat and foam the milk during peak periods.<\/li>\n<li>Due to wait times during peak periods, customers would crowd the busy street, making the waiting experience unpleasant.<\/li>\n<\/ol>\n<p>Marty&#8217;s issues were two-fold: his staff&#8217;s equipment couldn&#8217;t handle the volume of orders, and the location was compounding wait times, making the customer experience unpleasant and reinforcing the negative comments.<\/p>\n<h4>Solution<\/h4>\n<p>For Marty, there was an obvious solution to part of the problem and a not-so-obvious one to another part. The obvious? Purchase or rent a commercial coffee machine that could keep up with demand. The not-so-obvious solution was how to maximise his small hole-in-the-wall coffee space.<\/p>\n<p>To address his immediate volume issue, he rented a new commercial coffee machine to keep up with demand. Over time, he would be able to fund the purchase of the new coffee machine with the additional <a href=\"https:\/\/www.reckon.com\/au\/glossary\/what-is-revenue\/\">revenue<\/a> generated by meeting demand.<\/p>\n<p>To address the location issue, Marty applied for council permits to \u2018expand\u2019 his operating space to include the wall side at the street corner. If successful, Marty would have extra space for customers to wait or eat on-site. This would increase customer satisfaction and ease wait times.<\/p>\n<p>[\/et_pb_text][et_pb_text _builder_version=&#8221;4.27.6&#8243; _module_preset=&#8221;default&#8221; hover_enabled=&#8221;0&#8243; global_colors_info=&#8221;{}&#8221; sticky_enabled=&#8221;0&#8243;]<\/p>\n<h2>What small businesses can do to improve their operations.<\/h2>\n<p>To improve your operations, you need to observe your current workflows and trial new systems and procedures. Consider the four silos (process, people, equipment, and location) and how your administration can support them. To create systems that work for your operations, you need to look at the following:<\/p>\n<ol>\n<li><strong>Measure workflows:<\/strong> Map out your current workflows, identify areas for improvement, and address pain points.<\/li>\n<li><strong>Standardise the right way to do things:<\/strong> Identify the best workflows and make them the norm by creating <a href=\"https:\/\/www.reckon.com\/au\/blog\/standard-operating-procedure-small-business\/\">standard operating procedures<\/a> (SOPs).<\/li>\n<li><strong>Get \u2018tool\u2019 fit:<\/strong> If your current tools, equipment, <a href=\"https:\/\/www.reckon.com\/au\/blog\/digitising-your-small-business\/\">software<\/a>, or systems aren\u2019t working, fix them. Look for value, not price: the best solutions are cost-effective and help increase productivity.<\/li>\n<li><strong>Design for purpose:<\/strong> Processes, systems, and procedures are only good if based on reality. Create systems that work for the type of staff, tools, and space that you have.<\/li>\n<\/ol>\n<h2>Refining your small business operations<\/h2>\n<p>Refining your operations is about identifying, planning, and organising the best way to conduct your daily business activities. Many small business owners struggle when their operations evolve without oversight\u2014they do what\u2019s easiest at the moment, rather than what\u2019s smartest long-term. Instead, combat this by understanding how your business works, identifying pain points, and finding solutions that work best for you.<\/p>\n<p>[\/et_pb_text][ba_social_share icon_bg=&#8221;#03002e&#8221; icon_padding=&#8221;10px|12px|10px|12px|true|true&#8221; layout=&#8221;classic&#8221; show_text=&#8221;off&#8221; btn_padding=&#8221;0px|0px|0px|0px|false|false&#8221; btn_bg_color=&#8221;RGBA(255,255,255,0)&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; custom_margin=&#8221;50px||||false|false&#8221; custom_padding=&#8221;25px||||false|false&#8221; custom_css_before=&#8221; content: %22SHARE THIS%22;|| font-size: 16px;|| font-weight: 700;|| line-height: 22px;|| letter-spacing: 0em;|| text-align: center;|| color: #ff5447;|| margin-bottom: 10px;|| display: inline-flex;|| position: absolute;|| margin-top: 10px;&#8221; border_width_top_main=&#8221;1px&#8221; border_color_top_main=&#8221;#e4e4e4&#8243; border_radii_icon=&#8221;on|5px|5px|5px|5px&#8221; global_colors_info=&#8221;{}&#8221; custom_css_before_last_edited=&#8221;off|desktop&#8221;][ba_social_share_child _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;facebook&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;linkedin&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][ba_social_share_child network_type=&#8221;email&#8221; _builder_version=&#8221;4.23&#8243; _module_preset=&#8221;default&#8221; global_colors_info=&#8221;{}&#8221;][\/ba_social_share_child][\/ba_social_share][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how operations management can make everyday work easier, clearer, and more effective for small businesses.<\/p>\n","protected":false},"author":36,"featured_media":302033,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"<p>Changes to how casual employees can transition to permanent employment are coming this year. The new process adds an employee-driven element, where, depending on certain circumstances, a casual employee can notify their employer of their intention to move from casual to permanent employment.<\/p><p>This is a marked departure from the previous rules, which were entirely up to the employers. So, what does this new process look like, and what does it mean for small businesses?<\/p><p>Let\u2019s go through it.<\/p><h2>Key changes to casual employment rights<\/h2><p>The \u201cClosing Loopholes\u201d amendment has directly changed how casual employees remain casual or transition to permanent employment.<\/p><p>Under the old rules in the National Employment Standard, a casual employee\u2019s employment status was entirely employer-driven. This meant that any conversation or initiation of a casual employee was through the employer's agreement or arrangement.<\/p><p>Now, employees can let their employer know their desire to change their working status, called the employee choice pathway.<\/p><p>Under the employee choice pathway, casual employees can pursue permanent employment by notifying their employers of their intent to change from casual to permanent. The following criteria have to be met before notice can be given:<\/p><ul><li>The employee has been employed for 6 months or more (or for small business, 12 months or more)<\/li><li>The employee believes that they no longer meet the requirements of a casual employee defined under the Fairwork Act 2009<\/li><\/ul><h2>Who is affected by the employee choice pathway?<\/h2><p>The changes have been in effect for medium-large businesses since 26 February 2025. Under the legislation, businesses with 15 or more employees must follow the employee choice pathway procedure.<\/p><p>The changes will come into effect on 26 August 2025 for small businesses (15 employees or fewer). Under the rules of casual employment, an employee may only notify their intent for permanent employment if they have been employed for more than 12 months.<\/p><h2>The process involved<\/h2><p>The employee choice pathway is twofold: a notice of intent to transition from casual to permanent, and the response to that notice. While this may seem simple, a number of factors determine the outcome. First, before a notice can be made to move from casual to permanent, we must look at what defines casual employment status.<\/p><h3>Defining casual employment<\/h3><p>The legal definition of what constitutes casual employment can be found in the Fairwork Act 2009 (15A). This is a rather large document, so for all intents and purposes, casual employment can be simply defined like this:<\/p><ul><li>The employment relationship is not a firm commitment to further ongoing work.<\/li><li>The employee is entitled to casual loading under the rate determined under their agreement, rate, or contract.<\/li><\/ul><p>If you are unsure about the definition of <a href=\"https:\/\/www.fairwork.gov.au\/starting-employment\/types-of-employees\/casual-employees\" target=\"_blank\" rel=\"noopener\">casual employment<\/a>, the Fairwork Ombudsman has materials and resources.<\/p><h3>Giving notice of employment change<\/h3><p>The notice a casual employee gives to their employer about moving to permanent employment requires two factors to be satisfied:<\/p><ol><li>The employee must have been employed for 6 months or more (12 months or more for small businesses), and;<\/li><li>The employee believes that they no longer meet the requirements of casual employment.<\/li><\/ol><p>Here is an example of a notice to demonstrate what this would look like in the workplace.<\/p><blockquote><p><em>Imagine a bartender working casually for over 10 months at a large pub with more than 15 workers. This casual employee has been given more responsibilities in the last few months, including rostering other casuals. The employee has also noticed they work fixed, regular, rostered shifts. With this information and a desire for more security in their employment, they approach their employer with notice to transition from casual to permanent employment.<\/em><\/p><\/blockquote><p>In this example, the employee meets the requirements to give notice and pursue the casual choice pathway. After notice occurs, the employer is required to respond. Let\u2019s take a look.<\/p><h3>Responding to a notice<\/h3><p>Once an employer receives a notice from their employee, they have 21 days to respond. Before a response is made, the employer should consult with the employee about what changes the transition would make to their employment. This discussion should include:<\/p><ul><li>Whether the employee would move to full-time or part-time permanent employment.<\/li><li>The change of hours the employee will work.<\/li><li>When the change of employment will take effect.<\/li><\/ul><p>After a consultation, the employer can accept or reject the notice of employment change.<\/p><h3>Accepting or rejecting an employment change notice from an employee<\/h3><p>When accepting a change, the employer needs to include what has been consulted previously and provide a new written employment agreement with their employee. The changes must immediately be implemented after the acceptance of employment status unless the employer and employee have agreed on a different commencement date.<\/p><p>When it comes to rejecting a notice, employers need a good reason. An employer can justify a rejection of the notice when either of the following circumstances apply:<\/p><ul><li>The employee still meets the requirements of casual employment.<\/li><li>Causes significant changes to the business organisational structure.<\/li><li>It will have a considerable impact on day-to-day business operations.<\/li><li>The change will break existing rules in an award or enterprise agreement.<\/li><li>The change violates recruitment or selection procedures that are protected by law.<\/li><\/ul><p>Accepting or rejecting an employee's notice must be thoughtfully considered, whatever the circumstances, and communication should be clear and concise. If there is a disagreement, it may come down to both sides not effectively communicating. However, dispute resolution procedures are in place if the relationship is beyond solving in the workplace. It also should be noted that <a href=\"https:\/\/www.fairwork.gov.au\/starting-employment\/types-of-employees\/casual-employees\/becoming-a-permanent-employee#protections\" target=\"_blank\" rel=\"noopener\">protections are in place<\/a> against any adverse actions taken in reaction to an employee submitting a notice.<\/p><h2>What happens if there is an employment dispute?<\/h2><p>Any dispute must be resolved first in the workplace. However, if a dispute occurs due to a disagreement about an employee\u2019s employment status, there are a number of avenues that can be explored:<\/p><ul><li>Consultation with the Fairwork Ombudsman<\/li><li><a href=\"https:\/\/www.fwc.gov.au\/issues-we-help\/casual-permanent-status\" target=\"_blank\" rel=\"noopener\">Resolution mediated<\/a> by the Fairwork Commission<\/li><\/ul><p>Unfortunately, if either of these doesn\u2019t remedy the situation, the matter may have to be resolved in court, arbitrated by the Federal Circuit Court.<\/p><h2>The bottom line<\/h2><p>As the changes on the pathway from casual to permanent employment are new, there will be a degree of awkwardness in implementation. What is essential is good communication and honesty when discussing an employee's future in your business. As the date for small businesses to follow the new rules is set for 26 August 2025, there is plenty of time to review your procedures for <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/payroll-guide\/workforce-management\/\" rel=\"\">managing your staff<\/a>.<\/p><p>You may find that the new process has new opportunities for <a href=\"https:\/\/www.reckon.com\/au\/small-business-resources\/hiring-staff-process\/traits-good-team-member\/\" rel=\"\">dedicated employees<\/a> to commit fully to your business. Whatever the employee choice pathway brings, ensure you are prepared with proper <a href=\"https:\/\/www.reckon.com\/au\/accounting-software\/payroll\/\">payroll systems<\/a> to navigate the changing landscape.<\/p>","_et_gb_content_width":"","inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[343],"tags":[],"class_list":["post-302025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insights"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why operations matter for small businesses: A Guide | Reckon Blog<\/title>\n<meta name=\"description\" content=\"Learn how operations management can make everyday work easier, clearer, and more effective for small businesses.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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