Hyderabad Blues: [HM:258589] Business: What Is an Operational Framework?

An operation framework sets out an organization's policies and procedures, such as management structure.

An operational framework is a guide to a company's policies, goals, standards, procedures and training. The framework sets out the way the company does business and promotes a corporate culture and identity. An operational framework may also include principles of good governance and set out company values and divisions within the firm. Each operational framework contains different elements.

Organization

The operational framework generally describes the corporate organization or management structure. This includes how leaders will govern the company and the hierarchy of its divisions or management teams. For example, the framework may set out the levels of management, from the CEO to department heads and ordinary managers. Accompanying this might be a chart illustrating the corporate hierarchy. In smaller firms, this section might simply state the corporate structure, such as owner-operator.

Policies

The operational framework will generally outline company policies. These can include guiding principles on behavior, employment and promotion. It might also contain general guidelines for all employees to follow. These can include directives such as always act with fairness and integrity, support roles must be adequately staffed and responsive, always use good governance and risk management procedures and managers will have an open-door policy. These guidelines are in the operational framework to establish and develop a company ethos and culture. The document might also outline which markets the company will target and where it will focus research and development spending.

Processes and Procedures

Most companies include guidelines for core processes and procedures in their operational frameworks. The framework does not generally list exact instructions for processes, such as how to operate various types of equipment. Instead, it sets guidelines for broader matters, such as how to conduct business planning and when to do an audit. The framework might have procedures for managing workflow, policies for bidding on contracts and for allocating assets to company divisions. It may also include specific information on procedures for hiring, facilities management and customer relations.

Multiple Frameworks

Companies might have more than one operational framework. An organization might develop a framework to achieve a particular goal. For example, in 2011, the private sector arm of the World Bank set out a sustainability framework that established goals and procedures for fostering growth in developing countries by financing private sector investments. The company might design a green framework, stating environmental goals for each section of the business. An innovations framework may outline policies, procedures and management changes the company will use to achieve innovation and growth.

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About the Author

Since graduating with a degree in biology, Lisa Magloff has worked in many countries. Accordingly, she specializes in writing about science and travel and has written for publications as diverse as the "Snowmass Sun" and "Caterer Middle East." With numerous published books and newspaper and magazine articles to her credit, Magloff has an eclectic knowledge of everything from cooking to nuclear reactor maintenance.