Maximise Profit / Minimise Inefficiency
Businesses often focus on keeping people busy and keeping up production. However, too often we can get so busy that we neglect to consider the true effect of the delivery process on the
- Profitability
- Efficiency
- Personal impact on the most significant business asset - its People.
Introduction
By taking a high level view of the business processes, companies can easily increase their bottom line results, reduce overheads and significantly minimise risk without having to increase sales.
This is particularly of significant value when the market conditions are slow. In considering this approach, the result of the recent L.E.A.D survey across 12,000 participants which included Business leaders, Managers and Employees has identified that 25% of business leaders do not have a clear strategy to deal with current market conditions. This information clearly indicates that there is a real opportunity for forward thinking businesses to position their services and capture market share by simply being focused on the basics of the operational processes.
In doing so there are some key elements to consider:
Time Spent on Strategy
- Is there a clear target of what is expected to be achieved in the following 6 months?
- Is there a clear view of infrastructure needs to achieve this goal?
- Are the necessary resources secured to action the strategy?
- Is there a regular review of cash flow to sustain the strategy?
Time Spent Marketing
Is there a defined marketing campaign for the business?
Service Delivery
- Is there a Business Continuity Plan?
- Is there a process that ensures delivery of the promise to support market penetration?
- Is there a clear knowledge of the true cost to serve?
Finance and Administration
Is there a process that ensures:
- Accurate billing
- Management of debtors
- Management if keeping WIP in check
- Adequate back-up plan to manage cash flow
- Adequate checks and balances to mitigate risk with finances
- Protection from prosecution
Productivity
- Is there a clear view on how you use your time and that of your staff?
- Do you have an adequate number of staff ( too little/too many)?
- Do you communicate efficiently with the team?
- Does the business take full advantage of available technology?
- Do you feel confident enough to delegate some key tasks to others?
- Could I get my team to work smarter?
Summary
In essence we are in a new Era of business, and forward thinking businesses that can stay true to the fundamentals of disciplined business operations can not only identify opportunities but can also increase market share.
Shahram Mehin - Leadership Management AustraliaGWP Magazine Issue #25, July-August 2009
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