Principles in Expanding Your Business
Have you ever wondered how some companies achieve it consistently while most are struggling? How some companies command the share of the lion in a hyper-competitive market while others are fighting over for the leftovers? During these days, the competition is basically the norm and majority of companies share the inefficiency of their competitors. There are also companies that follow excellent processes. These processes reduce cost and human effort, make it much easier for the companies to grow, and increase efficiency and productivity.
Here are the principles that enable businesses to grow in just a short period of time:
In this world, complexity threatens majority of businesses. Due to this, there are unwelcome practices like increased approvals and too many heads. By the time that complex process takes shape, the world already moved on to the next huge thing. The companies that grow quick ensure that the handoffs exchange as humanly possible as few hands. This keeps the manual decision making low, leading to quicker implementation. Therefore, great processes are lean and simple.
A company that knows its own mechanics is also knowledgeable of the ways to grow by design. The mechanics basically indicates sharp understanding of what works and the reason behind it. So, an organization that understands the pain points, activities, and design offers of customers accordingly, estimates the resources accurately like people and infrastructure while keep the cost in check, creates robust business model. When the company created a robust business model, it will take the first step to achieve the process excellence.
Measure the Influencing Factors
Majority of the companies only measure the outcomes. Due to this, they are dead in the water once the results go down. With process excellence, it demands paying more focus on the influencing factors rather than the outcomes. For example, inefficient companies use the numbers of sales as a metric to measure the sales. However, process driven companies concentrate on the influencing factors such as quantum of hot leads, conversion ratio, and number of the leads. Such factors provide them insights into whether mechanics of their business are effective and efficient.
Process excellence can’t be achieved in a boardroom. It is a mindset that the entire organization should develop. When each employee delays the processes for performance management, problem-solving, and growth planning, the company moves towards the process excellence. Then, growth and efficiency are inevitable.
Too much reliance on people leaves the room for confusion and ambiguity. To grow, the company must focus on establishing a result-oriented system, which is where people aren’t trained to achieve the results, yet to work the system that gets results in return. Therefore, if something requires tweaking, it is the system and not the people. The systems do not attrite and tweaking these is more cost-effective compared to tweaking people. For instance, in McDonald’s, the emphasis on the result-oriented systems, can be seen in the results. No matter which McDonald’s chain you eat, their French fries taste the same.