In the business world, it is common knowledge that there is a direct correlation between productivity and profitability.
If your company is operating at an optimal rate, it’s only natural that its output will be higher and so will the profit margins.
It isn’t rocket science – but productivity can be a tricky situation to manage, as it relies on the right services and systems. So, how can a business find the winning combination?
Relook operational processes
The first place to begin is operations. An honest assessment of operational processes is necessary, because a business needs to critically look at what is holding back productivity.
For example, are the several layers of admin causing additional strain on production? Once inefficient processes have been identified, they can be rectified or removed. Business process management and change management are likely to play pivotal roles in addressing these issues.
Assessment of service catalogue
Oddly enough, when you ask a business what it actually does, it turns into a longwinded conversation, which often poses more questions than answers. An organisation needs to pinpoint the core services it offers; in other words, the services that bring in the most revenue. Outdated services should be retired and future services categorised according to the pipeline. Initially, this exercise might be tedious, but it will be beneficial – to sales and marketing too – as it will provide clarity and showcase which services should be emphasised.
Technology is becoming obsolete almost as soon as it’s released. The rapid rate of technological advancement is frightening, but it doesn’t mean that you have to constantly replace your technology.
A business needs to examine its technological investments and see if they are aiding or inhibiting productivity. Could a simple CRM system be more efficient than an Excel spreadsheet? Does the training and investment of a new programme ensure it will be more effective than the legacy system? Those are the sort of topics that should be addressed.
In order to make informed decisions, data is crucial. The only way you will understand what your employees do is by tracking and gathering clear statistics about their work habits and management.
The information can provide a form of business intelligence that will assist you in finding out how your people are being utilised and their value to the organisation.
The assessment of work management tools will also be important, as it can show you if your staff has the right access and tools to do their work efficiently and effectively.
Companies need to bear in mind that business is constantly adapting and it’s important to remain agile and evolve with the times. Just because something is working today doesn’t mean it will work in five years’ time. A business should always be on its toes, ready to shift a gear and move to the next level.