The speed and efficiency of your business’ operations process is essential. You can have the best idea in the world, but if you’re unable to deliver your product or service, your company will quickly fall into irrelevance. Poor operations management results in a loss of business reputation, an interruption to cash flow, and potentially even the end of the business itself.
This might sound like scaremongering, but it’s a simple reality that any business owner needs to come to terms with. To ensure that your company is taking efficiency seriously, you have to focus on a number of specific areas. In fact, as first identified by Applied Acumen, there are a total of six different aspects of your company that have an influence on your ability to be efficient.
Customer Retention
A huge amount of business advice is focused on ensnaring new customers. While understandable — new customers are essential to help your business grow — customer retention is just as important. The happier a customer is with your product or service, the more likely they are to return and guarantee your company’s continued success.
Operational Excellence
Essentially, the way in which your business structures its working day. Look at the entire process, from the moment a customer places an order through to the point at which the order is complete. Think of how cogs turns in a mechanism; operational excellence is all about ensuring every cog of your business is greased and turning freely.
People Capability
On paper, it can look like your business should be doing fine regarding efficiency. You have all the right systems in place, the right level of accountability… but something still isn’t adding up. In these circumstances, more often than not, it’s the employees in a company who are slowing things down. Understanding what your staff are capable of — as well as where they might need assistance — is vital.
Process Optimisation
For a business to succeed in the modern world, it has to be easy and intuitive. No customer is going to battle to place an order; they want the process to be simplistic and easy to understand. If it isn’t, then they will probably go elsewhere. Process optimisation focuses on the customer’s experience, to ensure they always complete any order they begin.
Asset Performance
Often, the cogs in your business are very literal — machinery and technology, the assets you need to conduct your business effectively. Maintaining this area of your company is crucial; you’re only ever one unexpected breakdown away from disappointing a customer. Asset performance is all about not only maintaining your equipment, but ensuring it’s as productive as it can possibly be.
Market Agility
Thus far, much of the focus has been on your business itself, but operational excellence also requires you to be adept at understanding the external market. Market agility is about understanding trends and anticipating changes in your niche. Without such an understanding, you can quickly be left behind.
The way your business operates is the heart of your company’s ability to operate. By taking the time to focus on each of the areas above, you can be sure that your company is in it for the long haul.
