With any business, once you have set the Vision and Strategy, there are five levers that you can pull to improve business performance: Revenue, Profitability, people Performance, Asset Utilisation, and Manage and Learn.
Each of the levers sits over a series of best practices that can be applied in helping you deliver customer service profitably. For example:
Build Revenue includes: Marketing planning, promotions, sales process and pricing; Deliver Profitability: improve gross margins, reduce manufacturing/ service input costs, supplier performance and manage expenditure; Lead People Performance talks to: Leading and developing the organisation, the team and ourselves; Drive Asset Utilisation: managing working capital (debtors and inventory), and brand IP; and Manage and Learn: Budgeting, business unit analysis and, performance monitoring.
Each of these levers is described below.
Those who fail to plan, plan to fail (Benjamin Franklin).
I believe it is vital to do some basic strategic planning, annually, to answer the big questions that will help guide our decision making and provide focus throughout each year. We should do this at an organisation and at a personal/professional level. Here, we talk only to matters relating to the business:
There are three key elements to building revenue:
Profitability is the result of careful management of two levels of expenditure in serving the customer:
Key to providing a successful organisation is providing the environment where you and your people can thrive, strive, self-direct and enjoy their achievements and growth. This is typically enabled by organisations that:
An organisation’s investment in its Assets can be a significant drain on the investor’s resources, whilst at the same time creating immense value and significant barriers to entry for new or existing competitors. Successful organisations look to Drive Asset Returns by: