3 Keys To Successful Business Process Improvement
We are often asked what makes the difference between companies that achieve their goals, versus those that do not. In our experience, firms that put time, effort, and money into developing business processes that maximize the performance of key value drivers are best positioned to achieve their business objectives.
Why is focusing on business process so important? Regardless of whether your firm is impacted by external factors (the economy) or internal factors (events that impact your key people and functions), business process improvement offers you the opportunity to boost the performance of your organization.
Business Process Improvement
One reason business process improvement is such a fruitful endeavor is that it empowers businesses to streamline their operations and maximize the performance of key value drivers. It can be profitable regardless of where we are in an economic cycle. In fact, large corporations continuously focus on business process improvement because it offers them the opportunity to improve cash flow, boost growth, and defend against a variety of external threats to their business.
External Factors Impacting Business Performance
During 2016, we believe business owners will be shocked when they discover how may of their competitors are adversely impacted by 3 external challenges:
- Falling oil prices
- Slowdown in consumer spending
- Declining capital investment
While the first of these threats is fairly self explanatory, the latter two will likely be driven by a slow and painful end to a prolonged period of 0% interest rates. Fluctuations in foreign currencies and a slowdown in China may further complicate matters.
During the housing crisis, people were surprised to learn how many businesses were impacted by falling home prices when their businesses had “nothing to do with real estate”. This time around, we believe many businesses will be surprised to learn how many of their competitors (and customers) are impacted by falling oil prices and a slowdown in consumer & business spending (driven by rising rates, fluctuating currencies, and a slowdown in China).
The good news, is that regardless of whether (or when) the macroeconomic landscape throws you a curve ball, business process improvement will enable your company to boost profit and growth — so long as you focus on the right processes.
Our Game Plan For Business Process Improvement
The key to business process improvement is knowing what functions to focus on. To get the most “bang for your buck”, you have to know the precise business processes and systems that impact your key drivers of profit and growth. To better understand how we recently did this for a client, click here.
At Bridgesphere, business process improvement starts with a strategic-financial review of a client’s business. This analysis allows us to determine the key drivers of profit and growth. When conducted in conjunction with a BPI initiative, we find ourselves in a particularly keen position to determine exactly what business processes and functions are exerting the most financial pressure on the business.
From there, we run a variety of analyses which identify the precise functions to improve and when to improve them. Our efforts are ultimately geared toward providing our clients with a succinct set of recommendations and strategies that will streamline their business processes, saving them money and heartache along the way.
3 Keys to Successful Business Process Improvement
Successful business process improvement initiatives should result in a meaningful boost to profit levels and/or the growth prospects of your business. The keys to success are simply:
- Knowing your key drivers of profit & growth
- Developing business systems that maximize the performance of your key value drivers
- Continuously monitoring your business performance (during and after your BPI initiative), measuring the health of your key value drivers and business processes
For a recent case study on how we helped a client plan a successful BPI initiative, click here. To learn more about how Bridgesphere can help you achieve a profitable BPI endeavor, call us at (888) 995-0818 or click the button below to schedule a free consultation.
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