Does your organization understand the value of performance improvement?


Does your organization understand the value of performance improvement?

Business processes are the instruments by which companies are able to transform raw inputs into value-added outputs. These outputs may take the form of products, services or other offerings, and the value they accrue to customers is commensurate with the price customers are willing to pay.
 

The difference between the cost of generating these outputs and the price customers are willing to pay determines a company’s profit.

 

Business processes are a critical factor affecting a company’s profitability. Lean, efficient business processes can lead to a highly successful and profitable enterprise. Poorly managed, misaligned, inefficient or outdated processes can impair a company’s business model, leading to declining profits and insolvency.
 

The importance of process cannot be over-stated. Think of the simple task of tying shoes. Most adults can perform this process without much thought, but this simple task is comprised of about a dozen distinct processes. That’s about a dozen processes that need to be perfectly aligned for the task to be completed successfully. That’s also about a dozen mistakes that can happen along the way.
 

Now consider how complex the task is to manufacture an automobile, deliver healthcare or provide professional services, and you can begin to understand the critical nature of business processes.
 

Of course, even assuming that a given set of business processes have been optimized, things change. Technology advances, competitors improve, customer behavior shifts, regulatory regimes advance. All of these factors demand that a company constantly revisit how best to improve the efficiency of its business processes.
 

In many cases, even modest changes in discrete tasks can lead to relatively significant improvements in a company’s efficiency. These changes in efficiency translate directly into improved operational and financial performance and competitive positioning.
 

About the Kabardian Group: We help clients achieve profitable growth. Short, simple and to the point. Our clients include companies large and small and at every stage of their development, including start-ups. www.kabardian.com