The Triple Crown of Business: reduced costs, increased revenues and improved customer interactions.
Recently, I read that in today’s economic climate, business managers are in the front line of driving operational efficiency and performance to new levels. Despite huge advances over several decades of business computing, there are still too many aspects of everyday office life that involve time-consuming, error-prone manual processes.
So, how are companies going to address this?
Gartner surveyed more than 1,500 CIO’s to see what their top ten business priorities were.
1. Business Process Improvement
2. Reducing Enterprise Costs
3. Improving Enterprise Workforce Effectiveness
4. Attracting and Retaining New Customers
5. Increasing the Use of Information/Analytics
6. Creating New Products or Services [innovation]
7. Targeting Customers and Markets More Effectively
8. Managing Change Initiatives
9. Expanding Current Customer Relationships
10. Expanding into New Markets and Geographies
It should be a given that all companies are looking for ways to improve their profitability. Most look at reducing costs and increasing revenues as steps that will get them there. I believe that there is a third leg to that stool – improving customer relationships. I am calling these 3 legs the Triple Crown of Business. Each of the ten items on the list is focused on achieving the Triple Crown of Business.
A Couple of Approaches to Profitability
1) Charge your sales people to bring in more business. This may not be likely in today’s economic climate.
2) Work on the Triple Crown of Business – reduce costs, increase revenues and improve customer relationships.
Start with Business Process Improvement – this will address the time-consuming, error-prone manual processes. Your company is made up of many processes and you can probably apply an 80/20 rule to them. Improving the 20% will get you the biggest bang for your buck. If you could identify that 20% and really improve them, I believe that you could have quite a positive impact on the other 9 business priorities listed above.
Reducing costs, increasing revenues and improving customer relationships will work regardless of the economic conditions. It is analogous to a basketball team playing solid defense [efficiency] even when their shots [revenue] are not falling. This strategy can keep them in the game – just look at last year’s Boston Celtics.
As I have said before, in today’s economic climate some companies will fail, some will just get by and a few will do really well – where will your company finish?