More from an article by Saul F. Berman, Richard Christner and Ragna Bell…
Focus on Productivity and Agility
In their initial response to crisis, many organizations cut costs by decreasing capacity to match lower demand, reducing staff, pruning investments and restricting expenses on discretional activities like travel.
In the post-crisis environment, cost efficiency and effectiveness are more important than ever. Organizations are caught between constrained customer budgets on one hand and vigorous global competition on the other. The need to do more with less will continue to grow.
Organizations must have the flexibility to scale up or down with more uncertain demand, to adapt to rapidly changing customer requirements and market opportunities and to minimize unused capacity. Firms also need increased agility to respond to unanticipated problems and bottlenecks in their interconnected value chains – from suppliers to partners to customers.
We have all seen companies slash costs when faced with an economic crisis. And, these companies will begin cutting before really looking into their operations to see where they can ‘strategically’ make cuts.
Cost efficiency and effectiveness are more important than ever. Companies can be described as a collection of processes. They should look to be more productive by removing non-value added activities within their processes. Automate where they can – let software perform repeat mundane activities. Process efficiency will reduce costs.
Don’t forget your customer. Social media marketing is about having a conversation with your customers. And, your processes need to encourage a conversation with your customers – collaboration by another name.
It is not good enough just to manage your processes, the next step is to gather business intelligence. If you have a system in place to measure/monitor your processes, you will be able to see what is happening within your process. You can see bottlenecks. You can see if you need to increase or decrease capacity. You will have some valuable information that you can use to make key business decisions.
More efficient business processes will lower costs and leads to increased revenues, and improved customer relationships. It can differentiate you from your competitors. It can be the key that allows your company to break out as the market leader. You could make it your core competency.
What does all this mean? NOW is the time to break out of this economic slump as a market leader – so, step up…
What steps has your company taken to be a market leader?