RPA1

How Robotic Process Automation helps boost operational performance

 

 

 

One of the most talked-about technology among companies is RPA or Robotic Process Automation. According to the Global Market Insights research report, the Robotic Process Automation market is likely to surpass USD 23 billion by 2026. It is such a sought-out technology as companies can benefit immensely by enhancing their overall performance and consistently provide value to the customers.

By implementing Robotic Process Automation into a business, it’s easy to see exceptional organizational growth as well as increased accuracy and productivity. A study conducted by Mckinsey showed that Robotic Process Automation implementation delivered companies between 30% to 200% return on investment in its first year.

Here’s how Robotic Process Automation can boost operational performance.

1. Improve Customer Experience

Customers are one of the most critical assets for any business. Without an excellent customer experience, most organizations would have to cease business. In today’s business world, a business needs to consistently meet and exceed customer’s expectations. PwC surveyed 15,000 consumers and found that 1 in 3 customers leave a brand they love after just one bad experience, while 92% would completely abandon a company after two negative interactions. It’s no secret how vital customer experience is for an organization.

Businesses that utilize Robotic Process Automation to handle repetitive tasks will leave room for their employees to focus on more value-added work. Key functions like order fulfillment can be automated to fasten the fulfillment process with higher accuracy and consistency. Additionally, customer service can be enhanced by using automatic services to improve resolution time for customer issues.

A consistent effort to improve customer experience with Robotic Process Automation will help provide better value to the customers. The use of this technology not only increases customer experiences and customer loyalty but gives a business a competitive edge over its competitors.

2. Reduce Cost

Implementing RPA is an ideal solution to reduce costs while also improving productivity and efficiency. According to the National Association of Software and Services Companies, using Robotic Process Automation can have a significant labor cost reduction between 30-60%, and businesses can begin to see their return of investment (ROI) in as little as six months.

Robotic Process Automation will significantly help businesses to save costs due to human error. As per Harvard Business Review, incorrect data input by humans costs USD 3 trillion per year in the United States alone. An automated robotic system will cost nowhere close to a full-time employee and is an excellent alternative for outsourcing tasks that are manual and repetitive. It is faster and error-free. Robotic Process Automation also can produce continuous workflow, which can help streamline the operations resulting in higher accuracy, faster processing time, and increased efficiency. 

According to SiberTech, using some type of Robotic Process Automation in a company’s workflow can lower operational costs between 25-50% in their first year of using it.

3. Enhance Productivity

Productivity is commonly one of the most pressing issues a business can face. Most often employees tend to struggle to perform mundane, repetitive work that often results in low productivity. Approximately, 10-20% of human work hours are spent on repetitive tasks, according to Software Testing and Bid Data Hadoop. To succeed and grow, businesses need to optimize processes to improve performance by efficiently allocating resources.

Robotic Process Automation can help perform repetitive and tedious tasks with a high level of accuracy and consistency allowing employees to focus on more significant and more impactful duties. This change enables employees to fully engage and drive core strategic initiatives to improve business performance. Doing so elevates employee morale and increases job satisfaction. Also, this technology can be used 24/7 which enables businesses to increase their resource capacity leading to higher productivity and rapid growth.

A new study from ISG found that using Robotic Process Automation allows businesses to complete processes with 37% fewer resources and 5 to 10 times faster than a human employee could.

4. Increase Scalability

A study done by SSCON found that the scalability of Robotic Process Automation software was unbeatable and could be doubled instantly before product launches. Scalability is one of the key benefits of Robotic Process Automation that is commonly overlooked. Businesses can build their robotic workforce to fit their workspace’s needs at a minimal cost in a short amount of time. 

Even if businesses are continually changing parts of their operations, the automation workflow can be changed easily to adapt to situations to consistently meet the operational needs. As per a study, 65% of the respondents said that the most value they get from Robotic Process Automation is in driving more predictability and quality in the processes, and 50% said that speeding up time to complete the process is of value. 

Also, Robotic Process Automation can be beneficial during periods of intense growth or peak business activity, which could be due to a new product launch or busy seasonal times of the year. Instead of having to train staff, businesses can leverage this technology to help sort through the increased traffic and workflow while improving overall performance to consistently meet customer demand.

5. Increase Accuracy

It’s easy for employees to make errors that can cost an organization a ton of money. Mistakes will happen, no matter how careful and thorough employees are at performing their tasks. Using a Robotic Process Automation eliminates these issues due to its automated and optimized workflow that is error-free and consistent.

Robotic Process Automation can carry out critical, high-volume complex tasks faster with more accuracy, leading to faster processing and reduced waste. This accuracy will help in all aspects of a business, including analytic reporting. This technology is designed to return a huge amount of performance data analysis. This information can be used to continuously improve performance and avoid costly operational errors. 

The more repetitive tasks are automated, the higher is the accuracy and processing time. Eliminating human errors does have a huge cumulative impact on costs and customer satisfaction levels. 

Summary

In the coming years, businesses will gain enormous benefits from the capabilities of the RPA technology. Using Robotic Process Automation will help boost operational performance to better meeting customer needs, gaining a competitive edge, providing accuracy, scalability and reducing overall work costs. Investing in this technology frees up employees to work on high-scale projects to effectively use their talents and strengths. Technology is transforming the business world and will continue to play a key role in the future. Leveraging RPA technology is vital to transform the business and to increase the competitive position in the marketplace.

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    cash

    Six effective ways to improve cash flow in manufacturing

    "Never take your eyes off the cash flow because it's the lifeblood of business."

    "Never take your eyes off the cash flow because it's the lifeblood of business."

    Richard Branson

    Richard Branson

     

    A strong cash flow is one of the key factors to creating a sustainable manufacturing organization.  There is a constant need for cash to flow into the business to stay on top of production schedules, consistently meet the customer needs, and grow the business. No matter how great the business model is or how high the product demand is, poor cash flow can disrupt the entire operations and growth. Research indicates that 82% of business failures are due to poor cash management. It is critical to effectively manage the cash flow to avoid putting the future of business in jeopardy. Here are six effective ways to improve cash flow.

    Send Invoices On Time

    Promptly sending invoices to the customers is one of the best ways to avoid delayed payments and improve cash flow. As per research, 46.2% of invoices remain unpaid as of the due date. This staggering figure is supported by Export Finance Solutions, who found that companies pay on average seven days late. Another study found that small businesses in manufacturing have an average of $96,000 in unpaid invoices and it takes 21 days to get paid. Hence organizations must implement effective and robust plans to ensure that invoices are getting paid on time.

    Invoices with accurate data, regular follow-up on upcoming due dates, sending statements of current outstanding invoices will help immensely to eliminate late payments. Simplifying the invoicing process through automation, implementing software tools and easy payment options will help in streamlining the invoicing process to speed up payments and increase cash flow.

    Define Balanced Payment Terms

    Cash flow is heavily influenced by the payment terms extended to the customers. Whilst it is critical to send invoices on time, it is essential to implement balanced payment terms. These terms should be clearly stated at the time of signing the contract. A recent study showed that the average payment term is 32 days, yet the average actual payment length is 55 days. If the customers are unable to meet the payment terms, look for alternative solutions. For example, provide customers with installment options or offer discounts for early/faster payments. Also, keeping track of late payers with quick follow up will help to avoid delayed payments. At times it may be necessary to renegotiate terms with the late payers or implement penalties for the late payment.  

    Additionally, conducting a credit check before working with a customer is a simple and effective way to reduce non-payment/delayed payment and avoid cash flow problems. A credit check will help to better understand the financial risk of working with a customer and whether or not they are likely to make their payments on time. This can significantly improve short-term cash flow and help reduce the risks.   

    Reduce Operating Expenses

    Another effective way to improve cash flow is to reduce operating expenses. In the manufacturing industry, operating expenses make up the bulk of the overall costs. To help reduce these costs, remove inefficiencies/waste within the business. This can be done through automation and continuous process improvements which will help streamline the internal operations. According to a study by Okuma Corporation, it’s realistic to see up to a 30% increase in production by using automation in the manufacturing process. This can significantly decrease operating expenses and thus improve cash flow.

    Also, purchasing efficient machines/equipment will help in enhancing the overall productivity and efficiency leading to increased production and consistent in-flow of cash in the long run. Diligently keeping track of the expenses will further help to avoid unnecessary expenses and reduce the cash going out of the business.

    Reassess Product Price

    Product price is commonly overlooked in the manufacturing industry. A common trend within the industry is that new entrants will try to undercut the competition as a strategy. Whilst this works as a short term solution, it fails as a long term strategy. Not only will this potentially damage the cash flow, but it will also create the impression that the product is cheap. This can consequently damage the brand and reputation.

    When developing a pricing strategy, it is important to look at fulfillment cost, competitor pricing as well as maintaining a buffer for flexible pricing. An important aspect of pricing is determining the “value” for the customers. If the customer sees the “value” of the product/services, then the price will not be the key factor for making their purchasing decision. This will help in lowering the price sensitivity resulting in improved cash flow and profit margins.

    Efficient Stock Management

    Most of the manufacturing industries have a substantial amount of cash tied up in inventory. It is vital to ensure appropriate inventory levels are maintained to operate efficiently and consistently meet customer needs. Forecasting demand is critical, meaning having sufficient inventory to seamlessly process customer orders. Incorrect forecasting will result in a surplus or insufficient stock. Overstocked inventory ties up cash that otherwise can be invested in other areas to meet business needs. On the other hand, not enough inventory will risk not being able to fulfill the orders leading to lost sales and unhappy customers. This could further lead to a potential loss of new sales. Having a robust stock management system can significantly enhance productivity and efficiency, helping organizations to reduce inventory costs and enhance the speed to fulfill orders. Doing so will have a positive impact on the cash flow.

    Invest Prudently

    Often manufacturing industries invest heavily in purchasing equipment and other assets without fully understanding the need, resulting in increased operating expenses that further impact the cash flow. To invest prudently, it is necessary to have a comprehensive understanding of the business needs. These include equipment, materials, and other resources. According to Forbes, 20% of every dollar spent in the manufacturing industry is wasted – adding up to $8 Trillion every year. Avoiding such expenses can help to reduce unnecessary costs and waste, which will have a positive impact on the cash flow.

    Summary

    Cash flow is vital for maintaining healthy finances. Implementing these strategies is a great way to boost and maintain a positive cash flow. With 82% of all businesses failing due to poor cash management, staying on top of the cash flow is not just an option but a critical aspect to successfully run the business.

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      Strategy Execution1

      Five key steps to successfully execute strategic plans

      "A vision and strategy aren't enough. The long-term key to success is execution. Each day. Every Day "

      "A vision and strategy aren't enough. The long-term key to success is execution. Each day. Every Day "

      Richard M Kovacevich

      Richard M Kovacevich

       

       

      One major factor that makes most organizations stand out in a competitive business climate thrives on their ability to successfully execute strategic plans. It is not how robust a strategic plan is, instead, how it is strategically implemented to ensure business growth is vital. As a result, leaders must invest in improving organizational capability to ensure the successful execution of the strategic plans. Findings from a recent poll conducted by the BPC and Morning Consult (MC) revealed that 59% of small businesses affirmed that a decline in revenue was their top challenge. While another study revealed,

      • Internal factors hinder an organization’s growth and performance.
      • Poor execution of strategy is most organizations’ single biggest hindrance to growth.

      One of the major reasons for poor execution is that most leaders often communicate strategic plans to members of staff in abstract language and leaves everyone wondering how to convert them into realistic and practical steps.

      Successfully executing strategic plans is not as easy as formulating them, but here are five key steps to ensure the successful execution of strategic plans. 

      Communicate clear Vision

      Communication is key. Communication is indispensable. Communication is at the center of effective implementation of every strategic plan. Communication is the vessel for driving organizational performance, as it ensures all team members fully understand the objectives and goals of a project. To successfully execute strategic plans, the first thing to make sure is effective and clear communication. This goes a long way in ensuring that all team players fully understand their roles in carrying out the strategic plan.

      Findings from a recent study revealed that poor or ineffective communication can affect an organization resulting in delay or failure to complete projects, reduced morale, increased stress, lack of motivation, and decrease in revenue and profit. Therefore, to ensure successful implementation of strategic plans, leaders need to effectively communicate realistic action steps in a clear, precise, and unambiguous way. This ensures the overall performance of executing strategic plans.

      To communicate a clear vision, leaders across various units in an organization should create a robust communication strategy by clearly explaining the objectives and motivation behind each organizational strategic plan. This is important because, with clear communication of the organization’s vision, each employee across various levels in the organization will fully understand their role(s) in the execution process of the strategic plan.

      Build Organizational Capability

      Any organization that wants to successfully execute strategic plans, has to ensure it builds organizational capability. Having a good strategic plan is indispensable in achieving organizational growth, however, building organizational capability is vital in executing the strategic plan. Hiring the right people, continuously enhancing their skills, implementing efficient processes, and leveraging technology are essential to seamlessly execute strategic plans.

      Organizations should consistently assess performance, identify gaps, and implement plans to close the gap between strategy and execution. Today, the business environment is changing rapidly. A proactive approach and ongoing process to build capabilities will help organizations to constantly improve performance, boost agility, and adapt to change.   

      The objective of a strategic plan is to give organizations a competitive advantage to thrive in the marketplace. Hence, building organizational capabilities is essential to build a strong foundation to achieve the strategic vision and for a sustainable competitive advantage.

      Implement adaptable and flexible strategies

      Every successful leader works hard to successfully execute the strategic plans, though what leading organizations do is that they design their strategic plans implementation process to be adaptable and flexible. Flexibility in the implementation of strategic plans does not imply not taking business goals seriously, but it implies that strategies are built to be more adaptable. What ensures an excellent execution of a strategic plan is how well a plan is built to adapt to unforeseen and unpredictable business trends.

      Charles Darwin reinforces the importance of adaptivity, ‘It is not the strongest of the spices that survive nor the most intelligent that survives. It is the one that is most adaptable to change.”

      The greatest advantage of any execution plan is adaptability and flexibility. This is a skill that leaders need to introduce to planning and executing strategic goals.

      Strong Leadership

      Many factors mutually ensure the successful execution of strategies, strong leadership, however, play the most crucial role in determining the strategies overall performance, as everything falls and rises on leadership. One major role leaders play in the strategy execution process is to clearly defined the goals and roles of every key player in implementing strategies.

      Findings from a survey by PWC revealed that most organizations affirmed that their major problem when it comes to strategy development and execution was having conflicting and too many strategic initiatives. This further reinforces how crucial strong leadership is in the strategy execution process. As it is the responsibility of the leaders and top executives to give clear and precise goals, objectives, and roles. Ensuring strong leadership is indispensable in executing strategies because it reinforces clear vision, precise operations, and cultivates a motivating work culture.

      Measuring Performance

      Another effective way of ensuring excellent implementation of strategies is by constantly measuring business performance, and also measure the effectiveness of the implemented strategies. Measuring business performance is important because it helps improve productivity and efficiency in the strategy execution process.

      Measuring performance in an organization is crucial in facilitating better performance. Organizations should measure the productivity of their strategies by defining and using the key performance indicators (KPI) to predict how executed strategies will perform. This is very important because a KPI is very versatile and yet an effective approach in evaluating the overall organization’s performance.

      Final Thoughts

      Entrepreneurs and business leaders must be careful in their approach to executing strategic plans as the business environment is vulnerable to unpredictable and unforeseen trends that can destabilize business productivity. How an organization implements strategic plans goes a long way in determining the outcome and performance of such strategies.

      It is therefore imperative that leaders should invest more time and resources in drafting and developing strong, flexible, adaptable, clear, and evaluated strategies to implement business goals and objectives. Successful execution of strategies is key to business growth, performance, and productivity, as it makes organizations compete effortlessly with their competitors.

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        Blog-Operational Excellence

        Why Operational Excellence is important?

        "Speed is everything. It is the indispensable ingredients to competitiveness."

        Jack Welch

         

        Today the business landscape is altering at a very fast pace. Growing and sustaining a business has become difficult due to changing customer needs and competition. This is the age of the customer- customer service and customer experience can make or break a business. Organizations must have an effective and efficient operation to gain a competitive advantage. Hence, it is imperative that organizations make operational excellence as a key deliverable and align it to their strategic goals, resulting in long term sustainable growth.

         

        Seamless operations are vital to keeping up with market demands. Organizations with strong operational capabilities have a direct impact on their overall performance. As per research by Harvard Business Review, organizations that achieve operational excellence saw a 25% faster annual growth rates and 75% higher productivity.

         

        Poor operations have a negative impact on overall organizations performance. As per research by Wrike Inc., only 32% of the leaders were very satisfied with their team’s ability to plan, manage, and complete the work. The research also highlights a big concern about the difference of opinion between management and non-management on how well their company’s operations run. Achieving operational excellence continues to be a major challenge for most organizations. As per the BTOES research report, 35.6% of the respondent mentioned executing operational excellence programs as a top critical challenge.

         

        Focus on the following areas to build a strong foundation to successfully execute the operational excellence program.

         

        Leadership Involvement 

        Business leaders should focus on making operational excellence as a culture and a key driver for top-line growth. Operational excellence is an organization-wide change and resistance to change among employees can derail the program. Leaders should proactively communicate and help employees understand the need for operational excellence, to achieve its strategic goals. Leaders should empower employees, and focus on building an environment of trust & transparency to drive collaboration & commitment.

         

        People & Processes 

        Business leaders focusing on people and processes run high performing organizations. Leaders need to continuously focus on building a cohesive team with versatile skill sets by continuously investing in robust training programs, and strengthening the hiring and on-boarding process. Process excellence is an essential factor to achieve operational excellence. The objective should be to build effective and efficient processes keeping in mind the customer’s need. Leaders at every level should ensure employees recognize the importance of the processes and the value delivered to the customers by adhering to the processes.

         

        Governance and Communication 

        As per research conducted by Mckinsey & Company, the failure rate of organizational transformation like operational excellence is more than 70%, hence governance is important. Leaders should implement governance in order to effectively manage people and processes. A clearly defined organizational structure, roles & responsibilities, policies, and, procedures will smoothen the journey towards operational excellence. Building a governance framework is the first step, however, if not clearly communicated and understood by the employees, the risk of the program failing is high. Effective and consistent communication will ensure employees follow the guidelines, reinforce collaboration, and work towards a common goal of achieving operational excellence.

         

        Measuring performance 

        If you can’t measure it, you can’t improve it – Peter Drucker. Organizations that do not measure performance fail to operate effectively and efficiently. Business leaders should implement robust performance management systems to track progress and achieve superior results. The goals of the operational excellence program should be defined in terms of metrics to evaluate performance periodically. It is equally important to regularly communicate the progress with the employees to keep them focused and engaged.

         

        Operational excellence is the key to gain a competitive advantage and continuous business growth. It helps organizations to add continuous value to the customers and boost organizational flexibility to stay competitive in the market.

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          Customer-Review

          How important is customer retention?

          "Profit in business comes from repeat customers, customers that boast about your product and service, and that bring friends with them."

          W. Edwards Deming

           

          Today the world of business has become fiercely competitive. Organizations are continuously looking to differentiate themselves to gain competitive advantage and increase their market share. In this race to increase the customer base, organizations are focusing more on sales and marketing activities. However, a sale is just the beginning and not the end. What the customer experiences throughout the delivery process are important. The on-boarding experience, product/service experience, fulfilling value contract, customer success, and delight are critical factors that will have a positive or negative impact on the customer retention rate.

           

          Providing great customer experience and value is important for customer retention and growing the business. Customer experience is an important competitive advantage to drive sales and increase revenue. It is predicted that in 2020, customer experience will surpass price and products as the primary brand differentiator. Customers today have plenty of options to choose from to meet their demands. A single poor experience is enough for customers to decide to look for alternate options. As per research,

           

          • 32% of all customers would stop doing business with a brand they loved after one bad experience. (PWC)
          • 42% of respondents have left a business due to poor customer service. (New Voice Media)
          • A customer is 4 times more likely to defect to a competitor if the problem is service-related than price- or product-related. (Bain & Company)

           

          “Customer is King”, an age-old business mantra is about understanding the importance of customers and providing exceptional service to the customers. Every organization should implement plans to deliver superior customer service and experience. Additionally, focus on delivering extraordinary value to the customers. More the value the customers get, the less is the risk of churn percentage. As per statistics,

           

          • Brands with superior customer experience bring in 7 times more revenue than competitors that lag in customer experience.
          • Customer-centric companies are 60% more profitable than companies that don’t focus on customers.

           

          As per Bain & Company, the cost of acquiring a new customer is 6-7 times more than retaining an existing one. Organizations investing in customer retention have benefited immensely and successfully grown their business. It is a no-brainer that customer retention is a key revenue driver that cannot be ignored by organizations. As per research,

           

          • Increasing customer retention by just 5% boosts profits by 25% to 95%. Harvard Business school
          • The probability of selling to an existing customer is 60%-70%. The probability of selling to a new prospect is 5%-20%. Marketing Metrics
          • 65% of a company’s business comes from existing customers. Customer Service Institute

           

          Most often, organizations are so focused on acquiring new customers that they fail to effectively fulfill the needs of existing customers. Focusing only to acquire new customers and not investing in customer retention will only increase the customer churn rate and can lead to the downfall of any organization. Investing in customer retention should be an integral part of organizational strategy to have a greater impact on the top-line & bottom-line revenue. Leaders should become the catalyst for change in implementing systems, procedures, and processes that lead to customer retention.

           

          The simplest way to increase your customer base is not to lose them. Here are 5 ways to improve customer retention.

           

          Expectations – It all begins with setting realistic expectations with the customer. It is important to know your limits. Winning a customer by over-committing on the deliverables will only lead to double trouble. Doing so will create tremendous pressure on the team to meet the deliverables, leading to an unpleasant environment within the organization. Situations like these lead to customer dissatisfaction due to poor quality of the product/service or unable to deliver as promised. Hence, it is imperative that organizations have a clear understanding of their capabilities and capacity. This will help in setting clear and realistic expectations with the customers and avoid any impact on service delivery.

           

          Relationship – According to Marketingwizdom, the average business loses around 20% of its customers annually simply by failing to attend customer relationships. The process of building a relationship starts at the very beginning of the sales process. The objective here should be to create a positive first impression. The next step is to gain the confidence and trust of the customers by consistently delivering quality products and services as promised. Continue to strengthen the trust factor by collaborating and engaging regularly to show them that you care, build connections, and strengthen the relationship. Above all, it is important to understand your customer value. Always listen to what the customer is saying or asking for and change your strategy to meet their expectations.

           

          Value – Understanding customers is the first step to consistently be successful in adding value to your customers. Knowing customers in-and-out enables organizations to enhance the customer journey and experience. Focus on the quality of the product or service that is exceptionally better than the competitors. Quality of the product or service is a critical element that the customer perceives. Invest in enhancing the product or service that benefits the customer to improve their organization’s performance. Go all-out and implement a robust process to provide superior customer service to resolve customer issues. In today’s fast-changing marketplace, organizations are focusing on improving customer service to gain a competitive advantage. Consistently keep a tab on the customer needs by soliciting their feedback and use the information to continue to add value to the customer. The key to adding value is to always consider the customer’s perspective and focus on customer needs.

           

          Experience – Customer expectations are skyrocketing, and they expect the best experience every time. As per statistics, customers that rate organizations with high customer experience score spend 140% more and remain loyal for up to 6 years. Hence it is imperative to develop a customer experience strategy that is customer-focused and communicated clearly within the organization. Providing an unforgettable and positive experience is essential to build a brand reputation and gain more business. Take customer feedback on every interaction. These inputs are critical to identifying gaps and building a robust customer-facing team. Make effective use of tools and technologies to increase efficiency and customer engagement. Another key element is to create an emotional connect and create a bond.

           

          Track – It is important to keep track of key metrics to measure performance for customer experience and retention to know if all the investments in people, process & technology are paying off. Without monitoring the metrics, there is no scope of improvement. Use metrics viz. NPS (Net promoter Score), CSAT (Customer Satisfaction Score), and CES (Customer Effort Score) to track customer experience. Some of the key metrics to track customer retention are viz. customer churn rate, retention rate, average customer life, revenue churn rate. Additionally, track metrics to gauge operational performance that influences the customer experience.

           

          Irrespective of the industry, your customers are the most valuable stakeholders. It is essential to invest in building a sustainable long-term relationship with the customer. Customer service and experience without any doubt are the key factors to retain customers. Hence, it is important for organizations to make customer satisfaction as part of their strategy and constantly improve business operations to have higher customer retention.

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            Five essential steps to improve organizational capability

            "The high-mature organizational capability is the digital business differentiator, to keep the business unique, competitive, innovative, and improve the overall business maturity significantly."

            Pearl Zhu

             

            Every organization or business has these goals in common; scale performance, make sales, and exceed customers’ satisfaction. This, however, is not an easy process as it requires leading and managing effective teams that ensure the overall outstanding performance of an organization. The outbreak of Covid-19 and more unpredictable global trends will continue to reshape and introduce new trends to the workplace, especially in the business sector. It, however, becomes imperative for business leaders and key team members to build resilience and improve organizational capability.

            Here are five essential steps business leaders can adopt to improve their organizational capability.

            1: Invest in digital transformation

            In order to stay competitive and relevant in the industry, organizations need to prioritize digital transformation, as the world will continue to evolve with new technological trends designed to transform businesses. Gaining insight into the emerging technology trends like Artificial intelligence, machine learning, cloud computing among several others will set the pace for transformation and help organizations derive lasting exponential growth. By investing in these technological trends, workplace productivity will be effortlessly achieved.

            Findings from the 2020 Digital Transformation survey by Deloitte LLP revealed that organizations that invest in digital transformation were three times more likely to achieve revenue growth. This, however, is not surprising given the increase in artificial intelligence and other recent technology trends.

            Therefore, investing in digital transformation should be one of every organization’s top priorities.

            2: Robust Operations

            In achieving improved organizational capability and productivity business owners and key team members need to put in place an effective and efficient operation process.

            It is important to invest in having a strong business operational strategy to make organizations more adaptive. Organizations that invest in having strong business operations are more likely to make better use of automation technology to increase their efficiency and overall performance, which allows seamless and effortless delivery of products and services, as it makes organizations to prioritize customer service and satisfaction.

            Also, a robust business operation enables organizations to sustain and compete in the ever-changing business climate. While having a robust business operation is important, effective communication plays an indispensable role in the overall performance of these business strategies. Dawn Brown, a Forbes Business Council Member, reinforced the importance of communication noting that, effectively communicating the vision and idea of new business operations and processes to the employees at all levels in the organization, goes a long in determining the attitude and inputs of employees in achieving the proposed business operations and processes.

            3: Learning and Development

            Training and developing the skills and competence of employees at all levels in an organization is another effective strategy to improve organizational capability and competence. While it is important to hire the best talents, it is also imperative to train employees in an organization.

            To achieve organizational goals and objectives, employees must be trained and developed throughout their stay in the organization. For this to be achieved, business owners and top leaders need to prioritize learning and development as it an indispensable strategy in achieving organizational growth.

            Findings from a survey by the go2HR society indicate that 40% of employees leave their jobs or position within the first year as a result of poor training opportunities. Prioritizing learning, training, and development is vital in achieving organizational growth and productivity as trained employees are more efficient.

             4: People management

            In the past few months, leading and managing highly effective teams have been challenging, as the new trend of working remotely has placed a new burden on business leaders and human resource managers on both small scale and big scale businesses.

            Ensuring effective people management is crucial in optimizing employee’s performance and productivity, as it involves creating a positive work environment and prioritizing the health, social, and mental wellness of employees in the workplace. This, however, goes a long way in improving organizational capability.

            Peter Drucker, a profound thought leader in modern management, made it known that 60% of an organization’s issues stem from faulty communication or poor people management.  Prioritizing employees’ opinions ensures transparency and also gives the employees a sense of belonging in the organization as they will feel seen, heard, appreciated, and highly valued.

            5: Prioritize Sound Decision-Making

            Every organization’s success, performance, and growth thrive squarely on the daily decisions employees at all levels make, and what makes the difference is how sound and strategic those decisions are. Every organization should develop a sound decision-making ability in their employees because having good judgment and the skill to convert this into profound decision-making are imperative in achieving organizational growth. To improve organizational capability and productivity business leaders should ensure that sound decisions are made at all levels of the organization, especially among key team members.

            According to a recent study by the Harvard Business Review, 87% of organizations affirmed that their companies will achieve more success if frontline workers are empowered to make quality on-the-spot decisions. Findings from this study further reinforce the importance of making sound decisions across all levels in an organization.

            Final Thoughts:

            It is essential for organizations to consistently focus to improve their capability. Doing so will immensely help to improve performance and build resilience in this ever-changing global market.   

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              Unique2

              Five effective ways to differentiate your business

              "In order to be irreplaceable one must always be different."

              Coco Chanel

               

              The business industry is a very competitive ecosystem to survive and be productive. However, organizations can effectively make an impact and build a reputation in a competitive marketplace by reinforcing strategic objectives that promote their business uniqueness. While creating and sustaining uniqueness is crucial in determining success, organizations tend to struggle with crafting strategies that will reinforce their uniqueness in the industry.

              Every leader’s goal in any industry is to be regarded as one of the best. This common drive makes the environment very intense as organizations are constantly improving their infrastructures to effectively compete and scale performance. In the process of competing with top organizations, effective differentiation is one of the main challenges most organizations face.

              Here are five effective ways organizations can adopt to create and sustain business uniqueness in a very competitive environment.

              1) Focus on WHY:

              It is very easy to lose sight of the significance of why an organization exists, given the hectic and demanding nature of running a business. While keeping track of the spreadsheet and improving revenue is important, understanding why a business exists is of greater importance. This is so because it is the “Why” that helps create a strong unique value proposition that powers business uniqueness and performance.

              Findings from a survey on over 12,000 employees conducted by an engagement and performance firm Energy Project, revealed that 50% of its respondents felt their work lacked meaning and significance. This implies that clearly defining a ‘why’ also determines employees’ attitude to work. Also, findings from the study further reinforce why leaders need to define their “Why” and communicate them to their members of staff, to sustain uniqueness in the competitive environment.

              2) Build Brand Reputation

              Brand reputation plays an indispensable role in determining the overall success of any organization. Building a brand reputation is a crucial aspect of creating and sustaining business uniqueness, as a good reputation will further strengthen the organization’s performance against competitors.

              Organizations should build a strong brand reputation by sustaining brand consistency, in the product and services they offer to their customers. Organizations can also build their brand’s reputation by being an expert in their industry and sustain a good relationship with customers by ensuring customer satisfaction and loyalty remain their leading priorities.

              Nothing gives an organization a profound reputation amongst their competitors than gaining the confidence and loyalty of customers in the products and services they offer.

              3) Deliver extraordinary customer service and experience

              An effective way of sustaining business uniqueness whether it’s a small or a large enterprise is to provide exceptional customer service and experience. For any organization to stand out and yet be productive, it must make customer service and experience it’s leading priority.

              Prioritizing customer service and experience in an organization does not happen overnight, but if effectively implemented in an organization, it brings about delivering a very unique customer experience and in the long run build brand loyalty, trust, credibility, and most importantly establish brand’s or organization’s uniqueness.

              According to the survey done by PWC 73% of the people pointed out that customer experience is an important factor to make their purchasing decisions. Findings from the American Express survey revealed that 58% of customers will spend more with companies that provide excellent customer service.

              Organizations should offer one-of-a-kind customer service and experience by first identifying the need(s) of the customers, fulfilling them, addressing their pain points, and consistently providing value. This goes a long way to build a trustworthy relationship with customers. Organizations should perceive customer service and experience not just as a department, but as an attitude.

              4) Deliver fast and high-quality products/services.

              In a competitive environment reinforcing an organization’s uniqueness is very crucial, as it can forge a deeper connection with customers and improve brand and business credibility in the marketplace.

              Delivering high-quality products/services is important to create and provide value to customers. It is one of the most important tasks and plays a significant role in customer satisfaction and retention. According to a survey by Deloitte, 71% of people look for high-quality products when buying. Another survey by Yes Marketing found that 57% of Gen Z directly linked quality to brand loyalty. While delivering high-quality products is important, on-time delivery of products is also important in creating and sustaining business uniqueness. As per a recent study, 61% of people are willing to pay more for same-day delivery. Hence, organizations should prioritize and implement an efficient delivery system and deliver high-quality products/services to stand out from the competition.

              5) Be Innovative

              Whether an organization is into delivering products or offering services, being innovative is essential in creating and sustaining business uniqueness. By being innovative, organizations should continuously seek ways to innovate their products and services to suit customers’ needs and further drive innovative changes within the business industry.

              Findings from McKinsey research revealed that over 70% of top executives affirmed that innovation is one of the top three drivers of organizational uniqueness that help organizations to achieve strategic objectives. Organizations should also avoid a rigid business structure that will resist innovation and changes in the products and services the organization offers. An innovation-driven organization has more chances of succeeding and exceeding the organization’s performance and productivity.

              Final Thoughts

              The business environment can be a difficult ecosystem to thrive and compete effectively. Fortunately, organizations can optimize their performance by leveraging on the strengths of their uniqueness and effectively stand out in the marketplace. Therefore, leaders should design strategies to strengthen their business uniqueness and at the same time improve the organization’s capability and performance.

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                If-you-cant-Measure

                If You Can’t Measure It, You Can’t Improve It.

                “If you can’t measure it, you can’t improve it.”

                Peter Drucker

                 

                Setting targets and measuring performance are critical factors that determine the success of your business. Key Performance Indicators (KPI’s) help monitor the progress of your business ensuring it’s headed in the right direction. However, the bigger question is what to measure?

                 

                The focus should be on identifying:

                • The critical success factors for your business.
                • Measurable KPI’s for the identified success factors.

                 

                KPIs must be defined in a manner that allows you to:

                • Set targets across all the departments to achieve strategic goals.
                • Identify opportunities to improve the scope of growth.
                • Identify issues to implement a fix in time and avoid negative impact.

                 

                Often business owners define KPIs that are limited to sales and profits but fail to identify KPIs that impact business growth.

                 

                Identifying KPIs is the first step, the key is to conduct periodic reviews to identify gaps and, align people and processes to stay focused on your strategic goals. Consistently tracking and measuring the KPIs empowers you to take effective decisions and improve business performance.

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                  Blogs-Failing to plan

                  Failing to Plan is Planning to Fail

                  "Failing to plan is planning to fail."

                  Alan Lakein

                   

                  Lack of planning is one of the main reasons why businesses fail. Without planning, organizations run their business in reactive mode and do not know which direction to head.

                   

                  It is crucial to develop a strategic plan as it gives organizations a direction to grow their business. Key members of the organization should collaborate and develop a plan, that captures where the organization will be in the future and how to reach that goal.

                   

                  Most organizations fail to execute their strategy successfully. Consider these points when executing the plan.

                   

                  Communicate: Leaders should ensure that the plan is understood by employees across all the levels and everyone is working towards the common goal. The key is to be an authentic leader, be accountable to deliver the results, regularly communicate with the team to reinforce the message, and inspire them.

                   

                  Measure: Performance measurement is essential to be successful in business. Keeping track of progress through key performance indicators ensures your business is heading in the right direction, to achieve the planned goals.

                   

                  Change: The strategic plan should not be static. A dynamic strategic plan will help organizations continuously evolve, adapt, and keep up with the changing market & customer needs.

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                    Organizational Capability

                    "An organization’s ability to learn, and translate that learning into action rapidly, is the ultimate competetive advantage."

                    Jack Welch

                     

                    Organizational Capability – Ability of an organization to effectively manage and utilize the resources to improve business performance, meet customer demands, and gain a competitive advantage.

                     

                    An organization’s capability has a direct impact on business results. It is imperative to build your organizational capabilities and make it a top priority. A couple of key areas to focus on.

                     

                    People – Employee training & development is a key factor that enhances organizational capabilities. A consistent approach to improve employee skills gives a major boost to the foundation of the organization and helps drive internal processes effectively and improve business performance. Ensure that the training programs focus on developing capabilities that are crucial to your organization’s performance.

                     

                    Operations – How you operate your business matters. Streamlining operations eliminates redundant steps to improve efficiency. Having a continuous improvement approach will help manage the operational workflows better. Managing these workflows efficiently and effectively will help reduce costs, improve profit margins & competitive strength.

                     

                    Identify capabilities that will improve your business performance. Gain a competitive advantage by building strong organizational capabilities.

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