Business System & Technology Consulting

How to Improve Business Performance

There’s a gap, but are you clear about the real problem to improve your business performance?

Business leaders can feel unsure of the best approach to improve business performance. In the past, they’ve made changes that haven’t worked out. Sometimes a change to improve one area has had an unintended impact on another. That hurts. After making several changes without making much impact, there’s a sense of loss. Avoid that through clarity and ensuring you’re fixing the right problem.

Successful Business Performance Improvement

What does performance improvement success look like for a business? Firstly, your business will achieve goals faster. Secondly, costs will be lower. Those goals might be financial or some other achievement. At the core of good business performance is keeping customers satisfied and at less cost.

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The Stakes

If you don’t improve business performance, then you fall behind competitors. They will be able to deliver to customers faster, at better quality and at less cost. If you have competitors, it’s a road to ruin.

Your Business Deserves an Effective System

Improve Your Business System Performance with KR5 Consulting

The Basics

Improving business performance starts with goals. After all, you want to achieve those goals faster and at less cost. You then look at how you’re achieving those goals and spot areas to improve. Then you make changes. Finally, you measure the improvement and repeat the process.

Why Improvements can go Wrong

Understanding the big picture makes it easier to improve the performance of a business. In other words, understanding the Business System. Without this understanding, it’s hard to predict impacts. A fix in one area breaks another. Without clarity, you don’t know what to change. There are blind spots, and a risk of fixing the wrong problem. That’s why improvements fail to materialise despite change after change.

Three things to Improve Business Performance

Once you’ve got clarity of your Business System, it’s easier to improve performance. For example, by spotting gaps. Also, you can see how it fits together to deliver your goals. You can assess what’s working and what’s not. That means you can make improvements by:

  • Aligning all the business activities to the strategy.
  • Stopping activities that aren’t working.
  • Using better methods and processes.

Goals are fluid

Goals are not set in stone. As you improve business performance you learn more about how the Business System works. As you make changes and measure improvements, fresh insights inform your goals.

Make one change at a time

Another reason that leaders fail to improve their business performance is because they try to do too much at once. You make more progress achieving one goal at a time. A clear understanding of the Business System helps leaders to prioritise. This means they can focus on change that will make the biggest difference.

It’s not about change: It’s knowing what to change

Most would think that improving performance is about making changes to your business. That’s true, but it’s not as important as knowing what to change. Having a clear overview of your business is key to making the right decisions.

Finally

We understand that improving performance of your business can feel daunting. A successful approach requires clarity, prioritisation, and a plan you can action. An effective business system helps you achieve more. A digital business system is what enables leaders to scale and improve performance.

Your Business Deserves an Effective System

Improve Your Business System Performance with KR5 Consulting

If you’d like to discuss this topic, contact me on rhounsell@kr5consulting.com or DM on LinkedIn.