What is the Value of Business Improvement
By PJ Stevens
What is the value of Business Improvement?
Business improvement refers to the process of making changes or implementing strategies that increase the efficiency, effectiveness, and profitability of a business.
One could argue that without constant and continued improvement there will be no business. The cost therefore of not constantly improving business is failure.
Business improvement used to be owned managers with the title of ‘Business Improvement’, but that has long since changed. Perhaps at long last, business improvement is the domain of all staff?
The value of business improvement can be significant and multi-faceted. Here are five key benefits of business improvement:
1. Increased profitability:
By identifying and implementing improvements in processes, products, and services, a business can reduce costs, increase productivity, and generate more revenue, resulting in improved profitability. You can also develop new products or services, or expand into new market sectors to increase profitability.
2. Enhanced customer satisfaction:
Business improvements that lead to better quality products and services, more efficient processes, and faster response times can lead to increased customer satisfaction and loyalty. Customer service is important to the business because nurtures customer loyalty and makes jobs easier for staff. This, in turn leads increased customer referrals and increased businesses grow. By providing great customer service, ‘organisations can recover customer acquisition costs and foster brand loyalty’.
3. Competitive advantage:
Implementing business improvements can help a company differentiate itself from its competitors by providing unique products or services, better customer experiences, more sales, increased margins or more efficient operation. Competitive advantage can lead to options such as strategic alliances.
4. Employee engagement:
Involving employees in the process of identifying and implementing business improvements can increase their engagement and motivation, leading to better performance, higher customer satisfaction and reduced turnover. As the old adage goes, ‘don’t give employees tasks, give them problems to solve’. Engaged employees tend to feel a sense of purpose and ownership in their work, are more motivated to contribute and are committed to the success of the organisation.
5. Adaptability and resilience:
Continuously improving a business can help it adapt to changing market conditions, new technologies, and other external factors, making it more resilient in the face of challenges and uncertainties.
Here is some feedback from clients who have used the Business Improvement Network to tap into their wealth of creativity, knowledge and experience in order to identify opportunities for improvement, and then action them.
- Staff Engagement: A financial services client noted staff engagement doubled during their business improvement process
- Customer Satisfaction: a tech client reported an increase in customer satisfaction across the country, from 47-70% VSAT
- Savings and improvements: a £25m t/o private company identified £1.1m of value – savings plus released profit – from their creative improvement workshops.
In conclusion, the value of business improvement lies in its ability to help a company achieve its goals, stay competitive, and thrive over the long term. Given the current challenges which businesses are facing in this Poly Crisis, there has never been a more important time to hold creative business improvement sessions.
About the author
PJ Stevens is an expert in organisational change, performance and improvement, with 20 years experience. He is chair of the business improvement network.
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