We all know that many companies suffer from managing day-to-day dysfunction and breakdowns. Every day, they react in the moment to issues and challenges. Company leaders want to innovate and create new revenue lines, but the company hasn’t ensured the existing operations move flawlessly like a well-oiled machine without distractions. If this sounds like your company, you’re likely more focused on being a reaction-based company rather than an innovative company.
According to global research firm IDC, inefficiency and operational ineffectiveness cost companies 20-30% yearly revenue. While leaders are looking ahead to innovate and grow their company, behind-the-scenes, managers, and employees are in the mud navigating antiquated structures, processes, and numerous operational distractions trying to execute their existing business roles. Leaders become frustrated, not understanding why there is a ball and chain around the potential growth of their company.
Over the years, managers have layered on and baked in red tape and embellishments to the day-to-day operations without fully understanding or at least reviewing the overall impact on employees and overall business performance. A simple logistic such as the placement of a time clock can impact overall team effectiveness, impacting employee engagement.
How can a company innovate when continuously playing “Dysfunction Whac-A-Mole?” Playing this game is the go-to reaction when dealing with ineffectiveness. Companies address one symptom that’s popped up, move on, then tackle something else next week when it pops up. They don’t stop and review underlying causes, deeper-rooted issues causing the symptoms on the surface. Additionally, there are numerous blind spots the company isn’t seeing, and their emotion-based attachment to specific, antiquated processes stand in the way. If a company is managing ineffectiveness in this manner, it’s leaving money on the table.
”Inefficiency and operational ineffectiveness cost companies 20-30% of their yearly revenue.
For a company to be future-focused, an innovator, and visionary, it must remove all the dysfunctions standing in the way. According to IDC, this one endeavor will increase company revenue by 20-30%! Remove all the operational embellishments, the distractions, the layers of complexity. Create “unembellished operations,” providing just enough structure to assist employees in executing the business versus slowing them down. Every operational component should be a tool to enhance performance.
When we collaborate with companies, we often reference the analogy of a small generator in the garage when the power goes out. Companies should strive to have their day-to-day operations hum like a small generator. It’s just enough to do the job, it keeps the lights on, and activity continues. It has no emotion. It’s either working or not working, and just pour in a bit of gasoline occasionally, and it takes care of the rest.
When we create a company’s watershed moment, we help them build their humming generator. Company revenue increases and they can move forward focusing on being industry visionaries, sparking innovation.
