A successful client of ours recently made
this statement during one of our meetings: “Profitability is a byproduct of
good work.” This got me thinking about how businesses approach being
profitable.
In business, there is a high priority to
maintain profitability; without it, businesses do not survive.
However, how businesses are profitable can
determine how long they will be profitable.
At AEOS Consulting, we can help future
proof your organization by supporting your Growth and Development strategy.
Quite often we see companies make budget
cuts to resources and limit spending and activities (such as training), all in
an effort to reduce costs and improve profitability.
No.. of course it doesn’t. If the process
is broken, then the action of making further cuts, potentially eliminating the
possibility of making positive change is not going to help! Cuts being made by
large companies in an effort to retain the viability of a business are usually
made too late. These sacrifices - often at the cost of employees - are made in
haste and in an effort - often too late - to stay in business.
Why
does this happen?
This happens because there is a lack of
foresight and a level of complacency in business operations. We can't afford to
make changes because it will impact our (short term) profitability.” These
statements are a result of fear of change and fear of risk.
As an instigator of positive change, I
often hear rationale such as “we don’t have the budget” or “we can't change how
we currently do things”. Budget is often a big factor, and I understand that
being prudent of expenditure is important for the success of any organization, this
needs to be balanced with the desire for progress and investing in the infrastructure
of the organization. This infrastructure should include investing in the
capabilities of staff as well as process and workflow resulting in improved
efficiency.
The
challenge!
The challenge for any organization is to
balance the cost of internal development and implementing positive change and innovation
with maintaining a status quo.
At AEOS we typically see three types of
clients:
Type 1: Early Adopters Innovative, progressive, recognizes a need to “keep up” with
industry developments to retain market share. Recognizing the need for change
is a key factor.
Type 2: Late Majority Less progressive but if made aware of inefficiency can be receptive
to improving process. Recognizes the benefit of improving the skills of staff.
Cost is a key factor.
Type 3: Laggards Processes are old and out of date, training is limited or
unavailable. Any significant changes to workflow would likely have a
significant pushback from both management (due to the disruption to production)
and staff (it falls outside of their comfort zone).
From the above three scenarios who do you
expect will be still in business, 5, 10 or 15 years from now?
Future
proof your organization
Through dedicating time and resources to
internal development you can mitigate not only the impact of disruption to
production but also the cost of falling behind. Progress is an integral aspect
of the organization's Growth and Development Strategy; anticipating and
planning for change is the key, and by doing so you will be in a very good
position to weather any challenges your business may face and see positive
growth and development.
By producing good work efficiently, with
staff that is happy, within a culture that encourages improvement, profit comes
more easily. Plan for change, anticipate
costs so you can budget for it, and invest in the future profitability of your
business.
