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Others may know what you don't know
"There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don't know. But there are also unknown unknowns. There are things we don't know we don't know."
D.H. Rumsfeld
Donald Henry Rumsfeld (1932 - ) was the former US Secretary of Defense under President George W. Bush from 2001 to 2006. |
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| Business improvement |
Meet your true potential
Our business improvement service assists proprietors and managers of business to move from crisis management and spot fire fighting to plan strategically and improve the day-to-day running of the business. This process will enable businesses to meet their true growth potential and enhance profitability and, ultimately, wealth creation.
By providing objective evidence based on a detailed study of your organisation, we can provide a series of recommendations on what needs to be fixed, in what order, and what we believe is the best approach for success.
Profitable businesses are proactive and set the pace, the rest are reactive and follow their lead!
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The effects of efficiency
Efficiency in the workplace is something that is directly related to profit growth through the reduction of resource wastage. These resources generally include:
- Financial Resources - Financial resources concern the ability of the business to "finance" its chosen strategy. For example, a strategy that requires significant investment in new products, distribution channels, production capacity and working capital will place great strain on the business finances.
- Human Resources - The heart of the issue with Human Resources is the skills-base of the business. What skills does the business already possess? Are they sufficient to meet the needs of the chosen strategy? Could the skills-base be flexed / stretched to meet the new requirements?
- Physical Resources - The category of physical resources covers a wide range of operational resources concerned with the physical capability to deliver profits.
- Intangible Resources - Intangible resources may include the goodwill associated with the company or a good reputation for performance and delivery.
An inefficient company absorbs their profits through a number of factors influencing resources that may include poor communication, low morale, management meddling, or a lack of training and performance management.
Who would you rather be?
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Company A has a $1 million turnover with a modest 10% profit after all costs ($100,000) but to double their profits they need to become a $2 million turnover company within their existing market or adopt new markets. This is an extraordinary challenge for an average business and any growth in future profit continues to be eaten away by inefficiencies that have not been rectified.
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Company B with the same turnover and profit, implements a business improvement plan and reduces resource wastage by 10-15% bringing their profit towards $200,000 as well. They have done this within the existing market without additional stress on other expenses such as marketing and business development towards new markets. With these efficiencies they are able to divert their resources towards continued growth and improvement.
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