Chmeme Business Improvement

I have been working with leading Business Improvement guru, Tim Franklin, preparing the PR for his latest book which offers an introduction to Continuous Improvement (CI) at beginner level, encompassing Lean, TQM, Six Sigma and the other related methodologies of CI.

He was developing an analogy of a geographic expedition to describe Continuous Improvement. As you start out on an expedition, you can see the horizon clearly as being the final destination, but as you walk towards it, it recedes and eludes you, like a moving target. CI is like this in practise. In the beginning you think that you know the maximum benefit that you can lever from a particular process, but if you continue to revisit the same process time and time again, it’s amazing how your comprehension alters through experience – learning by doing.

Sadly, many organisations don’t develop this advanced comprehension, because they don’t embrace the ideology behind CI, they see TQM or Lean as a set of tools and techniques, rather than a different way of working.

Maintaining a profitable business year after year is extremely a difficult job. Managing your own company involves many business endeavours that are too tough to handle by yourself. Handling difficult situations is not an easy thing to do and wrong decisions can put your company in jeopardy.

Regardless if your business is privately held, large or small, or family run, you need to have an independent third-party business consultant. A professional adviser can teach and guide you through the right decisions in all business areas. This ensures that you exceed your personal and professional goals and stay financially fit for different business initiatives.

More often than not, many start-up or small companies rely on their own circle of influence for professional advice. Some of these organisations use employees, business associates, investors, managers, and even family and friends to help them decide on and apply business objectives strategically. This does not work for all cases, because the circle of influence usually creates decisions that hinder business improvement and growth. This affects not only the company’s reputation but also has effects on the employees.

Many people assume that growth is an excellent indication of increased profits. Growth does not necessarily mean a business is more profitable, however. Many times, just the opposite is true. With growth come additional costs. New buildings are a major expense. There is the property to purchase accompanied by increased taxes. There are countless sundry expenses such as furniture, employee wages, utility bills, cleaning services, employee health care, and the list goes on.

A business doesn’t have to get bigger to become more profitable. Streamlining involves trimming, pruning and otherwise cutting out the deadwood. Almost every business owner or manager can find ways to reduce costs in structures and improve employee efficiency. Even reducing waste in small ticket items such as office supplies can considerably improve the bottom line.

Business streamlining often involves a major change in employee attitude to be most effective. It isn’t uncommon to overhear employees make statements such as, “I don’t care what it costs, the company is paying for it. It’s not my money.” At one small business, a salesperson was asking for improved healthcare benefits, while at the same time turning in travel vouchers for more miles than he was actually driving on company business. When the business owner told him that the company was struggling financially, and that he, the owner, was often taking home no paycheck at all, the employee stated, “It makes no difference. Your job is to ensure the welfare of your employees.” The salesperson seemed unaware of the financial realities of running a business. He didn’t understand that the financial welfare of the business must come before employee benefits can improve.