“The important thing is to not stop questioning”
How to Improve and Innovate in Business
Question your operations to identify problems or areas for improvement. Recessions are known to be catalysts for operational improvement and innovation, often because we need to become fitter to survive.
So think of now as a good time to make things better. Here's how:
- What operational improvements could you make to increase customer value?
- What are your biggest problems or challenges?
- Could you enhance your core competencies through training and development?
- Or could you improve processes to minimise defects or points of waste?
- How could you make your operations more energy efficient?
- Are your IT and communications functions making the most of new technologies, such as CMS websites, web applications, CRMS, eCommerce websites and is your software working for you?
- Have you explored online ‘cloud’ services for tasks such as client relationship management (CRMs), online document sharing or data backup?
- Could you make use of video conferencing to reduce travel and meeting costs?
- Are you storing customer data securely and lawfully?
- Consider outsourcing activities if you do not possess the required competencies in-house.
- More generally, look at each business process, system or function, examine how you do things, and ask: is there a better way?
Foster an innovation culture
To drive positive change and innovation consistently over time, businesses must foster an innovation culture which encourages new ideas and enables successful implementation. Numerous research projects conclude that the impetus to innovate must come from senior business leaders.
They must inspire and encourage change, define innovation objectives and areas of focus, and enable employees to achieve their goals by providing necessary resources and removing barriers. Leaders should also encourage employees to come up with innovative ideas; research suggests both lone and collaborative working approaches can generate numerous high-quality ideas within organisations.
Research also suggests that business partners, suppliers, consultants and specialists represent a significant source of innovative ideas for most companies. Consider how you could work more strategically with the companies you are close to in order to find new ground for improvement.
Check List
- Establish a set of Key Performance Indicators (KPI) reports. Monitor weekly.
- Introduce Performance Related Pay linked to KPIs that drives gross margin improvement.
- Are you using ICT to maximise efficiency and processes?
- Introduce standard terms on all estimates.
- Examine operation / production output statistics.
- Establish capacities on all key operations, machines and people. Aim to reduce bottlenecks.
- Introduce packing lists on all deliveries and ensure customers sign delivery notes.
- Introduce overtime, lateness, and absence management controls. Apply company wide.
Further resources and information
Part of the Business Survival Guide - provided by Business Link
This article was supplied by Business Link
The guide is part of a wider package of services designed to help businesses survive the economic downturn and ultimately build stronger businesses that are capable of seizing future opportunities. We hope that you find this guide useful. Web: www.businesslinksw.co.uk / Email: creative@businesslinksw.co.uk
