It’s important for any business to understand not only what it does well, but also how it does it. Without giving away too many trade secrets, here is how I help clients accelerate growth through operational excellence.
Do you think your board of directors exhibits high performance? Now there is a way to find out. Take this assessment to see how many of the 10 characteristics of high performing boards you exhibit.
Feel free to contact me if you would like to discuss your results.
For those of you running, or hoping to run, or trying to run, growing and profitable businesses, there are only six metrics that you should be looking at:
Customer retention – What percentage of your best customers are you retaining? Thriving organizations retain more than 85% of their best customers every year.
Employee retention – What percentage of your top people are you retaining? You should be well above 90%.
Revenue per customer – Are your customers spending more with you each year? This metric should be increasing every year.
Profitability – Is your profitability increasing even if your revenues are not? This metric should be increasing every year.
Customer base – Is your customer base growing (meaning you have more customers this year than you did last year)? This metric should be increasing every year.
Vitality index – What percentage of your revenues come from products or services created in the last three years? World-class organizations have a Vitality index of greater than 30%.
How are you performing against these metrics?
In a previous post, I introduced the concept of Operational Elegance. Here is an assessment I have created called The Operational Elegance Index. This Index helps you assess how you can accelerate growth and maximize profitability.
After you have completed the assessment, I would love to hear your feedback on its’ usefulness and discuss how I might be able to help you raise your Index score.
To achieve Operational Elegance, you need to score well in two areas: technical and artistic. Just like the best figure skaters and gymnasts, elegant organizations are both technically sound as well as graceful and flexible.
Rank yourself from 1-5 for each statement in these two areas.
- We focus on one priority (the single fastest and most effective way to achieve our ideal future state)
- We replicate internal best practices across the organization
- We practice optimal speed (we know when to speed up and when to slow down to maximize results)
- We identify and maximize impact from our best ideas
- We practice operational transparency (we share information so employees understand decision-making and customers are more empowered)
- We measure outcome, not activity level
- We know who our ideal customers are
- We have a clearly communicated ideal future state and ensure everything wee do aligns to it
- We know who our best and next best employees are and focus on their development and retention
- We have processes that focus on efficiently achieving the right outcomes
- We communicate the expected behaviours for peak employee performance
- We hire for where we are going, not where we are
- We encourage healthy debate and productive failure
- We don’t tolerate poor performance
Check out my latest article for IndustryWeek
A thriving operational excellence function teaches everyone else in the organization how to be excellent.
I have partnered up with my friend and colleague Phil Symchych to provide you with strategies on how to accelerate the growth of your business and build more business wealth. Read our practical and applicable insights in the documents below.