Speed of business is one of the key competitive advantages that many organizations don't utilize effectively. Speed can have a direct impact on your organization's profitability and performance. However, the effective use of speed is counter-intuitive, because it isn't always about moving faster. It is about practicing responsible speed. That means knowing when to speed up and when to slow down in order to get better results.
See the correlation below in many key areas of your business.
Here are some examples of how speed impacts profitability:
- When implementing strategy and change effectively, you need to slow down to ensure it is done right. Reducing the speed and focusing on performance will increase productivity and profitability.
- When acquiring new customers, you want to accelerate the process. By reducing the time it takes to acquire new customers, you are able to approach more customers and reduce the cost of acquisition for each new customer.
- When hiring and recruiting new employees, you need to slow down the process to ensure the right people are being hired. Making the right hiring decision leads to reduced turnover and hiring costs, and therefore, increased profitability.
As you can see, there is a direct correlation between the speed at which an organization operates and the profitability it can achieve. Are you doing an effective job of managing speed in your organization?