To improve business performance, you need determination, tenacity, and resilience. But you also need a clear plan with corresponding actions that you can implement with your team that go right to the heart of the way your business operates. Understanding your business is crucial – to instigate positive change, you must know where the challenges and opportunities lie – so, at Secantor, our expert consultants can provide practical support to help you to implement improvement strategies tailored to the requirements of your customers and your business model.
Whilst a tailored plan is always required, here are 4 areas that would improve the performance of any SME business.
1. Set Out Your Business Plan In Writing.
Many owners of small and medium-sized enterprises (SMEs) have a general plan for how to grow their business – but it’s stored in their head. This makes enacting it in a progressive way virtually impossible, with key staff left in the dark about how they can contribute to the business’s improvement. The process of writing your plan is enlightening and central to the formulation of your ideas. As you externalise your thoughts on paper you will see them from a different perspective, which may cause you to re-think or adjust your priorities.
Document your plans so that:
You can interrogate your ideas to explore whether they are relevant within the current marketplace conditions.
Specific actions can be identified to increase the likelihood that your plans will be accomplished. Actions should be prioritised with information about deadlines, success criteria, and who is responsible for implementation.
You can share your ideas with your management team and staff to ensure full engagement and accountability for their own areas of responsibility.
2. Measure Your Performance.
Key Performance Indicators (KPIs) are an effective way to focus your team’s minds on how to improve business performance. Targets should be straightforward, specific, and time-limited, with a clear indication of how they will be measured using reliable data. A dashboard is an effective way to present performance reports, so you can assess progress towards the KPIs and take action to target weaker areas when necessary. Make sure you select measures that cover your complete business including financials, sales, operations, customer satisfaction, quality, HR etc.
3. Learn To Delegate.
It’s not uncommon for SME owners to attempt to take control of every aspect of their business, including day-to-day operations. Noble though this may be, it’s a risky strategy as it diverts you from your core responsibility of setting strategic direction and monitoring & managing business performance. By establishing an experienced and trustworthy management team, you can delegate operational matters to colleagues, so you can concentrate on providing the strategic leadership your business needs to thrive. It also empowers and develops your team so they learn new skills, feel more connected with colleagues and the company vision and ultimately become greater advocates for your business.
4. Develop Partner Relationships.
Delegating operational matters will free your time to develop partnerships with industry key players, including suppliers and customers, so that you can forge strategic alliances to:
Formulate demand forecasts to optimise the supply chain.
Share knowledge & experience
Collaborate on Research and Development (R&D) projects.
Share expertise and resources for more efficient business operations.
Develop joint funding streams.
By turning key customers and suppliers into partners you will engender greater trust and understanding that will help both sides achieve greater certainty and commercial success. This will make it easier to plan resources and finances, ultimately giving you peace of mind. Working in isolation is never a good thing and running your own business is often a lonely place to be. This is why partnering with others can be liberating.
But you can’t talk to your partners about every element of your business. By appointing a non-executive director (NED) you will find a true business friend to carry the load with you. As an independent business expert, an NED will provide you with experienced, impartial insight into your business’s performance. With extensive commercial experience an NED will listen to your ideas and help you formulate a plan that builds value in your business. They will also help you develop a strong management team and ensure they take responsibility for delivering excellent business performance.
Contact Us For More Information
To find out more about how you could improve the performance of your business please book a call with one of our experts.
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