The key to creating a well-run business is to see your organisation differently. Instead of seeing your business as a group of different departments, you have to organise the various functions of your business into a well-rounded, all-encompassing system, which constantly delivers excellent products or services.
Whatever business you’re in, the main framework of your organisation should be built upon solid a solid foundation. This foundation should have six components, which when joined together will help you create a business built by process methods and leadership.
Here are the main components that your company should live by:
- A Good Vision
The vision of your business must be concise, clear, and simple. When your employees find it hard share the business’s vision to other people, then it is clearly too complicated. Ideally the vision of your company should be summed up in less than 500 words. If you want everyone in your company to be in the same page as you, it is important that they understand where the business is going and how it will get there. Anyone who isn’t on the same boat as you are shouldn’t be in your organization. Strengthening this component will help you eliminate problem employees.
- Talent Pool
As a business owner or leader, you should know by now that people can be either an organization’s biggest asset or biggest liability. Part of good leadership is getting the right people to perform the work necessary. Even poor performance from just one individual can greatly impact your company. To achieve this, you need to invest time and resources in getting great talent. Don’t just settle for applicants who fit the minimum requirements, or people who are willing to get less. Trying to save on payroll will cost you hundreds more in headache and employee problems.
The data component is also important, as this enables you to manage your company through small activity based numbers, which will help you see where your business exactly. Essentially, these numbers include gross margin, number of quotes, customer satisfaction, and number of sales, closed business, and accounts receivables balance. Have a weekly target, and assign someone to handle and be accountable for every number. This way you can keep track of the company’s performance easily.
Part of good leadership is knowing what is going on in your business at all times. As issues come up, you need to list them down. In addition, you must make everyone understand that pinpointing issues is healthy and the right thing to do. Rank the issues from the most important to least important. Once you have the order of priority, start with the top three. Identify the cause, discuss the best ways to solve the problem, and then solve the problem by getting your team involved.
By strengthening the process of your organization, you are making the business more profitable, even without your help. To ensure a fool proof process, go through your business model and focus on the main, crucial steps within every process, and then make sure everyone under that process follows each step properly. Identifying the main processes that your business model comprises of and documenting each process in an easy to understand manner, will help employees do their job better. At the same time, this manual can be used to train new employees.
Think about gathering your leadership team every quarter for a whole day, and use that time to hash things out, get back on track, and resolve any issues. Doing this will bring back huge results for your business. The most important thing to remember to have a successful and well-run business is clarity. Always get to the root of the problem to stay on the right path.