Alignment Foundation: Building a Naturally Innovative Organization™ Part 2

By |2020-01-21T16:18:30-05:00March 7th, 2016|Innovation, Leadership, Revenue Growth|

The Alignment Foundation: The Core 4 The Alignment Foundation is about the Core 4: Purpose Values Mission Vision Nothing earth-shattering here. Many of us have heard that we need to have these four pieces in place. But what I'd like you to consider is whether they are REALLY part of your who your organization is, deep to the core. If an employee was acting outside of the core purpose or values of the company, would every other person in the company step in and provide some correction? It starts with the senior leadership team. Each person on the senior leadership team must exemplify each of the core values of the company. They must know the purpose of the company and be able to tell what that looks like when realized. They need to be able to quote the values and mission (both short), and do so with real conviction. And sharing the vision needs to be second nature, with stories of what you are creating and what it will look like in the future. Your Purpose Organizations exist for a purpose. Many would consider that purpose is to make money or create an impact. But purpose goes deeper. Purpose to a faith-based leader may be to glorify God. Purpose to a non-profit leader may be to save millions of lives. And the purpose of a for-profit leader may be to have both a profit and impact. Your Purpose is your WHY. Your Purpose never changes. Big Think's Purpose: To Create offerings and events that transform businesses. Your Values Core Values are those things that you will get into arguments over, and fire people when they don't line up with them. They are your immovable rocks [...]

Analyze This: 3 Tips to Help Improve Operational Efficiencies

By |2016-03-01T15:04:22-05:00March 1st, 2016|Operations|

For growing companies who are starting to realize real revenue growth, it’s important to analyze operations. This allows you to review key areas of your company, find weaknesses and strengths, and improve on your processes. Here are three areas that should be analyzed to help improve operations: Revenue Analysis An analysis should be made up of the following: Sales mix Product demand Order quantities Product obsolescence Creation schedules Storage space Competition Look at sales generated by different types of selling efforts: Direct mail Online Through partners Etc. Determine the variability in volume, price, and cost of each major product or service. Ask this question: Should products or services be more personalized?   Cost Analysis Direct cost ratios should be used in analyzing operating costs, which include: Direct labor/sales Direct travel/sales Direct marketing/sales Determine if costs are excessive relative to production volume. The ratio of selling expenses to net sales reflects the cost of selling the products. As a Cost Analysis is implemented or revised, approach it from a cost/benefit perspective. Each offering’s costs should be compared to the direct income generated form that offering. Then you can decide whether your company should continue offering that product or service. Example: If you have a product that contributes a very small margin (<5% margin), it may not make sense to keep that product unless there is a strategic advantage gained by offering it.   Process Analysis A business process is an operation, function, or activity that may cross departments of a company to create the product or render the service. By concentrating on the entire process, you can improve operations and product/service quality, realize cost savings, and reduce processing time. In appraising processes, consider the following questions: [...]

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