Key Drivers of your Business

As a business head, you may be spending your time, effort and energy in many activities of your business. The more you effectively spend your time in critical elements, more your business prospects.

You need to understand the fundamental of your business drivers and your awareness about those drivers and the depth of your management on those drivers will bring profitability and growth.

Key drivers of your business:

Employee:

As one of the appreciating assets in any organization is PEOPLE. However, one of the challenging area for most of the business head is managing people.

It involves 

Manpower Planning for existing and future 

Attracting Right People 

Engaging towards organizational goal and culture

Providing Growth opportunities and learning

When you are not spending your time on this "People" factor, it costs the organization regarding losing skill, high attrition, loss in delivery, quality and so on. 

From our experience with small, emerging organizations, most of the chronic problems in the organization are due to "non-availability of right people in the right positions."

Profit :

One of the critical aspect for sustaining any business for a long term is " Profitability."Only when the business generates a decent profit, the business can survive and look for growth opportunities. As a business head, you must know how the business does generate profits and the factors contributing to or affecting the profitability of the business.

To know the causes or sources of profitability, you must be aware and have depth understanding of the following factors

1. Understanding your value chain or cost stack up in your products

2. Your pricing methodology and relevance with reality

3. Product portfolio and margin in each segment

4. Buiding cost consciousness culture in the organization

5. Your sensitive analysis on volume and variety or product portfolio mix

Cashflow :

As we have observed in some organizations with high profitability, the organization struggles to meet the working capital requirements, and the business head spends most of the time in managing the cash flow issues. The reason is lack of understanding on the aspects of from where / when / how much money comes in where/ when/ how much money goes out from the business.

Business head needs to know the fundamentals of money flows irrespective of his background, financial illiteracy. He must know to balance the payables and receivables so that the business can run smoothly.

Growth :

Growth is essential to sustain and increase the profit. Beyond some point of effectiveness, increasing the profit is difficult. If a business wants to generate more profit, then one of the ways is looking for growth in business topline revenue.

This growth is possible in multiple ways as follows

1. Increasing share of business or volume from existing customer base or product lines

2. Expanding into new product lines  from existing customers

3. Expanding to new customers or new demographic locations

However, managing growth phase is more challenging rather than running the existing operations with effectiveness. It calls for the marketing effort, new product development capabilities, competency building inside the organization to cope with growth challanges regarding technology, infrastructure, maangement process or practices, people, and capital.

careful planning and execution is required to migrate the organization towards next level grwoth.

Operational effectiveness & Flexibility:

To ensure profitability and sustained growth, internal operational effectiveness has to be maximized.

When we say effectiveness, it is all about Equipment / Asset Utilization, People efficiency, development and product quality.

As operational effectiveness has a direct bearing on the profitability and flexibility to the customer's requirment, your time and drives the organization towards " Lean way of working " as a culture is critical. One of the differentiator among the competitors is your organizational culture on continuously improving your operational effectiveness.

Customer:

A customer is a center point of focus for any organization. The existence of a business is only due to the presence of market and customer to buy from your organizations.

You need to understand the real reason for the customer to come repetitively to you for doing business. The reason could be

your price

your attitude

your delivery flexibility

your locational advantage

your attitude and approach towards them

your service quality 

once if you understand the real reason of your customer comes to you , you need to think interms of 

1. sustaining those factors and its feasibility

2. leveraging those factors and sustain it

Maintaince of quality relationship with customers will help you on a long term.

To sum up, 

the above factors are key drivers of your business, and how much time you spend on nurturing those factors determine your business sustainability and growth on a long-term basis!

Importance of Visual Management System in improving Workplace Effectiveness

As discussed in the change-environment-and-trigger-positive behaviour   Visual Management  System is one of the enablers to improve the workplace effectiveness and positive culture in the organization.

let us understand, what does it mean visual management and its components, application, and examples

What is visual management System?

Visual management is a concept of making the workplace more effective by making the condition or reality of workplace more obvious at a glance.

It exposes the waste or abnormality in the system so that waste or abnormality can be corrected or reduced instantly. 

It is not merely putting posters as a one-time effort, and it is a dynamic activity 

Components of visual management system:

It consists of 

1.Visual Displays
2.Visual Metrics
3.Visual Control

Visual displays :

Basically, it consists of labels, identification, instruction posters, displaying information.

It creates awareness or for educating the user about the place/ equipment/ process/facilities 

It can be in TEXT or in COLOURS to indicate relevant information to the user

Examples

Visual  Metrics :


Visual Metrics is one of the visual management systems in which emphasis would be more on to give information about Standard  Vs. Actual.

The purpose is to show 

the variance  or gap between standard vs. reality at a glance


This visual metrics brings down the subjectivity of the people on the information and also trigger the people to take action if there is variance between standard and actual.

Examples

Visual  Control :

Visual control is meant for creating error proof environment by adhering to the right way of doing the things

Examples

How to apply Visual Management System in the workplace?

As visual management system is a creative process and there is no end for improvements ideas. The more you bring your workplace with the visual management system, more transparent, higher the clarity among the team. It increases the engagement of the people.

However, we bring focus on the implementing visual management  effort  through the following steps

1. Identify the area where you would like to improve the visual management system
2. understand the problem in the selected area and decide what you would like to solve 
3. understand your audience or people background in the area and accordingly decide what components of visual management is required. Like visual display. Visual metrics or visual control.
4. Implement and make it dynamic in a sense, it needs to be updated periodically.
5. It would be more engaged, if the people involved in the work area, update the visual management.


As mentioned, Visual Management system is one of the simple, powerful, creative concepts that make people engaged towards continuous waste elimination or reduction in the workplace!

Build an Environment and Process for Employee Engagement

One of the most fundamental reasons for a consistent growth organization is people and how they are engaging themselves toward the organizational goal. Developing people and bringing them together is the primary responsibility of the CEO or head of the organization.

Bringing the “emotional connection within” is a challenging task, but is possible with two factors. One is creating a positive environment in the organization and the second is establishing a structured, consistent process.

The environmental factor consists of providing basic amenities to the employees, visual management, and housekeeping through daily management. A positive environment triggers a positive behavior, action, and results among the employees.

The structured, consistent process includes identifying the engagement methodology for different levels of peoples, defining the administration of engagement initiatives, rewards, recognition plan, etc.

Given in the following text is the framework of employee engagement initiatives for different levels.