Operational Excellence Insights - Transform Your Business through Change Management and Maximizing Your Data, People, and Processes

• One of the most significant barriers to scaling is limited access to funding. Small & mid-market businesses often lack the capital required to invest in new equipment, technology, talent, or marketing that are necessary for growth.
• Actions:
  • Evaluate your Financial Support. Make sure you have aligned with a Strong Banking Partner, and have someone in the right seat overseeing your business's financials.
  • Align with a Good CPA, and hire a knowledgeable Controller, Fractional CFO, or CFO depending on your size. They will ensure you maximize your dollar.

2. Inefficient business operations:

• Inefficient processes, poor communication, and ineffective management can all impede the ability of a business to scale. As a business grows, it becomes more complex and requires more streamlined systems and processes to remain agile and efficient.
• Actions:
  • Evaluate your Operations Support & Leadership. Do you have a SME overpromoted to the Operator Seat? Have you invested time in an Operating Plan?
  • Invest in the right resource. Shortcuts only lead to more pain. An experienced operator brings processes, systems, and change management skills to elevate your business.

3. Lack of scalability planning:

• Many small & mid-sized businesses do not plan for scalability, assuming that they will be able to expand as the need arises. However, scaling requires a carefully crafted plan that takes into account market conditions, industry trends, and internal capabilities.
• Actions:
  • Invest time and energy in both process and technology roadmaps which create clarity and a plan to enable scaling.
  • If you have not created or recently refined your business vision and strategy, then start there FIRST.

4. Failure to adapt to changing market conditions:

• Businesses that are unable to adapt to changing market conditions risk losing relevance and falling behind competitors. It is essential for small and mid-market businesses to remain nimble and pivot when necessary to remain competitive.
• Actions:
  • Strategy should be an ongoing practice not an event. Leadership should spend time on this on a routine basis and engage input at all levels of their business.

5. Limited talent pool:

• Recruiting and retaining top talent is critical for any business looking to scale. However, small and mid-sized businesses may struggle to attract and retain the necessary talent due to a limited talent pool, compensation constraints, or lack of professional development opportunities.
• Actions:
  • Focus energy on your Organizational Design, this should be something you do at least twice a year.
  • Once the design is complete, focus energy on the right people in the right seats. This will include tough but necessary decisions. Also leverage an HR Pro when you can, go fractional if you cannot afford full time.

Fireproofing your business with Change Management

Struggling to successfully make changes in your business?
Frustrated by Another implementation that has gone wrong?
What were the outcomes?
Client Experience Issues?
Lost Revenue?
Risk Exposure?
Is this avoidable?
YES!

A Good Change Management Process can make all of the difference!
The dissenters will complain and call it bureaucracy.
The doubters will say you need to be nimble.
Ask yourself if you can AFFORD to keep doing it the same way?

While there are a number of process models that you can follow. There are some simple principles:

• Visibility -
  Make the change visible to all potential stakeholders
• Education -
  Educate them on the change, who, what, when, how, why
• Assess -
  All parties review and assess the impact and change required for a successful implementation
• Plan -
  Make a thoughtful plan that ensures a successful implementation
• Approve -
  Key stakeholders, and key oversight roles approve the change plan (depending on industry you may need Risk, Legal, Compliance expertise/input)
• Communicate - 
  Have a well communicated plan to all impacted parties, with proper procedural updates, and any other tools required for success
• Implementation - 
  Make the Change! Implementation should include some type of Test/control environment to mitigate risk
• Evaluate - 
  Evaluate success of implementation, and apply learnings for future implementations

Now you have a change process!

Are you measuring the most important things in your business?

How do you define Metrics That Matter?
Who Should Be Involved?
Why should you focus here?
Metrics That Matter, allow you to chart your progress in the most important areas in your business.
They influence action.
They enable accountability.
Metrics That Matter should tie directly to your business goals, which should tie to your strategy, which should tie to your vision.
This is key to getting everyone rowing in the same direction.
Everyone understand the goals and the destination and can see if you are on course, off course, or if you need to redefine.
If you are not routinely using metrics, then start small.
Keep it simple and easy to understand at all levels of your business.
Include the subject matter experts in each of your functional areas in both the goal setting and the metrics development.
This creates ownership and accountability of the outcomes.
Financial metrics are not the ONLY metrics.
Don't just focus on vanity metrics like Revenue.
They are important but they do not in isolate and detect challenges in your business.
Think of your metrics that matter like the diagnostic tool on a car, that identifies potential issues.
These should help you proactively identify where you are doing well, and where you may have to engage the team to address potential issues.
It is your early warning system!

In summary:

1. Create at most 10-12 Metrics That Matter
2. Tie them to your Business Goals, which tie to strategy & vision
3. Get input from functional leads and key experts in your teams
4. Monitor them routinely with a process to take action as necessary
5. Review them quarterly to ensure they are still relevant

Top 5 Fears of a Small Business Owners & Actions They Can Take to Address Them

It is tough being a small business owner. Outside of failure, here are the Top 5 fears of small business owners & the actions they can take to improve the chances to succeed.

1. Financial instability: Many small business owners worry about the financial instability of their business, including not having enough cash flow, running out of money, or not being able to pay bills on time.
   Actions: Wisely choose these 3 key advisors you need to ensure your dollars are optimized. Your banker, your CPA, and your Finance Leader (Controller, CFO) This isn't about finding your best friends. If you choose correctly, they will have tough conversations with you and tell you what you NEED to hear.
2. Inability to attract and retain customers: Attracting and retaining customers is a major concern for small business owners, especially when there is intense competition in the marketplace. They may worry about how to keep their customers loyal, attract new ones, and stand out from the competition.
   Actions: Consistently invest time in your strategy. It needs to be a continuous effort at all levels of your organization, not a one time event. Be relentless about your customer's journey. Retaining customers is not about your sales process. That is acquisition. An end to end client experience that delivers on a promise is critical. Invest in a good marketer or partner. Your sales funnel is critical to your long term growth.
3. Managing growth: When a business is growing, it can be challenging to manage the increased workload, hire new staff, and expand operations. Small business owners may worry about the impact that growth will have on their business and their ability to manage it effectively.
   Actions: Invest energy in Organizational Design and the Right People in the Right Seats. Depending on your size, you likely need an Operator. An operator knows how to scale your business, to do it nimbly, and does not require you to double your staff, each time your double your sales.
4. Legal and regulatory compliance: Small business owners must comply with various laws and regulations that can be complex and time-consuming to navigate. They may worry about making mistakes that could lead to legal or financial consequences.
   Actions: Choose a good Legal partner, with experience in YOUR industry. If you are in a heavily regulated industry, take no shortcuts. Shortcuts may cost you your business.
5. Technology changes: Technology is constantly evolving, and small business owners may worry about keeping up with these changes. They may worry about the cost of implementing new technology, the impact it will have on their business, and the risk of being left behind if they don't adopt new technology quickly enough.
   Actions: Routinely review your strategy, your operating plan, and the technology roadmap that aligns to them. Seek an expert advisor if you do not have the talent in house.