As CEO, one of your many responsibilities is likely to be leading the development and execution of your company’s long-term strategy in order to maximise shareholder value. And maximising shareholder value usually means growing the business – growing sales, growing revenues, growing margins and growing profits. So it’s no surprise that for most CEOs, the bulk of their time is devoted to product development, marketing, sales and their people. This is the essence of a profitable business – designing and developing high-quality products, engaging with your target markets, and acquiring large volumes of profitable new business. Yet all of this is restricted unless the business also achieves operational excellence, as this delivers competitive advantage – at the heart of any successful business is an effective operation.
Operations – a facilitator of growth
Operations may not be viewed as a direct driver of growth, but it is most definitely a critically important facilitator of growth. Intelligently-engineered products, a bold and compelling marketing strategy and a confident and capable sales force are all key components. But will all your effort in these areas deliver competitive advantage and the rate of growth you forecasted if they’re not supported by efficient and effective operations?
In my experience when I’ve seen a business attempt to drive additional volume through an operations team that’s not geared up to manage the workflows, they inevitably erode the whole customer sales experience, resulting in high attrition rates in your sales pipeline. This impacts both new and existing customers, damaging service levels and weakening customer satisfaction.
Do you know if your existing operations in both front and back office have the capability and capacity to take on new business?
Growth is never by mere chance; it is the result of forces working together.
Operations – an engine of growth
Traditionally, it is marketing and sales that take all the plaudits when a company hits new business targets and delivers record sales. But operations has an increasingly important role to play in driving growth. By delivering a truly excellent customer service, operations can build deeper customer relationships, increase referrals, enhance your brand and boost your net promoter score. With the right culture, the right frameworks and the right objectives, your operations can become not just a service function, but an engine of organic growth.
Achieving sustainable growth
However you’re driving growth, the fact remains that your operations must have the flexibility, capability and capacity to manage the increase in business. Because three months into your new marketing plan, you don’t want to suddenly find that you need to increase your operations cost base beyond target to service new business volumes. So it’s essential that there is a deep understanding of the operational capabilities and ensure they are aligned with your growth forecasts and objectives.
Efficiency is doing things right, effectiveness is doing the right things
Have confidence in your operations’ capabilities
Do you need an independent, objective perspective of your operational capabilities? At dhp we are unbound by internal politics, and we’re not afraid to ask tough and searching questions, which are key to real change.
A dhp diagnostic provides remarkable insights into the strengths and weakness of your operations, enabling you to align objectives with your capabilities, and take rapid action to enhance your capacity in key areas.