By Carlos Barboza
“For every minute spent organizing, an hour is earned.”– Benjamin Franklin
Many people will make New Year’s resolutions; however, the majority will also fail to achieve them. Still, making resolutions is a good idea if you have the right tools to accomplish them, such as good order and organization.
I’ve been in this industry for almost 13 years and I’m still implementing business optimization techniques in order to create a leaner, more efficient, and ultimately more profitable operation. Otherwise, routines can become monotonous and your calm can quickly turn to boredom or frustration.
We know that every single day (especially in this type of industry) we’ll find daily inefficiencies and streamlining processes (at least in my business); for instance, when a worker misses a day, when replacing a part for a customer you need to hurry to find a replacement at an auction or another salvage yard, or your delivery truck breaks down.
Businesses can improve their operations and achieve their goals more effectively when they implement business optimization techniques that involve several key steps, including analyzing current processes, setting measurable goals, identifying areas for improvement, and implementing changes. It also requires collaboration and communication between various participants, including business owners, employees, customers, and sellers. A process that’s well managed and continuously improved can reduce errors, shorten processes, increase productivity, achieve effortless compliance, provide a competitive advantage, result in proactive solutions, identify waste, eliminate duplication and increase overall business performance.
But, who needs process optimization? Here are a few ways to recognize processes that require optimization:
• Poor or broken communication channels
• Inventory waste
• Errors and defective product
• Time waste
• Redundant steps in the process
• Repetitive issues
Creating effective and efficient business processes can be complex and time-consuming, but maintaining order and organization is not just a matter of convenience; it’s a strategic imperative.
So, how to improve and optimize business processes? There are hundreds of process optimization methods and techniques you can inquiry and/or apply (Kaizen, Six Sigma, TQM, etc.). It’s your job to do your research and decide what system works for you and your company. Here are some points to bear in mind that could help create a good business process:
• Clear objectives and goals. Have a clear understanding of what optimization will achieve and communicate these goals to your team, so everyone is on the same page.
• Effective communication. Regularly share updates on the company’s strategy and how their specific roles contribute to its success. This helps employees see the bigger picture and understand how their individual efforts tie into the larger objectives.
• Team collaboration. Make the team understand the fundamental tasks of the process.
• Create a good management team. A strong management team is the backbone of any successful company. They are the driving force behind decision-making, strategy development, and ensuring that operations run smoothly. Building a robust management team starts with identifying individuals who possess not only the necessary skills and expertise, but also share your company’s vision and values.
• Process mapping. Process mapping helps analyze the current process and locate areas of inefficiency or ineffectiveness that can be improved and optimized.
• Measure your production. This allows you to track and analyze the efficiency and productivity of your processes, which is crucial for identifying areas that need improvement.
• Workflow automation. Automation provides opportunities to quickly improve and optimize a business process by eliminating manually caused bottlenecks, addressing repeatability and quality issues, and removing inefficiencies.
• Reduce waste. Lower costs are a direct result of business optimization efforts. By streamlining processes and reducing waste, businesses can minimize unnecessary expenses and optimize resource allocation. This leads to cost savings in various areas such as labor costs, operating costs, and inventory management.
• Identify what generates the higher returns in your company. This involves analyzing and understanding which aspects of your business are most profitable and contribute significantly to growth and productivity. To begin this process, you need data. Start by gathering comprehensive information on various aspects of your operations such as sales, production costs, marketing efforts, and customer feedback. Use these metrics to determine which areas are bringing in the most revenue or contributing the most value. I’d highly suggest to apply The Pareto Principle.
• Innovation. Don’t be afraid to experiment with new ideas or approaches in these key areas. Innovation can often lead to even greater returns by uncovering untapped opportunities or improving existing processes.
• Get rid of work that doesn’t generate any value for your company. Warren Buffet once said: “Price is what you pay. Value is what you get.” Eliminate any work that does not contribute value. After all, wasted time and resources can hinder growth, productivity, and ultimately result in a less successful business.
• Continuous Execution. Tony Robbins mentioned “By changing nothing, nothing changes.” Optimization is not a one-time process, as processes evolve, new problems will emerge in the process, and that’s part of life. Process optimization design must be flexible and changeable during the journey.
• Let people go if they are not aligned. 97% of employees and executives believe lack of alignment within a team impacts the outcome of a task or project (McKinsey). Quite simply, if the wheels of a car are not aligned, the car veers off-trail, the tires wear unevenly and the steering wheel stops functioning in a proper manner. When employee and company goals are misaligned, it can create friction, and even cause decreased performance and productivity among teams. Therefore, surrounding yourself with individuals who are committed to achieving results will create a motivated environment conducive to growth.
Creating effective and efficient business processes can be complex and time-consuming, but maintaining order and organization is not just a matter of convenience; it’s a strategic imperative. Also, people are usually resistant to change, especially when processes have been in place for a long time. Yet, making a process more efficient can help streamline procedures, eliminate unnecessary tasks and duplication, automate certain tasks, increase ROI, and improve employee and customer satisfaction and that will keep your team motivated and aligned with the company’s goals. I will end with this famous quote from Ralph Waldo Emerson: “A good system shortens the road to the goal.” Enjoy your organized journey. Blessings.
Carlos Barboza is the owner of Eco Green Auto Parts, Orlando, FL. Their website is https://ecogautoparts.com and they can be found on Facebook @ecogreenautoparts.
