Isn't it Time to Optimize Your Organization?

By: Kathy Kent Toney, CEO & Founder of Kent Business Solutions

Image by rawpixel.com on Freepik

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With constantly changing economic conditions, business leaders often encounter the daunting task of improving their organization's profitability. Some may not know where to start.

A great way to do that is to optimize their organizations.

Check out the following five steps an organization can focus on to optimize their organizations -- because who doesn't want to elevate their profitability?

1. Craft a Culture Employees Can Embrace

According to McKinsey, companies with cultures ranking in the top quartile of the Organizational Health Index post a 60% higher return to shareholders and 200% higher than those in the bottom quartile.

There's no easy formula for creating a great culture; doing this subject justice in a 500-word blog could prove quite challenging. The foundation starts with valuing each individual, giving them a voice in everyday matters, and creating an environment where employees love to come to work. Then, build from there.

2. Work Closely With Employees to Develop Goals They'll Support

When business leaders establish top-level goals and all levels of the organization establish their goals in support of them, that's an excellent place to start. However, the employees have to buy into their plans.

Executives must cast a vision of where the organization is heading and the employee's role in getting there. If employees don't connect to the big picture, productivity can suffer, and the organization's profitability could follow suit.

3. Make Effective Use of Key Performance Indicators (KPIs)

Successful organizations use KPIs to measure progress toward their goals. Even if you're currently using KPIs, you want them to tie directly to your most critical operations so you can stay on top of the progress toward your goals. You'll be alerted when measures are trending downward by monitoring your KPIs so that you can intervene more quickly with solutions.

4. Improve Your Processes

Organizations with streamlined business processes experience reduced costs, increased revenue, and improved profitability. Take Merchants Insurance Group. After streamlining their Portfolio Management area operations, they improved on-time project delivery to 80% and achieved a 758% revenue growth in the first two months.

For your operations, focus first on improving your processes, which are the most significant cost drivers and have the most time-consuming tasks. By doing so, you're likely to experience more significant gains on a shorter timetable.

5. Automate Your Processes

When organizations automate their business processes, it's a powerful tool for reducing costs, improving productivity, and increasing profitability. It's common for productivity to increase by over 300% with workflow automation over previous processes.

A great plan is to automate recently improved processes. Doing so can achieve even more significant cost reductions and productivity increases than process improvement alone.


Speaking of automating processes, Michael Cantu's and my best-selling book on Amazon, No-Nonsense Digital Transformation, discusses the power of automating processes.

Not only that, we dive deeper into how to transform cultures and encourage employee buy-in of organizational initiatives. So it isn't just for digital transformation fans!

If you're interested in learning more, click the button below.

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