It seems like the months and years just whiz by.
Here we are in November, the Melbourne Cup is upon us, and it won’t be long before Santa’s been and gone. Then the new year rolls around.
So, when it does, what will you do differently? We ask because it’s incumbent upon us as leaders to cause the change we want.
One technique that works is ‘zooming out’. Getting that satellite view of what your business is, and what it does. Understanding what it needs to do differently to get a better result.
And here’s what we want to suggest – manufacturing may be what your business does, but it is not your business.
Your business is made up of many different functions, many systems and processes. From hiring and HR, to marketing, corporate structure, insurance, finance and legal. It is within that infrastructure that your business carries out its manufacturing activity.
OK – so what?
The simple premise for business is this – make a profit and collect your cash. So, when we talk about ‘business improvement’ we’re usually talking about making a bigger profit and collecting more cash. Maybe then, there are clues in modelling our behaviour on businesses that are already bigger than ours?
Where to focus your effort
So, where to focus your effort?
There are three areas that are often overlooked in favour of the ‘transformation’ or manufacturing part of your business. Effective effort in those areas can create a disproportionate gain. Big businesses already invest in these areas. Maybe that’s why they got big?
They are:
- Corporate governance: Yeah, I know, yawn! Right? I’d rather eat a frog. But a commitment to good corporate governance has an immediate effect. It doesn’t buy ‘well intentioned advice’, it focuses you on the stuff that matters. It forces deep thought, good decisions and positive change. It creates real value.
- An insightful finance function: You have proven that you can get by with a bookkeeper, a ‘beanie’ and your gut instinct. But underinvestment in the finance function means you don’t know what you don’t know. It robs you of the information, knowledge and insights of a CFO. The stuff that changes your world.
- A great corporate culture: After the cost of materials, people are likely to be your biggest spend. What if your people were your advantage? Now, that’s hard to copy and that discretionary effort is the difference between meeting expectations and killing it. Good cultures attract good people, and good people attract more good people.
We hope reading this has at least caused you pause for thought. If you’d like to chat more about how you would get started in any of those three areas, Northern Strength is here to help. Please reach out anytime.