Some people are methodical, some are fast and most just want to get things done. But no matter your approach, the way you work is a reflection of your values and your ability to manage stress in the workplace.
“Every industrial organization should aspire to deliver the best products at the lowest cost possible paying the highest wage possible” -Henry Ford
You can drive operational efficiency through 10 main groups:
- General Improvements
- Footprint & Real Estate
- Process Improvement
- Organization Structure
- Workforce Management
- Management Structure & Governance
- Project Management
After analyzing the things that are the most impactful with the 10 main operational efficiency groups, we will create a solution and implementation of the change.
The quickest way to increase operating profit is to increase margin.
With the help of a large consulting firm to compile and analyze your data with one or multiple ERP systems, they will develop a pricing guideline system for each SKUs in your system based on algorithms.
The ultimate goal of this effort is to help your salespeople earn more gross profit dollars and become better businesspeople. So, we find a personal monetary benefit and also a personal developmental growth benefit that are aligned with the principles and values of your employees. This is a key milestone and element of the success story.
The second critical part is to explain the “WHY” your company needs to do it and cannot fail. As Simon Sinek says, Start with WHY. This pricing for profitability initiative is only a portion of the masterpiece of the overall strategy.
The third part is the process and the training. The program needs to be done in 4 buckets:
- Train all levels of the organization from top-down, and establish a culture of coaching and support structures.
- Align policies, procedures, processes, and technology including compliance that will help the sales team to deliver the results.
- Linking talent management and incentives with tools and processes
- Dashboard, tools, and back end support.
Finally, leading by example, doing it yourself to understand the obstacles of the sales team in order to find solutions and arguments of their resistance to change. Don’t implement all the levers of the pricing methodology immediately, but rather by small steps, from the low hanging fruit and the least path of resistance first. Get feedback from the sales team after trying to implement a price increase to a customer. Build their (sales team) confidence level and remove their fear to lose an order or a customer. Be extremely consistent in the approach with regular and frequent check points.
It is critical to develop a series of Key Performance Indicators (KPIs) to measure the progress of change as well as implement a culture of change and coaching.
The 12 characteristics of Effective KPIs are:
- Few in number
- Easy to understand
- Balanced and linked
- Trigger changes
- Context driven
- Reinforced with incentives
The effectiveness principles listed above must be linked to your Business Vision and Strategies – for top management decisions.
Through some efficient brainstorming sessions, we will define the list of KPIs and work with the different functions of the company to develop tools to measure the results of those KPIs. Also, we will define the frequency and the way to communicate to the teams.
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We are a management consulting firm that supports and assists business to business (B2B) companies during their transformational journey.