How to Achieve Rapid ROI through High-Impact Operational Performance Improvements
Jay Milligan, the President and CEO of CCi, with over 30 years of operational leadership experience across various business sectors, recognizes that economic uncertainty and business disruption are here to stay. In this article, he shares his insights on how operational performance improvements can help organizations remain competitive in a challenging business environment.
Identifying Improvement Opportunities
To improve operational performance, organizations must first recognize that they are not performing well or could perform better. However, many organizations don’t know where to start when identifying the root cause of the issue, which means they can’t accurately “size the prize” (potential KPI uplift) or prioritize their focused improvement efforts.
Jay recommends conducting a loss and waste analysis, a lean process for analyzing the key performance areas delivering competitiveness in the value chain, and then quantifying and prioritizing the scale of improvement opportunities. Although the loss and waste approach originated in the manufacturing sector, it can be applied in any industry to identify major losses within the business.
Short-Term Opportunity Capture
Once the appropriate level of detail has been gathered from the loss and waste analysis, each prioritized loss must be quantified financially and verified by your operations and finance teams. External experts can provide an unbiased perspective and help organizations shift out of their comfort zone and kick-start their business transformation journey.
To identify a worthy short-term ROI opportunity, Jay recommends looking for opportunities that require a low upfront capital investment, have high ROI potential, can be implemented quickly, are scalable, and sustainable in the long term through best-practice implementation.
Executing the Strategy
Once high-impact opportunities have been identified and management buy-in secured, organizations must set up their performance improvement projects and bring in the right people with the right skill sets to execute the strategy. Sometimes it’s just not practical to hire all the necessary resources internally, and organizations must look outside for resources with proven experience across multiple successful projects to help achieve the necessary results.
It is also essential to continue investing in employees through upskilling, leadership development, coaching, and celebrating incremental wins to inspire a culture of continuous improvement. This is vital not only to obtain the desired near-term performance acceleration and ROI capture but also to ensure ongoing sustainable improvement.
In a challenging business environment, operational excellence leaders are pulled between short-term recessionary alleviation and longer-term growth strategies. By identifying and capitalizing on high-impact improvement opportunities, organizations can achieve rapid ROI and remain competitive. The key is identifying the improvement opportunities that will have a maximum impact, addressing them through structured improvement projects, enabling employees to own and drive the initiative, and sustaining the gains through continued best practice implementation.
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News Source : Jay Milligan
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