By Mike Bedel, CPA, MBA, CGMA
Partner, Director of Audit & Assurance Services
Almost every profession in which people operate today is very competitive. Organizations compete against one another on customers, talent, pricing, service, product quality, innovation and more.
None of these companies aspire to be average. They like to believe they excel, even when the data might prove otherwise!
There are many ways to measure your organization against others. Statistics can look at peer to peer, against the industry, with companies of similar size or that share the same geography. There are metrics for revenue, number of employees and so on.
But the stark truth is, many businesses are on track for mediocrity – because they haven’t taken the steps to be truly excellent.
To be above average, leaders need to create an environment where people crave success – for themselves, for the entire team and especially for the customers you serve. You want to have a company where talented employees want to work.
Take a look at your organization and how it is run, top to bottom. Make a hard assessment of your leadership team and the quality of the product or service you are providing. How much are you investing in continuing professional education? Does your team have a “deep bench”? Are there other people ready to step up in each department if the current manager leaves or falls ill?
One common mistake that can hold a company back is having departments that act like independent silos, with little interaction between each other or with clients. Encourage your customers to interact with different departments, to build relationships and uncover new lines of service you could be providing. Make sure clients are talking to more than just the department heads, so if there is a break in the chain of leadership, the next person is ready to link up and continue the mission seamlessly.
Take a look at your processes and procedures. If you find that they are exactly the same as five years ago, things probably need to be updated. “Change for the sake of change” can cause problems, but failing to keep step with changes in the way you operate poses even more of a threat.
Analyze your technology, your computer infrastructure and IT function. To keep ahead of the curve, consider upgrading your hardware and software frequently, such as every three years. Don’t look at these sort of expenditures as a drain on your bottom line, but investments in the future of the business.
How much to you spend on research and development? Are you investing in new product lines or expanding the set of services you provide? Whatever business you’re in, from an assembly line at a manufacturing plant to professional services, you should always be looking to grow the breadth and depth of what you can offer your customers.
Do you solicit feedback from clients? How much and how often? Many companies do this, but only ask customers if they’re satisfied. Instead, ask them what you aren’t doing right, or areas where they could use assistance that you don’t currently provide. This is the type of feedback that spurs innovation.
If you just want to be an average company, keep doing what you’re doing. Accept “OK” as normal.
But if you truly want to stand out from the crowd, that requires taking risks and trying new things that may or may not work out. In this way you can distinguish yourself from your competitors, for both customers and the talent pool.
If you need strategic advice on how to make your organization truly exceptional, please contact Mike Bedel at (317) 613-7852 or email [email protected].