In this part 2 (read part 1 here) of our overview on destructive business challenges that will impact your business performance we’ll focus a lot more on business operational matters, for example using data wisely, getting efficient with processes and attaining effective collaboration between the various teams in your business. So let’s get started.
Business Challenge 8: Not using Data effectively
In today’s data-driven world the words and phrases data, data analysis, business intelligence, data science and, of course, artificial intelligence are buzzwords thrown around by everyone. But therein lies the challenge as this lack of proper understanding of these terms and how they apply to business means that many people believe these are difficult concepts that are difficult to implement. And nothing can be further from the truth.
So what exactly is data then?
Data can be defined as a collection of raw facts or information from which conclusions may be drawn.
datasagar.com
Data is everywhere. Every measurable (and that’s a definition all on its own) action or point in time is data and create data points that can be used to evaluate and come to some sort of conclusion. And this can be done both at the large scale as well as at the very smallest of scales.
So then in business – how is data used? This where the discipline of business intelligence comes in:
“Business intelligence refers to the strategies and technologies used by companies to analyze valuable business data beyond traditional simple reporting,”
Bill Szybillo
Business intelligence is not the reports that you use to track performance – and hopefully you do at least use reports to track performance on some level. No, business intelligence refers to the techniques, processes and technologies deployed to take the raw data and make sense of it – often resulting in reporting. It includes processes relating to determining what should be measured and how does that relate to the overall goals and objectives.
Unfortunately many businesses are completely ineffective when it comes to business intelligence. Businesses that rely on guesswork risk making uninformed decisions that could jeopardize their success and we’ll show you some really effective ways to take even the most data challenges environment and transform it into a data savvy business.
Let’s dive deeper into this:
Pillar 5: Achieving Effective Business Intelligence with 4 Easy Strategies
Why it is Important to Measure Business Performance
Business Challenge 9: Poor standardization
We get it – you don’t need to standardize processes or define procedures because you have a team if uniquely brilliant individuals who can make split second decisions always manages to the right thing, the right way – every time.
Ok – but what happens when one of that super team goes away? Or your business grows and you need more super people? Or if you realize that your super people are just not as fast or as consistent as your most direct competitor? What then?
That’s why business processes standardization is important. Loosely it can be defined as:
the practice of establishing a set of rules, methods, or procedures for various tasks and operations within a business.
Ochieve.com
Business standardization is about managing and mitigating risk by creating a system for doing things that creates consistency and ease of learning, but still allow for individual flair and brilliance where it is required. It allows businesses to create clear, repeatable processes that improve productivity, reduce waste, and ensure consistent quality. In addition, it aids in continuous improvement by providing a clear benchmark against which performance can be measured and improvements identified
At its core it enhances efficiency to increase effectiveness and we’ll share with you some areas in the business – as well as ways to migrate the business into a system driven machine.
Let’s dive deeper into this:
6 Proven Actions to Improve Business Process Standardization
Business Challenge 10: Poor Internal Collaboration
The impact of this business challenge is best shown through an example that had all us gripped as it unfolded:
In 2010, the world was gripped by the plight of 33 Chilean miners trapped 700 meters underground in the San José mine. This crisis required extraordinary collaboration among diverse teams and organizations to address the severe threat to the miners’ lives.
Government agencies, mining experts, NASA engineers, medical professionals, and drilling companies from around the globe were brought together to form a unified response team. They had to collaborate closely despite language barriers, time zone differences, and varying area expertise. Each group brought unique skills to the table, from advanced drilling techniques to medical care for the trapped miners.
They collaborated on devising an ingenious plan to drill a narrow borehole down to the miners and then hoist them up one at a time in a specially designed capsule. This complex operation required impeccable coordination and communication among all teams involved.
After 69 days, all 33 miners were safely rescued. This successful outcome was largely due to the remarkable global collaboration that transcended geographical, organizational, and cultural boundaries. This incident serves as a testament to what can be achieved when teams effectively collaborate to overcome a severe threat.
Can you imagine what would have happened if every team involved followed their own head and did only what they thought right? We would not not be talking about one of the biggest rescues in the world, instead we’d be talking about one of the biggest tragedies in mining history.
When departments operate in silos, collaboration and communication suffer. This results in duplicated efforts, missed opportunities for innovation, and a fractured company culture. We’ll show you some proven techniques you can implement immediately to improve team collaboration. But, it has to be noted, that poor collaboration is often a result of poor communication, poor leadership and misalignment on company objectives.
Let’s dive deeper into this:
Improve Internal Collaboration with these 5 Proven Techniques
Business Challenge 11: Ineffective communication
Although this challenge is closely aligned with the previous one – poor collaboration – it is a separate matter altogether and often the cause of the collaboration challenges.
So how does one define great communication? This quote from a post over at Coursera is as good a definition as any:
coursera.org
As business magnate Richard Branson once said, “Communication is the most important skill any leader can possess.” Without effective communication, a business can resemble a dysfunctional game of Chinese whispers. The original message, whether it’s a strategic directive, a change in policy, or important feedback, becomes distorted as it passes from one employee to another. The result? A garbled message that causes more confusion than clarity.
In the bustling beehive of business, effective internal communication is the honey that keeps things sweet. When information is shared accurately and timely, employees feel engaged and valued. They have the data they need to make informed decisions and contribute effectively to the team’s objectives. This doesn’t just mean passing messages along. It involves fostering an environment of transparency where questions are encouraged, feedback is welcomed, and every voice is heard. It’s about creating a culture where communication flows smoothly in all directions, just like honey in a hive. The result? A more agile organization buzzing with productivity and positive morale.
Let’s dive deeper into this
The 5 Rules of Effective Communication in Business
Business Challenge 12: Misaligned focus and action
Imagine a symphony orchestra preparing for a grand performance. If every musician played their own favorite tune without coordinating with others, the resulting cacophony would hardly be music to anyone’s ears. A business without clear alignment of resources and objectives is much like this dissonant orchestra.
“Teamwork is the ability to work together toward a common vision.”
Andrew Carnegie
This holds true in the intricate dance of business operations, just as it does in the harmonious symphony of an orchestra.
When resources are aligned towards common objectives, it’s like an orchestra playing a beautiful symphony. Every department or team member, much like each musician, knows their part and how it contributes to the grand opus. Resources are optimally utilized, and everyone works in harmony towards the same goals, creating a melody of productivity and strategic achievement.
But if each department starts marching to the beat of its own drum, the business can quickly descend into discord. Like an orchestra playing out of sync, misalignment can lead to inefficiencies, wasted resources, and confused employees. The harmony is replaced by dissonance as conflicting objectives pull the organization in different directions. The strategic goals, much like the audience’s applause, may remain an elusive dream.
This is an important one to get right because this sets up great collaboration, great efficiency and great results. This is another one that really requires strong leadership – and we’ll share some great tips to get this right.
Let’s dive deeper into this:
Pillar 2: Aligning business teams for optimal performance: 5 Important Tips
How to Improve Team Alignment in 3 Easy Steps: A Case Study
5 Useful learnings to keep your business aligned to the same goals
Business Challenge 13: Poor Performance Management
Performance management is essential for business success. But if you ask many managers and business owners to provide you with a definition on the spot of what Performance Management is, you will be surprised how many different answers you could get. This seems to have devolved into something that is defined by the manager or business’ idea of what good management is – and there are a number of different schools of thought – and an equal number of methods to “assist” with effective performance management.
So what is it then? This is a fairly handy definition:
hr.berkeley.edu
In the world of business, performance management can sometimes feel like being a coach on a reality talent show. You’re constantly evaluating performances, giving feedback, and hopefully, watching your star performers shine. But unlike talent shows, your decisions affect real business outcomes. Ineffective feedback or lack of clear performance metrics can leave employees feeling demotivated and undervalued. This discord can lead to low productivity, increased employee turnover, and, worse, a workforce that’s more in tune with the exit music than your business goals.
When done right though, it ensures that everyone knows their steps, understands the rhythm of the business, and is motivated to give their best performance. It’s about setting clear expectations, providing constructive feedback, and recognizing achievements.
We we go into detail here we’ll share some more ideas around performance management and its impact and we’ll also share some of the more popular performance management tools and paradigms used by business.
Let’s dive deeper into this:
Why You Fail at Effective Performance Management – and how to become a Master
Business Challenge 14: No internal skills development or growth
Picture this: You’ve just bought a shiny new smartphone. It’s got all the latest features and capabilities. But, you decide not to bother with any updates or upgrades. Sure, it works well now, but fast forward a few years, and you’re left with a device that struggles to run new apps, lags behind, and eventually becomes obsolete. Now, replace that smartphone with your employees.
Richard Branson, the founder of the Virgin Group, famously said,
“Train people well enough so they can leave, treat them well enough so they don’t want to.”
Richard Branson
Employee training and development are the ‘updates and upgrades’ your employees need to keep their skills sharp and relevant in an ever-changing business landscape.
Businesses that neglect employee training and development risk stagnation, decreased competitiveness, and reduced morale. Employees are a business’s most valuable asset, and investing in their growth not only enhances their skills but also boosts their motivation and loyalty.
In our deep dive article we’ll provide you with some proven ideas that any business can use – regardless of their resources.
Let’s dive deeper into this:
Continuous Internal Development – A Staggering Impact
The Importance of Continuous Training and Skills Development
Conclusion
In conclusion, the journey to business success may be fraught with challenges, but they’re not insurmountable. With each upcoming article, we’ll delve deeper into each of these issues, proposing practical, actionable solutions to guide you towards more sustainable growth and success.
The voyage to success isn’t always smooth, but with the right understanding, tools, and guidance, you can navigate any hurdle and set your business on a path to success. Let’s embark on this journey together – we’ll list the articles below as we publish them.
