- February 2, 2015
- Posted by: Olabode
- Category: blog, Uncategorized
OPERATING EFFICIENCY — CULTURE MAKES IT CHALLENGE A manufacturer wanted to compete on the basis of efficiency. To do this the they decided to focus on organizational effectiveness improvements in order to achieve this strategy. RESPONSE Different business strategies require different organizational cultures to support them. Results from the Workplace Stars Survey were analyzed to pinpoint how well the organization’s culture mapped the characteristics of an efficiency-oriented strategy. With this information the organization was able to pinpoint processes within its culture to improve efficiency. OUTCOME Specific cultural drivers of efficiency were addressed to execute the organization’s efficiency strategy. It was decided that a process approach would help guide the organization’s improvement efforts. The organization is now in a position to conduct a deliberate process of culture change to improve its operating efficiency. LEVERAGING MOTIVATION TO INCREASE RETENTION CHALLENGE An alarming trend was discovered by one of our call center clients. The retention risk was higher among its fastest growing locations. In other words, those locations with the highest revenue growth also had the highest turnover and the greatest threat to retention. RESPONSE After digging into the data it became clear that high performing employees were delivering the results of the most successful locations. Yet these high performers were leaving the organization for new opportunities. It was concluded that the organization was not adequately communicating opportunities to these high performers. OUTCOME The leadership team to implement a performance management and succession planning process that developed high performers for future leadership roles. Turnover of high potential staff was reduced by 23%. USING CULTURE TO COMPETE FOR CLIENTS CHALLENGE An accounting firm had grown market share rapidly by retaining clients their competitors had passed over. Yet many of these clients were a drain on the staff, marginally profitable with high turnover. In the highly competitive landscape of accounting services, client focus is a strategic imperative. Accounting firms ignore client focus at their peril, as retaining clients is a key driver of financial performance. RESPONSE After a deep dive into the survey results it was concluded that it took as much effort to service a profitable client as it did an unprofitable one. It was decided to develop objective criteria and rank all existing and future clients. Differentiated service levels were established to give the high profitable clients premium service. OUTCOME In the first 14 months the organization experienced a 5% reduction in client defections that translated into a 25% increase in profitability.