Time is money, and time spent on activities that are not in line with the business strategy is a waste and an avoidable cost to the business.
Staff who are not properly trained on your systems or procedures will be inefficient and not engaged with your business objectives.
Staff may be completing tasks that are unnecessary or that can be done cheaper by an external contractor.
So how do you make your activities and operations efficient and cost effective?
Too many businesses have poorly documented policies and procedures, or worse still, none at all. This usually results in valuable information being stored in the heads of your employees. But what happens when they leave? Yes, all of that crucial knowledge walks out of the door with them! This is not good for the long-term value of your business.
Lost company knowledge will immediately incur an operating cost for the business, plus it will have an impact on the value of your business. Consider an employee who has been working for your company for ten years, who suddenly leaves the business. How would you cope?
The way to manage this risk is to implement a Business Process Management solution that will record the "who, what, when and how" of all your business operations. This will become a company knowledgebase that is not employee-dependent and as such will provide significant value to the business.
Consider these questions for your business:
- Are you business processes and policies documented?
- Are they reviewed and updated in a timely manner?
- Are your new staff properly inducted into the organisation?
- Do your staff receive sufficient ongoing training to maximise their productivity?