There are several ways in which a business owner can improve the productivity, efficiency and quality of their employees to build business value. These ways include:
Reorganizing the company so there is a connection between reporting responsibilities and revenue generation;
Implement new employee training systems;
Connect employee activity with company success; and
Transfer responsibility to employees.
Let’s look at some of these in a little more detail. Let’s start with connecting responsibilities to revenue generation. Business owners often organize their business on a seniority model. Their lower level employees perform simpler tasks and the more senior employees perform the more complex tasks. An employer should map all activities that the company and its employees undertake that lead to revenue. If you work backward, you can identify places where efficiency can be increased. Redundant jobs can be eliminated. Activities can be combined to make them more powerful in their impact on revenue. Activities that have a significant positive impact on revenue can be expanded.
A business owner should spend some time regularly and directly communicating to every employee his or her role in the success of the company. If an employee does not understand his or her specific purpose, he or she can become easily frustrated and lack motivation. If an employee cannot understand how he or she contributes to the company’s success, you cannot expect to illustrate that connection to a future potential buyer of the company.
It is oftentimes very difficult for a business owner to let go and transfer responsibility to employees. What most business owners don’t realize is that if you and your business are one in the same, there is little likelihood that a buyer will find your company valuable at all. In most valuable businesses, the owner is not valuable at all. The owner should not be critical to the businesses’ ongoing success. From a business buyer’s standpoint, would you purchase a business if all the knowledge, skills and relationships were held by only the owner? An owner’s ability to train, teach and trust your marketing and sales staff is critical to building value in your company. Your experience and skills generate much more value when you are the mentor for a team of employees.
A highly functioning team requires people of diverse mindset and diverse skills. We miss hiring the right people if we hire people who think like ourselves. We should look for people who will offset our weaknesses. We should learn to judge the talents of others as compared to the job instead of comparing them to ourselves. That process necessitates a thorough understanding of the workflow needed to complete a task, a job description that covers each step of the workflow and the hiring of people to complete those tasks. Once hired, those people need to be trained in those necessary tasks and held accountable for completing those tasks.
In our next article, we will continue discussing how to increase an employee’s productivity.
For more information Suzanne Graves may be reached at 909-981-6177 or visit www.SuzanneGraves.com