What we gain by doing improvement work.
I divide the things, the result that we have, what we gain by improving our business, into three categories, and these are vital for you if you work as a business analyst, you need to have these three in mind when you talk to the team, to the people within the organization, so they understand why you should improve.
So, let’s look into these three categories.
The first category is to create or deliver a better, or a higher, value for your customer. And what that is depends on the business. It could be faster. It could be with higher quality. It could be both. But anyway, by increasing the value for your customers, you also make them more satisfied, and more satisfied customers will come back and buy more from you. If, that is, that you can have a recurring selling to them, if you’re a company. They could also refer others to you, so you have more clients, more customers, just by having the referrals from those that are so satisfied with your service.
Or if you’re a public sector organization, and you might not want your clients to come back. If you are within health care for example, you don’t really want the patient to come back to you. In that case, it’s good if the satisfied customer or client, patient, in this case, talkes well about you to others, because those that come in contact with you later on, will then have a positive attitude to you from the beginning, and that will help the team much better in working with positive people, instead of people that has a negative attitude.
We all know certain organization where everyone “knows” that they have bad service, which means that when we contact them, we’re already pre-tuned into having a bad experience with that organization.
Now, we continue to the second category, and that is a happier team. By improving the work in the organization, you help them to become happier, because the team will then have more control over their own destiny, to say, their own working environment. If you do the improvement work in the right way, you will help them get that control, and by having control over your own work and environment, then you will be healthier. You will be happier because you have control, and happier people are less sick, so you lower the sick rate.
And also, if people deliver a better value for their customer, they will have a feedback from that customer about delivering a good value. Then, that will make them happier, and happier people deliver even better value for the customer. So, it’s an upward spiral of increased value and satisfaction from the customer, and then happiness and control over your environment, and again, increased value, and happiness, and so on. So, it will go as an upward spiral.
The third category is then stronger financials, and if it’s a company that you help out, then by having satisfied customers that will buy more or refer others into the business, they will then have increased revenue. But they will also have a lower cost, because as people are happier working within the organization, they are more efficient, they’re more productive. So, they will focus on doing the right things, the things that create value for the customers, and not the non-create value things. All that stuff, the waste, are moved out, and that means that they might not need to hire two or 10 or 20 more people to do the same work as they now, do with the same amount of people that they were before, which means that relatively, they will have a lower cost than they will have if they don’t do the improvement.
Or they might have actual lower cost by not needing to replace people that retire, for example.
And if you’re in the public sector and you’re helping out an organization that works with health care, for example, or application, building permits, or driver’s license, or something like that, of course, they don’t increase the revenue in the same way if it’s not a mix of tax money covering the cost and a fee that someone pays, because of course, if you have more people coming in, then the fee will go up. But otherwise, you will have the same revenue, because it’s prepaid by the tax money.
But you will have the same gains that we talked about earlier, regarding lower cost, and lower cost will then, of course, bring stronger financials for the business anyway, and stronger financials, then, give the organization freedom, because if you’re not put under pressure from having a bad financial situation, you will, of course, feel much better, and you will be happier, and you will be delivering an even better value.
But you can also do so much in your organization that you haven’t been able to do before, because you haven’t had that money. And that could be costs that you put down in order to increase even further the value for your customer, and happiness for the team.
So, the three categories, then, they’re increase value for your customer, happier team, and then stronger financials.
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To you and your business excellence.