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Why we need Stakeholder Capitalism. Capitalism is broken and how we can make it better. Why we need Stakeholder Capitalism 53 heads of state, the president of the world bank and 100 billionaires have agreed shareholder capitalism needs to be replaced by stakeholder capitalism. Stakeholder capitalism champions a business model prioritising not only shareholders but also employees, customers, suppliers, communities, and the environment. It acknowledges their interconnectedness and the necessity of sustainable practices for long-term success. This approach fosters trust, innovation, and resilience, aligning profit with broader societal well-being. Increasing pollution of the air, seas and rivers, increasing inequality, the exponential extraction of the natural world and increasing mental health issues indicates that western capitalism is broken and it's time to make it better. What is capitalism? One definition of capitalism is: “an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state.” So, the key is that it’s controlled by private individuals, as opposed to communism, often considered to be the alternative to capitalism, where everything is controlled by the state. But even communism has morphed into ‘state-controlled capitalism’. Here, the state controls large parts of the economic system, not just private owners. Capitalism’s great strength is its capacity to engage people in innovation and to enable new and creative ways of creating new value. Different flavours of capitalism have spread across the world since the end of World War Two in 1945. Nearly every country now runs some form of capitalism, be that western capitalism, state-controlled capitalism, Nordic capitalism and the capitalism of Germany with varying degrees of public/private partnership and state control. It doesn’t matter which flavour of capitalism we’re talking about, all capitalism is based on consumption ; the making of products and services that create value which are then consumed and used by customers. The issue is that the impact on the environment and people of the production of those products and service hasn’t been factored into their price and has largely been ignored by almost all businesses until now, For nearly 250 years, since ‘father of capitalism’ Adam Smith published the Wealth of Nations , we’ve been underpaying for the goods and services we’ve been buying. We’ve been using up the resources of the planet and many people’s wellbeing for free, paying only for time and materials, not the repair, regeneration and restoration needed to make good what was there in the first place. Markets create private goods not public goods. The market assigns a zero price to depleting natural resources. To rethink capitalism is to rethink not only the public/private partnership but also how businesses are run and the role the customer has in addressing the ills of capitalism. This is now hurting us twice: once in that those natural resources will soon be running out and secondly through the negative impact it’s having on the planet and people by causing global warming and increasing mental health issues. Discussions at recent global talking shops indicate that attitudes are changing, albeit at a glacial pace. Here’s what happened at COP26 and the World Economic Forum event in DAVOS: COP26 In November 2021, the UN Climate Change Conference (COP26) in Glasgow brought together 120 world leaders for two weeks to discuss climate change. Debates covered the science, the required solutions and the actions needed to address climate change. Although progress was made and actions were agreed, cuts in global greenhouse gas emissions are still far from where they need to be to preserve a livable climate. Net Zero is not enough. We need to be regenerative, not sustainable Being sustainable, as defined by COP26, means not exceeding 1.5°C of climate warming above pre-industrial levels. Climate warming is already 1.1°C above pre-industrial levels and, as we know, that’s already too warm. So, setting a goal of 1.5°C is simply too hot and too late. The only way to address this is to be regenerative. Being regenerative means creating extra value for all stakeholders, especially the planet, and with a goal of NET10, regenerating the planet at a rate of 10X. For example, if two trees are consumed in the production of products and services, then 20 new trees must be planted. Another reason to be regenerative is that removing two trees from the planet also removes the associated biodiversity that accompanied those trees, be that other trees, plants and flowers or insects and animals and on the soil too. So, removing two trees has a far bigger impact than just the trees themselves. Additionally, in a world with a still rapidly growing population and increasing wealth the future impact of growth will be multiplied and happen more quickly, and so the damage will be far greater to the planet than it is today, so some future capacity needs to be built back in the natural environment. Davos 2020 In January 2020, 3,000 delegates from more than 100 countries, 53 heads of state, the president of the world bank and 100 billionaires met as they do every year in the Swiss Alps at Davos. They agreed that, within the next 50 years, shareholder capitalism needs to have been replaced by stakeholder capitalism. So, rather than a singular focus on profit maximisation, businesses must also consider the planet, people, staff, customers, suppliers; that’s everybody and everything affected by business, to address the key issues facing humanity and the planet this decade. In the words of Klaus Schwab, Founder and Executive Chairman of the World Economic Forum: “They have to actively contribute to a more cohesive and sustainable world.” The problem with GDP as a measure of capitalism One of the challenges in measuring the success of capitalism is how we measure it. The usual way is by looking at annual Gross Domestic Product (GDP) is the total value of all goods and services produced by a county in a year and is used to measure its economic health. It is expected that GDP increases every year, and when it doesn’t, when it goes into a sustained decline, it becomes a recession resulting in job losses and a reduction in investment in business growth. When GDP is increasing, more jobs are likely to be created and wages will rise. GDP is used by governments to guide policymakers, define taxation, expenditure on public services and to set interest rates. Companies use it to guide investing in their businesses. But alone it is insufficient to use as a measure of how well capitalism is performing. It doesn’t show increasing levels of inequality, nor the impact on the environment or welfare. As inequality increases, resentment increases, trust decreases and societies, on the whole, become less happy. In our personal lives, we all understand that a focus purely on money isn’t healthy. There’s more to life than money. Some countries recognise this more than others. Some countries are starting to use the Happiness Index as an indicator of the well-being of their citizens. Bhutan, a south-central Asian country on the eastern ridges of the Himalayas, is the only country in the world that has a ‘GNH’, or ‘Gross National Happiness’ measure. This is used to ensure that material and spiritual improvements grow together. Unsurprisingly, Bhutan has been ranked as one the happiest countries in Asia. In 2019, New Zealand Prime Minister Jacinda Ardern adopted the Happiness Index metric, creating new budgets that focus on the prosperity of local communities and paving the way for a national wellbeing budget. The UK, too, is adopting the happiness index to measure societal and personal wellbeing The variables used in the Global Happiness Index include: GDP per capita Healthy life expectancy Social support Freedom of choice Generosity Perceptions of corruption The benefits of capitalism Among the main benefits of capitalism are: New technologies and possibilities Capitalism has enabled new technologies, ideas and concepts to flourish for the benefit of humankind, to significantly improve the well-being of billions. It has enabled us to reach the lowest parts of the world, the Mariana Trench in the Pacific Ocean, the top of the world on Mount Everest, journey to Moon and back, contemplate going to Mars (and back) and create life-saving and life-enhancing medical procedures. Increased life expectancy So, the benefits of capitalism far outweigh the downsides many times over. As reported in The Guardian: "Lifespans have increased with remarkable consistency since 1800," says Professor Tom Kirkwood, Director of the Institute for Ageing and Health at Newcastle University. "There was no change in longevity between Roman times and 1800. But after that, we see considerable alteration. Every century the lifespan of British people increased by 20 years. Nor is this rise an exclusively British phenomenon. It is observed in most countries today. Only those with particular health problems, like South Africa's HIV infections, have failed to see rises." During the 1990s, 500 million people were lifted out of poverty, mostly across China, India and parts of Africa. Reduced poverty Since Adam Smith 250 years ago described a better way of organising the production of goods and services in what is now called capitalism, massive benefits have been realised across the world with nearly everybody taken out of poverty and the opportunity for many millions of people to lead much better lives, to achieve their dreams and significantly lift the living standards for themselves and their families. Capitalism is broken Today, western capitalism is only running by the rules, norms, and values we have defined for it, rules that evolve. For example, there is no more child labour, working hours are considerably shorter and safer than 100 years ago, and you can no longer be put in prison if you don’t show up to work. Capitalism has also been adjusted over the decades by anti-capitalistic movements, such as socialism. In this respect, it has proved to be very flexible and isn’t a single idea, but an amalgamation of many ideas. For this reason, it will endure, unlike previous political and economic structures, such as the Roman, Ottoman and Greek empires, and many more. Like the rules of a game, then, we need only decide how best to update those rules so there are more winners, fewer losers and fewer people out on the margins, both rich and poor. Autocratic monarchies and ecclesiastical hierarchies dominated western society for hundreds of years before Smith’s Wealth of Nations. As people started to rebel against these systems, capitalism offered a way that allowed people to express themselves and have control over their own destiny, and property, and to create opportunities for themselves. Democracy went well with this as it, too, allowed for individual freedoms. People gave up being looked after by landowners, the nobility, Kings and Queens, in favour of making their own way in life. Smith saw this trend in creating The Wealth of Nations. But economic growth since 1980, when markets were deregulated and supply-side economics took hold, hasn’t been fed into improved public infrastructure. The benefits have gone disproportionally to the private sector. In other words, capitalism can both transform and demonise us. Karl Marx, co-author of The Communist Manifesto in 1848 , said capitalism “ .has greatly increased the urban population as compared with the rural, and has thus rescued a considerable part of the population from the idiocy of rural life.” . He viewed rural life as inferior to urban life. In this way, he was pro-capitalism, at least at the outset, before predicting it would destroy itself, which is the very thing we are trying to avoid now. The issues created by the current version of western capitalism Set against the benefits that capitalism has brought are numerous problems, including: Poor social mobility A lack of social mobility of the poor half of the world needs to be addressed. Being born in the wrong place at the wrong time doesn’t help your prospects. When the richest 1% make all the rules for the other 99% to follow, it doesn’t help. Rampant inequality Opportunity inequality is a concern. The minimum wage for a UK worker is about £13,000 per year and the average salary of the FTSE 100 company director is £5,000,000. The rising tide has lifted all boats, but now the bigger boats are sailing away leaving all the smaller boats stranded or sinking. The world has become more polarised in recent decades. People are blaming the very system that has given them all the benefits they now enjoy. Inequality leads it mistrust and a sense of injustice and resentment. Deaths from suicide, drug overdose and alcoholism have increased significantly, claiming 100,000 lives every year. That’s not to say these are all related to capitalism, but it’s a concerning statistic if many others are becoming better off at the same time. The economic crash of 2008 made matters worse as it was caused by the people with the money and it was the ordinary people who played no part in the slump who paid the price with broken livelihoods and the taxes to bail out the banks who were partially responsible for the catastrophe. Declining prospects It used to be the case that we could safely assume we would be better off than our parents, but that isn’t necessarily so anymore. Pollution Some might say that capitalism is poisoning the planet for profit. Ten key impacts we’re having on the planet today: 1) Pollution 2) Soil degradation 3) Global warming 4) Natural resource depletion 5) Generating unsustainable waste 6) Deforestation 7) Polar ice caps melting 8) Loss of biodiversity 9) Ocean acidification 10) Water pollution Increased mental health issues Those that are making the mega-money often work 80-100 hours per week and don’t see their families or kids without being stressed and irritable, just as though in lower incomes suffer too. What’s happening today to fix capitalism? Finally, if you want to find out what’s already being done to fix capitalism, here are some organisations that are changing the way we define business and economic success: Environmental, Social and Governance (ESG) criteria Most of us want to do the right thing. In business, many companies are adopting ESG criteria. However, they are perhaps doing it more to comply with market trends than a genuine desire to make the world a better place. Many leaders want to move away from the relentless pursuit of short-term profits demanded by their shareholders, but doing the ‘right thing’ is difficult. When they do act, it is to protect their businesses against bad publicity or to help save the planet? US Business Roundtable In August 2019, 181 chief executives of leading US companies who belong to the non-profit group US Business Roundtable redefined the purpose of a corporation to ‘promote an economy that serves all Americans’. In other words, a move away from shareholder primacy to include commitments to all stakeholders. Council for Inclusive Capitalism In December 2020, the Council for Inclusive Capitalism was created by the Vatican to promote a more inclusive and sustainable economy. The Council believes the strongest and most valuable businesses are those that profitably create value for all stakeholders. Its steering committee has offices across 163 countries representing 200 million workers and $2.1 trillion in market capitalisation. B Corporation B Corporation provides a private certification of social and environmental performance. Companies need to pass an assessment and update their governing company documents to reflect the commitments to all stakeholders. As of March 2022, there were 4,856 certified B Corporations across 153 industries in 79 countries. Conscious Capitalism A movement that aims to raise the standards of business. Forum for the future The non-profit organisation is “reinventing the way the world works”. It recommends the Five Capitals framework for sustainability, as described by environmentalist Jonathan Porritt, that integrates natural, human, social, manufactured and financial capital into existing models. Implementing Stakeholder Capitalism Nobel Laureate economist Milton Friedman said: “The business of business is business.” But this focus on short-term profit-making is now seen to be responsible for everything that’s wrong with capitalism – from the various financial crises we have endured to increasing inequalities and climate change. But capitalism is constantly transforming itself and it will continue to do so. And it can do that best within a free, fair and democratic system, so people are free to innovate, take risks and receive rewards for doing so, once all stakeholders are accounted for. Most people agree the principle of capitalism is a good one, the debate only comes down to how best to implement it. Capitalism is based on creating prosperity and freedom for everybody. Markets need to be free and fair, we need only consider how free and fair they are today. Many companies are now starting to see that their responsibilities are beyond just making a profit. The external cost of doing business needs to be factored in, the externalities in economic-speak. For example, there are social costs to burning fossil fuels that need to be accounted for. We just need to update the rules of the game to make capitalism better and the private sector can lead the way. After all, business can’t work underwater, with failing climate, food shortages, people moving from hotter climes to cooler ones and countries going to war over rapidly reducing habitats and infertile land. The private sector must lead the way because governments can only do so much. They can’t innovate or create the products and services needed to make capitalism work better. Big, public-listed companies must manage the short-term expectations of their shareholders, but private sector businesses are free of all these constraints. They are agile, quick thinking and innovative, just what is needed to show the way out of this crisis. Companies can make millions and billions of pounds out of solving the climate challenges of our time. You only have to look at electric car manufacturer Tesla, one of the most valuable car companies in the world, so there is a business opportunity in making capitalism better. People often think business is the problem, but it’s not. We just need to update the rules by which the game of business is played. If we don’t do that in a timely way, they’ll be no more game to play. So, we need to transform business and our daily lives to regenerate the planet, extract the excessive amounts of carbon with a carbon management system being created from the atmosphere, create better infrastructure, reduce inequality, increase productivity, and repair and restore the planet’s biodiversity. A Gallup poll found people today associate socialism with equality, not state control, and ownership of the means of production. So, discussions around the merits of socialism need to be tempered with this mind, people are starting to forget that it is far from a utopian ideal. Any consideration of how to fix, improve or upgrade capitalism has to start with considering human nature. McGregor defined two types of people: Theory X and Theory Y people. Theory X people are lazy and don’t like to work; Theory Y people are self-motivated. Whichever camp you’re in, everybody needs self-esteem, self-respect and recognition for the work they have completed and the contributions made. In improving capitalism, it is necessary to include the moral, ethical and spiritual considerations of people as part of business philosophy, especially among the leaders of business, the 1% who control the other 99%. This can be achieved by agreeing a set of values that everybody can sign-up to. Capitalism managed with morals, vision and ethics would be the correction we need. So far, we have seen the debate as two sided. We have free enterprise (capitalism) where people and markets are left to their own devices and on the other side state-controlled socialism, where the state is responsible for everybody and everything. Neither extreme is a good idea. A third route is required. We need a mixed economy that contains the freedom of western capitalism that allows for innovation and risk-taking and the rewards that come with that along with the controls of state regulation. This ensures the game is played fairly and equitably, with the spoils spread in a fair way. But perhaps the answer today isn’t capitalism, state control or a mixed economy. Rather, it is in providing consumers with more transparency of the costs and impact of producing the things they are buying. They can then choose to buy from companies not just because of their products and services, but because of the regenerative good they do for the planet and all stakeholders. 13 steps towards Stakeholder Capitalism It falls to small businesses, the private sector, to fix our problem with capitalism. The only way to address that is to ensure the consumer can see the impact they are having with the purchases they make. How do we organise economic and social life in a way that regenerates for all stakeholders? Society reflects business. Stressed workers go home to stressed families, and stressed kids, creating stressed communities. People who are stressed make poor decisions and are less motivated. 13 steps business leaders can take to make capitalism work better from within their own businesses: 1) Workers share more of the company’s success 2) Address inequality within the business by raising the wages at the bottom end and lowing the top 3) Provide professional development, education, training, and health care within the business 4) Provide more autonomy for staff within their roles 5) Break down the divisions between leaders, managers, directors and staff 6) Increase the transparency of important information 7) Be more inclusive in decision making so people feel valued 8) Go for long term growth, not short-term profits 9) Increase diversity, more diverse companies make better decisions and are more profitable 10) Ensure women are in senior roles. Companies with women in the Executive outperform those without. Men tend to want to win now, women tend to want to build long-term partnerships (there’s a reason Angela Merkel was called ‘Auntie’) 11) Make sure there is a collective shared vision that’s focused on the common good of all stakeholders 12) Increase trust with open, honest, timely and candid dialogue 13) Lead with awareness, alignment and values. Consider all decisions in the light of shared values and a common vision across all stakeholders. One thing many people experienced during the Covid-19 lockdown was that it slowed everybody and everything down. For a short period (not so short for some), the rat race was on hold. Everybody was equalised, everybody had to stay at home, go to the park for exercise and queue up for things. It didn’t matter where you came from, how much you earned or where you worked, everybody became equal during this period. For many of us, this was a great thing. We became more relaxed, more conversational with people we didn’t know or perhaps ordinarily would never talk to. This evidence shows how inequality and constant rush increase stress levels. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations offer clarity and a well-defined pathway for you and your team to move forward confidently. Get Started

Return On Capital Employed (ROCE) is an important measure of financial productivity or financial efficiency. Learn how to measure and improve ROCE. How To Measure and Improve ROCE Return On Capital Employed (ROCE) is an important measure of financial productivity or financial efficiency. This is a good measure of how well the business is being run. The higher the value, the better. It's also referred to as the "Primary Ratio". Published on: 6 Jun 2024 Return On Capital Employed (ROCE) is an important measure of financial productivity or financial efficiency. This is a good measure of how well the business is being run. The higher the value, the better. It’s also referred to as the “Primary Ratio”. A company exists to turn hours and money invested into profits. How well it does that is a measure of financial productivity or more often referred to as financial efficiency. ROCE is an important KPIs in helping to improve your business productivity management . How can you measure financial efficiency with ROCE? The formula for ROCE is defined as Operating Profit/Total Capital Employed *100% ROCE is showing what level of costs are required to drive profitability. The more productive a company is, the higher the retained earnings they’ll be to drive further growth. Total capital employed might include debt, retained earnings or shareholder equity. How does ROCE differ from Return On Investment (ROI)? ROI is only concerned with the returns created by a specific investment such as a marketing campaign. ROCE is looking at the returns created by all the costs of running the business including debt. How does ROCE differ from Return On Assets (ROA)? ROA is only looking at the returns created by capital equipment such as machines, vehicles and warehouse lifting equipment. Investors will use ROCE when researching companies for possible investment opportunities. Like all performance metrics, it should be used in conjunction with other KPIs to accommodate possible hidden risks, such as high levels of debt. The values needed can be easily obtained from a company’s accounts. It is best to establish a trend of ROCE over a period of time to accommodate market changes and possible seasonal variations. A high, stable ROCE will show the business is being well managed. If a company has high levels of cash reserves that it’s not using, this will make the company appear very inefficient when they are included as part of Total Capital Employed. Enhancing ESG Ratings through ROCE Return on Capital Employed (ROCE) can significantly enhance a business's Environmental, Social, and Governance (ESG) rating by promoting efficient resource use and responsible investment. High ROCE indicates effective utilisation of capital, aligning with ESG principles of sustainable management. Companies focused on improving ROCE often invest in eco-friendly technologies , optimise supply chains, and enhance operational efficiencies, thereby reducing environmental impact. Furthermore, strong ROCE performance reflects good governance practices and financial health, boosting investor confidence and stakeholder trust. By prioritising high ROCE, businesses demonstrate a commitment to long-term sustainability, positively influencing their ESG ratings and attracting socially responsible investors. How to improve ROCE The higher the revenue and the lower the costs, the better the ROCE. With staff costs being the biggest cost of all, it may be tempting to reduce the headcount or lower the wages to make the company appear more productive or more appealing to investors. It is this thinking that has contributed to the poor productivity figures of many UK businesse s, that lowering costs, especially staff costs will help build a stronger, more profitable business. The thinking is rooted deep in economics where staff are just seen as a labour cost, a cost to be minimised. With the top-down hierarchy, staff are recruited for a given job, given a job description, annual appraisals and monitored for the hours they start and finish work. This has the effect of making staff work more hours to feel more effective. An expectation is created that those long hours will be lead to a salary increase, promotion or just stop them losing their job. But in reality, all that happens is the same work just gets stretched over a longer time, people work less hard, they pace themselves to work the long hours needed and so productivity goes down. Longer lunches, casual conversations all stretch the day out so productivity goes down. The bosses may think they are getting more work completed for their money, that the employee is earning their salary, but in reality, the same work is being stretched out over a longer period, and most likely completed less effectively too. The Total Capital Employed may include high levels of debt to drive up sales or operating efficiencies, meaning the company may be carrying high levels of risk. Capital items are depreciated over time meaning companies with older equipment may look more profitable than companies with new equipment. Return on Equity (ROE) Another important, perhaps better, financial productivity KPI, Return on Equity, ROE, measures how well the shareholder value (cash essentially) of the company is creating value. Why is ROE a better performance measure than ROCE? Because ROE strips out debt from the capital employed to use just shareholder value and looks at net income, not operating profit, it gives a clearer picture of how well the business is being managed. How is ROE calculated? Return on Equity (ROE) = Net Income/Shareholder equity * 100 ROE is seen as an important financial KPI as it is only considering stakeholder equity (cash, equipment etc) and is a better measure of how well the assets of the business are being managed. If the ROE is high, check to see why. If it is because the shareholder equity is very low, the company may be low on cash. If it is because the revenues are very high, that shows a strong business performance. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Explore the significance of Impact Investing in driving value-driven growth for businesses. This article outlines how aligning investments with sustainable and inclusive practices can enhance profitability while fostering brand loyalty and resilience. Discover actionable strategies, real-world examples, and insights on integrating impact investing with high-performance workflows. Creating Value-Driven Growth with Impact Investing Impact Investing has emerged as a compelling strategy for business owners looking to combine financial success with sustainable, inclusive growth. Impact Investing has emerged as a compelling strategy for business owners looking to combine financial success with sustainable, inclusive growth. By connecting investment decisions with impact goals, business leaders can leverage capital to not only drive profitability but also enhance their brand and align with core values. What is Impact Investing? At its core, Impact Investing involves putting money into companies, organisations, or funds that generate measurable positive impact alongside a financial return. This differs from traditional investing, which primarily focuses on maximising profit, and from philanthropy, which prioritises social impact without financial gain. Business Growth through Impact For business owners, understanding the potential of Impact Investing is key to staying competitive. Companies that prioritise impact are increasingly recognised by consumers and investors alike. This translates into higher brand loyalty and access to a broader pool of capital. Impact-driven organisations often experience greater resilience and growth, as sustainability can lead to innovation, cost savings, and reduced regulatory risks. Integration with High-Performance Workflows The link between Impact Investing and high-performance workflows is crucial. To maximise both returns and impact, business owners must adopt efficient processes and continuously improve their operations. High-performance workflows ensure that resources are used effectively, and impact is measured and optimised. This alignment can lead to more effective project delivery and improved margins, making a strong business case for impact-driven strategies. Risk and Return Considerations A common misconception is that impact investments yield lower financial returns. However, research shows that well-managed impact portfolios can perform on par with or better than traditional investments. For example, businesses focused on renewable energy, circular economy models, or sustainable infrastructure have demonstrated significant financial gains while addressing environmental challenges. Real-World Examples Take Madaster, for instance, a platform revolutionising the Built Environment through sustainable materials and circular design. Their impact-oriented approach has attracted investments that align with their mission, demonstrating how impactful initiatives can be financially viable. Actionable Steps for Business Owners Evaluate Alignment: Identify areas in your business operations that can align with sustainable, inclusive growth. Set Measurable Goals: Like in high-performance workflows, define metrics for both financial and impact outcomes. Seek Strategic Partnerships: Collaborate with funds or organisations that share your commitment to sustainability. Communicate Your Impact: Transparency builds trust. Sharing your impact story can attract like-minded investors and clients. By understanding and adopting Impact Investing, business owners can unlock new avenues for growth while making a difference. With thoughtful integration, it’s not just about making an impact—it’s about redefining what success looks like. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations offer clarity and a well-defined pathway for you and your team to move forward confidently. Get Started

Learn how to create clear, comprehensive, and structured SOPs that ensure consistent execution, compliance, and efficiency across processes. Explore essential components like purpose, scope, step-by-step instructions, and version control. The Critical Components of a Well-Structured SOP Master the Art of Crafting SOPs that Not Only Drive Efficiency and Ensure Compliance but Also Empower Teams to Perform Consistently and Confidently Across All Processes. For an SOP to be effective, it must be clear, comprehensive, and structured in a way that facilitates ease of use. Each component of an SOP serves a specific purpose in ensuring the procedure is well-understood, correctly followed, and properly managed. We’ll delve into the critical components that every well-constructed SOP should include, with insights on how to craft each part. 1. Title and Document Information The first part of an SOP is its title and metadata, which ensures that the document can be easily identified, tracked, and updated. Title Clarity : The title should accurately describe the task or process the SOP covers. For example, "Equipment Maintenance Procedure for XYZ Machine" or "Data Backup Protocol for Financial Records." Specificity : Avoid vague titles like "General Guidelines" or "Operations Procedure," as these don’t convey the specific nature of the SOP. Include any relevant versioning or department names for better classification. Document Control Information Version Control : Every SOP should have a version number and date of the latest revision. This is crucial for tracking updates and ensuring that all personnel are following the most current procedures. Author/Owner : Specify who created the SOP, typically the Process Owner or Subject Matter Expert (SME) . Also, include who approved it, such as a Compliance Officer or Department Head . Document ID/Reference Number : Assign a unique ID or reference number to the SOP. This helps with document management, particularly when integrating the SOP into a Document Management System (DMS) . These elements help track revisions, assign accountability, and make it easier to locate the SOP within a larger document management system. 2. Purpose and Scope This section explains the “why” and “what” of the SOP—why it exists and what it covers. It’s critical that this section is clear to avoid misunderstandings or misapplication of the procedure. Purpose Why This SOP Exists : Define the objective of the SOP. What is the reason for this document? For example, is it to ensure equipment is maintained correctly to avoid costly downtime, or to meet a regulatory compliance requirement? Outcome-Focused : Clearly articulate what the SOP is designed to achieve. For example, “This SOP ensures consistent execution of financial data backups to minimise data loss and ensure recovery in case of a system failure.” Scope Defining Boundaries : The scope should outline which processes, departments, or systems are covered by the SOP. It prevents the SOP from being applied in situations where it’s not relevant. Limitations : Specify any limitations or exclusions within the SOP. For example, if the SOP only applies to certain equipment or software versions, make that clear. “This SOP applies only to XYZ machines installed after January 2024 and excludes earlier versions.” A well-written scope section helps users understand whether the SOP is applicable to their task or not, reducing confusion and preventing misuse. 3. Definitions and Acronyms SOPs often contain technical language, industry-specific jargon, or abbreviations that may not be universally understood by all employees. A definitions and acronyms section ensures clarity and avoids misinterpretation. Technical Terms Define Key Terms : Any specialised or technical terms used in the SOP should be clearly defined here. For instance, in an IT SOP, terms like “server redundancy” or “failover” might need clarification for less technical staff. Avoid Assumptions : Never assume that the reader will be familiar with all the terminology, especially if the SOP will be used by cross-functional teams. This is particularly important in regulated industries where precise terms (e.g., GxP , ISO 9001 ) have specific meanings. Acronyms Spell Out Abbreviations : Always spell out acronyms on their first use, followed by the acronym in parentheses. For example, “Good Manufacturing Practices (GMP).” Then, use the acronym throughout the rest of the document. Providing a comprehensive list of terms and acronyms improves readability and ensures that all users, regardless of experience, can understand the document. 4. Responsibilities Clearly defined roles and responsibilities are crucial to ensure accountability and proper execution of the SOP. This section assigns specific tasks to the individuals or departments responsible for different steps within the procedure. Process Owner Ownership and Oversight : The Process Owner is typically responsible for the overall procedure and ensuring that it is properly followed. This could be a department head, a quality manager, or a team leader, depending on the nature of the SOP. They are also responsible for updating the SOP when necessary. Task-Specific Roles Role Assignments : Each step within the SOP may require different personnel or departments. This section should specify exactly who is responsible for each task. For example, “The IT Manager will perform the data backup, and the Compliance Officer will review the backup logs.” Reporting Lines Chain of Command : This part of the SOP should outline the reporting structure if there is an issue or deviation from the process. For instance, "In case of equipment failure during maintenance, the technician must report immediately to the Maintenance Supervisor." By assigning clear responsibilities, the SOP ensures that tasks are completed by the right people and that there is no ambiguity about who should take action at each stage of the process. 5. Step-by-Step Instructions This is the most critical section of the SOP. It provides detailed, actionable instructions for completing the task or process, ensuring that it is performed correctly every time. Actionable Steps Sequential Instructions : Use numbered steps to guide the reader through the process. Each step should be a clear, concise directive that eliminates ambiguity. For example: “1. Shut down the machine by pressing the red power button. 2. Disconnect the power supply from the main outlet.” Clarity : Ensure each step is written using active voice and imperative verbs (e.g., "perform," "check," "install") to clearly communicate the action required. Granularity : The level of detail should be appropriate to the audience. For more technical tasks, break down each action into micro-steps to avoid confusion. Tools, Equipment, and Materials Required Resources : Clearly specify the tools, equipment, or materials needed to complete the procedure. For example, “The following tools are required: screwdriver, voltmeter, replacement fuse (model XZ-123).” Specifications : Where relevant, provide precise specifications for materials or equipment. This is especially important in manufacturing or pharmaceutical SOPs where exact models, grades, or settings are critical. Visual Aids Flowcharts and Diagrams : Include visual aids such as flowcharts, diagrams, or screenshots to make complex processes easier to understand. Visuals can simplify multi-step processes and clarify tasks that are hard to describe in words alone. The step-by-step instructions must be unambiguous and error-proof, ensuring that even someone unfamiliar with the task can follow them with ease and achieve the desired outcome. 6. References and Related Documents Often, an SOP will need to reference other documents, either for additional information or because the process depends on the correct execution of another procedure. Including a reference section ensures that users have access to all the necessary information to complete their tasks correctly. Linked Documents Cross-Referencing : Link to any related SOPs, manuals, safety guidelines, or forms that the reader may need to consult. For example, “Refer to SOP-002 for detailed instructions on handling hazardous materials.” External References : If there are external guidelines, such as industry standards or regulatory requirements, cite those documents as well (e.g., "For more information, consult ISO 27001 security controls guidelines"). Including references and related documents ensures that employees have access to all relevant information and can confidently perform the task according to the broader operational framework. 7. Safety and Compliance Considerations If the procedure involves any potential risks to safety, health, or compliance, this section should outline the necessary precautions, personal protective equipment (PPE), or compliance checks that need to be followed. Safety Precautions Health and Safety Guidelines : If the task involves any hazards (e.g., working with heavy machinery, hazardous materials, or electrical equipment), clearly define the safety procedures . For example, "Always wear insulated gloves and safety goggles when handling electrical components." Emergency Procedures : Include steps for dealing with accidents or emergencies, such as “In case of an electrical fire, use the designated CO2 fire extinguisher and contact the Safety Officer immediately.” Regulatory Compliance Legal and Regulatory Requirements : Identify any specific regulations or standards that must be followed. For example, in a food manufacturing process, you might need to cite HACCP guidelines or FDA regulations. Specify which laws, guidelines, or standards apply, and ensure that compliance is built into the process. Reporting and Documentation : If compliance reporting is necessary, this section should outline the procedures for logging data, inspections, or reviews. “Ensure all quality control checks are recorded in the QC log and submitted to the Quality Assurance Department by the end of each shift.” This section ensures that all legal, safety, and compliance standards are met, reducing the risk of accidents or regulatory violations. 8. Version Control Version control is critical to ensuring that the most current version of the SOP is in use. Failing to keep SOPs up-to-date can lead to inconsistencies, errors, or non-compliance. Revisions and Updates Version History : Include a table that tracks the version number, date of revision, the reason for the update, and the person who approved it. For example: Version Date Reason for Update Approved By 1.0 01/01/2024 Initial SOP release John Smith 1.1 15/03/2024 Update due to new equipment Jane Doe Review Cycle : Specify when the SOP should be reviewed, whether that’s annually, bi-annually, or after significant changes in technology, process, or regulations. Effective version control ensures that the SOP remains relevant and that employees are not following outdated procedures that could lead to inefficiencies, errors, or compliance failures. 9. Appendices (Optional) If the SOP is particularly long or complex, you can include appendices for additional information. This may include detailed flowcharts , tables , or forms that don’t fit neatly into the main body of the document but are important for understanding the process. Conclusion The structure and content of an SOP are critical to its effectiveness. By including these key components—title, purpose, scope, definitions, responsibilities, step-by-step instructions, references, safety considerations, and version control—you ensure that your SOP is comprehensive, clear, and actionable. SOPs are more than just documents; they are tools for ensuring operational excellence, regulatory compliance, and safety, enabling organisations to function efficiently and consistently across all processes.dards (e.g., OSHA guidelines or environmental regulations) and safety protocols. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations offer clarity and a well-defined pathway for you and your team to move forward confidently. Get Started

An integrated business planning framework presents a great opportunity to develop the function of finance to drive business performance and productivity. How Finance Can Help Create an Integrated Business Planning Framework An integrated business planning framework presents a great opportunity to develop the function of finance to drive business performance and productivity. Published on: 21 Dec 2023 The finance function is evolving, fast. Where finance used to focus on traditional activities such as account management and act in an advisory role to the C-suite, the finance function of the future will be focused on driving business performance by leading strategic planning through data-led decisions. Rethinking finance means rethinking the way businesses plan. Integrated business planning presents a significant opportunity to develop the role of finance to meet future business needs. It offers a framework for finance to use that matches their new purpose of creating value adding activities for businesses. Finance Function is Developing Naturally Across Industries Research shows that finance function, particularly the role of the finance leader , is developing across industries. An average of five functions other than finance now report into the CFO. Further research reveals that four in ten CFOs say they spent more time over the course of a year focusing on activities that weren’t traditional finance activities. The survey revealed that these non-finance activities were predominantly strategic leadership, organisational transformation, performance management, capital allocation and big data and analytics. This shift in finance function makes perfect sense. Businesses face an increasingly challenging economic landscape alongside increasingly competitive markets. Finance is perfectly placed within the business to harness data, operational knowledge and analytical thinking to drive business performance. What is an Integrated Business Planning Framework? Integrated business planning (IBP) is an alternative approach to business planning. Traditional business planning often silos different business activities. Marketing has their strategy, HR has theirs, IT has theirs and so on. What this means for businesses is that the larger strategic goals are often disjointed from departmental strategies and activities may not align well with larger business goals. This results in poor business performance and business productivity for many companies. Instead, an integrated business planning framework seeks to align strategic business planning with operations and finance. It looks to create one single, cohesive business plan for everyone in the company. It achieves this by: Being one process of continuous improvement Having both short and long term strategic planning Using advanced data analytics that are shared across the business Cross-functional collaboration and communication between all departments C-suite adoption and sponsorship Finance Has a Key Role to Play in an Integrated Business Framework So, where does finance fit into an integrated business framework? IBP can be a driving element in developing the function of finance. As discussed above, finance has increasingly been tasked with more and more responsibilities outside traditional finance activities, with many more departments reporting into them. As finance begins to play a more strategic role in businesses, an integrated business planning framework gives finance a methodology to use to align these different responsibilities successfully, resulting in better outcomes for the business. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Discover the purpose of OKR grading, common challenges, and best practices. Learn how OKR scores help set future objectives for continuous business improvement. OKR Grading Explained: Purpose, Challenges, and Best Practices How to Effectively Grade OKRs, Overcome Challenges, and Use Insights to Drive Continuous Success, Growth, and Improved Performance in Future Cycles Purpose of OKR Grading Measure Progress: Provides a clear, quantifiable way to assess achievements. Identify Gaps: Highlights areas where performance fell short, enabling targeted improvements. Encourage Ambitious Goals: Drives teams to aim high without fear of "failure," as even partial progress can indicate success. Promote Continuous Improvement: Encourages reflection and learning for future OKR cycles. Set the Next Objective: Grading informs the next cycle’s OKRs by identifying what should be continued, improved, or adjusted based on past performance. How OKR Grading Works Scoring Scale: Typically on a scale from 0.0 to 1.0 , where: 0.0-0.2 = No progress 0.3–0.6 = Moderate progress (partial achievement) 0.7–1.0 = Strong progress or full achievement Self-Assessment: Teams often score their own OKRs, followed by reviews from managers or peers to ensure alignment. Objective-Based: Each Key Result is graded individually, and the average score reflects the Objective’s overall performance. OKR Grading Common Issues and Challenges Subjectivity: Without clear metrics, grading can become inconsistent across teams. Misaligned Expectations: Teams may set either overly ambitious or too conservative goals, skewing the grading. Focus on Scores Over Impact: Teams might aim for high scores rather than meaningful outcomes. Lack of Feedback: Grading without constructive feedback limits learning opportunities. Not Using Results for Growth: Some teams grade OKRs but fail to apply the insights when setting new Objectives, missing opportunities for improvement. Best Practices for OKR Grading Set Clear Metrics: Define measurable Key Results with specific success criteria to reduce subjectivity. Embrace Stretch Goals: Aim for ambitious targets where a score of 0.7–0.8 represents excellent performance. Separate Grading from Performance Reviews: OKR scores should focus on growth and learning, not directly tied to compensation. Review Regularly: Conduct mid-cycle check-ins to track progress and adjust if needed. Focus on Insights: Use grading results to guide discussions about what worked, what didn’t, and how to improve. Link to Future Objectives: Ensure grading outcomes directly influence the next set of OKRs, creating a continuous improvement loop. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations offer clarity and a well-defined pathway for you and your team to move forward confidently. Get Started

Discover 50 powerful features of document management systems (DMS) that improve collaboration, security, and workflow efficiency for modern businesses. 50 Essential Document Management Features That Drive Business Efficiency Uncover the most powerful features of document management systems (DMS) that enhance collaboration, boost productivity, and streamline your business operations for a more efficient workflow. Imagine having every document at your fingertips—instantly searchable, securely stored, and effortlessly shared across your team. No more digging through disorganised folders, chasing after the latest version, or worrying about compliance issues. With the right document management features , this seamless level of control is not just a possibility but a business necessity. A well-designed Document Management System (DMS) does more than simply store files; it transforms how your business operates. From workflow automation to version control , and cloud storage to real-time collaboration , the features offered by a robust DMS can dramatically enhance productivity, improve security, and ensure compliance with industry regulations like GDPR or HIPAA . Whether you’re streamlining internal processes or managing client-facing documents, the right features can save time, reduce errors, and give your business the edge it needs in a digital-first world. In this guide, we’ll break down 50 essential DMS features that can help your organisation thrive by simplifying document management, improving collaboration, and maximising efficiency. Whether you're a small business or a large enterprise, understanding these tools can give you the power to stay organised, boost productivity, and ensure secure, compliant document handling. 1. Cloud Storage Cloud storage allows documents to be securely stored and accessed from anywhere, offering flexibility and scalability. This feature ensures that businesses can expand their storage capacity as they grow without the need for additional hardware, while providing remote access for a distributed workforce. 2. Version Control Version control helps manage document changes by tracking different iterations. Users can view, compare, or revert to previous versions, making it easier to maintain accuracy and consistency, especially in collaborative environments. 3. Document Scanning Document scanning transforms physical documents into digital formats, making them easier to store, search, and share. This feature is often integrated with Optical Character Recognition (OCR) for enhanced usability, turning scanned documents into searchable text. 4. Workflow Automation Workflow automation streamlines processes by routing documents through approval, review, or editing workflows automatically. This increases efficiency by eliminating manual steps and ensures that documents move through the organisation without unnecessary delays. 5. Integration with Third-Party Apps Integration with third-party apps like CRM or ERP systems allows for seamless data sharing across platforms. This feature reduces manual data entry and increases overall productivity by enabling different tools to communicate effectively. 6. Mobile Access Mobile access ensures that users can manage, view, and edit documents from their mobile devices. This feature is crucial for professionals who need to access important documents while on the move, adding flexibility and convenience. 7. Role-Based Access Control Role-based access control enhances security by limiting document access to authorised users. By assigning specific permissions based on roles, businesses can ensure that sensitive documents are only accessible to those who need them. 8. Electronic Signatures Electronic signatures allow users to digitally sign documents, speeding up processes and eliminating the need for physical signatures. This feature is particularly useful for remote teams or situations where quick approval is needed. 9. Metadata Tagging Metadata tagging improves document organisation by allowing users to tag files with relevant keywords or categories. This feature enhances search functionality, making it easier to retrieve documents based on specific criteria. 10. Search Functionality Search functionality is a critical feature for quickly locating documents within a system. Advanced search options, including filters based on metadata, make finding specific files more efficient, even in large document repositories. 11. File Sharing and Collaboration File sharing and collaboration features enable users to share documents and work together in real-time. This improves team productivity by allowing multiple users to view, comment, and edit documents simultaneously. 12. Real-Time Editing Real-time editing allows multiple users to make changes to a document at the same time, with updates appearing instantly. This feature enhances collaboration by ensuring that all team members are working with the most current version. 13. Data Encryption Data encryption ensures that documents stored within the system are protected from unauthorised access. Encryption both at rest and in transit provides an added layer of security, making it essential for sensitive or confidential documents. 14. Compliance Management (e.g., GDPR, HIPAA) Compliance management helps businesses meet regulatory requirements, such as GDPR or HIPAA, by ensuring that documents are stored, accessed, and managed according to legal standards. This feature is crucial for businesses that handle sensitive information. 15. Document Approval Workflows Document approval workflows automate the process of approving documents, ensuring that all necessary approvals are completed before a document is finalised. This reduces delays and ensures compliance with internal review processes. 16. Audit Trails Audit trails provide a detailed record of all actions taken on a document, such as edits, views, or approvals. This feature is essential for compliance and accountability, as it allows businesses to track document activity and ensure transparency. 17. User Permissions and Security User permissions allow administrators to control who can view, edit, or delete documents, adding an extra layer of security. By restricting access based on user roles, this feature helps protect sensitive information. 18. Document Capture and Indexing Document capture and indexing convert physical documents into digital formats and categorise them for easy retrieval. This feature is crucial for businesses that need to manage large volumes of documents and maintain an organised system. 19. Archiving and Retention Policies Archiving and retention policies ensure that documents are stored for the appropriate amount of time before being archived or deleted. This feature helps businesses manage storage costs and comply with legal or industry regulations. 20. Template Management Template management allows users to create, customise, and store document templates for various purposes, such as contracts or reports. This feature saves time by providing a consistent format for frequently used documents. 21. Multi-Device Synchronisation Multi-device synchronisation ensures that any changes made to a document on one device are instantly updated on all other devices. This feature ensures that users are always working with the most current version, regardless of which device they are using. 22. Offline Document Access Offline document access allows users to view and edit documents without an internet connection. Changes made offline are synchronised once the user reconnects, ensuring seamless document management even in areas with limited connectivity. 23. OCR (Optical Character Recognition) OCR technology converts scanned images or PDFs into searchable text, allowing users to search for specific words or phrases within a document. This feature enhances the usability of scanned documents, making them as accessible as digital-born files. 24. Customisable Workflows Customisable workflows enable businesses to tailor document processes to their unique needs. Whether it’s an approval workflow or a review process, customisable workflows increase efficiency by aligning the system with specific business operations. 25. Document Linking and Cross-Referencing Document linking and cross-referencing allow users to create relationships between documents, making it easier to navigate related content. This feature is particularly useful in complex projects where multiple documents are interconnected. 26. Digital Asset Management Digital asset management goes beyond document storage by organising and tracking multimedia files, such as images or videos. This feature is crucial for industries that rely on visual content, ensuring that all digital assets are easily accessible. 27. File Versioning and History Tracking File versioning and history tracking keep a detailed record of every change made to a document. Users can view or restore previous versions, making it easier to track edits and collaborate more effectively. 28. Automatic Backup Automatic backup ensures that all documents are regularly saved, protecting businesses from data loss. This feature runs in the background, providing peace of mind that files are always retrievable, even in the event of a system failure. 29. Collaboration Tools (Comments, Annotations) Collaboration tools, such as commenting and annotation features, allow users to provide feedback directly on documents. This improves communication and streamlines the review process by keeping all comments in context. 30. E-Mail Integration E-mail integration allows users to send, receive, and store documents directly within the document management system. This feature simplifies document sharing and ensures that important files are kept within the system for easy retrieval. 31. Document Import/Export Capabilities Document import/export capabilities allow users to easily bring documents into or export them out of the system. This feature ensures compatibility with other software tools and streamlines the process of transferring documents between systems. 32. Customisable User Interfaces Customisable user interfaces allow users to tailor the layout and functionality of their DMS to match their preferences. This increases usability by providing a personalised experience that aligns with individual or organisational workflows. 33. Drag-and-Drop File Uploading Drag-and-drop file uploading simplifies the process of adding documents to the system. Users can quickly upload multiple files by dragging them from their desktop into the DMS, making it a user-friendly and efficient feature. 34. Advanced Reporting and Analytics Advanced reporting and analytics provide insights into document usage, workflow efficiency, and user activity. This feature helps businesses make informed decisions about document management practices and identify areas for improvement. 35. Notifications and Reminders Notifications and reminders alert users when actions are required, such as document approvals or deadlines. This feature ensures that important tasks are not overlooked, improving workflow management and accountability. 36. Compliance Audit Support Compliance audit support provides tools for generating reports and logs that demonstrate adherence to regulatory requirements. This feature is essential for industries with strict compliance standards, helping businesses stay compliant. 37. API Access for Customisation API access allows businesses to customise the document management system to integrate with their existing tools and processes. This feature provides flexibility for organisations that require tailored solutions for their document workflows. 38. Cloud-Based and On-Premise Deployment Options Cloud-based and on-premise deployment options give businesses the flexibility to choose how their document management system is hosted. Whether in the cloud or on-site, this feature ensures that the system aligns with the company’s infrastructure and security needs. 39. Document Classification and Categorisation Document classification and categorisation help organise documents based on specific attributes, such as type, department, or project. This feature improves searchability and ensures that documents are stored in a logical, easy-to-navigate structure. 40. Document Preview Without Downloading Document preview without downloading allows users to view documents directly within the system, saving time and reducing unnecessary downloads. This feature increases productivity by providing quick access to document content. 41. Barcode Recognition Barcode recognition automates the process of categorising and indexing documents. By scanning barcodes, the system can instantly classify and store documents in the appropriate location, improving efficiency and reducing manual data entry. 42. Integration with CRM and ERP Systems Integration with CRM and ERP systems enhances document management by allowing for seamless data flow between business tools. This feature increases productivity by reducing the need for manual document transfers and ensuring that all systems are up to date. 43. Multi-Language Support Multi-language support ensures that the document management system can be used by teams across different regions and languages. This feature is crucial for global businesses that need to maintain consistent workflows across multiple languages. 44. Contract Lifecycle Management Contract lifecycle management automates and tracks the entire contract process, from creation to expiration. This feature ensures that contracts are handled efficiently and meet compliance requirements. 45. Disaster Recovery Support Disaster recovery support provides a backup plan for data in the event of system failure, natural disaster, or cyberattack. This feature ensures that critical documents are always retrievable, no matter what happens. 46. Image and Multimedia File Support Image and multimedia file support expands the DMS beyond text-based documents to include visual content, such as images, videos, and audio files. This feature is especially useful for industries that rely heavily on media files. 47. Custom Branding Options Custom branding options allow businesses to personalise their document management system with their own logos, colours, and branding elements. This feature helps reinforce brand identity, even within internal systems. 48. Business Process Management (BPM) Features Business process management (BPM) features enable businesses to automate, monitor, and optimise workflows within the DMS. This improves efficiency by streamlining complex processes and ensuring that all tasks are completed on time. 49. Collaboration on Documents in Real-Time Real-time collaboration on documents ensures that team members can work together simultaneously, making instant updates and improvements. This feature is key to fostering an agile, collaborative working environment. 50. Document Expiration Management Document expiration management tracks and manages the lifecycle of documents, ensuring that outdated or obsolete files are removed or archived as needed. This feature helps businesses maintain a clean and organised document system while complying with retention policies. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations offer clarity and a well-defined pathway for you and your team to move forward confidently. Get Started

What is business waste management? What is business waste management? From overflowing landfills to toxic waste dumps, the impact of our corporate waste on our environment is far from desirable. Published on: 22 Jun 2023 With businesses generating thousands of tonnes of waste yearly, it’s no surprise that our planet is struggling to keep up. Waste created by businesses is a problem for the environment and the bottom line. Organisations that can reduce their waste can often increase profits and improve their sustainability. In a world where resources are increasingly scarce, looking for ways to reduce waste throughout a business operations is essential. What is business waste management? Waste management is essential to preserving our planet and ensuring its sustainability. With increased awareness about environmental issues, more people are becoming conscious of their waste management practices. Waste management involves collecting, transporting, processing, disposing, and monitoring waste materials. It manages all types of waste, including solid, liquid, and gaseous, and aims to minimise environmental impact while protecting public health. Effective waste management practices typically involve a combination of strategies, including waste reduction and recycling and the safe and responsible disposal of any remaining waste. This can affect the use of landfills, incineration, composting, and other techniques designed to minimise the environmental impact of waste. This has led to the development of new technologies that help reduce the waste generated and ensure it is disposed of properly. Effective business waste management support UN SDG12 , responsible production and consumption. Sustainable consumption and p r oduction is about doing more and better with less and decoupling economic growth from environmental degradation, increasing resource efficiency and promoting sustainable lifestyles. There are various methods of waste management. There are many ways to manage the waste we create , from composting to recycling. Taking care of our waste is essential to protecting our planet. 1. Source Reduction: This involves minimising waste generated by changing production, consumption, and product design patterns, for example, using reusable bags instead of single-use plastic bags. 2. Recycling: This involves the collection, separation, processing, and reuse of materials that would otherwise be thrown away, for example, recycling paper, plastic, metal, and glass. 3. Composting: involves the natural breakdown of organic waste materials, such as food and yard waste, into a nutrient-rich soil amendment that can enrich the soil. 4. Landfills: This involves the disposal of waste in a designated landfill area. Modern dumps are designed to minimise the environmental impact of waste disposal by capturing and treating leachate and landfill gas. 5. Incineration: This involves the burning of waste materials at high temperatures. The generated heat can produce electricity, and the residual ash can be safely disposed of in a landfill. 6. Hazardous waste management: This involves the safe and proper handling, storage, and disposal of hazardous waste materials, such as chemicals, batteries, and electronics. The choice of waste management method depends on factors such as the type and quantity of waste, local regulations, and available infrastructure. A combination of waste management methods should achieve the most efficient and sustainable waste management system. What is e-waste? E-waste, also known as electronic waste, is a term used to describe discarded electronic devices such as computers, televisions, mobile phones, and other electronic equipment. E-waste is generated when electronic devices are no longer needed, obsolete, or replaced by newer technology. E-waste can pose a significant environmental threat if not disposed of properly. Electronic devices contain many toxic and hazardous materials, such as lead, mercury, cadmium, and brominated flame retardants. When these materials are not disposed of properly, they can leach into the soil and water, causing pollution and posing a health risk to humans and wildlife. Therefore, recycling and adequately disposing of e-waste is vital to reduce the environmental impact of electronic devices. Many countries and organisations have implemented e-waste recycling programs to ensure that electronic devices are disposed of safely and responsibly. These programs involve collecting, processing, and recycling e-waste to recover valuable materials and minimise the environmental impact of electronic devices. Electronic waste, or e-waste, is a growing global problem due to the increasing amounts of discarded electronics . In 2023, until the end of April , 16,765,000 tons of electronic waste have been thrown out. It’s a shocking amount, and it’s getting worse as our tech addiction grows more vital. E-waste often contains valuable resources that can be recovered and reused in new products . This makes e-waste a vital issue to address to reduce environmental damage while preserving valuable resources. Examples of e-waste include: Computers and peripherals, such as monitors, keyboards, and printers Mobile phones and other handheld devices Televisions and other electronic appliances, such as refrigerators, air conditioners, and washing machines Electronic toys and games Batteries and chargers Audio and video equipment, such as DVD players and stereo systems Medical equipment, such as X-ray machines and laboratory instruments Solar panels and other renewable energy equipment Cables and wiring Electronic components, such as circuit boards and hard drives Five simple steps to dispose of domestic e-waste: Getting rid of old gadgets can be a hassle, but it’s essential to do it right. Not only do we need to prevent environmental pollution, but we also want to make sure we recycle valuable materials. 1. Donate or sell: If your electronic device is still in working condition, consider donating it to a charity or selling it to someone who can use it. 2. Recycle: Many cities have e-waste recycling programs that allow you to drop off your electronic devices at designated locations. These programs ensure that electronic devices are properly recycled and that hazardous materials are disposed of safely. 3. Manufacturer take-back programs: Many electronics manufacturers offer take-back programs that allow you to return your old devices to the manufacturer for proper disposal. 4. Find a certified e-waste recycler: Look for an accredited e-waste recycler who follows responsible recycling practices and does not export e-waste to developing countries. 5. Erase personal data : Before disposing of your electronic device, be sure to erase any data. Proper disposal of e-waste is vital to prevent environmental and health hazards. How can businesses measure waste reduction? There are several ways that companies can measure their progress in reducing waste. The first step in waste reduction is to conduct a waste audit. This involves assessing the types and amounts of waste generated by your business. It will help you identify the areas where waste can be reduced and set targets for future waste reduction. By conducting periodic audits, companies can identify trends in their e-waste generation and track progress towards their reduction goals. Track your waste reduction progress ; you can measure waste metrics such as the overall amount of waste generated, the amount of waste diverted from landfill, and the cost of waste disposal. You can use this data to set targets for reducing waste and to identify areas where improvements can be made. A waste management plan can help businesses reduce waste and track progress. A waste management plan outlines a business’s actions to reduce its waste, including setting reduction targets and identifying specific waste reduction initiatives. There are several waste management software options available that can help businesses track their waste reduction progress. These systems provide real-time data on waste generation and disposal and can help companies identify improvement areas. By measuring waste reduction , businesses can identify areas for improvement, set targets for reducing waste, and track their progress. This not only helps the environment but can also lead to cost savings and increased efficiency in operations. Businesses can track the amount of e-waste they dispose of and compare it to previous years. This can help them identify any reductions in e-waste generation. Tracking the amount of e-waste that is recycled can also help businesses understand the impact of their e-waste reduction efforts. For example, they can measure the percentage of recycled e-waste versus those sent to landfill and compare it to previous years. E-waste generates significant carbon emissions so that businesses can track the reduction in emissions associated with their e-waste reduction efforts. In addition, they can calculate the carbon emissions associated with their e-waste generation and compare it to previous years. Businesses can engage employees in their e-waste reduction efforts by encouraging them to track the e-waste they generate and recycle. They can then use this data to calculate the reduction in e-waste generated by employees. Overall, measuring an e-waste reduction requires businesses to track their e-waste generation, recycling, and carbon emissions over time. By doing so, they can identify areas where they can improve their e-waste reduction efforts and track their progress towards their goals. Businesses can benefit by reducing waste It may be tempting to discard old electronics without considering their environmental impact; businesses that do so will likely find themselves paying a hefty price. Not only is e-waste creating an enormous environmental burden on our planet, but it can also have a considerable financial cost for businesses. Disposing of old electronics is quickly becoming one of the most significant expenses associated with running a business. This can include costs such as transport and storage fees and the need to hire additional employees or contractors to manage the disposal process. In addition, businesses must also pay for the necessary certifications for proper disposal of electronic waste. All these costs add up quickly, making it increasingly important for companies to focus on. However, reducing e-waste is more than just an environmental responsibility; it is a way for businesses to increase their profits. It has been estimated that reducing e-waste can save a company up to 30% on its operational costs. To reduce e-waste, businesses must start looking for ways to reuse or repurpose their obsolete electronics. By doing so, they can use the materials already used in the device’s production and extend its lifecycle, saving time and money. For example, refurbishing an old laptop and reselling it as a second-hand model will cost less than buying a new one. In addition, this kind of strategy reduces the amount of waste created and provides an additional source of income for a small business. Businesses can also look to donate their old electronics to organisations that can use them. This can reduce the waste businesses create while providing a valuable resource for those in need. Finally, businesses should look for ways to improve their recycling and disposal processes. By increasing oversight of their e-waste disposal and investing in new technologies such as shredders or furnaces, businesses can further reduce the amount of waste they create and ensure that any remaining materials are appropriately disposed of. 5 ways to reduce waste management costs 1. Lower material costs: Reducing business waste can increase profit in several ways. First, waste reduction can lead to cost savings by minimising the resources, materials, and energy used in production, resulting in lower operational expenses. This can be achieved by implementing practices such as recycling, reducing energy consumption, and optimising production processes to eliminate inefficiencies. Reducing waste can enhance a business’s reputation and appeal to consumers who are increasingly conscious of the environmental impact of their purchasing decisions. This can result in increased sales and customer loyalty and the potential to attract new customers who prioritise sustainable products and practices. 2. Reduce disposal costs: Proper waste management can reduce disposal costs associated with waste removal and treatment, leading to cost savings and increased profits. By minimising waste in production processes, businesses can reduce the amount of waste generated, reducing the amount of waste that needs to be disposed of. This can be achieved by implementing practices such as recycling, reusing materials, and optimising production processes to eliminate inefficiencies. 3. Avoid Fines : Reducing waste can also help businesses avoid fines and penalties associated with improper waste disposal. Many authorities have strict regulations governing waste disposal, and companies that fail to comply with these regulations can face significant fines. 4. Increased efficiency : Reducing waste in business can lead to increased efficiency in several ways. First, by minimising waste in production processes, companies can optimise their use of resources, reducing the amount of materials, energy, and time needed to produce their products. This can be achieved by implementing practices such as lean manufacturing, process optimisation, and waste reduction initiatives. Another positive is improved inventory management, as businesses can better track and manage their raw material inventory levels. This can result in more efficient ordering processes, reducing the need to stockpile excess materials that may go unused. It can also lead to improved workplace safety and cleanliness. 5. Improved reputation : A company committed to sustainability and responsible waste management practices can enhance its reputation and attract environmentally conscious customers, increasing sales and profits. Businesses prioritising waste reduction and sustainability demonstrate their commitment to environmental management, which can be attractive to customers who are increasingly conscious of the impact of their purchasing decisions. This can lead to increased sales and customer loyalty and the potential to attract new customers who prioritise sustainable products and practices. Finally, reducing waste can help businesses avoid negative publicity and reputational damage associated with improper waste disposal or environmental violations. By implementing best practices in waste reduction and environmental management, companies can mitigate the risk of negative publicity and reputational damage. In conclusion, reducing e-waste is an essential environmental responsibility and a great way to increase profits for businesses. By focusing on reuse, repurposing, and better disposal methods, companies can reduce their operational costs and provide valuable resources to those in need . If businesses can effectively implement these strategies , they will be sure to see an increase in profits while positively impacting the environment. Overall, reducing waste in business can have significant positive impacts on both the bottom line and the environment. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Discover how a strong customer service philosophy can build trust, foster excellence, and drive business success. Learn the core principles that shape a customer-centric culture. Customer Service Philosophy: The Foundation of Lasting Business Success Why a Thoughtful Customer Service Philosophy is Key to Building Trust and Creating Long-Term Relationships. Published on: 22 Apr 2021 How many times have you heard the familiar sayings like "the customer is always right" or "service with a smile"? While these phrases hold some truth, they oversimplify the complexities of modern customer service. In today's world, where customer expectations are ever-evolving, a deeper, more thoughtful approach is essential. That's why we're moving beyond outdated clichés to help you develop a meaningful customer service philosophy. In this article, we'll explore: The importance of a customer service philosophy How a well-defined philosophy shapes exceptional service Real-world examples of effective customer service philosophies Let’s dive into the core ideas that underpin a customer-first mindset. Building a Customer Service Philosophy Every business has its unique way of delivering service, but the most successful ones are rooted in timeless principles. These principles form the foundation of a well-rounded customer service philosophy that elevates both the customer experience and business success. They’re as follows: 1. Be Responsive Is there anything more frustrating than spending your precious free time trying to get in touch with a company only to be put on hold for what feels like hours? Responsiveness is vital for customer service. But so many companies are falling at the first hurdle due to a lack of staff. Here’s the numbers: A study by Which? Revealed five out of the six big energy firms left customers waiting for 10 minutes or more on average. A more recent study by Money Mail revealed wait times of over half an hour for major banking phone lines. Even trying to get through to HMRC will set you back an average of 47 minutes according to Citizens advice research. It’s not just over the phones either. Other communication channels also need to be responsive. This includes email and social media channels. Companies must be monitoring these, or outsourcing someone to monitor them, even during weekends. A short initial response time can increase customer satisfaction substantially. But it doesn’t end here. Agents need to continue to be responsive. This means whatever issue or query a customer has also needs resolving quickly. In an ideal world, these issues are resolved straight-away on the same contact, but anyone in customer service knows this is not always the case. Employees and companies must make resolution a priority to deliver good customer service. Companies can increase responsiveness by training and empowering their employees. It might be stating the obvious a little, but employees need to have the initial knowledge to be able to resolve customer queries. Without good training, they’re unlikely to have the knowledge necessary to have an immediate solution for customers. But even with this knowledge, employees may not feel empowered to make the decisions to resolve issues. The more back and forth an employee needs to make to get decisions approved, the longer customers wait. Employees who are empowered to make decisions and resolve issues will be more able to come up with solutions to less common problems. You should also have a host of communication channels open to your customers. This could include phone, live chat, social media and email. This allows customers to choose the channel that they prefer. Just make sure all your channels are as responsive as possible. 2. Be Knowledgeable We hinted at this above, but it couldn’t be more true. How is an employee supposed to help a customer when they don’t know any more about the product or service than the next person? Employees who have been given the best training deliver better customer service. They can give accurate, detailed answers to customers. They can even answer questions the customer didn’t know they had, because they’re not the expert in your product or service — you are! Employees shouldn’t just be trained in your product or service, but also in the systems you use in your workplace. They should be confident using software and supported with regular training for new features. The confidence that your employee gains from great training transfers to your customer. Your customer feels reassured that their problem is being dealt with by a competent and helpful employee. 3. Be Consistent A lack of consistency can really damage your customer service and your brand authority. From the first moment you interact with a customer, you’re setting an expectation of service. This is great when you’ve nailed that interaction and a customer has a positive view of your company. But later down the line, if you fail to meet that expectation, your customer will be more disappointed. To keep things consistent, you need to communicate internally. Different departments must have easy ways to contact and discuss issues to best resolve customer problems. This is where a CRM (Customer Relationship Management) system becomes invaluable. All teams that need it should have access to customer history through the CRM , ensuring that every interaction is logged and updated after every contact. This avoids customers repeating themselves every time they reach out. A CRM also helps align your inbound and outbound strategy communications. Customers often have wildly different experiences when dealing with an agent they’ve reached out to versus one who has reached out to them. A well-maintained CRM ensures that every interaction is informed and personalised, reducing frustration and improving service quality. You’ll also need a customer service philosophy — but we’ll get to that later. 4. Be Effortless It shouldn’t take MI6 training to contact you. In fact, quite the opposite — it should be effortless. Aim to have a variety of channels on offer and this information should be easy to find. Customers shouldn’t have to trawl through pages of “helpful” FAQ materials just to find a number to speak to a real human. Once a customer contacts you, communications should be effortless. This means clear, consistent and helpful advice or resolutions where you go above and beyond. For example, if a customer needs to speak to another department avoid the caller having to make another call which increases stress all around and takes up more of your company’s valuable time later, time better spent on other things. Complete a warm transfer — a transfer where you pass the call details onto the next agent before transferring the call. This can help improve sales and service call productivity. 5. Be Human Time for a serious question… does anyone like the automated answering services? We’re yet to meet a customer who does and we get it. Especially when you’re pressing endless different numbers to get through to the right department just to be told it’s the wrong department or, worse yet, to be cut off. A human touch goes a long way in customer service. Though we understand the need for automated answering services for busy periods, it shouldn’t be the default if at all possible. Personality and empathy make a huge difference to a frustrated customer. Think about the last time a customer service agent made your day. We bet it wasn’t a robot that did it. 6. Be Open There’s a reason honesty is a virtue. Just as we value it in people, we value it in companies. Maintaining transparency and honesty with your customers is part of outstanding customer service. It’s okay to be wrong sometimes. It’s okay to make a mistake. It’s okay to not know something. Transparency shows your customer you value them. Just be sure to emphasise that you will resolve the issue. Be transparent about how long it will take and why. Most customer frustrations stem from a lack of being kept in the loop, not the actual initial problem itself. You should encourage the same transparency back from your customers with feedback methods. Ask for honest and open feedback about how you can improve. This again emphasises to customers you’re serious about delivering great customer service. 7. Be Proactive Proactive customer service is great customer service. So anticipate problems and needs with a proactive approach. This allows you to not only meet customer expectations, but exceed them. There are so many ways to be proactive in customer service, but here’s just a few: Reward loyal customers Inform customers about upgrades or new services Collect customer feedback Monitor social media 8. Be Continuous The thing about companies that deliver really great customer service is that they never settle for being great and stop trying. There is always something you could be doing better. Use customer feedback to gain insights into your customer service, but then actually follow through on those insights and make changes. Review complaints to discover the root of the issue and then create a solution so it’ll never happen again. Review calls and chat transcripts to discover more about your frontline service. This ethos of continual improvement ensures that you will always be looking ahead, instead of settling for what you have. Create A Customer Service Philosophy You can use these principles of customer service to help create a customer service philosophy. You can put as much, or as little, emphasis on each principle of customer service as you want. You can also add your own like be fun or be friendly to better match up with your brand. This philosophy can guide you and define you. The reality is without a strong focus on customer service, your business will struggle to grow and rival competitors that are focused on customer service. The days of slashing prices to compete died with Amazon. There’s one thing that many companies that are thriving have in common — a philosophy of customer service. Everybody’s competitor now is Amazon, Apple and Valve. Today we buy experiences – how something or some service makes us feel – more than we ever did before. Examples Of Outstanding Customer Service Philosophies It really shouldn’t surprise anyone that Amazon is the absolute leader of the pack when it comes to customer service. That success comes from their own unique principles of customer service. In their own words, “to be earth’s most customer-centric company”. Their philosophy lies in continuous improvement. Products can always be delivered faster, to a more convenient location, at a more convenient time. That’s why they’ve been testing drones for the past decade to drive forward their 2-hour delivery goal for prime members. This philosophy is what drives the company to continually out-innovate competitors. Learn More Use the principles of customer service to help your company create your own customer service philosophy. This philosophy should reflect your brand and your values, helping to guide your employees to deliver outstanding customer service every time. You can find out more about everything you need to know about phone skills in our ultimate guide . Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Explore how organisational behaviour and culture drive high-performance outcomes. Learn how aligning culture with strategy, leadership, and structure can transform your business. Unlocking Organisational Behaviour: The Culture Behind High-Performance Discover the key role of culture in shaping organisational behaviour and unlocking your company's full potential for success. Published on: 20 Feb 2025 Organisational behaviour is the backbone of every successful business. It shapes how employees interact, how work gets done, and, ultimately, how a company performs. When aligned with a company's values, goals, and strategy, organisational behaviour can lead to exceptional results. But when misaligned, it can create roadblocks, inefficiencies, and even undermine success. Here’s a deep dive into how understanding and actively managing organisational behaviour can transform your company’s culture, structure, performance, and overall success. How Organisational Culture Shapes Customer Relationships Through CRM A company’s internal culture doesn’t just impact employees—it directly affects how customers experience the business. High-performance organisations understand that customer satisfaction begins with engaged and motivated teams. This is where Customer Relationship Management (CRM) plays a crucial role in aligning internal behaviours with customer expectations. 1. CRM as a Bridge Between Employees and Customers Strong organisational culture promotes collaboration, communication, and accountability. A well-implemented CRM system reinforces these values by providing teams with shared access to customer data, interactions, and history—ensuring everyone is on the same page. When employees can easily access relevant customer insights, they deliver consistent, high-quality service, strengthening relationships and trust. 2. Data-Driven Customer Insights for Better Decision-Making High-performance cultures rely on informed decision-making. CRM tools turn customer interactions into actionable insights, helping teams understand preferences, pain points, and opportunities. When employees have a 360-degree view of the customer, they can personalise interactions, anticipate needs, and provide a seamless experience. 3. CRM Reinforces Accountability in Service Delivery One key trait of high-performance cultures is accountability. CRM systems ensure that customer commitments aren’t forgotten—tasks, follow-ups, and service requests are tracked and assigned, preventing gaps in communication. This structure fosters proactive problem-solving rather than reactive customer service. 4. Culture-Driven CRM Adoption For CRM to work effectively, it must align with the company’s culture. When leadership champions customer-centric behaviours, employees are more likely to embrace CRM tools as a means of improving relationships rather than as extra admin work. A culture that values efficiency, transparency, and customer success will naturally leverage CRM as a tool for continuous improvement. The Bottom Line: Culture and CRM Go Hand in Hand A high-performance culture isn’t just about internal efficiency—it’s about creating a seamless, engaging experience for both employees and customers. CRM acts as the connective tissue between the two, ensuring that organisational values translate into real-world customer satisfaction. 1. Organisational Design and the Role of Behaviour Organisational design is more than just structure—it's the framework that drives how work flows, how decisions are made, and how people interact. When your organisation's design aligns with the behaviours you want to create, you create an environment where individuals can thrive, innovate, and contribute to company goals. The right organisational design , whether hierarchical, matrix, or flat, affects the behaviours that emerge. A well-structured organisation promotes efficient communication, clear decision-making, and collaboration. Conversely, a poorly designed organisation can lead to confusion, inefficiency, and frustration among employees. To maximise the effectiveness of your organisational structure, ensure it is built around the behaviours you want to see in your team. A clear alignment between design and desired behaviours is essential for success. 2. Culture and Behaviour: Two Sides of the Same Coin Culture isn’t just about having a set of values plastered on the wall; it’s about the behaviours that are encouraged, recognised, and rewarded every day. Organisational culture forms when employees start to embody the company’s core values in their actions. The culture that emerges will either drive success or sabotage it, depending on whether the behaviours align with the business's strategic goals. Building and maintaining a positive organisational culture requires intentional efforts. It involves defining the key behaviours that will support the company’s vision and ensuring that they are consistently practiced at every level of the organisation. Culture is lived through behaviours. To maintain a healthy culture, focus on the specific behaviours that embody the company’s values, from leadership down to everyday practices. 3. Leadership’s Role in Shaping Behaviour Leaders are the stewards of organisational culture and behaviours. Their actions, decisions, and communication set the tone for the rest of the organisation. Leadership modelling is critical—when leaders demonstrate the behaviours they want to see, they create a ripple effect that spreads throughout the entire company. However, leadership isn’t just about showing the right behaviours; it’s also about holding others accountable for them. Leadership should reinforce and sustain positive behaviours through recognition, rewards, and constructive feedback. Leadership is the most powerful force in shaping organisational behaviour. By modelling desired behaviours and providing ongoing feedback, leaders can drive a culture of high performance. 4. Aligning Strategy, Structure, and Behaviour for Business Performance Organisational behaviours must be aligned with your business strategy and goals to ensure that your team works efficiently toward the same objectives. When culture, strategy, and behaviour are misaligned, confusion and inefficiency prevail. For instance, if a company’s strategy is focused on innovation, but the behaviours being rewarded are traditional and risk-averse, the organisation will struggle to reach its goals. Aligning your organisation’s strategy with the right behavioural traits—such as collaboration, innovation, and customer-centricity—can significantly enhance your chances of success. This requires constant evaluation and adjustment of both strategy and culture to ensure they remain in sync. To drive business performance, ensure that your organisational behaviours support and align with your strategic goals. This coherence boosts efficiency, effectiveness, and long-term success. 5. Measuring and Sustaining Behavioural Change As your organisation grows and evolves, so must the behaviours that drive its success. Tracking and measuring behavioural change is crucial for ensuring that your culture remains aligned with your goals. Regular assessments—such as surveys, feedback sessions, and performance reviews—can help you track how well behaviours are aligning with company values and identify areas for improvement. Sustaining behavioural change requires ongoing commitment and reinforcement. Creating systems for regular feedback, celebrating successes, and addressing challenges as they arise will help ensure that desired behaviours become embedded in the organisation over time. Continuously assess and measure behaviours to ensure alignment with organisational goals. Using feedback and reinforcement strategies will help sustain positive change in the long run. Organisational Behaviour as a Driver of Success Organisational behaviours are the daily actions that drive your company's culture and performance. By aligning your structure, culture, leadership, and strategy with the behaviours that matter most, you can set your organisation up for sustainable success. The key is to actively manage and shape these behaviours, from leadership to everyday practices, and consistently assess whether they are contributing to your business goals. In a world of constant change, understanding and influencing organisational behaviour will give your company a competitive edge, helping you attract the best talent, improve performance, and drive long-term success. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Learn all about what is operational excellence and what it can do for your business in this helpful quick guide from the business productivity experts. What is Operational Excellence? The ultimate objective of operational excellence is to maximise operating profit by creating as much value as possible with the resources available. Learn more. Published on: 21 Nov 2024 Put simply, the objective of operational excellence is to maximise operating profit by creating as much value as possible with the resources available. This has the effect of minimising costs, raising productivity and driving increased revenues. Suffice to say, all businesses should strive for operational excellence. That’s why we’ll be answering the question, “ what is operational excellence? ” in this article, as well as looking at its benefits and strategies to improve operational excellence in your business. What is Operational Excellence? There are many different definitions of operational excellence, but we like this one best: “ Operational excellence is the execution of continuous business improvement leading to outstanding performance metrics. ” Simple and to the point. When we’re coaching small businesses and larger SMEs, operational excellence involves us creating a culture of continuous improvement which creates a more efficient company with higher levels of staff productivity, and employee engagement. Perhaps most importantly ( and often overlooked ), it refines the company’s competitive advantage and unique selling proposition ( USP ). Operational excellence enables a company to effectively implement its business strategy. Each employee is clear about how value is being created, the part they have in creating that value themselves and how to quickly fix issues when they arise which drives long-term sustainable growth. With this understanding, operational excellence is unique to each organisation. But culture, employee engagement, leadership, process management, quality management and relationship management all have a part to play. Whilst typically associated with manufacturing, all companies of any size and type should aspire to operational excellence. Operational excellence tools include lean principles and six-sigma which aim to minimise waste in time and costs, as well as maximise quality. Principles of Operational Excellence The principles of operational excellence can be summarised as: 1. Respect for Employees Operational excellence begins with recognising the value of employees. Respecting employees means empowering them to contribute their ideas, involving them in decision-making, and creating a culture where their well-being and development are prioritised. It recognises that employees are not just resources but key drivers of innovation, productivity, and improvement. Respect also involves creating a safe, inclusive work environment where everyone feels valued and motivated to perform at their best. Action Points: Employee Involvement : Establish regular forums (e.g., team meetings, suggestion schemes) where employees can contribute ideas for improvement. Consider implementing a “suggestion of the month” scheme to reward innovative ideas. Empowerment : Provide employees with the autonomy to make decisions within their roles. For example, frontline staff can have the authority to address customer issues immediately without waiting for manager approval. Development and Training : Create personalised development plans for each employee, providing opportunities for career advancement and skill enhancement through workshops, courses, or mentoring programmes. Well-being Initiatives : Introduce wellness programmes, such as mental health resources, flexible working hours, or ergonomic workplace designs to show care for employee well-being. 2. Focus on Value Streams A value stream represents the sequence of activities needed to deliver a product or service to the customer. Focusing on value streams means identifying and optimising these processes to ensure that every step adds value from the customer's perspective. It involves eliminating waste, reducing inefficiencies, and ensuring that all resources are aligned towards delivering quality and timely outcomes. The goal is to create a seamless flow from idea to delivery, ensuring customer satisfaction while maximising efficiency. Action Points: Value Stream Mapping : Conduct value stream mapping workshops to visually map out each step in the process from start to finish. Involve cross-functional teams to identify where value is added and where waste occurs. Waste Elimination : Use lean tools (e.g., 5S, Just-in-Time) to identify and eliminate waste such as excess inventory, waiting times, overproduction, or defects in processes. Customer Feedback : Regularly gather and analyse customer feedback to ensure that the value delivered matches their expectations. Adjust processes if customer needs shift. Process Improvement Teams : Create dedicated teams focused on monitoring and improving specific value streams, using metrics like lead time, throughput, and cycle time to measure success. 3. Think Systemically Systemic thinking involves viewing an organisation as an interconnected system where changes in one part affect the others. In operational excellence, this means understanding the relationships between various functions, processes, and teams. By thinking systemically, organisations can avoid siloed approaches, make better decisions, and create strategies that optimise the entire organisation, not just isolated areas. It helps in anticipating unintended consequences and ensures that improvements are sustainable across the whole system. Action Points: Cross-Department Collaboration : Set up cross-functional task forces to work on projects that impact multiple departments, ensuring that each function understands how its work affects the whole system. System Mapping : Use tools like systems diagrams or causal loop diagrams to identify how changes in one area affect others. This can help in planning for unintended consequences. Integrated KPIs : Develop Key Performance Indicators (KPIs) that reflect system-wide performance rather than individual department successes to avoid local optimisation at the expense of the larger system. Holistic Decision-Making : Encourage leaders and managers to make decisions considering how those decisions will impact other parts of the organisation. Host decision-review meetings that focus on potential ripple effects. 4. Embrace Continuous Improvement Continuous improvement is the relentless pursuit of better ways of working. It’s a mindset where organisations consistently seek to enhance processes, products, and services. This principle, often associated with methodologies like Kaizen, encourages employees to regularly identify small, incremental improvements that can lead to significant gains over time. Embracing continuous improvement involves establishing a culture of learning, where feedback, experimentation, and adaptation are actively encouraged. Action Points: Kaizen Events : Organise regular Kaizen workshops where employees from all levels identify incremental improvements in their day-to-day tasks. Feedback Loops : Implement a feedback mechanism where employees, customers, and stakeholders can regularly provide feedback. Use this feedback to continuously refine products, services, and processes. Pilot Small Changes : Test small changes before full-scale implementation. For example, trial a new procedure in one department for a month, gather results, and make adjustments before rolling out company-wide. Learning Culture : Encourage employees to learn from failures by hosting ‘lessons learned’ sessions after each project or initiative. Use these lessons to refine future processes. 5. Encourage Collaboration Collaboration is key to operational excellence because it breaks down silos and leverages diverse perspectives. Encouraging collaboration means fostering a work environment where cross-functional teams work together towards common goals. It involves transparent communication, shared knowledge, and the integration of ideas across departments. When collaboration is encouraged, innovation flourishes, problem-solving becomes more effective, and a sense of shared ownership develops, leading to improved organisational outcomes. Action Points: Collaboration Tools : Introduce collaboration platforms (like Microsoft Teams, Slack, or Asana) to allow for easier communication and teamwork, especially for cross-departmental projects. Cross-Functional Teams : Create teams that include members from different departments to work on strategic initiatives or problem-solving projects, promoting diverse perspectives. Shared Goals : Ensure that departments and individuals have shared goals that align with overall organisational objectives, reducing siloed behaviour. Team-Building Activities : Organise regular team-building activities or problem-solving workshops that encourage collaboration and build trust among team members. 6. Standardise Wherever Possible Standardisation is about creating consistency and predictability in processes. By establishing standard operating procedures (SOPs) , organisations ensure that work is performed in the most efficient, reliable, and safe way. Standardisation helps reduce variability, ensures quality, and makes training easier. However, it also allows for flexibility when improvements are identified. This principle promotes efficiency while still allowing for innovation and adaptation where necessary. Action Points: Develop SOPs (Standard Operating Procedures) : Document the best-known methods for performing tasks and make them easily accessible to employees. Use SOPs for routine tasks to ensure consistency. Automate Repetitive Tasks : Wherever possible, automate routine tasks using software solutions, such as automating payroll or inventory management, to free up human capacity for higher-value work. Regular Review of Standards : Schedule periodic reviews of all standardised processes to ensure they are still effective and relevant. Update SOPs as needed based on new learnings or process improvements. Training and Onboarding : Ensure that every new employee is trained on the standard procedures from day one, creating a consistent base of knowledge and work methods across the organisation. 7. Build Your People, Suppliers, and Partners Operational excellence extends beyond the internal workforce; it involves building strong relationships with suppliers and partners as well. Building people means investing in their skills, development, and engagement. By training and developing employees, organisations enhance their capability to drive improvements. Building suppliers and partners means nurturing collaborative relationships based on mutual trust and shared goals, ensuring that everyone in the supply chain is aligned towards delivering value to the end customer. Action Points: Employee Development : Invest in continuous learning for employees through workshops, seminars, or on-the-job training. Provide leadership development programmes to groom future leaders. Supplier Partnerships : Build long-term partnerships with key suppliers by fostering open communication, trust, and mutual benefit. Share forecasts, and collaborate on innovation and improvements in the supply chain. Supplier Audits and Support : Regularly assess supplier performance, but also provide resources and support to help them meet your standards. This can involve training on your processes or joint improvement initiatives. Partner Integration : Work closely with strategic partners to align goals, share data, and jointly solve problems that can improve overall performance for both parties. These principles work together to create a culture of operational excellence, where every part of the organisation is aligned towards achieving sustained success through efficiency, collaboration, and continuous improvement. Perhaps the best-known framework for operational excellence is the Toyota Production System . Operational excellence is therefore very much about improving employee productivity. Happier staff will make for more productive staff, more loyal customers and ultimately, improved profitability. There are two aspects to improving employee productivity, that’s their personal productivity ( their time management ) and their worker productivity ( their worker efficiency ). As a business grows they take on more staff, more customers, more products or services, suppliers, partners and so on. If there is insufficient focus on continuous business improvement, eventually the issues generated stops any further growth. The Benefits of Operational Excellence There are many, many benefits for businesses who strive for operational excellence, but some of the most notable include: Improved Competitive Advantage from Better Market Alignment Operational excellence allows businesses to better align their products and services with market demands. By streamlining processes and focusing on delivering maximum value, companies can respond more quickly to changing market conditions, meet customer needs more effectively, and differentiate themselves from competitors. This agility provides a competitive edge, enabling businesses to stay ahead in a rapidly evolving marketplace. Reduced Service Costs from Streamlined Operational Processes Streamlining operational processes eliminates inefficiencies, reduces waste, and optimises resource allocation. By improving workflows, companies can lower the costs associated with delivering services, such as labour, materials, and time. This reduction in operating costs not only improves profitability but also allows businesses to reinvest savings into other areas, such as innovation or customer service, further enhancing their competitive position. Fewer Service Delivery Issues from More Standardisation and Low-Friction Customer Experience Standardisation of processes reduces variability and ensures consistency in service delivery, both internally and externally. This leads to fewer errors, less rework, and smoother interactions with customers. When operational processes are reliable and frictionless, it improves the customer experience, increases satisfaction, and reduces the number of complaints or issues, resulting in greater customer loyalty and retention. Personalised Service Delivery from a More Engaged Workforce An engaged workforce is more motivated to go above and beyond to deliver personalised and high-quality services. Operational excellence creates a work environment where employees feel empowered, valued, and aligned with the company’s goals. This heightened engagement translates into more attentive and customised service for customers, enhancing their overall experience and satisfaction. Improved Profitability from Increased Sales and Lower Operating Costs Operational excellence drives efficiency, reducing the cost of delivering products and services. Coupled with the ability to deliver higher-quality outputs, this leads to increased customer satisfaction, more repeat business, and greater sales. The combination of lower operating costs and increased revenue directly improves profitability, making the business more financially sustainable and capable of investing in growth opportunities. Improved Company Culture from Increased Employee Engagement Fostering a culture of operational excellence improves employee engagement by creating a workplace where continuous improvement, collaboration, and respect are prioritised. Employees who feel they are part of a well-functioning system that values their contributions are more satisfied, motivated, and loyal. This creates a positive company culture that attracts top talent and reduces turnover, enhancing long-term performance. Increased Company Longevity from Enhanced Adaptability and Market Relevance Operational excellence builds adaptability into the organisation by encouraging a continuous improvement mindset and systemic thinking. Businesses that can quickly adapt to market changes and customer needs are more likely to thrive over time. By consistently staying relevant and maintaining a customer-focused approach, companies enhance their chances of long-term success and sustainability. A More Engaged Leadership Team; a Prerequisite for Any Successful Change Programme Leadership engagement is critical to the success of any operational excellence initiative. When leadership is actively involved and invested in the programme, it sets the tone for the rest of the organisation. An engaged leadership team drives the vision, supports the culture, and ensures the necessary resources and commitment are in place to achieve excellence, making the organisation more agile and resilient in the face of change. Improved Internal Communications from a Shared and Motivating Vision Operational excellence promotes a clear, unified vision that is shared across the organisation. This common focus improves internal communications, ensuring that every department and individual is aligned towards the same goals. With a motivating vision in place, teams are more likely to collaborate effectively, break down silos, and work together towards achieving continuous improvement. End-to-End Business Performance Improvement from Aligned Continuous Improvement Efforts By aligning continuous improvement efforts across the entire organisation, operational excellence ensures that improvements are not limited to isolated areas but span from end to end. This holistic approach improves every aspect of the business, from production and logistics to customer service and marketing. The result is a seamless operation that consistently delivers value, improves performance, and drives sustainable growth. Sustained Business Growth from Increased Accountability for Process Improvement Operational excellence instils a sense of accountability at all levels of the organisation for identifying and implementing process improvements. This culture of ownership ensures that everyone contributes to making the business more efficient and effective. As a result, the company becomes better equipped to scale and sustain growth over the long term, driven by constant enhancements in processes and performance. The Considered Adoption of New Technologies Based Only on Results, Not Trends With a focus on operational excellence, businesses are more discerning about adopting new technologies. Instead of following trends, they implement technologies that deliver tangible results and align with their operational goals. This thoughtful approach ensures that technological investments drive real value and improve efficiency, rather than adding unnecessary complexity or cost. Recruitment of Digital Talent Who Know How to Embrace New Technologies and Its Benefits Operational excellence requires digital talent who can harness the power of new technologies to optimise processes and drive innovation. A focus on excellence helps attract top digital talent who are skilled in implementing and managing technological solutions that deliver measurable improvements. These individuals are crucial for maintaining a competitive edge in today’s technology-driven market. Increased Customer Satisfaction from a Shared Focus on Customer Delight A key principle of operational excellence is delivering maximum value to customers. By prioritising customer satisfaction across all departments, companies can create a culture focused on delighting customers. This shared focus results in consistently positive experiences for customers, leading to greater loyalty, higher retention rates, and a stronger brand reputation. Increased Sales from Word-of-Mouth Referrals Amplified by Social Media Satisfied customers become brand advocates, spreading positive word-of-mouth recommendations. In today’s digital world, these referrals are often amplified by social media, where a single positive review can reach hundreds or thousands of potential customers. Operational excellence creates a consistent level of service and quality that encourages positive feedback, driving increased sales through organic promotion and social proof. The benefits of operational excellence are far-reaching, impacting every aspect of a business from leadership and employee engagement to customer satisfaction and profitability. By embracing these principles, organisations can create a sustainable competitive advantage, improve their overall performance, and position themselves for long-term success. How to Implement Operational Excellence 1. Leadership Commitment: The First Challenge The first challenge in achieving operational excellence lies in leadership commitment . The leadership team must not only endorse the change programme but be actively involved in driving it. Operational excellence requires a shift in the way the organisation operates, and this shift must be modelled from the top down. Leaders need to champion the principles of operational excellence, make tough decisions, and be willing to invest time and resources into the programme. Without their full commitment, initiatives may lack the authority, focus, and strategic alignment needed for success. Key Considerations for Overcoming the Leadership Challenge: Clear Vision and Communication : Leadership must clearly articulate the vision of operational excellence, explaining why it is important and how it aligns with the broader business objectives. This vision should be communicated regularly and consistently across all levels of the organisation. Leading by Example : Leaders need to embody the behaviours and practices of operational excellence. If continuous improvement, respect for people, and collaboration are key values, leaders must demonstrate these daily through their actions and decisions. Accountability : Leaders should hold themselves and others accountable for progress in the operational excellence journey. This includes setting measurable goals, tracking key performance indicators (KPIs), and regularly reviewing progress. Empowering Middle Management : Leadership needs to engage middle managers, providing them with the authority and tools necessary to lead their teams through change. Middle management often plays a crucial role in bridging the gap between leadership vision and frontline execution. 2. Cultural Engagement: The Second Challenge The second challenge is creating a culture that fully engages staff with the operational excellence programme. Culture is the underlying driver of how employees behave, and achieving operational excellence requires a cultural shift towards continuous improvement, collaboration, and a focus on customer value. Without genuine buy-in from staff, the programme can fail to gain traction, resulting in resistance to change, low morale, or even active sabotage of initiatives. Key Considerations for Overcoming the Culture Challenge: Employee Involvement : Engage employees early in the change process by involving them in discussions about improvements. When employees feel they are part of the process, they are more likely to embrace change. Use workshops, suggestion schemes, and problem-solving sessions to make them feel included. Transparency and Trust : Be transparent about why changes are happening, and how they will affect the organisation and individual roles. Honest communication fosters trust and reduces fear of change. Explain how the operational excellence programme benefits employees, such as through job security, better working conditions, or opportunities for career development. Training and Support : Equip staff with the necessary skills and knowledge to succeed in an operational excellence environment. This includes training on new processes, tools, or methodologies like lean or Six Sigma. Supporting employees through change, both emotionally and practically, can help reduce resistance and ensure smoother implementation. Recognising and Celebrating Success : Recognise and reward employees who actively contribute to the success of the operational excellence programme. Celebrate small wins to create momentum and show that the programme is working. 3. Sustaining the Programme: The Third Challenge The third challenge is sustaining the operational excellence programme over the long term. Many organisations face change fatigue —a sense of weariness among employees caused by an overload of new initiatives and constant changes. Employees can become disengaged, resistant, or simply exhausted by the continual focus on improvement. Moreover, operational excellence can be sidelined if the organisation launches another major change programme without fully embedding the current one, leading to confusion, competing priorities, and a dilution of focus. Key Considerations for Overcoming the Sustainability Challenge: Pacing the Change : Operational excellence is a long-term commitment, and change should be paced accordingly. Avoid overwhelming staff with too many initiatives at once. Focus on incremental improvements and allow time for changes to be embedded before introducing new ones. Consistency and Longevity : Leadership must show that operational excellence is not a short-term initiative, but a permanent way of working. Create a long-term roadmap that outlines how the programme will evolve over time, and consistently communicate its importance. Building a Continuous Improvement Culture : Cultivate a culture where continuous improvement becomes second nature. This can be done by providing ongoing training, encouraging employee feedback, and regularly reviewing processes to find further improvements. When continuous improvement is embedded into the culture, operational excellence becomes self-sustaining. Avoiding Competing Programmes : Ensure that other strategic initiatives are aligned with the principles of operational excellence, rather than conflicting with them. Every new programme should complement and enhance the operational excellence framework rather than diverting resources and focus. Monitoring and Adaptation : Use KPIs and regular assessments to monitor the progress of the operational excellence programme. Be willing to adapt and refine the programme based on feedback and changing business conditions to keep it relevant and effective. Achieving operational excellence is not a one-off project, but a journey that requires ongoing commitment from leadership, a cultural shift among employees, and sustained effort to avoid burnout. By addressing these three challenges—leadership commitment, cultural engagement, and long-term sustainability—organisations can create a resilient framework that drives continuous improvement, enhances efficiency, and delivers lasting success. 8 Strategies to Improve Operational Excellence Operational excellence involves creating a culture of continuous improvement and optimisation across all areas of the business. While the approach to operational excellence may vary depending on your business’s current state, certain strategies have proven to be universally effective in moving towards peak operational performance. Below are eight expert-level strategies that can drive sustainable improvements in operational excellence. 1. Maximise ROI from Staff Learning and Development Merely sending employees to training courses or workshops often falls short in realising meaningful change in behaviour or performance. To truly enhance operational excellence, it is essential to focus on the application and retention of the knowledge acquired. Actionable Strategy : Implement post-training follow-ups, such as coaching, on-the-job practice, and assessments, to ensure employees not only absorb the training but apply it effectively in their daily tasks. Use knowledge retention metrics and performance-based KPIs to measure the long-term impact of training. Integrating Training into Workflow : Establish a feedback loop where employees can provide insights on the effectiveness of training and suggest improvements, allowing for a dynamic, responsive training programme. Result : This approach will transform training from a periodic activity into a continuous development cycle, ensuring higher performance and customer satisfaction. 2. Boost Sales Through Enhanced Conversion Rates and Active Engagement Operational excellence in sales is not just about increasing volumes but also optimising the sales process itself. The focus should be on maximising conversions and deepening customer interactions. Actionable Strategy : Evaluate the preparedness and involvement of your sales team by analysing call quality, follow-up rates, and conversion ratios. Implement data-driven sales training that focuses on customer needs analysis, value-based selling, and objection handling. Leveraging CRM Systems : Use CRM tools to track every interaction and measure the effectiveness of your sales force. Automate mundane tasks like follow-up reminders to ensure no leads fall through the cracks. Result : Increased sales conversions and enhanced sales team engagement, ultimately contributing to better top-line growth. 3. Reduce Unnecessary Service Calls by Enhancing Customer Service Processes Many service calls stem from preventable issues, often reflecting underlying process inefficiencies. Operational excellence in customer service requires proactive problem-solving, minimising touchpoints, and reducing repetitive inquiries. Actionable Strategy : Analyse service call data to identify common pain points. Implement root cause analysis (such as the 5 Whys or Pareto analysis) to determine what drives service calls. Improve service processes, documentation, and customer self-help tools to reduce unnecessary contacts. Automation for Efficiency : Use automation in customer service, such as chatbots or AI-driven help desks, to resolve simple issues quickly and direct complex problems to the right teams. Result : Reduced service call volumes, increased customer satisfaction, and lower service-related operational costs. 4. Improve Marketing ROI with Advanced Metrics and Data Insights Operational excellence in marketing requires detailed insight into how your campaigns perform and how effectively they convert leads into sales. Optimising marketing spend starts with understanding where you get the most return on investment. Actionable Strategy : Implement advanced analytics to assess the effectiveness of different marketing channels. Use attribution modelling to determine which touchpoints have the greatest impact on lead generation and sales conversion. Data-Driven Decisions : Regularly review campaign performance and use A/B testing to continuously refine messaging, audience targeting, and channel allocation. Result : Improved marketing performance, reduced wastage, and a sharper focus on campaigns that deliver the best ROI, driving more quality leads and sales. 5. Increase Employee Engagement for Business Growth Your staff are the backbone of operational excellence, and their engagement directly affects productivity, customer service, and innovation. A disengaged workforce leads to higher turnover, lower productivity, and missed growth opportunities. Actionable Strategy : Implement employee engagement surveys to measure morale and satisfaction. Use this data to create actionable improvement plans, such as tailored career development opportunities, flexible working conditions, and a recognition and reward system. Incorporate Employee Input : Encourage employees to contribute to process improvement initiatives. When employees are part of the change process, they are more likely to feel invested in the company's success. Result : A motivated and engaged workforce that drives productivity, innovation, and business growth, while reducing costly turnover. 6. Adopt a Continuous Improvement Mindset The foundation of operational excellence is a culture of continuous improvement (CI), where every process is constantly evaluated and optimised in a business improvement programme . This mindset reduces waste, improves efficiency, and fosters innovation. Actionable Strategy : Implement Kaizen events or small, frequent improvements in day-to-day operations. Establish cross-functional teams that meet regularly to identify inefficiencies and propose solutions. Lean Methodologies : Utilise lean methodologies to eliminate waste, such as Just-In-Time (JIT) inventory, and empower employees to suggest process improvements through CI programmes. Result : A more efficient and dynamic organisation that continuously seeks out opportunities to streamline operations, reduce costs, and improve quality. 7. Plan Strategically to Minimise Risk and Increase Confidence Long-term operational excellence requires strategic foresight. Businesses that are reactive often fall behind, while those with robust planning minimise risks and capitalise on opportunities. Actionable Strategy : Develop scenario planning exercises to anticipate potential risks (e.g., supply chain disruptions, market shifts) and create contingency plans. Regularly update strategic plans based on changing conditions and internal performance data. Risk Management : Implement a risk management framework to proactively identify and mitigate potential operational risks, ensuring that you are always prepared for potential disruptions. Result : Increased operational resilience, lower risk exposure, and a more confident workforce equipped to handle future challenges. 8. Measure Business Productivity Through Data-Driven Metrics To achieve operational excellence, you must measure productivity rigorously across all levels of the organisation. Clear metrics help you identify bottlenecks and track improvements over time. Actionable Strategy : Establish productivity KPIs (e.g., output per employee, revenue per employee) and track them continuously using business intelligence tools. Use benchmarking to compare your productivity against industry standards and competitors. Integrated Performance Dashboards : Implement integrated dashboards that allow leaders to monitor key metrics in real time, driving faster decision-making and enabling rapid response to issues. Result : Improved resource allocation, streamlined operations, and an ongoing focus on optimising productivity, leading to sustained competitive advantage. By implementing these expert-level strategies, businesses can systematically improve operational efficiency, reduce costs, engage employees, and delight customers. Operational excellence is not achieved overnight, but with a clear strategy, commitment from leadership, and continuous focus on improvement, it is possible to build a culture that drives long-term success and growth. We Help Businesses Achieve Operational Excellence We can help your business learn to strive towards operational excellence every day with our business improvement programme . Our unique combination of project, people and business management will transform your business into a productivity powerhouse, putting you miles ahead of the competition. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Organisational development (OD) refers to a planned and systematic approach to improving the effectiveness and efficiency of an organisation. What is Organisational Development? Organisational development (OD) refers to a planned and systematic approach to improving the effectiveness and efficiency of an organisation. Organisational development (OD) involves applying behavioural science principles and practices to analyse the current state of the organisation, identify areas for improvement, and implement strategies to enhance its overall performance. OD encompasses a wide range of activities aimed at improving various aspects of an organisation, including its structure, processes, systems, culture, and people. It focuses on promoting positive organisational change, fostering employee engagement, and aligning the organisation's objectives with its strategies and resources. Organisational development aims to guide an organisation through the process of change and help build capacity for ongoing improvement and adaptability in the face of evolving challenges. Organisation development (OD) and organisational design are closely related and complementary concepts that work together to improve the effectiveness and efficiency of an organisation. While OD focuses on the human and behavioural aspects of organisational change, organisational design focuses on the structural and strategic elements. Both disciplines collaborate to create an organisation that is adaptable, efficient, and aligned with its goals and values. Organisation development involves assessing and improving various aspects of an organisation, such as its culture, processes, systems, and people. It aims to enhance the organisation's capacity to adapt to change, foster employee engagement, and align its objectives with its strategies and resources. OD interventions may include leadership development, team-building activities, change management, and culture transformation. On the other hand, organisational design is concerned with the formal structure, roles, and relationships within the organisation. It involves defining the reporting lines, job roles, responsibilities, and overall organisational structure. Organisation design aims to create a structure that facilitates efficient operations, effective decision-making, and clear communication within the organisation. How can Organisational Development support an effective Business Operating System? Organisational development (OD) significantly bolsters the effectiveness of a business operating system by nurturing continuous improvement, refining organisational culture, and aligning systems with strategic objectives. Primarily, OD initiatives, including employee training, skill enhancement, and leadership programmes, ensure that staff possess the requisite competencies to navigate the business operating system adeptly. By investing in human capital, organisations optimise performance and adapt to evolving market dynamics. Furthermore, OD interventions cultivate collaboration, communication, and teamwork, critical for the seamless operation of a business operating system. By fostering a culture of transparency and accountability, OD initiatives facilitate the implementation of standard operating procedures and best practices across the organisation. Moreover, OD aids in identifying areas for improvement within the business operating system through techniques such as process mapping, feedback mechanisms, and performance evaluations. By diagnosing and rectifying inefficiencies, organisations can enhance productivity, reduce costs, and spur innovation, thereby maintaining a competitive edge in the marketplace. Overall, organisational development complements and fortifies the effectiveness of a business operating system by nurturing talent, promoting collaboration, and driving continuous improvement initiatives. Organisation Development and Organisational Design Work Together in the Following Ways Alignment: Organisation development initiatives can help identify the need for organisational structure and design changes. For example, if an OD intervention reveals that the existing structure hinders collaboration and communication, organisational design can be used to reconfigure the structure to better support these aspects. Support for Change: Organisation design plays a crucial role in supporting the implementation of organisational development interventions. When changes are introduced as part of an OD initiative, the organisational design needs to be adjusted accordingly to ensure the changes are supported by the structure, roles, and processes within the organisation. Integration of People and Structure: Organisation development focuses on improving employee engagement, teamwork, and communication. Organisation design helps facilitate these goals by creating a structure that promotes collaboration, establishes clear reporting lines, and defines roles and responsibilities. The design of the organisation should align with the desired cultural and behavioural changes identified through OD efforts. Feedback Loop: Organisation development and organisational design are iterative processes that inform and influence each other. The data and insights gathered through OD initiatives can provide valuable input for designing or modifying the organisation's structure, roles, and processes. Likewise, the outcomes of organisational design efforts can inform future OD interventions by identifying areas for improvement. Key principles and practices of organisational development include: Diagnosis: Assessing the organisation's current state through data collection methods such as surveys, interviews, and observations to identify strengths, weaknesses, and areas for improvement. Intervention: Implementing strategies and interventions based on the diagnosis to address identified issues. This may involve changes to organisational structure, processes, communication systems, leadership development, training programs, and team-building activities. Change Management: Managing the process of change within the organisation, including overcoming resistance, fostering buy-in from stakeholders, and ensuring successful implementation of new initiatives. Team Development: Enhancing the effectiveness of teams within the organisation through activities such as team building, conflict resolution, and improving communication and collaboration among team members. Leadership Development: Developing the skills, capabilities, and behaviors of leaders within the organisation to drive change, inspire employees, and create a positive work environment. Culture Transformation: Shaping and aligning the organisation's culture with its strategic goals, fostering values such as collaboration, innovation, and adaptability. Continuous Learning: Encouraging a culture of learning and growth within the organisation, promoting ongoing development and improvement of individuals and teams. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations offer clarity and a well-defined pathway for you and your team to move forward confidently. Get Started

Regenerative HR leadership reimagines human resources by emphasising sustainability, employee well-being, ethical practices, and innovation. Regenerative HR Leadership Regenerative HR leadership reimagines human resources by emphasising sustainability, employee well-being, ethical practices, and innovation. It fosters resilient organisations that prioritise social responsibility and continuous improvement, creating a positive impact on both employees and society while driving long-term success. Published on: 21 Mar 2024 In today's rapidly changing and increasingly interconnected world, traditional approaches to human resources (HR) management are undergoing a transformation. The concept of "Regenerative HR Leadership" has emerged as a forward-thinking approach that seeks to revitalise and restore not only organisations but also the individuals within them. This essay delves into the essence of Regenerative HR Leadership, exploring its principles, practices, and the profound impact it can have on organisations and their employees. Defining Regenerative HR Leadership Regenerative HR Leadership is a progressive and holistic approach to managing human resources within an organisation. At its core, it combines the principles of HR management with the overarching goal of regeneration. To understand this concept fully, it's essential to break down its key components. 1. Emphasis on Sustainability Regenerative HR Leadership places a strong emphasis on sustainability. This encompasses both environmental and social sustainability. Leaders in this paradigm recognise the importance of reducing the organisation's carbon footprint, conserving resources, and adopting eco-friendly practices. Simultaneously, they prioritise social sustainability by championing diversity, equity, and inclusion within the workplace. 2. Employee Well-being as a Priority One of the central tenets of Regenerative HR Leadership is prioritising employee well-being. This goes beyond traditional HR practices and focuses on nurturing the physical, mental, and emotional health of employees. Leaders in this model understand that a thriving workforce is a key driver of organisational success. 3. Continuous Learning and Development In a rapidly evolving business landscape, the concept of a static skill set is obsolete. Regenerative HR Leadership advocates for continuous learning and development opportunities for employees. This not only benefits the individual but also ensures the organisation remains agile and adaptable in the face of change. 4. Ethical Leadership Ethical leadership is a cornerstone of this approach. Regenerative HR leaders prioritise transparency, integrity, and ethical decision-making. They understand that ethical behavior is not only the right thing to do but also a key driver of trust and long-term success. 5. Employee Engagement and Well-being Regenerative HR Leadership strives to create a workplace culture where employees are highly engaged, satisfied, and committed to their roles. This involves fostering a sense of purpose and belonging within the organisation. 6. Collaboration and Inclusivity Collaboration and inclusivity are highly valued in this leadership model. Leaders recognise that diverse perspectives and ideas are essential for innovation and problem-solving. They actively seek to create an inclusive environment where all voices are heard and valued. 7. Talent Management for the Long Term Talent management takes on a new dimension in Regenerative HR Leadership. It involves not only attracting and retaining top talent but also developing that talent over the long term. This ensures that the organisation has a robust pipeline of skilled individuals who can lead it into the future. 8. Organisational Resilience Regenerative HR Leadership aims to build organisations that are resilient in the face of adversity. This means equipping the organisation to adapt and thrive in an ever-changing world. 9. Social Responsibility and Community Engagement Beyond the confines of the workplace, Regenerative HR Leadership encourages organisations to actively participate in the community and contribute positively to society. This reflects a broader commitment to social responsibility. 10. Data-Driven Decision-Making To measure and assess the impact of HR initiatives, data-driven decision-making is paramount. Regenerative HR leaders use data and feedback mechanisms to gauge the effectiveness of their practices and make informed improvements. The Impact of Regenerative HR Leadership The principles and practices of Regenerative HR Leadership have the potential to create a profound impact on both organisations and their employees. 1. Sustainable Organisations By emphasising sustainability and ethical practices, Regenerative HR Leadership can transform organisations into socially and environmentally responsible entities. This not only aligns with the growing global focus on sustainability but also ensures the long-term viability of the organisation. 2. Flourishing Employees Prioritising employee well-being, continuous learning, and inclusivity leads to a workforce that is not just productive but also fulfilled. Employees who feel supported, engaged, and valued are more likely to bring their best selves to work, resulting in higher productivity and creativity. 3. Adaptability and Innovation A culture of continuous learning and development, coupled with a commitment to diversity and inclusion, fosters an environment where innovation thrives. Organisations that embrace change and encourage diverse perspectives are better equipped to navigate uncertainty and capitalise on new opportunities. 4. Ethical Reputation and Trust Ethical leadership and responsible business practices are crucial for building trust with stakeholders, including customers, employees, and investors. Organisations that prioritise ethics and transparency are more likely to earn the loyalty and support of these key groups. 5. Resilience in Turbulent Times Organisational resilience is a critical aspect of Regenerative HR Leadership. In an era marked by rapid technological advancements, economic volatility, and global crises like the COVID-19 pandemic, the ability to adapt and thrive in the face of adversity is a competitive advantage. 6. Positive Impact on Society Through social responsibility and community engagement, organisations practicing Regenerative HR Leadership can contribute positively to society. This not only enhances the organisation's reputation but also fulfills a broader moral and ethical obligation. 7. Sustainable Talent Pipeline Long-term talent management ensures that organisations have a continuous supply of skilled individuals who can take on leadership roles. This strategic approach to talent acquisition and development is essential for maintaining organisational continuity. 8. Data-Driven Continuous Improvement Data-driven decision-making allows organisations to assess the impact of their HR initiatives continually. This iterative approach enables them to fine-tune their practices and stay aligned with their regenerative goals. Challenges and Implementation While the concept of Regenerative HR Leadership holds immense promise, its implementation is not without challenges. Organisations may face resistance to change, especially if they have entrenched traditional HR practices. Moreover, measuring the impact of initiatives related to well-being, sustainability, and inclusivity can be complex. To overcome these challenges, organisations can take several steps: Leadership Commitment: It starts with leadership commitment to the principles of Regenerative HR Leadership. Senior leaders must champion the cause and lead by example. Change Management: Implementing such a transformative approach requires effective change management. This involves communication, training, and addressing employee concerns. Data Analytics: Invest in data analytics and measurement tools to track the impact of HR initiatives. This data can guide decision-making and demonstrate the value of regenerative practices. Employee Involvement: Involve employees in the process. Their input and feedback can provide valuable insights into the effectiveness of HR initiatives. Alignment with Organisational Goals: Ensure that regenerative HR practices align with the broader goals and mission of the organisation. This alignment reinforces the organisation's commitment to sustainability and well-being. Conclusion Regenerative HR Leadership represents a paradigm shift in how organisations approach human resources management. It goes beyond traditional HR functions and focuses on the long-term sustainability of both the organisation and its employees. By prioritising sustainability, well-being, ethical leadership, and inclusivity, organisations can create environments where employees thrive, innovation flourishes, and the business itself becomes a force for positive change in society. In a world characterised by rapid change and complex challenges, Regenerative HR Leadership offers a path forward—one that leads to resilient, sustainable, and thriving organisations that make a meaningful impact on the world. Embracing this approach is not just a choice; it's a necessity for organisations that seek to thrive in the 21st century. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Read our three simple solutions to improve front desk performance for your hotel, immediately, to help improve your bookings and your customer service. 3 Ways To Improve Front Desk Performance Too many hotels feel needed. Their position; city central, seaside, theme park proximity or even their brand can breed complacency. There can be a dependency on a website or a location to do the task of securing the sales. Published on: 16 Oct 2014 Too many hotels feel needed. Their position; city central, seaside, theme park proximity or even their brand can breed complacency. There can be a dependency on a website or a location to do the task of securing the sales. The result. A front desk conversation like this: “Hello, Complacency Hotel, how can I help you?” “Hello, I would like to check your availability for the 29th February please” “What sort of room are you looking for?” “errr…” “Double, Single, Standard Double, Executive Double or Suite” “Just double thank you” “We have no doubles available for the 29th February” “Oh, ok. Thank you, bye” Reservation lost and goes to Proactive Park Hotel down the road. With just a bit of smart training and know-how this call could have been turned from a lost opportunity to a reservation. It could even have generated repeat business and referrals if it had just been managed more effectively. So what is stopping receptionists at hotels up and down the country from saying those few extra lines that could make such a difference to their business’ bottom line? The single biggest reason is the lack of training. But how can management know what training is needed. Short of standing behind the front desk for hours on end at the expense of their other obligations it is not feasible to know exactly how each member of staff Is performing and where to focus training to increase the number of reservations through effective call handling. Or is it? 3 ways to improve front desk performance There are three key ways that management staff can encourage proactive behaviours in their front desk team. Call handling training Usually carried out in a room after a shift with one member of management and several members of staff. The content will usually be generic in order to cater for each member of staff’s training requirements. It can also be costly as staff are being paid for training time. Call handling training is a one way process that doesn’t enable the management to identify the strengths or weaknesses of their call handlers but it does enable them to communicate their expectations to their call handling team. Call scoring This is where the calls will usually be recorded and each call will be scored against specific objectives that are set for incoming calls. Then results are often wheeled out to call handlers at appraisals or staff meetings. This approach runs the risk of improvements being short lived unless they are regularly monitored for on-going improvement. This is more of a two way process but still tends to work top down throughout an organisation, controlled by the management. Call scoring data would enable you to see that Call Handler Smith always greets an individual well but never manages a transfer or doesn’t ask for the close. Revenue intelligence This is where calls are recorded and then codified (analysed and categorised by call nature, call issues dealt with, grouped according to outcome and maybe scored as well). Call codification is particularly useful where call handlers or managers can log in to their own secure online area to see how their calls, or their team’s calls are performing. The categorisation of this data makes the difference between having the data and unlocking the value to the data. This enables management and the call handler to see information such as ‘Call Handler Wright never uses the correct greeting, 30% of their calls are lost, but transfers are handled effectively and on average 70% of calls are converted because Call Handler Wright always offers an alternative room where one isn’t available’. This ongoing approach to training is more cost effective because training and feedback is on-going and targeted and fits around an employees existing job (in addition to more structured formal group training). The ability to identify and utilise successful calls quickly and easily also mean that it is easier to roll out model calls for training in best practice and the recordings of high performing calls can be made accessible to other staff members or trainers to show other call handlers the difference that those few extra words, might make in securing those extra reservations. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Discover a comprehensive range of construction software solutions designed to streamline project planning, cost estimation, and team collaboration. From specialized tools like Accubid for electrical contractors, to general solutions like Procore for comprehensive project management, each software offers unique features tailored to different needs in the construction industry. 50 Construction Estimating, Scheduling and Management Tools Construction estimating, scheduling, and management tools are crucial for achieving operational excellence and ensuring well-built projects. These tools provide accurate cost estimates, efficient scheduling, and comprehensive project management, enabling contractors and project managers to deliver high-quality work on time and within budget. By streamlining operations and improving resource allocation, these tools contribute to the seamless execution of construction projects, minimising delays and cost overruns. Moreover, they foster clear communication and collaboration among all stakeholders, reducing the risk of errors and enhancing project outcomes. In essence, these tools are integral to maintaining high standards of quality, efficiency, and excellence in the construction industry. 4PS Construct Description: 4PS Construct is an integrated construction management software solution designed for the construction, civil engineering, and installation sectors. Built on Microsoft Dynamics 365, it offers tools for project management, financial management, procurement, and logistics, enabling companies to streamline operations and improve project delivery. Benefit: Provides a comprehensive, industry-specific solution that integrates various aspects of construction management, from finance to logistics, offering enhanced control and efficiency across projects. Disadvantage: The extensive functionality may be complex to implement and may require significant training, particularly for smaller businesses or those new to integrated ERP systems. Website: 4PS Construct The Access Group (Construction Software) Description: The Access Group offers comprehensive construction management software designed to support the entire construction lifecycle, from project management and compliance to finance and workforce management. The platform is suitable for contractors of all sizes, providing tools that help streamline operations, improve collaboration, and ensure compliance with industry standards. Benefit: Offers a wide range of features tailored for the construction industry, including project management, financial management, and workforce planning, making it a versatile solution for managing complex projects. Disadvantage: The breadth of features may be overwhelming for smaller firms or those new to using integrated construction software, requiring time and training to fully leverage the platform. Website: The Access Group AccuBid Description: AccuBid is specialised estimating software designed specifically for electrical, mechanical, and plumbing contractors. It enables users to create detailed cost breakdowns, including materials, labour, and other expenses, ensuring precise and competitive bids. The software is highly customisable to meet the specific needs of various trades. Benefit: Provides specialised features for trade-specific estimating, offering accurate cost calculations that help contractors avoid underbidding or overbidding projects. Disadvantage: The software is limited to specific trades, such as electrical, mechanical, and plumbing, which may not be suitable for general contractors or other trades. Website: AccuBid Asta Powerproject Description: Asta Powerproject is robust project management software renowned for its advanced scheduling and planning capabilities. It is widely used in the construction industry for managing timelines, resources, and project workflows, offering Gantt charts, reporting, and critical path analysis. Benefit: Excels in detailed scheduling and project planning, enabling project managers to keep complex projects on track with precision. Disadvantage: Although powerful in scheduling, it lacks specific estimating features, requiring users to rely on other tools for cost estimation. Website: Asta Powerproject BCIS Description: BCIS (Building Cost Information Service) is a UK-based platform that provides comprehensive cost data and analysis for construction professionals. It offers detailed information on building costs, lifecycle costs, and maintenance costs, helping professionals create accurate estimates, budgets, and financial plans for construction projects. Benefit: Delivers reliable and up-to-date cost data specifically tailored for the UK construction market, enhancing the accuracy of estimates and financial planning. Disadvantage: Primarily focused on cost data and analysis, which may require additional tools or integration for complete project management capabilities. Website: BCIS BidClerk Description: BidClerk is a construction lead generation and project tracking platform that helps contractors and suppliers find and manage bidding opportunities. It provides access to a comprehensive database of construction projects, allowing users to identify potential leads and track project developments. Benefit: Offers access to a broad range of project leads, increasing opportunities for securing new contracts and expanding business networks. Disadvantage: The platform is primarily focused on bid tracking and lead generation, and may not cover comprehensive project management needs. Website: BidClerk Bidcon Description: Bidcon is estimating software designed to assist contractors in preparing detailed bids and managing project costs. It provides tools for cost analysis, budgeting, and bid preparation, ensuring accuracy and efficiency in the bidding process. Benefit: Offers comprehensive tools for bid preparation, helping contractors create accurate and competitive bids. Disadvantage: Lacks advanced project management features, which may require the use of additional software for full project oversight. Website: Bidcon Bluebeam Revu Description: Bluebeam Revu is a PDF-based tool designed for reviewing, marking up, and collaborating on construction documents. It streamlines communication and document management by allowing teams to work together in real-time, even when remote. Benefit: Highly effective for document review and collaboration, facilitating clear and organised communication among project stakeholders. Disadvantage: Limited in estimating features, making it necessary to use additional software for comprehensive cost estimation. Website: Bluebeam Revu BIM 360 Description: BIM 360 is a cloud-based Building Information Modelling (BIM) software that offers tools for project management, collaboration, and design coordination. It enhances the accuracy of designs and facilitates seamless collaboration among all project participants. Benefit: Strong collaboration capabilities and excellent BIM integration make it ideal for managing complex projects. Disadvantage: The software offers limited estimating capabilities, so additional tools may be needed for detailed cost estimation. Website: BIM 360 Bolster Description: Bolster is a construction management platform designed to help homeowners and contractors manage renovation projects. It offers tools for budgeting, project management, and client communication, with a focus on transparency and efficiency in the renovation process. Benefit: Provides a streamlined approach to managing renovation projects, with strong budgeting and client communication tools that help ensure transparency and trust. Disadvantage: Primarily focused on renovations, so it may not offer all the features needed for managing larger-scale construction projects. Website: Bolster BuildBook Description: BuildBook is a construction management software tailored for residential home builders and remodelers. It provides tools to streamline project management, improve team collaboration, and enhance client communication. The platform offers features such as project scheduling, budget tracking, and document sharing, aimed at simplifying the management of residential construction projects. Benefit: Enhances project efficiency and communication by integrating various aspects of project management, making it easier for builders and remodelers to keep projects on track and maintain client satisfaction. Disadvantage: Focused on residential projects, so it may not be suitable for commercial or large-scale construction projects that require more specialized features. Website: BuildBook BuilderTrend Description: BuilderTrend is a cloud-based construction management software designed for residential builders, remodelers, and specialty contractors. It offers tools for project management, customer management, scheduling, and collaboration, helping contractors streamline their workflows and improve communication with clients and teams. Benefit: Provides a comprehensive suite of tools for managing residential construction projects, including scheduling, budgeting, and client communication, all in one platform. Disadvantage: Can be complex to navigate for new users and may require training to fully utilise its extensive features. Website: BuilderTrend Buildxact Description: Buildxact is cloud-based estimating and construction management software tailored for small to medium-sized residential builders, remodelers, and contractors. It provides tools for cost estimation, job management, and client communication, helping users efficiently manage their projects from start to finish. Benefit: Easy to use with a user-friendly interface, Buildxact offers a range of tools that simplify estimating, quoting, and project management, making it ideal for smaller firms that need a straightforward solution. Disadvantage: While it's great for smaller projects, it may lack some of the advanced features needed for managing larger, more complex projects. Website: Buildxact BuildSoft Description: BuildSoft is estimating and job costing software designed for small to medium-sized builders. It simplifies the estimation process and provides tools to manage project costs, ensuring profitability on each project. Benefit: User-friendly and tailored for small to medium projects, making it accessible for builders with limited resources. Disadvantage: Lacks advanced features required for larger, more complex projects. Website: BuildSoft CostEstimator Description: CostEstimator is a UK-based online construction estimating tool designed for builders, contractors, and tradespeople. It offers features for creating detailed and accurate cost estimates, quotes, and invoices tailored to the UK construction industry, helping users streamline their estimating process and improve financial management. Benefit: Provides an easy-to-use platform with features tailored to the specific needs of the UK market, making it ideal for small to medium-sized construction businesses looking to enhance their estimating accuracy and efficiency. Disadvantage: Primarily focused on estimating and invoicing, so it may lack broader project management features necessary for more complex or larger-scale projects. Website: CostEstimator Causeway Description: Causeway offers a range of construction management software solutions designed to enhance efficiency and collaboration across various stages of the construction lifecycle. The platform provides tools for estimating, project management, supply chain management, and infrastructure design, making it a versatile solution for contractors, engineers, and other construction professionals. Benefit: Comprehensive suite of tools that supports multiple aspects of construction management, from initial estimates to final project delivery, with a focus on improving collaboration and operational efficiency. Disadvantage: The extensive range of features may require substantial training and adaptation, particularly for smaller firms or those new to integrated construction software solutions. Website: Causeway Chalkstring Description: Chalkstring is cloud-based construction management software tailored for contractors, offering tools for estimating, project management, and cost control. It is designed to simplify the management of construction projects by integrating various processes into a single platform, enhancing efficiency and accuracy. Benefit: Provides an all-in-one solution for managing construction projects, with strong features for cost control, budgeting, and estimating, making it ideal for contractors looking to streamline their operations. Disadvantage: May require some time for users to familiarise themselves with the platform's features and maximise its potential. Website: Chalkstring Clear Estimates Description: Clear Estimates is a user-friendly construction estimating software designed for small to medium-sized contractors and remodelers. It offers pre-loaded templates and cost data to help users quickly generate accurate estimates, proposals, and contracts tailored to specific project types. Benefit: Simplifies the estimating process with easy-to-use tools and pre-loaded data, making it ideal for contractors who need to create quick and accurate estimates without extensive setup. Disadvantage: Primarily focused on estimating, so it may lack more advanced project management and scheduling features required for larger or more complex projects. Website: Clear Estimates ClockShark Description: ClockShark is a time-tracking and job management software designed specifically for construction and field service companies. It offers features like GPS time tracking, job costing, and employee scheduling, making it easier to manage time, labor costs, and workforce logistics on construction sites. Benefit: Simplifies time tracking and payroll management with easy-to-use tools that are particularly useful for managing remote and field-based teams. Disadvantage: Primarily focused on time tracking and scheduling, so it may lack comprehensive project management and estimating features found in more robust construction management platforms. Website: ClockShark CoConstruct Description: CoConstruct is a construction project management software designed specifically for custom home builders and remodelers. It offers features for project management, client communication, budgeting, and scheduling, all in one platform. The software helps streamline the entire construction process, from initial client interaction to project completion. Benefit: Tailored for custom builders, CoConstruct enhances client communication and simplifies project management, making it easier to manage custom projects with multiple moving parts. Disadvantage: Primarily focused on residential projects, so it may not be as effective for large-scale commercial construction or more complex project types. Website: CoConstruct ConEst IntelliBid Description: ConEst IntelliBid is estimating software specifically designed for electrical contractors, offering tools for precise material and labour estimates. It supports contractors in creating accurate and competitive bids, with a focus on electrical work. Benefit: Provides accurate estimates tailored to electrical projects, helping contractors remain competitive in the market. Disadvantage: Not suited for general construction estimating, limiting its use to electrical projects. Website: ConEst IntelliBid Contractor Foreman Description: Contractor Foreman is a comprehensive construction management software designed for contractors and builders. It offers a wide range of features including project management, scheduling, estimating, and field management. The platform is designed to streamline operations, improve efficiency, and enhance communication throughout the construction process. Benefit: Provides an all-in-one solution with robust tools for managing projects, estimating costs, and handling field operations, making it suitable for a variety of construction needs. Disadvantage: The extensive range of features may be overwhelming for users who require a simpler solution or are new to construction management software. Website: Contractor Foreman Costimator Description: Costimator is detailed estimating software that focuses on cost analysis for both manufacturing and construction industries. It helps users generate accurate cost estimates by analysing material, labour, and production costs. Benefit: Provides detailed cost estimation and analysis, crucial for precision in both manufacturing and construction projects. Disadvantage: May be complex for users without a manufacturing background, requiring additional training or expertise. Website: Costimator ConstructionOnline Description: ConstructionOnline is a cloud-based construction management software that offers tools for project management, estimating, and collaboration. Designed for the UK market, it provides features for managing projects from initial planning to final delivery, including project scheduling, document management, and client communication. Benefit: Provides a comprehensive suite of tools for managing various aspects of construction projects, enhancing collaboration and efficiency throughout the project lifecycle. Disadvantage: May be complex for smaller projects or firms new to construction management software, requiring time to fully adapt to its features. Website: ConstructionOnline e-Builder Description: e-Builder is comprehensive construction management software offering features for project management, cost tracking, and collaboration. It is designed to streamline project workflows, improve communication, and ensure projects are completed on time and within budget. Benefit: Offers a wide range of tools for project management and cost tracking, making it ideal for large-scale projects. Disadvantage: Can be costly and requires training to fully utilise its features, which may be a barrier for smaller firms. Website: e-Builder Esti-mate Description: Estimate is a UK-based estimating software designed specifically for small to medium-sized building and contracting businesses. The platform provides tools for creating accurate and detailed estimates, managing quotes, and tracking project costs, all tailored to the needs of the construction industry. Benefit: Simplifies the estimating process with an intuitive interface and features tailored to the UK construction market, making it ideal for builders and contractors looking to streamline their costing and quoting processes. Disadvantage: Primarily focused on estimating, so it may lack broader project management features found in more comprehensive construction management software. Website: Estimate Estimating Edge Description: Estimating Edge is a cloud-based construction estimating and takeoff software designed to streamline the bidding process. It offers advanced tools for digital takeoffs, cost estimating, and project management, catering to both residential and commercial construction projects. Benefit: Provides a comprehensive suite of tools that enhance accuracy and efficiency in creating estimates and managing bids, making it suitable for various types of construction projects. Disadvantage: May require a learning curve and integration with other software for full project management capabilities. Website: Estimating Edge Eque2 Estimating Description: Eque2 Estimating is a comprehensive construction estimating software tailored for the UK market. It offers tools for producing detailed and accurate cost estimates, bids, and tender documents. The platform integrates with various accounting and project management systems, providing a seamless workflow from estimate to project completion. Benefit: Delivers robust estimating capabilities with integration options that streamline the transition from estimating to project management, making it suitable for contractors looking to enhance efficiency and accuracy in their bidding process. Disadvantage: Primarily focused on estimating, so additional project management features might be needed for full project oversight. Website: Eque2 Estimating Fieldwire Description: Fieldwire is a construction management app that focuses on task management, project planning, and field collaboration. It allows teams to assign tasks, share drawings, and track progress in real-time, enhancing field efficiency. Benefit: Highly effective for field-based task management and communication, ensuring everyone on site is on the same page. Disadvantage: Offers limited estimating capabilities, necessitating the use of other tools for detailed cost estimation. Website: Fieldwire Foundation Software Description: Foundation Software is a construction accounting software designed specifically for contractors. It provides tools for job costing, project management, payroll, and financial reporting, helping contractors manage the financial aspects of their construction projects with precision. The platform is known for its robust accounting features tailored to the construction industry. Benefit: Offers industry-specific accounting and job costing tools that provide deep insights into project financials, making it ideal for contractors looking to enhance financial management and reporting. Disadvantage: Primarily focused on accounting, which may require integration with other tools for complete project management capabilities. Website: Foundation Software HBXL Description: HBXL is estimating and project management software designed specifically for builders and contractors in the UK. It offers tools for accurate estimates, project scheduling, and management, catering to the needs of the building industry. Benefit: User-friendly interface tailored for builders, making it accessible for those with limited technical expertise. Disadvantage: Limited to certain regions and market segments, which may restrict its applicability outside the UK. Website: HBXL HCSS Description: HCSS provides a suite of construction management software solutions designed for heavy civil construction companies. It offers tools for estimating, project management, fleet management, safety, and time tracking, all aimed at improving efficiency and profitability in large-scale construction projects. Benefit: Delivers comprehensive solutions specifically tailored to the needs of heavy civil construction, with robust features for managing large projects, equipment, and safety protocols. Disadvantage: The software suite is highly specialized for heavy construction, which may not be suitable or cost-effective for smaller projects or firms outside this sector. Website: HCSS Houzz Pro Description: Houzz Pro is an all-in-one business management software tailored for designers, remodelers, and builders. It offers tools for project management, client communication, marketing, and invoicing, designed to help professionals in the construction and design industries manage their projects and grow their businesses. Benefit: Provides a comprehensive platform that integrates project management with client engagement and marketing tools, making it ideal for professionals looking to streamline operations and attract new clients. Disadvantage: While versatile, it may be more geared towards small to medium-sized projects and firms, potentially lacking the scalability needed for very large or complex projects. Website: Houzz Pro JobNimbus Description: JobNimbus is job management software that combines estimating, project tracking, and customer relationship management (CRM) features. It is designed to help contractors manage their workflows and customer interactions more effectively. Benefit: Integrates job management with CRM tools, providing a unified platform for managing projects and customer relationships. Disadvantage: May lack some advanced project management features required for larger or more complex projects. Website: JobNimbus LaborChart Description: LaborChart is workforce management software designed to help construction companies schedule and track labour resources on their projects. It provides tools for planning, scheduling, and monitoring labour, ensuring optimal resource allocation. Benefit: Helps manage and schedule labour resources effectively, improving workforce efficiency and reducing downtime. Disadvantage: Limited features for estimating and project management, requiring other tools for a comprehensive project overview. Website: LaborChart Methvin Description: Methvin is a web-based tool that offers collaborative estimating, tendering, and project management features. It is designed to improve accuracy and collaboration in the bidding and project management processes. Benefit: Enhances collaboration and accuracy in estimating, making it ideal for teams working on bids and tenders. Disadvantage: May lack advanced features required for larger projects, necessitating the use of additional tools for comprehensive management. Website: Methvin NEXT-TECH Description: NEXT-TECH offers advanced construction management software designed to support the digital transformation of construction projects. It provides tools for project planning, scheduling, budgeting, and monitoring, with a strong emphasis on leveraging technology to improve efficiency and decision-making throughout the project lifecycle. Benefit: Utilises cutting-edge technology to enhance project management and decision-making, making it ideal for companies looking to embrace digital transformation in construction. Disadvantage: The advanced features may require significant training and adaptation, especially for firms less familiar with digital tools. Website: NEXT-TECH On Center Software Description: On Center Software provides digital takeoff, estimating, and project management solutions designed for the construction industry. Its flagship products, such as On-Screen Takeoff (OST) and Quick Bid, help contractors accurately measure digital plans, generate cost estimates, and streamline the bidding process, making it easier to manage construction projects from start to finish. Benefit: Offers powerful and intuitive tools for digital takeoff and estimating, which significantly improve the accuracy and efficiency of the bidding process, especially for contractors handling large volumes of bids. Disadvantage: Focused primarily on takeoff and estimating, so users may need additional software for broader project management needs. Website: On Center Software PlanGrid Description: PlanGrid is construction productivity software designed to manage blueprints, documents, and field data. It enables teams to access project information in real-time, ensuring everyone has the most up-to-date plans and documents. Benefit: Streamlines access to project documents and plans, improving field efficiency and reducing errors. Disadvantage: Offers limited estimating capabilities, requiring additional software for detailed cost estimation. Website: PlanGrid PlanSwift Description: PlanSwift is a digital takeoff and estimating software that helps construction professionals quickly and accurately measure and estimate project quantities from digital blueprints. It offers tools for takeoff, estimating, and project management, allowing users to streamline the estimating process and improve accuracy. Benefit: Provides advanced takeoff and measurement capabilities, enhancing speed and precision in creating estimates from digital plans. Disadvantage: While excellent for takeoffs, it may not offer comprehensive project management features needed for complete project oversight. Website: PlanSwift Premier Construction Software Description: Premier Construction Software is an all-in-one cloud-based platform designed to streamline construction project management, accounting, and document control. It offers features for managing financials, project budgets, job costing, and subcontractor relationships, tailored for both residential and commercial construction projects. Benefit: Provides a comprehensive solution that integrates project management with robust accounting and financial tools, making it ideal for contractors seeking to improve efficiency and financial oversight across their projects. Disadvantage: The platform's extensive features may be overwhelming for smaller firms or those with simpler project management needs, requiring a learning curve to fully utilize its capabilities. Website: Premier Construction Software Price a Job Description: Price a Job is a UK-based estimating software designed to help contractors and builders generate accurate and detailed quotes for their projects. It provides tools for cost estimation, job costing, and project management, with features aimed at simplifying the quoting process and improving accuracy. Benefit: Offers an intuitive and user-friendly interface, tailored specifically for the UK market, making it easy for contractors to create precise estimates and manage their projects efficiently. Disadvantage: Focuses mainly on estimating and quoting, which may limit its functionality in areas like advanced project management or comprehensive financial tracking. Website: Price a Job Procore Description: Procore is comprehensive construction management software that offers a wide range of tools for estimating, project management, and field collaboration. It provides an integrated solution for managing all aspects of a construction project, from bidding to completion. Benefit: An all-in-one solution that covers estimating, project management, and collaboration, making it a powerful tool for large-scale projects. Disadvantage: Can be expensive and requires significant training to fully utilise its features, which may be challenging for smaller firms. Website: Procore QuoteSoft Description: QuoteSoft is estimating software specifically designed for mechanical and plumbing contractors. It provides detailed tools for creating accurate cost estimates, tailored to the specific needs of these trades. Benefit: Offers specialised estimating features for mechanical and plumbing work, ensuring precise and competitive bids. Disadvantage: Limited to specific trades, making it less suitable for general contractors or other types of construction work. Website: QuoteSoft Raken Description: Raken is construction field management software that focuses on daily reports, scheduling, and task management. It simplifies the process of creating daily reports and tracking progress on site, improving communication and accountability. Benefit: Simplifies field reporting and task management, making it easier to keep track of daily activities and progress. Disadvantage: Limited to field management and lacks advanced estimating features, necessitating the use of additional tools for comprehensive project management. Website: Raken RedTeam Description: RedTeam is construction management software that offers features for project planning, estimating, and collaboration. It is designed to help contractors manage all aspects of their projects, from initial bids to final completion. Benefit: Provides comprehensive tools for project management and estimating, making it a versatile solution for construction professionals. Disadvantage: May be complex to navigate, requiring a learning curve to fully utilise its features. Website: RedTeam RIB Software Description: RIB Software offers advanced digital construction management solutions, including iTWO, an integrated platform for 5D BIM (Building Information Modeling). iTWO combines project planning, cost estimation, and management into a single platform, enabling construction professionals to improve project efficiency, collaboration, and cost control. The software is designed for complex, large-scale projects, particularly in the infrastructure and commercial sectors. Benefit: Provides cutting-edge technology for integrating BIM with project management, offering a comprehensive solution that enhances efficiency and collaboration in large-scale construction projects. Disadvantage: The advanced features and focus on large-scale projects may make it less suitable or cost-effective for smaller firms or simpler projects. Website: RIB Software RSMeans Online Description: RSMeans Online is a comprehensive cost estimating tool that provides access to detailed construction cost data and resources. It offers up-to-date cost information, labour rates, and material prices, helping professionals create accurate and competitive estimates for various types of construction projects. Benefit: Provides reliable, industry-standard cost data and estimating tools, allowing users to produce precise estimates and stay competitive in their bidding processes. Disadvantage: Primarily focused on cost data and estimating, which may require integration with other project management tools for complete project oversight. Website: RSMeans Online Sage Estimating Description: Sage Estimating is powerful estimating software that provides tools for detailed cost analysis and bid preparation. It integrates with other Sage products to offer a comprehensive solution for managing construction projects. Benefit: Offers advanced estimating features with integration options, making it a robust tool for creating accurate bids and managing costs. Disadvantage: High cost and steep learning curve may pose challenges for smaller firms or less experienced users. Website: Sage Estimating SiteMax Description: SiteMax is construction management software designed to assist with project tracking, scheduling, and reporting. It is focused on improving site management and ensuring projects are completed on time and within budget. Benefit: Effective for site management and project tracking, providing real-time insights into project progress. Disadvantage: Limited estimating features, so additional tools may be required for comprehensive cost estimation. Website: SiteMax SmartBid Description: SmartBid is bid management software designed to help contractors manage and organise bids and subcontractor information. It streamlines the bidding process, making it easier to track and coordinate bids. Benefit: Streamlines bid management and subcontractor coordination, improving efficiency in the bidding process. Disadvantage: Limited features for comprehensive project management, requiring additional software for full project oversight. Website: SmartBid STACK Description: STACK is a cloud-based construction takeoff and estimating software designed to help contractors quickly measure digital plans and generate accurate cost estimates. It offers tools for takeoff, estimating, and proposal generation, catering to a wide range of construction trades and project types. Benefit: Enhances efficiency and accuracy in the estimating process, with robust takeoff and measurement tools that simplify the creation of detailed, competitive bids. Disadvantage: Focused primarily on takeoff and estimating, which may limit its usefulness for broader project management tasks. Website: STACK Tally Systems Description: Tally Systems is software designed for managing construction estimates and project costs, with detailed reporting capabilities. It helps contractors keep track of costs and ensures projects remain within budget. Benefit: Offers detailed reporting and cost management tools, helping contractors maintain control over project finances. Disadvantage: May not offer extensive project management features, requiring the use of other tools for comprehensive project oversight. Website: Tally Systems Trimble Connect Description: Trimble Connect is a cloud-based collaboration tool designed for managing construction projects with BIM integration. It facilitates seamless collaboration among project stakeholders by providing a centralised platform for sharing and managing project data. Benefit: Highly effective for BIM collaboration and project management, ensuring all stakeholders have access to up-to-date information. Disadvantage: Limited estimating features, so additional software may be needed for detailed cost estimation. Website: Trimble Connect Vista by Viewpoint Description: Vista by Viewpoint is integrated construction management software that offers a wide range of features, including estimating, project management, and financial management. It provides a comprehensive solution for managing all aspects of a construction project. Benefit: Offers comprehensive features with strong financial integration, making it a powerful tool for managing large and complex projects. Disadvantage: High cost and potential complexity may pose challenges for smaller firms or less experienced users. Website: Vista by Viewpoint WinBidPro Description: WinBidPro is estimating software designed to help contractors create accurate bids and manage the bidding process. It provides tools for preparing detailed bids, ensuring that contractors remain competitive in the market. Benefit: Effective for bid creation and management, helping contractors streamline the bidding process and improve accuracy. Disadvantage: May lack advanced project management features, requiring additional tools for comprehensive project oversight. Website: WinBidPro Related Articles Top Construction Estimating and Planning Tools: Streamlining Project Success Project Estimating and Scheduling Construction Project Management Managing Subcontractors in Construction 15 Key Features of Construction Estimating Software What is Estimating Software? A Deep Dive into its Evolution, Functionality, and Impact 50 Construction Estimating, Scheduling and Management Tools

Discover why most businesses fail and how sustainable operations can drive long-term success. Learn strategies for creating value-driven, efficient, and enduring business models. Building Sustainable Business Models Understanding the High Failure Rates of Businesses and Unveiling Strategies to Build Sustainable, Value-Driven Models That Thrive Long-Term Published on: 12 Nov 2024 Why Businesses Fail and How to Build a Sustainable Model Business failures are alarmingly common. Despite significant revenue or seemingly strong performance, many businesses struggle to achieve lasting success. Even more troubling is the broader impact: economic instability, personal hardships for business owners, and environmental inefficiencies. In this article, we’ll explore why businesses fail and, more importantly, how to avoid common pitfalls by building sustainable, value-driven operations. The Statistics Behind Business Failure The numbers are stark: 65% of businesses do not survive beyond 10 years. 80% of companies that attempt to sell fail to do so. From this we can assume less than 1% of businesses create sufficient value to sell successfully. The failure rate is not just a personal or financial issue for business owners—it has far-reaching consequences: Personal Costs : Stress, burnout, strained relationships, and lost opportunities can leave business owners emotionally and financially depleted. Economic Ripple Effects : Small to medium-sized enterprises (SMEs) account for over 90% of businesses globally, provide more than 50% of jobs, and contribute over 25% of national income. Their failure disrupts communities and economies. Environmental Consequences : Inefficient businesses often waste resources, increase emissions, and fail to adopt sustainable practices, exacerbating global environmental challenges. Why Do Businesses Fail? Contrary to popular belief, business failure rarely stems from poor products or services. Instead, the underlying issue lies in mismanagement of operations . Most companies focus heavily on outcomes such as profit margins, revenue growth, and customer numbers. While important, these metrics are backward-looking indicators. This reactive approach is akin to: Driving a car while only looking in the rear-view mirror. Overworking farmland without replenishing the soil, leading to long-term crop failure. Ignoring maintenance on critical machinery until it breaks down. The inability to build sustainable foundations and scalable systems is often the primary cause of failure. The Key to Sustainable Success The businesses that succeed are those that shift their focus from outcomes to operations. Here’s how to build a model that fosters long-term success: Embrace Operational Excellence Effective operations are the backbone of any successful business. Streamlined workflows reduce waste, improve productivity, and enhance customer satisfaction. Operational excellence ensures the business runs smoothly, even during periods of growth or economic fluctuation. Adopt a Long-Term Perspective Businesses must move beyond short-term profit maximization and focus on creating value that endures. A sustainable strategy ensures resilience and adaptability in changing market conditions. Focus on Value, Not Just Profit While profitability is essential, it should not be the sole measure of success. A business’s true value lies in its ability to operate independently, scale efficiently, and attract potential buyers or investors. Align with Triple Bottom Line Principles Sustainable businesses balance economic growth, environmental responsibility, and social impact. This approach creates not only profitable enterprises but also ones that contribute positively to society and the planet. Monitor the Right Metrics Instead of solely tracking profit and revenue, measure operational health. Monitor key performance indicators (KPIs) related to efficiency, resource utilization, and customer satisfaction. These metrics provide actionable insights that drive improvements and prevent problems before they occur. The Broader Implications The failure of so many businesses is more than a challenge for individual owners—it is a systemic issue with economic and environmental repercussions. As SMEs form the backbone of most economies, their success is critical for job creation, income stability, and sustainable development. Building value-driven, efficient, and sustainable operations is not only a pathway to business success but also a means to address larger societal and environmental challenges. Conclusion To address the high failure rate of businesses, it’s essential to rethink traditional approaches. The focus must shift from short-term gains to sustainable growth supported by operational excellence and long-term value creation. By prioritising efficient systems and aligning with triple bottom line principles, businesses can transition from struggling to thriving. This is not just about survival—it’s about building companies that create lasting value for their owners, employees, and the broader world. With the right approach, businesses can become engines of economic growth, innovation, and sustainability, helping to shape a more resilient and regenerative future. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

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Discover the top 10 benefits of shifting from a transactional to a relational business model. Learn how prioritising people over profit enhances profitability, trust, innovation, and employee satisfaction 10 Benefits of Becoming a Relational Business Discover the top 10 benefits of shifting from a transactional to a relational business model. Learn how prioritising people over profit enhances profitability, trust, innovation, and employee satisfaction Published on: 18 Jul 2019 Many businesses still operate with a transactional mindset—treating customers, employees, suppliers, and partners as mere exchanges for goods or services. This transactional culture, while common, often undermines profitability, employee engagement, and overall business productivity. The Cost of a Transactional Mindset Too many businesses focus solely on the bottom line, neglecting the human element that drives sustainable growth. A transactional culture can damage relationships with employees and customers, reducing engagement and innovation, ultimately impacting profits. Your company culture is the heartbeat of your business. If it's unhealthy, the business struggles—and without a healthy culture, growth becomes nearly impossible. In the same way, society has shifted toward measuring teachers by league tables and doctors by patient wait times, businesses are often reduced to metrics that fail to capture the essence of meaningful interactions. Take patient care, for example. How does a nurse feel about being measured by “care hours per patient per day”? Does this metric improve patient recovery? The reality is that quality time and care are vital to positive outcomes. In the same way, your business thrives by fostering meaningful relationships, not just transactional exchanges. Transactional vs Relational Businesses: What's the Difference? Transactional businesses focus on profit at all costs, treating interactions as one-off exchanges. While profit is essential for any business, an overemphasis on short-term gains can overlook the human aspect that drives long-term success. Employees miss out on a fulfilling workplace, customers receive impersonal service, and shareholders ultimately lose out on potential growth. On the other hand, relational businesses prioritise people—employees, customers, and other stakeholders. These businesses understand that the human experience fuels innovation, creativity, and sustainable growth. When employees are engaged and motivated, they deliver better customer experiences, creating a positive cycle that benefits the business as a whole. A relational approach fosters a culture of trust and collaboration, leading to higher employee satisfaction and retention, more innovative solutions, and improved customer loyalty. The Top 10 Benefits of Becoming a Relational Business Here’s why shifting to a relational model is not only beneficial but essential for long-term business success: 1. Increased Business Value A relational business builds value by focusing on long-term relationships rather than short-term profits. When your business prioritises people—employees, customers, and partners—over mere transactions, it creates a solid foundation for future growth. Strong relationships foster loyalty, and loyalty results in repeat customers, referrals, and sustained revenue streams. Over time, this creates intrinsic value for your business, enhancing its potential for higher valuations, whether you’re looking to expand, sell, or attract investment. 2. Stronger Trust Trust is the cornerstone of any successful business relationship. Relational businesses cultivate trust by prioritising transparency, consistency, and open communication. This fosters strong connections with both customers and employees. For customers, trust is built through reliable products or services and exceptional customer service. For employees, trust stems from a positive workplace culture where their contributions are valued. A business known for trust becomes a magnet for new customers and top talent, while also reducing churn and increasing overall satisfaction. 3. Higher Profit Margins Relational businesses are better positioned to justify higher prices and secure long-term customers due to the superior experiences they offer. By nurturing relationships with customers, these businesses can charge a premium for their products or services, as customers are willing to pay more for trust, reliability, and personalised service. Additionally, when employees feel valued and engaged, they are more productive, contributing to a more efficient and profitable business model. Ultimately, a relational business fosters value that allows for higher margins without sacrificing customer satisfaction. 4. Better Resilience Relational businesses have a competitive edge in times of economic uncertainty or market fluctuations. Their strong relationships with customers, employees, and suppliers provide a buffer during tough times. Customers who trust a brand are more likely to remain loyal, even when prices rise or market conditions change. Similarly, engaged employees are more adaptable, willing to work harder and innovate during difficult periods. This resilience means that relational businesses can weather economic storms and continue to grow, even in challenging environments. 5. More Stable Growth Unlike transactional businesses that often experience erratic sales cycles, relational businesses are more consistent in their growth. By building a loyal customer base and maintaining engaged employees, these businesses can achieve more stable, predictable growth. The focus on long-term relationships helps businesses move away from the feast-or-famine cycles of transactional models, allowing for more sustainable revenue streams. Additionally, relational businesses are better able to increase market share over time by cultivating deeper connections with their target audience and creating a strong brand presence. 6. Continuous Innovation Innovation thrives in a relational business environment. When employees are engaged and feel that their contributions matter, they are more likely to bring forward new ideas and solutions. This culture of innovation extends to customer interactions as well. A relational business listens to customer feedback and uses it to improve products, services, and customer experiences. By focusing on people-first strategies, these businesses can anticipate market trends, create cutting-edge products, and stay ahead of the competition. Innovation becomes an ongoing process, not just a response to external pressures. 7. Higher Staff Productivity Engaged employees are more productive, and a relational business model places employee well-being at its core. When employees feel valued, respected, and motivated, they are more likely to take ownership of their work, go the extra mile, and be proactive in solving problems. This leads to increased productivity, as motivated employees are not just working harder, but smarter. They collaborate more effectively, streamline processes, and contribute to the overall success of the business. The result is a workplace culture that maximises efficiency and drives better outcomes for both employees and customers. 8. Stronger Brands A relational business builds a brand that is rooted in trust, reliability, and customer satisfaction. A strong brand isn’t just about marketing—it's about creating meaningful experiences for your customers and fostering an emotional connection. Relational businesses prioritise the customer journey, ensuring that every touchpoint reflects the company’s values and commitment to quality. This creates a lasting impression and leads to a stronger brand reputation. A powerful brand attracts loyal customers and talented employees, and it has a better chance of withstanding market pressures and competition. 9. Lower Employee Turnover One of the most significant costs for businesses is employee turnover. Relational businesses reduce turnover by creating a workplace culture that values and engages employees. When employees feel that their work is meaningful, and that they are supported by the business, they are less likely to seek other opportunities. High employee retention leads to a more experienced, skilled workforce, which contributes to higher productivity and lower recruitment and training costs. Additionally, a stable workforce helps maintain continuity in customer relationships and ensures that the business’s values are consistently upheld. 10. More Positive Reviews In a relational business, customers receive superior service and have better experiences, which naturally leads to more positive reviews and word-of-mouth recommendations. Satisfied customers are more likely to share their experiences online, helping to boost the business’s online reputation and attract new customers. Positive reviews are essential in today’s digital world, where consumers often rely on them to make purchasing decisions. By focusing on building strong, positive relationships with customers, relational businesses are more likely to receive glowing reviews, further enhancing their credibility and attracting new clients. How to Transition from Transactional to Relational As you can see, the benefits of becoming a relational business far outweigh the costs. These businesses thrive by focusing on long-term relationships, fostering a culture of trust, and prioritising the human elements of business. By becoming a relational business, you’ll create a more resilient, innovative, and productive workplace. You’ll foster stronger connections with your customers, making them more likely to trust and spend with you. As a result, you’ll see improved customer experiences, increased positive reviews, and more word-of-mouth marketing. We can help you transform from a transactional business model to a relational one through our bespoke business improvement programme and unique productivity tools. Let’s work together to build a business that employees love working for, customers love dealing with, and that drives long-term profitability and success. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Explore motivational assessments designed to unlock your full potential. Discover insights into your strengths, motivations, and areas for growth, empowering you to achieve personal and professional success. Motivation Assessments Evaluation of Motivational Styles A better understanding of how we are motivated leads to a greater sense of self-awareness and improves our relationships with others. This understanding helps us see what is important to us and others. When combined with a knowledge of personality types, this understanding leads to improved decision making, conflict management and alignment of our work and personal lives. We can understand the actions and behaviours of others too when we know more about what motivates them. Knowledge of motivators when combined with personality styles and emotional insights, provides a powerful tool for improving our own understanding of why we do what we do, and why we think what we think. A practical understanding of our motivations helps us to avoid thinking we’re less good than we are and lacking motivation. It helps us to understand better what we value and how that affects our feelings in any given situation. Our motivations influence our behaviours, decisions and actions. To create a high-performance work system driving increased business productivity and profitability, we need to align our core motivations with our work. When you understand these motivators, you become more effective, you do things for the right reasons, you're less stressed and achieve significantly better results. You can think of motivators as the “why” of what we do, where personality assessments provides the “how” someone will behave. They help people to better understand their values and belief systems. Our motivations reveal our mindset, our viewpoint and way of thinking. Our motivators are essentially the reasons we do anything – they drive our behaviours, decisions, and actions, they define our passions, pleasures and satisfaction. They are the reasons we do anything; driving our behaviours, the decisions we take, and actions. The Seven Motivators Aesthetic, the need for balance, harmony and form Altruism, the need to help others Individualism, a drive to be independent and unique Economic, related to money and time Power, the need to be in control and have influence Regulatory, the need to establish order, routine and structure Theoretical, a thirst for knowledge, learning and understanding The Motivations assessment provides an in-depth identification and review of these seven dimensions and how they combine to influence behaviours, decisions and actions. It reveals how each of the seven motivators impacts our choices. We have to combine them to see how they affect one another and work as a whole. Create Triple Bottom Line Growth Discover strategies to enhance profitability, cultivate a greener and more sustainable business model, and elevate overall well-being. WATCH VIDEO

Leveraging Sustainability Business Plans to Support the Sustainable Development Goals (SDGs) Leveraging Sustainability Business Plans to Support the Sustainable Development Goals (SDGs) Discover how sustainability business plans play a pivotal role in advancing the Sustainable Development Goals (SDGs). Learn how your business can make a positive impact on a global scale. Empowering SDGs through Sustainable Business Strategies. In the face of global challenges such as climate change, poverty, inequality, and environmental degradation, the United Nations introduced the Sustainable Development Goals (SDGs) in 2015. These 17 interconnected goals serve as a blueprint to address pressing global issues by 2030. Achieving the SDGs requires a concerted effort from governments, businesses, civil society, and individuals. Among these stakeholders, businesses play a pivotal role. In this post, we will explore how sustainability business plans can be harnessed to advance the SDGs, emphasising the potential benefits for companies, society, and the environment. Creating Regenerative Growth for a Greener Future Sustainability alone won’t stop climate warming. To make a real difference, we must move beyond sustaining and focus on regenerating. Green growth and a green economy require businesses to set regenerative goals across all stakeholders. Here’s why net zero and sustainability efforts fall short: 240 Years of Environmental Damage For over two centuries, human activity has severely degraded natural systems. Sustainability cannot restore ecosystems to their original state. Regeneration is the only way forward. We’ve been digging this hole for 240 years – now it’s time to climb out. Simply sustaining our current position perpetuates climate warming rather than reversing it. Regenerative practices are critical to rebuilding essential biological systems. Inadequate Response to Rapid Economic Growth The pace of global economic growth is accelerating, amplifying climate change, biodiversity loss, and resource depletion. Sustainability aims to slow the damage, but we must do more. Regenerative solutions actively reverse environmental harm and build resilience into ecosystems. To offset the environmental impact of growth, businesses need to be NET POSITIVE, not just net zero. This approach creates the capacity to support expanding economies and populations. Less Harm is Still Harmful Reducing harm doesn’t equal doing good. Sustainability often implies that minimising negative impact is sufficient. However, this mindset only delays collapse. Net zero goals can be achieved through carbon offsets rather than emission reduction, promoting the wrong behaviours. Offsets, such as tree planting, can take decades to deliver meaningful results. Regeneration, by contrast, focuses on immediate positive impact, creating long-term solutions that build back better. Distant 2030 and 2050 Targets Lack Urgency Setting sustainability goals for 2030 or 2050 risks complacency. These distant targets encourage short-term fixes rather than lasting solutions. How will progress be measured? Will offsets that take decades to materialise count? Regenerative goals demand immediate action, driving innovation and long-term thinking to address environmental challenges today. The Wrong Mindset Sustainability fosters the illusion of balance and steady-state conditions. In reality, change is accelerating. Believing that we can simply sustain today’s systems ignores the urgent need for transformation. Regeneration acknowledges this accelerating change, pushing businesses to innovate, adapt, and thrive. Lack of Positive Vision Sustainability lacks inspiration. It sets a defensive goal of avoiding harm rather than pursuing growth and renewal. Regeneration fuels creativity, motivates innovation, and drives technological breakthroughs. A positive vision of a greener, regenerative future encourages people to excel, fostering excitement rather than fear. Hardship Makes Change Unlikely Economic hardship stifles collective action. When people face financial insecurity, they prioritise immediate survival over long-term environmental goals. Societies experiencing economic downturns or environmental collapse are less likely to invest in sustainable initiatives. Regeneration must address economic and environmental issues simultaneously to ensure equitable progress for all. Beyond Sustainability: The Regenerative Imperative While sustainability is an essential step, it’s not the final destination. Regenerative practices, long-term vision, and stakeholder collaboration are vital to creating a thriving, resilient future. By addressing climate change head-on, businesses can unlock new opportunities, mitigate risk, and lead the way in building a truly green economy. Aligning Business Goals with SDGs The first and most crucial step in utilising sustainability business plans to support the SDGs is to align the goals of the business with the SDGs. This involves an in-depth analysis of how the company's operations, products, and services can contribute to the global goals. By doing so, businesses can identify where their activities intersect with the SDGs and craft strategies to maximise positive impacts. For example, a renewable energy company can directly contribute to SDG 7 (Affordable and Clean Energy) , while a fair-trade coffee producer can support SDG 1 (No Poverty) and SDG 12 (Responsible Consumption and Production). By identifying these intersections, businesses can set clear targets and develop action plans that address both their financial objectives and the SDGs. Promoting Responsible Consumption and Production One of the key SDGs, SDG 12 , emphasises the need for responsible consumption and production patterns. Sustainability business plans can actively contribute to this goal by adopting eco-friendly practices , reducing waste, and promoting resource efficiency. This not only helps businesses minimise their environmental footprint but also appeals to consumers who are increasingly concerned about the ethical and sustainable aspects of products and services. For instance, adopting a circular economy approach can significantly reduce waste and promote the recycling of materials, thereby supporting SDG 12. Companies can also invest in innovative technologies and processes that reduce resource consumption, lower emissions, and minimise environmental impact. Strengthening Corporate Social Responsibility (CSR) CSR initiatives are an integral part of many businesses' sustainability plans. CSR activities encompass a wide range of social and environmental actions, from philanthropy and community engagement to ethical sourcing and diversity and inclusion programs. Aligning these initiatives with the relevant SDGs can amplify their impact and highlight the company's commitment to the global goals. For instance, a company that supports educational programs in underserved communities aligns with SDG 4 (Quality Education). By emphasising these connections, businesses can demonstrate their dedication to the SDGs and inspire other organisations to follow suit. Innovating for a Sustainable Future Innovation is a cornerstone of sustainability. By investing in research and development to create more sustainable products and services, businesses can directly contribute to several SDGs, particularly those related to climate action, clean energy, and responsible consumption. For example, a technology company that develops energy-efficient devices is contributing to SDG 7 (Affordable and Clean Energy). Sustainable innovations can also generate new revenue streams and position businesses as leaders in the transition to a more sustainable world. Accessing New Markets and Consumers By integrating sustainability into their business plans, companies can tap into new markets and reach a broader customer base. The growing consumer demand for eco-friendly and socially responsible products and services presents a significant opportunity for businesses to expand their reach while contributing to SDGs such as SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action). For example, companies that offer organic, fair-trade, or cruelty-free products are well-positioned to attract environmentally conscious consumers. By appealing to this segment of the market, businesses can experience increased sales and brand loyalty. Fostering Sustainable Supply Chains Sustainability business plans extend beyond a company's direct operations to encompass its entire supply chain. By engaging with suppliers and partners to implement sustainable practices, businesses can make substantial contributions to the SDGs. This is particularly relevant for SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure). For instance, working with suppliers to ensure fair labor practices, reduce emissions, and minimise waste not only strengthens the supply chain but also supports the broader goal of sustainable economic growth. Encouraging Employee Engagement Engaging employees in sustainability efforts is vital for achieving long-term success in supporting the SDGs. Employees who are passionate about sustainability and feel that their work makes a difference are more likely to contribute innovative ideas and be more productive. This can lead to positive impacts on multiple SDGs, including SDG 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequality). Companies can foster employee engagement through training, volunteer programs, and sustainability-focused recognition and reward systems. By creating a sustainability culture within the organisation, businesses can drive positive change both internally and externally. Reporting and Accountability Transparent reporting on sustainability performance is crucial for accountability and demonstrating progress toward the SDGs. Businesses should include clear metrics and targets in their sustainability business plans, which are aligned with the specific SDGs they aim to support. Regular sustainability reporting, such as through the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB), can help businesses track their impact and make adjustments as needed. By providing evidence of their contributions to the SDGs, businesses can build trust with stakeholders, including customers, investors, and regulators. This transparency can lead to increased support and investment, further driving sustainability efforts. Collaboration and Partnerships No single business can achieve the SDGs on its own. Collaboration and partnerships are essential for addressing complex global challenges. Businesses can join forces with governments, non-governmental organisations, and other companies to combine resources and expertise in pursuit of the SDGs. For example, the UN Global Compact encourages businesses to align their operations and strategies with the SDGs and to engage in collaborative projects with other organisations. These partnerships can magnify the impact of individual efforts and contribute to multiple SDGs simultaneously. Conclusion Sustainability business plans play a critical role in supporting the Sustainable Development Goals. By aligning business objectives with the SDGs, promoting responsible consumption and production, strengthening corporate social responsibility, fostering innovation, accessing new markets, and engaging employees, businesses can make meaningful contributions to the global goals. Furthermore, by reporting on their sustainability efforts, collaborating with partners, and incorporating the SDGs into their core strategies, businesses can inspire a global movement toward a more sustainable, equitable, and prosperous future. It is imperative for businesses to recognise that their success is intertwined with the achievement of the SDGs. By integrating sustainability into their business models and actively participating in the global effort to address these challenges, companies can not only ensure their long-term viability but also contribute to a better world for all. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations offer clarity and a well-defined pathway for you and your team to move forward confidently. Get Started

Unlock business potential with a smart agile operating model designed to streamline processes, enhance productivity, and drive sustainable growth. 7Ts Smart Agile Operating Model Do More with Your Business with a Transformed Operating Model You're running a growing business, your team is talented, but as demand increases, cracks begin to show. Deadlines get missed, communication becomes chaotic, and it’s unclear who’s responsible for what. Stress levels rise, and you find yourself constantly putting out fires. Despite everyone working harder, results don’t match the effort. Now, picture introducing a well-defined Operating Model. Suddenly, there’s structure. Your business has clear processes for every task, and everyone knows how decisions are made. Communication improves, tasks flow smoothly from one person to the next, and meetings become shorter but more productive. You don’t just stop losing time—you gain it. You uncover new opportunities for improvement and focus on delivering consistent, high-quality results. When the market shifts or your business scales, the 7Ts Operating Model adapts with you, keeping you efficient and resilient. This is the power of a 7Ts Smart Operating Model. It’s not just a framework—it’s the key to turning strategy into consistent action. By aligning people, processes, and technology, it unlocks sustainable, value-driven growth. Ready to build yours? "We are what we repeatedly do. Excellence, then, is not an act, but a habit." - Aristotle The 7Ts Creates Alignment Unlocking Purpose in Action All business problems are behaviour problems—and the 7Ts solve them at the source. By mastering Time, optimising Talent, shaping the right Traits, building Trust, and embracing Teach, you unlock a state of flow where work, life, and meaning become one. This is purpose in action. This is high-performance business. 7Ts Smart Agile Operating Model We run projects that implement the 7T Operating Model starting with a comprehensive audit to identify key areas for improvement, followed by a tailored strategy to optimise each pillar—Time, Talent, Traits, Trust, and Teach. This approach ensures all operational changes are aligned with business goals, delivering sustainable, value-driven growth and high-performance workflows. Time: Time is your most valuable asset. When wasted, it costs profits, energy, and growth. By mastering time, you take control of your business—eliminating inefficiencies, focusing on what truly moves the needle, and unlocking the freedom to scale. The 7Ts help you get time back on your side. Talent: Your business is only as strong as the people driving it. The right talent, in the right place, with the right skills makes all the difference. With the 7Ts, we help you build a team that’s engaged, productive, and aligned with your growth goals—because when talent thrives, business thrives. Traits: Success isn’t just about strategy—it’s about the behaviours that drive it. The 7Ts identify the key traits that turn teams into high-performers. We help you build a culture of accountability, adaptability, and focus—so your team doesn’t just work harder, they work smarter. Trust: Without trust, even the best strategies fail. Trust fuels collaboration, improves communication, and strengthens your business from the inside out. The 7Ts help you build a culture where trust drives performance, so your team works together—not against each other—to achieve success. Teach: Business success isn’t static—it’s built on continuous learning. When your team is equipped with the right knowledge and skills, they drive innovation, efficiency, and growth. The 7Ts help you create a culture of learning that keeps your business ahead of the curve—because when you stop learning, you stop growing. Reasons to Update Your Operating Model Updating a business model is essential for staying competitive, maximising value, and ensuring long-term resilience. As markets evolve, customer expectations shift, and technology advances, businesses must adapt to remain relevant and profitable. Refining revenue streams, optimising workflows, and integrating new technologies enhance efficiency and scalability. A modernised business model strengthens competitive advantage, improves sustainability, and attracts investment by demonstrating adaptability and future readiness. Rather than reacting to challenges, businesses should proactively evolve their model to drive sustainable, value-driven growth and long-term success. "It is not the strongest nor the most intelligent of species that survives, but the one that is most adaptable to change." - Charles Darwin Key Operating Model Components 1 Governance (decision-making and accountability) Governance ensures clear decision-making and accountability, aligning leadership with strategic goals. 2 Processes (efficient workflows and automation) Processes streamline workflows and standardise operations, driving efficiency and reducing variability. 3 People & Culture (roles, responsibilities, and behaviours) Foster an environment where clear roles, shared values, and behaviours drive collaboration, innovation, and high performance. 4 Technology (tools that enable productivity) Technology integrates digital tools and systems that enhance productivity and support operational agility. 5 Performance Management (metrics and continuous improvement). Performance Management tracks key metrics and fosters continuous improvement for long-term growth. "Only three things happen naturally in organisations: friction, confusion, and underperformance. Everything else requires leadership." - Peter Drucker The 7Ts Smart Agile Operating Model Do More with Your Business with a Transformed Operating Model DOWNLOAD BROCHURE

An employee happiness survey recognises staff happiness is what matters most both to the employee and business. 7 Tips for an Effective Employee Happiness Survey An employee happiness survey recognises staff happiness is what matters most both to the employee and business. Published on: 23 May 2024 Employee happiness surveys are not unlike employee engagement and staff satisfaction surveys, they would include the scope of these, but they are broader. An employee happiness survey recognises staff happiness is what matters most both to the employee and business. Happy staff will outperform unhappy staff many times over. It recognises that personal happiness is not just related to work but other areas of our life too. The impact of poor employee engagement Poor employee engagement exacts a heavy toll on organisations. It manifests in decreased productivity, heightened turnover rates, and escalated recruitment costs. Disengaged employees are less likely to innovate or collaborate, hindering progress and stifling creativity. Moreover, their dissatisfaction often translates to diminished customer satisfaction, impacting revenue streams. Addressing employee engagement isn't merely a matter of morale; it's a strategic necessity for fostering a culture of growth and ensuring sustainable business success. How to create an effective employee happiness survey Business benefits of an effective employee happiness survey include: Increased employee retention Improved business productivity Enhanced communication Increased business resilience Improved innovation and competitive advantage Increase employee engagement Improved profitability Many people look at a company’s social and environmental commitments Employees often want to be more involved in cutting carbon emissions and may feel their company isn’t doing enough. Many organisations set the target for emissions reduction, but not what practical measures are being taken to achieve it. Effective employee engagement is key to any organisation and a lack of clarity and clear communication of climate warming mitigation strategies can be distracting or demotivating for staff. Inspiring staff to act on climate change is both motivating for them and good for the bottom line. We are social animals, so we value our friendships at work Friendships at work can help increase employee engagement as well as personal, professional and business productivity. This makes work more enjoyable and rewarding, with employees more likely to want to go to work each day. If work is stressful or routine, friendships can help to overcome poor performance and low productivity. Staff are more likely to open up to a trusted friend about issues and problems at work. They are also more likely to deliver improved service levels and less likely to leave the company. Experts have suggested that work-based friendships can be the most impactful on our overall happiness – both at work and home. To achieve valuable friendships, companies need to create an environment where staff feel at ease to communicate and share ideas, thoughts and observations without fear of being judged and reprimanded. People should be able to come to work every day as themselves. Many believe that socialising and friendships are important for making progress in a company and advancing their careers. If social connections don’t exist, people may feel demotivated and want to leave, so employee turnover will increase and overall workplace happiness will decrease. However, you need to be aware of some dangers. Staff may want to avoid becoming too close with colleagues. Telling everybody about your domestic issues, hidden desires or long-term plans may be distracting to what you are all trying to achieve at work. And some people naturally have a more negative disposition than others, so confiding in people who negative could get you down. Somebody once said we become the five people that we spend most of our time with. Employees might not have a best friend at work but they should expect to have some strong personal relationships with colleagues. Feeling absorbed in the work we do can make us happier If you can lose track of time at work, then the chances are you’re doing something you enjoy and are good at, which should make you happier. We are spiritual beings after all – more than we are transactional consumers. So, find finding something that absorbs you and helps you identify your own spiritual being, what you’d get out of bed for, your passion, is important. Part of how we become more absorbed in our work is feeling that we have the autonomy to complete that work in the way we know best. Do staff feel listened to, do their opinions matter and are their suggestions valued and acted on? Transparency builds trust in an organisation Employees are going to feel happier if there is transparency in their organisation based on open, honest communication. If there isn’t, they may feel resentful and distrustful, perhaps holding back from fully engaging with the organisation. They might mirror this behaviour by holding back information themselves. Providing information in a timely way is key, including bad news, to minimise surprises. Holding interactive sessions with staff on a weekly, or another regular basis, helps people to feel involved, updated and engaged as part of a company team. Create a mindful workplace to improve workplace happiness Being mindful is being in the moment, being 100% present in the now. Like a child, in the present moment, with eternity before us. Many of us, though, spend most of our time thinking about the past or worrying about the future. Neither of which exists, there is only now. And there will only ever be now. So, experiencing the now is a good way to be calm, reduce stress and focus. Think about your vision, and your dream life periodically, but be in the now. Does the company acknowledge this? Does it give staff space to think, relax and be in the moment? They’ll be happier, more creative and engaged if they are. Employees need to feel recognised and valued for their work Feeling recognised, valued and rewarded for the work we do is important, not only to feel happy but also professionally and for the company’s bottom line, too. There are big benefits for workplace productivity, health and wellbeing, employee engagement and business profitability. Creativity will increase as staff know their ideas matter and it’s safe to express them. This creates a more positive working culture, staff are less likely to leave and your competitive advantage is enhanced. After all, competitive advantage for any business relies on its staff’s ideas, insights and effort. It will help to build a stronger, more resilient team. Most people leave their job not because of pay but because they didn’t feel engaged, respected or listened to. If the company feels like a team and they are an important part of it, they are less likely to leave and deliver higher service levels. Is work contributing toward your employees’ own life goals? As we spend so much time at work, we need to feel that our own life goals and our work, job or professional goals are aligned. Having these aligned with the company’s goals is also important. Since the Covid-19 pandemic, this has become a bigger concern with 65% of people in a Gartner survey saying they’d rethink how work should fit into their life. In this way, employees are working on something that they are both good at and like doing, something they may even feel passionate about. But if their life goal is to be on a stage in front of an audience, then working in an office may feel deeply unrewarding for them, even if they’re good at it. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

DISC Personality Testing allows you to measure a person's characteristics and traits to help build more cohesive teams in your workplace. Find out more. How to use DISC Personality Tests for Selective Recruitment DISC Personality Testing is a way of identifying and measuring a person's characteristics, personality traits and behaviour patterns, all essential for building effective teams. Published on: 16 Sept 2021 The Disc Model is simple so that you can develop insights very quickly, descriptive so that you can view others more objectively, accurate enough so that you can understand someone else’s perspective and flexible enough that you can learn to see the subtleties and variations in someone else’s perspective. DISC Personality Testing is a way of identifying and measuring a person’s characteristics, personality traits and behaviour patterns, all essential for building effective teams and understanding DISC Workplace personality profiles . This information can be used diagnostically for existing employees to highlight training needs and whether they would be better in an alternative role or during the selective recruitment process as a way of identifying whether an applicant has the required or desired characteristics for a particular role. The DISC model has resulted from the work in the 1920s of the psychologist Dr William Moulton Marsden at Harvard. From his theories, the DISC assessments are produced. The DISC model identifies four behaviour traits or types which are laid out in the DISC Circle Disc Personality Testing for Team Building Recruitment and team building is an area where behavioural analysis is useful and an effective tool at different stages of the recruitment process. Pre-interview assessment – used for shortlisting purposes Interviewing – can identify potential difficulties that might not be identified during a standard interview and as a way to improve communication during the interview Rejection – as a way to ease the rejection of unsuitable candidates by providing a copy of their profile with the rejection letter giving them a clear idea of the reason for their rejection and guidance in the development of their career. An effective recruitment strategy is a more structured and proactive type of recruitment that has at its core a determination to find people with the skills needed and the right attitude. There are numerous benefits to using selective recruitment as part of your recruitment and team-building strategy but the key ones are: You get a great company fit – they understand and like your company ethos Employees stay with you, which reduces recruitment costs You’ll build a highly effective team. Your customers benefit, your company benefits and your employees are engaged, motivated and productive, so they benefit too. If your company has adopted a high performance work systems model you have to be recruiting selectively. The high performance work systems approach needs employees who are motivated and committed, want to be well-trained, are comfortable in a company that encourages them to speak up and want to work in a company like yours. Create a great employee value proposition Before you begin your recruitment and team building process, you need to think carefully about the type of person you want to attract and why. Next, you need to think about how you are going to attract top talent. A well-articulated employee value proposition (EVP), HR speak for all the great reasons to work for us, is an effective way of attracting new hires as well as motivating existing employees. EVP is the unique value that a company brings to its employees. It details all of the pay, benefits, rewards and perks that a prospective employee can expect when they join your company. It also describes the company’s culture and what working for your business is like and the type of people who will be attracted to that culture. Recruiting for cultural fit with uncommon questions Cultural fit is the glue that builds teams and holds an organisation together. It is the likelihood that a prospective employee will have similar beliefs to those of your company or will be able to easily adapt and adopt the core beliefs, attitudes and behaviours that your company promotes. It is useful when you begin interviewing to ask questions that will help you to assess how well an individual might fit in your company Why do you want to work at this company? How would you describe our culture? Is that what you are looking for? What type of environment do you thrive in? Tell me about a time where you worked at a company where the culture wasn’t a good fit? However, in addition to these standard interview questions, uncommon questions can reveal a lot about their ability to handle change, fit into the company’s culture and their suitability for the role. An industry-specific question might be ‘Where do you see the industry heading?’ which asks them to talk about change in your industry and from that you can assess how adaptable they might be. A job and cultural fit related question could be ‘What don’t you like to do?’ which could be quite revealing as to how well they’ll fit into the company and your team. If, for example, they answer that they don’t enjoy talking to a lot of people and they have applied for a customer service advisor then they may not be suitable. Selective recruitment is part of a high-performance work system High-performance work systems create environments that foster greater employee involvement and responsibility. When you’re recruiting it is important to employ people who will thrive in that type of environment and be motivated by the extra trust you are giving them. Using selective recruitment techniques you are able to not only able to recruit someone who has the correct skillset but you can also achieve a good cultural and team fit which will ensure that they will thrive in a more open environment. Other key features of a high performance work system that will require careful consideration when recruiting are that company information is openly shared with employees to engender a feeling that they are trusted partners. As a result of being based on a bottom-up inclusive approach, employees in this type of business can voice their concerns and suggestions and be confident that they will be listened to. Selective recruitment, using behavioural analysis and structured interviewing can identify employees who will succeed in this type of company and will be motivated by the additional benefits provided. Selective recruitment is a far more effective form of recruitment that ensures you not only recruit employees with the appropriate skills and the correct mindset for the company but these employees are more likely to stay for longer, reducing churn and helping to build a stronger team. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

At its core, an Environment Management System is a framework that helps organizations identify, manage, monitor, and improve their environmental performance. The Role of Environment Management Systems in Business At its core, an Environment Management System is a framework that helps organisations identify, manage, monitor, and improve their environmental performance. Published on: 27 Jun 2024 In a world where environmental concerns are at the forefront of societal discourse, businesses are increasingly recognising the importance of integrating sustainability into their operations. Environment Management Systems (EMS) have emerged as a vital tool for organisations seeking to minimise their environmental footprint while maximizing efficiency and profitability. In this blog post, we delve into the significance of EMS in business and explore how they contribute to a greener, more sustainable future. Understanding Environment Management Systems (EMS) At its core, an Environment Management System is a framework that helps organizations identify, manage, monitor, and improve their environmental performance. It provides a systematic approach to addressing environmental concerns by establishing policies, setting objectives, and implementing procedures to achieve those objectives. EMS frameworks are often based on international standards such as ISO 14001 , which provide guidance on best practices for environmental management. The Role of Operational Excellence (OpEx) Operational Excellence is a management philosophy that focuses on continuously improving processes and systems to achieve superior performance. By optimising operations, reducing waste, and enhancing productivity, OpEx enables organisations to deliver high-quality products and services while minimising costs and maximizing value for stakeholders. Integrating EMS and Operational Excellence The integration of EMS and OpEx is a powerful approach for businesses seeking to achieve both environmental sustainability and operational efficiency . By aligning environmental objectives with broader business goals, organisations can leverage the principles of OpEx to drive improvements in environmental performance. Here's how EMS and OpEx work together: Process Optimization : Operational Excellence emphasises the importance of streamlining processes and eliminating waste. By applying OpEx principles to environmental management processes, organisations can identify inefficiencies, reduce resource consumption, and minimise environmental impact. Data-Driven Decision Making : Both EMS and OpEx rely on data to drive decision-making and measure performance. By integrating environmental data into broader operational metrics, businesses can gain insights into the environmental impact of their activities and identify opportunities for improvement. Continuous Improvement : Operational Excellence is based on the principle of continuous improvement, with organisations constantly striving to enhance performance. By embedding a culture of continuous improvement within EMS frameworks, businesses can ensure that environmental objectives are regularly reviewed, updated, and optimised. Employee Empowerment : Operational Excellence places a strong emphasis on empowering employees to contribute to process improvement initiatives. By involving employees in environmental management efforts and providing them with the tools and training they need to identify and address environmental issues, organisations can harness the collective expertise of their workforce to drive sustainability. The Advantages of Integrating EMS into an Integrated Management System (IMS) Having an EMS (Environmental Management System) as part of an IMS (Integrated Management System) can be highly beneficial for organisations looking to streamline their operations while ensuring environmental sustainability. An IMS integrates various management systems, such as quality, health and safety, and environmental management, into a single cohesive framework, allowing organisations to manage their processes more efficiently and effectively. Here's how having an EMS within an IMS can be advantageous Streamlined Processes: Integrating EMS with other management systems eliminates redundancy and allows for the consolidation of processes. Instead of managing environmental aspects separately, organisations can align them with other operational aspects, leading to streamlined procedures and reduced administrative burden. Cost Efficiency: By incorporating EMS into an IMS, organisations can identify opportunities for cost savings through the optimisation of resources, reduction of waste, and minimisation of environmental impacts. This holistic approach to management ensures that environmental considerations are integrated into decision-making processes, potentially reducing operational costs in the long run. Risk Management: An integrated approach to management enables organisations to assess risks comprehensively across various domains, including environmental risks. By identifying and addressing potential environmental risks within the IMS framework, organisations can enhance their resilience to environmental challenges and regulatory compliance requirements. Continuous Improvement: EMS emphasises the importance of continual improvement in environmental performance. When integrated into an IMS, this ethos extends to all aspects of the organisation, fostering a culture of continuous improvement across quality, health and safety, and environmental management. By leveraging synergies between these systems, organisations can drive innovation and enhance overall performance. Enhanced Stakeholder Confidence: Demonstrating a commitment to environmental sustainability through the integration of EMS within an IMS can enhance stakeholder confidence. Customers, investors, regulators, and the community at large increasingly expect organizations to operate in an environmentally responsible manner. An IMS that includes EMS provides a robust framework for addressing these expectations and building trust with stakeholders. Regulatory Compliance: Environmental regulations are becoming more stringent globally. By incorporating EMS into an IMS, organizations can ensure compliance with applicable environmental laws and regulations more effectively. A centralised system for managing compliance requirements simplifies monitoring, reporting, and auditing processes, reducing the risk of non-compliance and associated penalties. Competitive Advantage: In today's market, environmental sustainability is a key differentiator for organisations. By embedding EMS within an IMS and effectively managing environmental impacts, organisations can gain a competitive edge. This can lead to improved brand reputation, increased market share, and enhanced business resilience in the face of evolving environmental challenges. The Benefits of Implementing EMS Reduced Environmental Impact : One of the primary benefits of EMS is its ability to help businesses reduce their environmental impact. By identifying areas of waste and inefficiency, organizations can implement measures to minimise resource consumption, reduce emissions, and mitigate pollution. Cost Savings : Contrary to popular belief, sustainability initiatives can actually lead to cost savings for businesses. EMS helps companies optimise their use of resources, leading to reduced energy and water consumption, lower waste disposal costs, and decreased regulatory fines. Enhanced Reputation : In an era where consumers are increasingly conscious of environmental issues, businesses that demonstrate a commitment to sustainability can gain a competitive edge. Implementing an EMS showcases corporate responsibility and can enhance brand reputation, attracting environmentally-conscious consumers and investors. Legal Compliance : Environmental regulations are becoming increasingly stringent, and non-compliance can result in significant penalties and reputational damage. EMS helps businesses stay ahead of regulatory requirements by ensuring they are aware of relevant laws and implementing measures to remain compliant. Improved Operational Efficiency : EMS encourages organisations to streamline their processes and adopt more efficient practices. By identifying and eliminating wasteful activities, businesses can improve productivity, reduce costs, and enhance overall operational efficiency. Implementing EMS: Key Considerations While the benefits of EMS are clear, implementing an effective environmental management system requires careful planning and commitment. Here are some key considerations for businesses looking to adopt EMS: Leadership Commitment : Top-level management support is crucial for the successful implementation of EMS. Leaders should champion sustainability initiatives and allocate the necessary resources to support environmental management efforts. Employee Engagement : Engaging employees at all levels of the organization is essential for the success of EMS. Training programs, communication channels, and incentives can help foster a culture of environmental responsibility and ensure that staff members are actively involved in sustainability efforts. Continuous Improvement : Sustainability is an ongoing journey, and businesses must continually strive to improve their environmental performance. Regular monitoring, measurement, and evaluation of EMS objectives and targets are essential for identifying areas for improvement and driving progress over time. Stakeholder Engagement : Collaboration with external stakeholders, including suppliers, customers, and local communities, is integral to the success of EMS. By involving relevant parties in decision-making processes and seeking feedback, businesses can build stronger relationships and gain valuable insights into environmental risks and opportunities. Overcoming Challenges in EMS Implementation While the benefits of EMS are clear, implementing an effective environmental management system can be challenging. Here are some common challenges faced by businesses during EMS implementation and strategies to overcome them: Resource Constraints : Limited resources, both financial and human, can pose a significant barrier to EMS implementation. To overcome this challenge, organizations should prioritize activities that deliver the greatest environmental and financial benefits and seek external support, such as government grants or partnerships with non-profit organizations. Resistance to Change : Implementing EMS often requires changes to established processes and procedures, which can be met with resistance from employees. To address this challenge, organizations should invest in change management initiatives, including communication, training, and employee engagement, to ensure buy-in and support from all stakeholders. Complexity of Compliance : Environmental regulations are complex and constantly evolving, making it challenging for businesses to ensure compliance. To navigate this challenge, organizations should stay informed about relevant laws and regulations, invest in environmental expertise, and leverage technology solutions, such as environmental management software, to streamline compliance processes. Measuring and Monitoring Performance : Measuring and monitoring environmental performance can be challenging due to the lack of standardized metrics and data collection methods. To overcome this challenge, organisations should invest in robust monitoring systems, establish clear performance indicators, and regularly review and analyze data to track progress towards environmental objectives. Conclusion As the global community grapples with pressing environmental challenges, the role of businesses in driving sustainability has never been more critical. Environment Management Systems provide a structured approach for organizations to integrate environmental considerations into their operations, leading to reduced environmental impact, cost savings, and enhanced reputation. By embracing EMS, businesses can not only mitigate risks and comply with regulations but also seize opportunities to innovate, differentiate themselves in the marketplace, and contribute to a more sustainable future for generations to come. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations provide clarity and a clear pathway forward for you and your team. Get Started

Discover the key stages to create a robust Sustainability Action Plan in our comprehensive guide. Learn how to navigate the 5 essential steps towards a sustainable future for your organisation Sustaining Success: A Roadmap Through the 5 Essential Stages of a Sustainability Action Plan In our comprehensive guide, explore the fundamental steps to develop a robust Sustainability Action Plan. Learn how to navigate the 5 key stages, paving the way for a sustainable future for your organisation Creating a Sustainability Action Plan is a vital step for businesses and organisations aiming to address environmental, social, and economic sustainability challenges. Such a plan provides a structured approach to embed sustainable practices into daily operations, reduce environmental impact, improve social responsibility, and enhance long-term viability. The process can be divided into five key stages, each of which plays a crucial role in the development and execution of a successful Sustainability Action Plan. Stage 1: Preparing for Sustainability Integration Before diving into the details of a Sustainability Action Plan, it is essential to prepare the groundwork and establish the context for sustainability within the organisation. This stage involves the following key steps: Leadership Commitment: The first step is securing commitment from senior leadership, including the CEO and top management. Their buy-in is essential for allocating resources and making sustainability a core part of the organisation's mission. Stakeholder Engagement: Identify key stakeholders, both internal and external, who will be affected by or influence the organisation's sustainability efforts. This can include employees, customers, suppliers, regulatory bodies, and community groups. Baseline Assessment: Conduct a thorough review of the organisation's current sustainability performance. This involves gathering data on energy use, waste generation, water consumption, emissions, social impact, and other relevant metrics. The baseline assessment provides a benchmark against which progress can be measured. Setting Clear Objectives: Define specific, measurable, achievable, relevant, and time-bound (SMART) sustainability objectives. These goals should align with the organisation's mission and values, and they may cover areas such as reducing carbon emissions, minimising waste, or enhancing diversity and inclusion. Compliance and Regulatory Review: Ensure that the organisation understands and complies with relevant environmental, social, and governance (ESG) regulations and standards. This includes staying up-to-date with changing requirements and anticipating future developments. Stage 2: Goal Setting and Strategy Development Once the groundwork is established, the next stage involves setting clear sustainability goals and developing a comprehensive strategy for achieving them. This stage includes the following steps: Defining Priorities: Determine which sustainability issues are most critical for the organisation, considering factors like impact, relevance to stakeholders, and alignment with corporate values. Goal Alignment: Align sustainability goals with the organisation's broader mission and values. Ensure that these goals are integrated into the corporate strategy and culture. SWOT Analysis : Perform a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis to identify internal strengths and weaknesses related to sustainability, as well as external opportunities and threats that may affect sustainability efforts. Strategy Development: Develop a comprehensive sustainability strategy that outlines the specific initiatives and actions needed to achieve the established goals. This strategy may encompass areas like energy efficiency, sustainable sourcing, waste reduction, social responsibility, and more. Resource Allocation: Determine the financial, human, and technological resources required to execute the sustainability initiatives. Budget allocation is a critical component of this step. Stage 3: Implementation and Integration With a clear strategy in place, it's time to put it into action. This stage is marked by the actual implementation of sustainability initiatives across the organisation, and it involves the following key actions: Project Planning: Develop detailed project plans for each sustainability initiative. These plans should include timelines, responsibilities, and performance indicators. Employee Training and Engagement: Educate employees at all levels about sustainability practices and their roles in achieving the organisation's goals. Encourage active participation and commitment to sustainability efforts. Supplier Engagement: Work with suppliers to encourage sustainable sourcing and responsible business practices throughout the supply chain. This may involve setting sustainability criteria for suppliers and conducting audits. Technology and Infrastructure Updates: Implement technology and infrastructure changes, such as energy-efficient systems, waste management solutions, and renewable energy sources, to support sustainability initiatives. Monitoring and Reporting: Develop systems for ongoing monitoring and data collection to track progress. Regular reporting to both internal and external stakeholders is essential to maintain transparency. Stage 4: Evaluation and Continuous Improvement Sustainability is an ongoing journey, and organisations must continuously evaluate their efforts and make improvements. This stage involves the following key steps: Key Performance Indicators (KPIs): Establish KPIs to measure the effectiveness of sustainability initiatives. These metrics should be aligned with the SMART objectives set in the earlier stages. Data Analysis: Regularly analyse the data collected to assess the organisation's performance against established benchmarks and KPIs. Identify areas where goals are not being met or where improvements can be made. Feedback Loops: Create mechanisms for gathering feedback from employees, customers, and other stakeholders. This input can provide valuable insights and drive continuous improvement. Adaptation and Optimisation: Use the data and feedback to adapt and optimise sustainability initiatives. Modify strategies, set new targets, and reallocate resources as needed. Communication and Recognition: Share achievements and progress with stakeholders, internally and externally. Recognise and celebrate successes to motivate further engagement. Stage 5: Reporting and Transparency The final stage involves reporting on sustainability performance and ensuring transparency with stakeholders. This includes the following actions: Sustainability Reporting: Prepare regular sustainability reports that detail the organisation's performance against its goals and KPIs. These reports often follow global reporting frameworks like the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB). Stakeholder Engagement: Share the sustainability report with key stakeholders and engage in open dialogue with them to address concerns, receive feedback, and demonstrate accountability. External Recognition: Seek external recognition and certifications related to sustainability achievements. These recognitions, such as B Corp certification or ISO 14001, can boost the organisation's reputation and credibility. Continuous Learning: Stay informed about evolving sustainability trends, best practices, and emerging regulations. Adapt the Sustainability Action Plan to reflect these changes. Public Disclosure: Consider public disclosure of the sustainability report, either through your organisation's website, social media, or industry-specific platforms. Transparency demonstrates a commitment to accountability. In summary, creating a Sustainability Action Plan involves a structured approach with five key stages: preparing for sustainability integration, setting goals and developing a strategy, implementing and integrating sustainability initiatives, evaluating and continuously improving, and reporting and ensuring transparency. This process is not static but requires ongoing commitment, adaptability, and engagement with stakeholders to drive meaningful and lasting change toward a sustainable future. Previous Next Start Your Business Improvement Journey Our business improvement programme and smart operations offer clarity and a well-defined pathway for you and your team to move forward confidently. Get Started