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Business Advice

3 Key Performance Drivers You Can Control

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Many Australian business owners are facing challenges from the current economy. If you are, too, know you are not alone.

While most of the influencing factors are out of your control – inflation rates, household spending, competing businesses targeting the same customer – there are three key performance drivers you can control.

Assessing and optimising business performance may be the secret ingredient to thriving in an economy where many SMEs are under the insolvency microscope.

Fortify the most essential aspects of your business to make a more profitable future. They may not be what you think.

Internal Drivers To Focus On To Boost Performance

Critical aspects of your business can drive momentum, including operational efficiency, customer satisfaction, and the ability to adapt to changing market conditions.

By optimising the following key business drivers, you can focus on aspects within your control and will naturally improve the rest.

Employees

The people within the business are the engine that makes everything move. Without staff, nothing will get done.

Your team’s engagement directly impacts customer satisfaction. Happy team members are more productive, engaged, and committed to the business’s success. Employees add to the value disposition of your business as they are your front-line advocates.

The skills of employees have a direct impact on the quality of the product or service delivered. Employees with the skills required to fulfil their roles are more efficient and produce higher-quality work.

Ensuring your employees feel heard and supported in their roles can go a long way in helping a warm company culture. Promoting self-care and acknowledging employees’ hard work and achievements are great ways to achieve this.

Investing in staff training and development can improve employee skills and increase satisfaction. This equips your employees to do the best job possible, which improves customer retention.

Processes

Your employees can be the best but cannot produce the optimal outcome if they are buried under a mountain of red tape and menial tasks.
Efficient processes can improve productivity and reduce costs. Track the time and resources required to complete tasks to assess how they can be streamlined or better supported.

Process quality measures how well the implemented systems deliver the desired outcomes. High-quality processes can improve customer satisfaction and reduce wastage by limiting mistakes.

Innovation can improve productivity, reduce costs, and increase customer satisfaction. Ask the staff about their pain points and how to improve them to implement process improvements.

Facilitating a culture of innovation can engage employees and lead to new ideas for improving processes. Business owners can achieve this by promoting collaboration and idea-sharing.

Implementing resources that support innovation and creative thinking also helps. They will have a great return on investment.

Communications

You may not be able to control other people’s opinions or thoughts, but you can control what you say and how you say it.

Ensure all your outgoing communication is consistent with your brand identity. The work you leave behind, the people representing your business, and how you communicate your value all add to your public image.

A recent example is a tradie business that always cleaned up the site after the job and ensured the recycling of relevant materials. This is their standard practice. However, a rival company attracted more customers by communicating that they did these practices.

Marketing is often seen as an expense when cash flow is low, but knowing what to communicate and when can significantly impact your performance.

Understand your customers and ensure you communicate their needs. Be customer-centric in your actions; you can significantly impact how your customers feel.

Attract the ideal customers and set the expectations by explicitly communicating your business mission and how you achieve it. Every interaction with your brand is a crucial driver for your operational success.

But like all things, your profits aren’t made in isolation.

Get your business performing like a money-making machine.

A business is a system with multiple aspects working together to fulfil its core purpose. Your marketing drives sales, and customer service influences customer satisfaction and return business.

Remember, everyone feels the tight economy, and your business won’t be the only one experiencing slower growth.

Clout Advisory’s external CFO services offer businesses the expertise to look deeper into the business’s financial position. We can track your progress over time and benchmark it against industry standards, providing you with practical steps to fine-tune your business and run it like a well-oiled machine.

Contact us for a consultation.

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