Partner Article

The magnificent 7…for business

I am keen to highlight the need for firms to make sure they are in good shape, not to survive the recession but the recovery, so here are my top tips for success in improving efficiency and profit margin.

The best solutions to problems are often the simplest. It’s often during recovery from recession that businesses face difficulties.

In a recession companies make cuts, sometimes drastic, in personnel, advertising, and investment in equipment. Short-term this reduces costs. But such a strategy leaves all sorts of weaknesses, especially in relation to skills and processes. These weaknesses become all too apparent when the business tries to grow again. The organisation discovers that it has neither the people nor the equipment needed.

It would seem that the manufacturing sector has already learnt this lesson. Roger Bootle, MD of Capital Economics, reports in the Telegraph that job losses in British manufacturing were minimal during the recession. Firms are well placed, as a result, to take advantage of the recovery. This is music to the ears for Giles Johnston. His background is in production management and he is passionate about manufacturing.

The UK still has a strong manufacturing base, making up something like 12% of the economy. The manufacturing sector can play a crucial role in the recovery. It means we are actually making things: real, solid products that people need and want. The government is really pushing British manufacturing and I’m very pleased to see this.

These aren’t the only challenges businesses will face in the recovery. What were once familiar markets are not so familiar! The world has changed, marketplaces have changed, because of the recession. Businesses struggle both with growing pains and the need to adapt to new trading environments.

The key ingredients to success are cost; quality control; on-time delivery of products.

I am urging the region’s businesses to focus on these areas as the recovery gathers pace.

So, here are my top tips:

• Manage the incoming workload effectively.
• Create effective routines that drive productivity.
• Use short daily meetings to help run like clockwork.
• Manage your options via meaningful Key Performance Indicators.
• Ensure your computer system (MRP / ERP / CRM etc…) works for you and not the other way round.
• Adopt a simple continuous improvement approach.
• Manage change in a pro-active manner.

This was posted in Bdaily's Members' News section by Giles Johnston .