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Consistency Does Not Always

Equal Efficiency

John Kielich, CPA   email | bio
Managing Director for Kolb+Co. M&A Advisers
                                March 2010

Doing the same thing over and over and expecting a different outcome has long been considered insanity. If you stop and think about it, there are probably many areas in life that often slip into this type of a cycle. Physical fitness is one of the first that comes to my mind: one doesn't change their diet, exercise routines or any other habits, yet wonders why they can't lose weight. However, this is not an article about physical fitness but rather the fitness of your business.

There are very few successful businesses that have not had to make some radical changes to get to where they are today. They could not keep doing the same thing over and over to achieve their present level of success. Maintaining, and more importantly growing, the value of a business requires change. Let's examine some key areas of any business and consider some ideas.

People

I admire loyalty, especially when it involves the employer-employee relationship. However as an employer you do need to be honest in your talent assessment process. The value of a business is all about people. They are responsible for the sale, production and delivery of the products and services your company provides. Without quality people in key positions and supporting roles, your business' growth and success will likely be hindered or halted. Ask yourself if you have the right people on the team. Do they have skills that fit into your company's growth plan? New talent may be key to achieving the next level of success for your business.

Processes

Every business is comprised of many different processes, such as how sales are made, orders are taken and booked, products are built/assembled and shipped, and services are delivered. These processes are often built over time and rarely updated. Unfortunately, there are few, if any, businesses that thrive from this tactic. Dated procedures often lead to an inefficient business model. In many cases, lean processes can be used for improvement in even simple things like how daily receipts are deposited. Seldom are the processes used five, ten or twenty years ago the most efficient methods today.

Products and Services

When is the last time your company introduced a new product or service? When was the packaging or supporting collateral sales material last changed? For a moment think about Apple. Since Steve Jobs has come back to the company instigating continuous improvement and innovation, their success has been remarkable. Apple has been projected to become the most valuable company measured on a market capitalization basis in the world. The anticipation of the market and continual delivery of new or upgraded products by Apple continues to fuel its growth and value. What have you done lately to improve your company's products and services?

Many business owners pride themselves in what has not changed and the tried-and-true processes they've developed. Although you certainly don't want the quality and integrity of your business to change, it may be time to start doing some things differently, especially if you are trying to enhance the value of your business.