We all know what Return on Investments, or Equity, or Assets are but they may not tell the full story. You need to get all you can from all your resources. What is your Return on Resources?
Return on Resources???
You started and built your business on an idea, and then added sweat equity and capital to bring it to fruition. Along the way you added people, provided training, invested in tools and software, began marketing, and possibly many other items. Collectively, those are your company’s resources. Why do you have them? Because you need them to maximize your profits and the value of the business.
That’s where your operations come in. Operations includes ALL the processes to keep your business running. It’s not limited to how you deliver your products and services.
The goal of your operations is to extract value from every resource in your organization.
Let that sink in. You only add people, equipment, processes, or services for one reason: to make more money. Every employee, every tool, every asset, every decision should be contributing to reaching your goals in some way. If not, it’s dead weight on your organization or consuming time and money that could be better used elsewhere.
Ask yourself if the value you are receiving from your resources is what you expected.
- Do you add more people rather than look for ways to be more efficient?
- Do new hires get up to speed and become productive quickly?
- Are there products, services, or processes that add little value and should be modified or eliminated?
- Have tasks, routines, products, or even employees been added slowly over time without a good top-down review to see if they are still needed?
If you aren’t making the most of your resources, let OPG help you maximize your return.