Organizational Wellness

How to Drive Businesses Success by Optimizing Day-to-Day Operations

Last Updated Nov 1, 2024

Time to read: 9 minutes

Good news: Sales are up 10% this quarter, and you just signed a five-year contract with a major new corporate customer.

The problem? Expenses exceeded revenues, and profits decreased 15%.

Even worse, your operations team has doubts about producing enough stock to cover upcoming demand, and you just lost several highly talented employees to a competitor. Clearly, there are several fires to put out — but how do you start? A review of current business operations may be what you need.

Business growth is usually a good thing, but it can quickly lead to inefficiencies if the right processes are not in place. So, if you want to prepare your organization for a rosy future, it might be wise to take a deep dive into operations and optimize them now. That way, you're be well positioned for organizational change.

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Key Components of Day-to-Day Operations

A fully functioning business requires different elements to run its operations. Those components combine to produce a viable product or service, meet customer expectations, and comply with regulations. Key components that may be a part of your organization's success include:

People: All businesses require staff to manage and oversee organizational functions. The size of your staff will vary depending on the type of business you run and its complexity. You may need more people to support organizational operations as your business grows. But ideally, hiring will be a thoughtful process in which you identify critical business needs and source workers with the suitable skill set to manage them.
Processes: Nearly everything a business does follows a process. From product design and manufacturing to projecting cash flows and marketing to customers, employees use step-by-step procedures to see a task to completion. Reviewing processes regularly can identify areas for improvement to save time and increase business efficiency.
Equipment: No matter what type of industry you're in, you'll need equipment to get the job done. Equipment may include computers, printers, and more advanced machinery to manufacture or transport physical products.
Data: You rely on different sources of data to make informed business decisions. Data can include financial details, like how much money you have to invest in equipment or people, or information about customers, industry trends, and demand.
Laws and Regulations: All businesses must comply with the laws and regulations that apply to them. Staying in compliance allows you to continue to run your business while avoiding fines, penalties, and other legal repercussions.

Common Challenges in Day-to-Day Operations — And Ways to Overcome Them

Executives and managers encounter dozens of hurdles every day, from minor to existential. However, for every problem, there is a solution — if you take the proper steps. Here are some of the most typical challenges you may encounter and a few ways to fix them.

Communication Breakdowns

Poor communication can lead to misunderstandings and conflict between colleagues and management. In the worst cases, it can adversely impact business decisions and result in declining employee engagement. If you notice signs of communication problems, such as employees being left out of the loop, unhealthy arguments, and reduced information sharing, it's vital to take action.

One of the best ways to avoid communication problems is to lead by example. Foster good communication through transparency and authenticity. Tell employees when things are going great, but don't hold back on negative feedback, either. When workers see executives modeling solid communication skills, they're more likely to act in kind.

Low Employee Engagement

Highly engaged employees enjoy their jobs and are highly productive. They make an effort to do their best work and demonstrate energy to tackle problems efficiently. On the other hand, unengaged employees can spell disaster for an organization. When your company suffers from unengaged workers, productivity plummets, and turnover rates rise.

To boost employee engagement, try to identify problem areas. For instance, workers who don't feel that they have growth opportunities may be less likely to give their all. Training and development opportunities can help stymie those issues. Another option is upgrading your benefits plan. Providing employees with competitive benefits can set your company apart from competitors, making it more attractive to work there.

Messy, Inefficient Processes

Redundant, overly complex processes can easily hamper business activities, resulting in reduced productivity and confused workers. If it's been some time since you last examined the inner workings of major processes, consider setting up an efficiency plan. You can task managers and employees with reviewing processes and finding ways to streamline them.

Consider turning the exercise into a game to make things a little more exciting. You can reward winners who successfully revamp clunky processes with a token gift or small benefit, like an extra paid day off.

Insufficient Data

Every business uses different types of data to make critical business decisions. Such data may be the basis for financial planning forecasts and performance tracking. If your data isn't current or you source the wrong data, it can lead to missed opportunities and bad decisions.

If incorrect data is a problem in your organization, try to determine its cause. Are you using out-of-date technology? Does your team need additional training? Do you need to specify metrics that better relate to business goals? Understanding what's causing the issue can help you pick the right solution to resolve it.

Strategies for Optimizing Day-to-Day Operations

There’s no one-size-fits-all approach to improving your operations, but some best practices can make a big difference. Implementing these strategies can help take your business to the next level!

Technology Adoption

Staying ahead of technological advancements can feel overwhelming, even for tech-savvy professionals. With the rapid pace of innovation, it’s tough to know which tools will deliver the most value for your business.

But if your team is grappling with high costs, reduced productivity, or outdated systems, it might be worth your time to explore new tech solutions. Whether it’s automation to cut down on repetitive tasks or advanced data analytics for smarter decision-making, investing in the right technology can streamline operations and drive efficiency.

If your organization could benefit from newer technology, consider where you would like to see advancements. Could automation eliminate repetitive, non-value-added tasks? Would you like to see more comprehensive data analytics? Would a cloud-based enterprise resource planning system make storing vast amounts of company data easier?

Working with your IT team and other departmental managers can help you decide where a technology investment may be appropriate.

Process Improvement

General process improvement can help you pare down overly complex procedures. Through process improvement, you can reduce the time it takes to do nearly anything in your organization. Employees can use the extra time for other tasks or innovative development.

To kickstart process improvement , consider implementing lean methodology. Lean methodologies focus on continuous improvement. Every process undergoes a feedback loop in which employees consistently tweak processes to eliminate waste and improve efficiency. You can apply lean methodologies to nearly any process, from accounting to manufacturing.

Six Sigma is another process improvement technique. Its aim is process standardization, where employees follow strict procedures to derive an outcome. You may also incorporate Lean Six Sigma, which reduces mistakes and leads to more streamlined processes.

Communication and Collaboration

Effective communication is the heart and soul of a smoothly functioning business. Without it, work relationships suffer, employees stick to their "silos," and there's less workplace collaboration.

You can improve office communication in several ways. Start at the top with executives and managers. Consider setting a few communication standards, like regular all-hands meetings that employees can join to interface with the executive team and get an update on company strategy, upcoming changes, and other essential details.

Another method to improve cross-functional collaboration is regular departmental meetings and one-on-ones with employees. Such meetings allow workers to share their thoughts and provide feedback on work-related challenges.

Of course, communication doesn't have to be entirely work related. You can encourage employees to strengthen relationships with their colleagues through fun team-building activities outside work. For instance, a monthly group lunch or a volunteer day allows workers to get to know one another while free from the pressures of their jobs.

Employee Empowerment and Development

As business needs change, your employees may benefit from reskilling and upskilling. Adopting new technologies, processes, and objectives may be challenging for workers who don't possess the right skills to perform at maximum efficiency.

Introducing an employee development program allows workers to boost their skill sets and gain the knowledge they need to succeed and advance in their careers. With the right skills, your workers may find it easier to earn a promotion or take on exciting new projects, enhancing employee engagement.

The Role of C-Suite Leaders in Driving Operational Excellence

What can you do as a senior executive to ensure ongoing operational excellence at your organization? You're the one employees look to for inspiration! Try investing your time in these areas.

Leadership and Vision: You have a reason for wanting to improve operational efficiency. Consider conveying your reasons in a succinct vision statement for the organization. When employees understand what you see for the company's future, they're more likely to jump on board with your operational improvements.
Data-Driven Decision Making: While leading with your gut instinct may work in some situations, it doesn't bode well for performance-oriented decisions involving finances and process improvement. Consider setting key performance indicators (KPIs) or other metrics to track operational performance and help you make informed decisions. A simple dashboard highlighting your KPIs can make it easier to justify significant organizational changes and help you see whether you're meeting your goals.
Strategic Alignment: Daily business operations are the stepping stones to long-term strategy. Try to align regular company activities as you work toward a future vision or objective. For instance, if you aim to reduce expenses by 15% over the next two years, business operations supporting that goal can help you realize it. You can apply alignment tactics to other business areas, including marketing, sales, and compliance.

Optimize Your Employees for Business Success

Ongoing improvements and sustained efficiency are critical to any organization's success. Streamlining your day-to-day operations prepares the company for growth that supports your vision. Strategic investments in technology and professional development go one step further, encouraging workers to build their skills and use the tools available to them to deliver optimal results.

But you can do even more. By investing in your workers' holistic wellbeing, you can support their physical and mental wellness. In fact, over 95% of organizations say their wellbeing program boosts productivity and reduces turnover, according to a Wellhub survey.

If you'd like to learn how wellness benefits can optimize your employee's health, speak to a Wellhub wellbeing specialist today!

Company healthcare costs drop by up to 35% with Wellhub! (* Based on proprietary research comparing healthcare costs of active Wellhub users to non-users.) Talk to a Wellbeing Specialist to see how we can help reduce your healthcare spending!