Continuous improvement is an almost indispensable growth exercise for many SMEs. In fact, many are investing in this improvement process every year. But while some SMEs see the added value, others don’t seem to care. Here are a few things a business owner should read to better understand the need for continuous improvement.
What is continuous improvement?
To simplify this term, it is an activity designed to achieve greater efficiency and optimized business performance. Depending on the approach, several solutions can be adopted. In general, it will be to analyze one aspect of the business and to think about ways to be more efficient. All the company’s stakeholders can work together to implement this process so that the company becomes better in terms of its performance, operations, safety, innovation, etc. The goal is to improve at the desired pace, either gradually or quickly.
Why is continuous improvement good for a small business?
The reasons are so numerous that it will be difficult to list them all. First, an SME who wants to start continuous improvement must know that it can solve many problems and generate good results. Here are some reasons:
- Add value to products or services sold.
- Reduce losses and increase business performance.
- Innovate in a structured manner.
- Reduce operating costs.
The importance of action.
While continuous improvement is understood by many organizations, many companies fail to apply it. This is especially true for some SMEs that sometimes have obstacles or excuses to avoid this change. As a result, this exercise is often postponed, without being implemented. For example, homeowners are too busy, which prevents them from taking the time to think about how to improve. If, however, they manage to make continuous improvement a priority, they’ll be pleasantly surprised by the impact of this investment. Far from being a waste of time, this activity generates value and often saves time within a company.
It is a habit to develop.
Let’s be frank: continuous improvement is essential if a company wants to outperform and be competitive. Business is hurting by stagnation. So how can we improve? The answer is simple, but difficult for some entrepreneurs. You have to take the time, at least an hour a week, to question the techniques and try to improve them, even if they seem adequate. Efficiency can always be increased! It also has to be done on a weekly basis, regardless of the workload. Continuous improvement must become a habit. Because a habit is difficult to acquire at the beginning, you must be persistent and disciplined. You’ll see results fast. To help you start this exercise, here are some examples of questions you should ask about your business:
- Is there technology that can help internal processes?
- Would delegating a task be more cost effective?
- In a crisis, how do we prevent this from happening again?
- Is customer service up to snuff?
- How do we innovate to do better?
Why be good when you can be better.
Many aspects of the business can be reviewed and improved, even if they are very good. Examples include human resources management, recruitment, customer service, billing, quality control, purchasing, vendor management, marketing and production processes. Companies such as Google, the automotive industry and many others are investing in continuous improvement through research and development. An SME can also make continuous improvement, regardless of the form. The important thing is to do it. A business analyst is proving to be an increasingly valuable resource for SMEs. Together, they can achieve good results quickly and create value.
Visualize: Small or large, improvements are important for businesses because they are often a growth driver.