In a recent Bankwest Business Leadership Report, productivity leadership was identified as the most likely strategy to be adopted by mid-size businesses in Australia.
“Productivity leadership, which seeks to drive profit through increasing process and structural efficiencies, is the underlying leadership strategy that mid-sized businesses will most likely adopt to guide their overall direction over the next five years”
To understand productivity, employees need business acumen
In order to improve productivity, employees need to understand how your business makes profit and generates cash. In other words, they need business acumen. Most employees know their functional role, but do they really understand how your business makes money?
- Do your employees understand the operation of your entire supply chain – from suppliers, to your daily operations, to your customers?
- Do they understand how your organisation turns daily activity into cash?
- Do they understand the impact their decisions and actions have on your bottom line?
- Do they understand how you manage your capital investments and the effect these have on your profitability?
- Can they explain the story behind your numbers?
A simple model for business acumen to understand productivity
Imagine if your team had a visual representation of your organisation’s operation that provided these answers. A clear and simple way to understand the financial operation of your business, which allows them to “see” and understand how they can make productivity and financial improvements in your organisation.
Zodiak®: The Game of Business Finance and Strategy is a fun and innovative approach to developing people’s business acumen in a fun, energising and rewarding atmosphere. Over the course of one day, participants experience a "three-year" journey as a business owner. During the process, your team will learn:
- the basics of how companies generate cash, and deliver a profit
- how lean business improvements make your business more profitable
- the significance of strategic decisions that can impact the bottom line of your company
- how to identify areas where they can impact the bottom line of your business.
If you are like most businesses, and want to improve your productivity leadership, contact us to discuss how Solana Consulting can help.