When implemented well, the proven benefits of the never-ending Business Excellence journey are immense:
- Business revenue doubling over 3-5 years
- Benefit to Cost ratio >> 5:1 for multiple process improvement projects every year
- Overall productivity gain 25% – 35% over 5 years
- Cumulative savings over 5 years of at least 22.5% of this (current) year’s Sales. Do the sum for your business – this is HUGE!
Proven Benefits of Business Excellence include less Hand-offs
Furthermore, by targeting and minimising the non-value-adding ‘hand-offs’ between the value-adding steps in business and support processes, the average calendar time to execute those processes can readily be halved on average – an enormous competitive advantage. Imagine what it would be worth to halve the calendar time it takes to develop a new product, service a vehicle, prepare a quotation, address a customer complaint etc.
Lack of Business Excellence implementations are damaging national productivity in Australia
The costs of doing nothing are immense. Given that over 90% of Australia’s 2 million businesses are SMEs, but less than about 1% of these are realising the above net benefits, it is no wonder that our Australian economy is grossly underperforming in terms of international productivity. We see evidence of this every day as our economy struggles to recover from mining-led growth to growth led by consumer spending, home building and investment in non-mining businesses.
Time to get started
Surely it is time to rethink how the game is played – and the new way of doing things has to start with individual SMEs. Without their enthusiasm and aggressive involvement, nothing will change. The best any government can do is to create a supportive economic environment.
Click here to obtain the Business Case for implementing excellence in your business.