Corporate leaders are forced to scramble out novel ways to generate short-term profit gains at the long-term expense of the organization. Due to such short-term worries and strategic elements, organizations often find themselves in tricky terrain: they struggle to meet the ever-evolving customer demands, are challenged to boost profit margins, face stiff competition from modish competitors and, are unappealing to potential employees. The conflux of forces has led to 50% of companies on the Fortune 500 list to go bankrupt, merge, be acquired or fall off the list since the past decade.
Where does the real problem lie? Why do business leaders have such a hard time stimulating more rapid growth?
To combat the above mentioned challenges, corporate leaders need to look at how their organization earmarks time and money to its myriad priorities. A majority of organizations prioritize the basics – on a scale of higher priorities to low, wherethe brand comes first at highest priority, strategic differentiation second, sales and growth third, operational efficiency fourth, and regulatory compliance and controls has lowest priorities.
Brand – Business priorities that are focused on scaling up the image and appeal of the organization.
Strategic differentiation – Business priorities that lead to a radical transformation, or creation of a disruptive business model.
Sales and growth – Business priorities that drive gross sales.
Operational efficiency – Business priorities that boost business efficiencies,including process transformation, elimination of redundancy and cost optimization.
Regulatory compliance and controls: Business priorities that prevent an organization from running out of business, or being sued. Unfortunately, these factors can often turn into a thorn to new business growth, since low priority elements such as regulatory compliance and operational efficiency take up a lot of time.
Regulatory compliance is just at the base of a set of priorities since it is obligatory, time-consuming, and convoluted. The issue is that organizations can spend up to 20% of their efforts, wasting their time simply going through the changes. This consumes a lot of time, and it keeps organizations from utilizing their assets on activities that include more merit, or more separation from existing competitors.
When it comes to regulation, leaders should figure out how to automate regulatory updates or consuming them as a service through business process outsourcing or some other innovation. Leaders can commission more time to develop novel product ideas or talent acquisition strategies.
In order to achieve a certain level of operational effectiveness, organizations should embrace cloud technology, which will in turn empower them to gain better insights, and plan their strategies accordingly using a set of organizational priorities.
Business functions with characterized procedures give some of the best opportunities. Corporate leaders can create shared services that automate repetitive tasks. Companies can use automation and robotics to achieve a cost reduction advantage.Technologies, such as AI, machine learning, and cognitive computing hold much more open doors for revenue boost and strategic differentiation. Corporate leaders should aim to achieve mass personalization by looking for different ways to jumpstart growth in their companies.