Improve Operational Profitability
Operating in fiercely competitive market places, there has never been a greater need for organisations to improve their cost efficiency in order to protect or grow profitability.
Reinvigoration has helped many of its client significantly improve the way they work, making them more effective and efficient and improve operational profitability.
There are a wide range of approaches that can be taken in order for you to improve operational profitability, whether it is using a single method or a combination, we will ensure that the approach is the right one for your organisation.
These approaches, or levers, include:
Simply creating an organisation- wide standard for the structure and organisation charts will highlight areas that do not meet the norm so that appropriate action can be taken – this can provide significant benefits.
Relocating work to areas with cheaper resource and infrastructure costs has been a popular cost reduction strategy for services organisations for over a decade.
Failure Demand Reduction
Failure demand is completely avoidable and should be designed out. It also provides one of the biggest opportunities to create capacity in any service organisation.
Cycle time reduction helps lower the amount of time taken to process a work item and is achieved primarily by identifying and removing waste from processes and working practices.
Many service organisations are typically lacking in good operations management practices, more specifically performance management, which alone can deliver a 15% plus uplift in productivity, when implemented correctly.
Reducing Operational Rigidity
Operational rigidity is the difference between resource and demand profiles. It exists in every service business due to the inherent variability in demand, however it can be greatly reduced using the correct approach.
Sales growth can often be most effectively achieved through improving customer loyalty, increasing customer lifetime value and cross and upselling.
Reinvigoration has a wealth of experience of using these levers to improve the efficiency and profitability of organisations, especially in the service sector.
Find out more about how we can improve the cost efficiency and profitability of your operations. It really is worth the effort.