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Reengineer Your Business to Improve Efficiency and Profitability

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Reengineer Your Business to Improve Efficiency and Profitability

You have worked hard to improve your personal productivity. Now it is time to start looking at ways to improve the productivity of your business. You want it to be streamlined and efficient, maximizing profitability. The process of simplifying your processes and reengineering your business is often hampered by the many complexities that come with it. Learning to improve your process can help you gain that sleek system that brings you higher revenues with less effort.

The Law of Complexity

The law of complexity states that the complexity of a process increases by the square of the number of steps in that process. Mathematically, it looks like this:

C=S2

C equals the increased costs, delays, and mistakes; S equals the number of steps.

Applying this formula to the business context, that would mean the complexity is the potential increase in the costs, time, and number of mistakes in completing any task or finishing any project.

This means that for every task that needs to be completed, the more steps that need to be completed to accomplish it, the more likely it is that mistakes will be made, costs will increase, and delays will happen. To get your business slimmed down, you need to find a way to simplify the process, eliminate steps where you can.

Simplify the Process

Sit down and write out all of the steps that you take to do your job. With that list, you can start looking at where you can reduce the number of steps that get you from start to finish. Eliminating steps means it is less likely to make costly mistakes and delays. Set a goal to do away with 30% of those steps. Don’t get discouraged! You will be surprised at how well this works, you just need a lot of commitment and a little imagination.

Collapse the Process

Eliminating steps is the first step in reengineering your business. Cutting the waste gives you more time to focus on the important steps that have the greatest impact, helping to streamline your efforts and boost productivity for your business.

Consolidate the Process

With your remaining steps, find ways to consolidate those steps if they are being done by several people and delegate them to just one person. You’ll be surprised at how quickly things can get done if you rely on one person to take on multiple tasks. There is no reason to spread out responsibilities when a single person can handle it with greater efficiency.

Eliminating unnecessary steps in your process means your business will start operating at its optimum level. You will have more time to spend on activities that contribute more to your success and end goals.

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