It’s easy to look around your business or your team and notice something is off.
You can’t quite put your finger on it but you know that things aren’t as efficient as they should be.
Maybe the meetings take too long and by the time everyone disperses it’s been an hour, and the exhaustion prompts a coffee break. Or the emergencies turn out to be less of an emergency while the lowest priority items quickly become the most important.
Many signs tell us about the inefficiencies of our businesses and teams.
But how can we figure out how to fix it?
I supposed first we should understand that the feeling is supported by GiANT WorldWide’s Team Performance Assessment (which I do for my clients) and through this assessment we have learned that team performance is not at 100%, where we would ideally want it to be, instead its found at 58%
Yes, five-eight percent.
That’s not too good.
Imagine if we could raise this 10, 15, 20, 30, or even 40 %.
Hello, pristine performance!
So why does this happen?
It happens because of several systemic and operational challenges:
Vision and Execution Gap
Misalignment: Even with a clear vision, the execution often falters due to poor communication, resistance to change, or a lack of understanding of how to translate vision into actionable steps. This gap is often where potential begins to leak.
Resource Allocation
Financial Management: Over-reliance on debt can stifle growth, while too much equity might dilute control. The balance between reinvesting profits for growth versus distributing them for immediate returns is delicate and often not optimized.
Talent and Workforce Dynamics
Skill Gaps: Rapid technological advancements mean that skills become obsolete quickly. Businesses that don't invest in continuous learning or fail to attract and retain talent operate below potential.
Engagement: High turnover, lack of motivation, or poor company culture can lead to inefficiencies. Engaged employees are more likely to exceed their job descriptions, contributing to unrealized potential.
Market Understanding and Adaptation
Customer Expectations: With a significant portion of customers willing to pay more for better service, businesses that don't adapt or exceed these expectations miss out on revenue and loyalty.
Competitive Landscape: The market evolves, and businesses not continuously innovating or adapting to new competitors or technologies find themselves stuck at a plateau.
Leadership and Decision Making
Visionary vs. Managerial Leadership: While visionary leadership sets the direction, it's managerial effectiveness that ensures daily operations run smoothly. A lack of balance here can lead to inefficiency.
Here’s an extra item to consider:
AI and Technology
Recent insights from various sources suggest a significant increase in AI adoption, yet many businesses still struggle with scaling its impact or understanding its full potential. High performers in AI are those integrating AI not just for cost reduction but for creating new value, which suggests a pathway to unlocking more of that 58.
Companies are increasing investments in AI, but the focus needs to shift from just adopting technology to how it integrates with business strategy to create new revenue streams or enhance existing ones.
The figure of 58% might be a rough estimate, but it underscores the myriad ways businesses could improve.
And frankly, businesses need to step it up!
Things are changing way too fast and those that take their time, won’t have a place in line.
Because if you stay at 58% percent, you may not be operating a business for long.