3 Keys to Maximize Resources and Increase Profitability

 

It doesn't require an economist to tell us that the current recession has been going on for a long time, in fact there are some sources that suggest that this recession is likely to be the longest since World War II and the worst since the Great Depression.

Earlier this year the Huffington Post reported that Douglas Elmendorf, the new Director of the Congressional Budget Office, testified before Congress that without a major economic stimulus plan, "the shortfall in the nation's output relative to its potential would be the largest—in terms of both length and depth—since the Depression of the 1930s." 

Even though there has been some encouraging news in recent weeks, companies continue to look for ways to increase efficiencies and remain viable in a difficult economy.  However, expecting people to work harder, work longer, and earn incrementally less money is probably not the best solution.  How can organizations maximize capabilities without doing irreparable damage to their resource infrastructure?  Three keys to help maximize resources and increase profitability without crossing the line are:

1. Make certain your organization has access to accurate information
2. Focus on bottom-line activities
3. Make the organization's vision accessible to everyone

Accurate Information Informs Good Decisions: Choosing the right projects to work on can make the difference between an organization that succeeds and one that fails.  Bad information leads to poor decisions and poor decisions lead to bad investments.  In other words, if project teams are working on the wrong projects, they are wasting precious resources that could be spent someplace else.  Without access to accurate information, executives, stakeholders, and project teams might as well pull out a Ouija board every time they want to make a project decision.

Focusing on Bottom-Line Activities Makes Project Teams More Productive: Carving out a project environment that focuses on bottom-line activities doesn't require a machete when a scalpel will do.  I once read a study conducted by the Marriott Corporation that, according to Marriott Executive Bill Munck, suggests "...relatively small changes in productivity can have a major impact on shareholder returns."

I guess the real question then becomes, "How do project teams realize these small, incremental, productivity improvements?" I'd suggest:

1. Increased Collaboration Equals Increase Efficiency: Incorporating a systemic approach to encouraging collaboration within your work management methodology is critical.  Utilize project management tools that foster a collaborative environment.
2. Evaluating the Value of Potential Projects Ultimately Makes Projects More Valuable: The best time to consider whether or not a particular project meets with organizational goals is before it's even started.  Creating a formalized process protects organizations and project teams from spending valuable resources on projects of marginal value.
3. Empower Employees to Improve Process: Those nearest the work tend to understand it the best.  By giving employees more ownership and responsibility to improve the process from the grass roots, productivity increases and project teams become more effective.

Make the Vision Accessible to Everyone: Many project management solutions provide top-down visibility into projects.  They may give executives insight into what project teams are doing, but they neglect to give project teams insight into why they are doing it.  Organizations that trust individual project team members with the vision of why they are engaged in any particular project and how it impacts the overall mission and vision of the organization are able to see the goals of management become the deliverables of project teams.  As project leaders, don't make the mistake of keeping the business objectives of projects a secret from those in a position to make it happen.

What would you add to the list?