4 reasons to increase productivity: revenue: deliver growth and profitability

But first, what is Operational Momentum? There is this classic "rowing together" adage that prescribes to managers that "Getting Everyone Rowing in the Same Direction" is critical to a team's success. If I may be critical, it only implies direction. While generally excellent business processes advice, without any resistance, the rowers don't need to row more than a couple of times and the boat carries on forever in the right direction. See Newton's First Law. Let's assume our rowers get paid a wage (reverse force). Now if our rowers are barely rowing in the right direction and keep getting paid money, our poor boat is going to lose its forward momentum and even risk going backward!

I now suggest that Operational Momentum is believing in our rowing adage and accepting that in the real world we need to rely on company values to support individual day-to-day decisions that in turn contribute to better deals and increasing the value of forward Operational Momentum so everybody can get paid along the line along the way.

The operational focus and momentum for increased productivity, sales and profitability refers to the many factors, decisions and actions taken during day-to-day operations.

The Momentum component insists that no matter how small, the values aligned incremental day-to-day operational decisions contribute to the total momentum of the company. This momentum keeps the company on track with its focus on achieving its goals, focusing on making payroll, reducing costs and preventing any reverse of course.

Now, if the leaders of our proverbial boat all agree on company values and exhibit them with enthusiasm as fundamental to company decision making, hiring, firing, compensation and basis for rewards, they will act as a sort of decision compass. All employees will know without unnecessary approval processes what value the company would benefit most from as they navigate the decisions current challenges of their day.

The Dynamics of Operational Momentum

Analogous to Newton's First Law, operational momentum suggests that without a driving force, the business' performance could stagnate or regress, regardless of the direction. This momentum hinges on a series of incremental decisions, both significant and seemingly inconsequential, collectively steering the company's course. It ensures that the organization remains on track, sustains its revenue growth, its profits and prevents potential setbacks.

The Influence of Company Values on Daily Operations

When company values are integrated into daily decision-making, they become the guiding compass for every individual within the organization. These values steer actions, shaping the culture of every business and impacting how employees navigate their responsibilities. A unified understanding of these values empowers individuals to act autonomously, all while contributing to the collective momentum pushing the company forward.

So now the reasons:

Reason 1: Leaders can lead.

The alignment of company values with market momentum puts the original adage on steroids. A helpful benefit is that with values clear to the entire company, leaders lead rather than micromanage which is arguably more efficient, profitable and productive for most businesses.

Reason 2: The Team.

The entire team benefits because with the values clear they help guide day-to-day decisions to reflect on company goals and nobody needs to wait for a 6-month review to hear if they are on the right track. Every single day employees can ask themselves if all of their many contributing efforts, skills, expertise, efforts and decisions are truly aligned and contributing toward the goals and values of the company.

Reason 3: The Equipment ROI.

Let's say a machine is down for maintenance or getting an oil change. If a company's goal is to provide equipment to customers or projects with the promise of little to no downtime, it would make sense to have a succession planning to complete more preventative maintenance on that machine than just the basic oil change. An excellent metric to embrace could be a report on how many reactive maintenance calls are made each week. With some thought, a standard process could be adopted where technicians take an oil sample during oil changes which could indicate traces of coolant and future unplanned reactive maintenance. This proactive approach increases the ROI of the entire fleet and at the end of the year ought to improve productivity and profit margins of the class of equipment and the company as a whole.

Reason 4. Employee Engagement and Satisfaction

By fostering an environment where decisions are in line with company values, employees feel more engaged and aligned with the organizational mission. This alignment leads to a greater sense of purpose, job satisfaction, and overall commitment to achieve the company's success.

Reason 5. Innovation and Adaptability

Operational momentum, rooted in aligned values, fosters a culture of innovation. Employees and partners, empowered by shared principles, feel encouraged to think creatively, contributing to developing new ideas and services and adapting more efficiently to changes in the market or industry.

Reason 6. Customer Satisfaction and Loyalty

A consistent of service and adherence to company values influences the quality of products or services offered, positively impacting customer satisfaction. Satisfied customers are more likely to remain loyal, leading to increased retention rates and positive word-of-mouth referrals to other companies and competitors, consequently contributing to higher profitability.

Reason 7. Risk Management and Decision-making

Aligned values act as tools and a guide for risk assessment and decision-making at companies. They help in evaluating the potential costs and impact of decisions on the company's reputation, ensuring that choices made align with the company's ethical standards and long-term goals.

Long-term Effects of Operational Momentum

The effects of operational momentum are not solely immediate; they extend into the long-term sustainability and growth of a business. By instilling a culture where decisions consistently reflect the company's values, an organization creates a sustainable framework for growth. This sustained momentum ensures that the company doesn't merely progress and develop in short bursts but maintains a steady pace towards its objectives, ultimately contributing to its enduring success.

Cultivating a Values-Based Environment

Leaders play a pivotal role in embedding company values within the organizational culture. Their commitment to these values sets the tone for the performance management of the entire workforce. When leaders actively uphold and promote these values, it sends a clear message across the organization, empowering employees to make decisions aligned with the company's mission. This, in turn, solidifies the next operational momentum for increased employee productivity and profitability.

Measuring the Impact of Operational Momentum

Assessing the impact of operational momentum requires a nuanced and objective approach. Metrics may include employee surveys to gauge alignment with company values, analyzing the time and resources saved due to fewer corrective actions, and costs, and observing customer satisfaction and loyalty. The data gleaned from these assessments aids in quantifying the correlation and relationship between operational momentum, productivity, and profitability.

Challenges in Upholding Operational Momentum

Maintaining operational momentum isn't without challenges. Inconsistencies in decision-making, resistance to change, or a lack of clarity regarding key company values can impede the momentum. Overcoming these challenges involves a concerted effort to reinforce the importance of key values, provide ongoing training, give new skills, and establish a transparent communication channel to address any discrepancies.

Here's a table summarizing the 4 reasons to increase productivity and revenue by delivering growth and profitability:

These reasons underscore the importance of aligning company values with operational momentum to drive productivity, growth, and profitability.

A Final Note

Operational momentum generated through the alignment of individual decisions with company values is not just a force for productivity and profitability. It fosters employee engagement, encourages innovation, satisfies customers, and aids in effective risk management. When values are the driving force behind daily decisions, the company benefits not only in terms of financial success but also in creating a cohesive, purpose-driven culture that propels the business towards its objectives.