According to Anphabe Company, a survey shows that only 31% of businesses actually see effectiveness after implementing streamlining. The cause of the "mismatch" is that businesses are very determined when cutting personnel but are extremely "timide" when having to cut down on procedures. The result is that the company has fewer people but has to operate a cumbersome apparatus as before.
Anphabe Company recommends 3 options for business leaders to take stronger action in cutting processes. Thanks to that, along with streamlining, both steps will help businesses operate more efficiently.
Rule 80/20 in risk management
Instead of controlling everything at 100%, leaders need to accept the risk at 20% of less important or low-value items. In return, the system will achieve 80% execution speed. Delays sometimes cause much more terrible damage than a small operating error.
Decentralization by skill set
Do not apply a rigid control process to everyone. If an employee has a work proficiency score of 4/5 (according to competency assessment), boldly cut 50% of the control levels for them. Confidence and competency-based empowerment are the most powerful catalysts for labor productivity.
Establish KPI of non-waste process
Each quarter, conduct a "general cleaning" of the process. Ask the question: "If there is no step of this procedure, will the business run well?". If the answer is "yes" or "insignificant impact", boldly remove it. A good process is a process that cannot be further simplified.
Anphabe Company emphasized that when leaders realize that cumbersome procedures are causing businesses to pay an additional 30-50% of hidden operating costs, it is no longer a matter of management style, but a matter of actual profits. The current streamlining race is no longer an option, but a necessity to survive. However, don't use streamlining as a temporary "patch" to cut personnel, use streamlining as a future reconstruction strategy, building a healthy organizational operating system.
