Businesses are comprised of people and processes.
Every aspect of a business involves people and processes. Whether it is staffing the organization, accounting for the business transactions, or any of the other activities of the business, organizations get things done through people and processes.
Processes (activities) have a cost and a benefit.
Processes are the generators of costs and are a means of obtaining revenues and profits, directly or indirectly. A business' success is determined by the quality of its people and processes. Expenditures on people (hiring, compensation, training) and processes (systems, tools, documentation) are investments in the ability of the organization to deploy resources to generate a return on the dollars used. Expenditures on the wrong resources are investments that will underperform (at best) or that will drain resources from the organization (at worst).
Constrained resources (processes or people) are sound investments.
Investment in any area that is not constraining the business is an investment that cannot generate its maximum return. Investments made that do not change the "capacity" of the business to do business consume resources without changing the top-line revenues, reducing costs, or improving profitability and cash flow.
Positioning for improvement requires the right people with the right abilities and skills in the right roles.
The best and brightest, the most capable and talented people cannot succeed in an organization that doesn't need their skills, doesn't enable them to use their skills, or doesn't recognize the skills they possess. Companies need to identify the skills, abilities, knowledge, and experience needed to achieve operational goals and strategic objectives.
From Finance to Strategy...to Bottom-line Results!
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