Opportunities exist in all businesses to take advantage of efficiency gains, but it is important to note that a dollar of expense saved is far more valuable than a dollar of revenue gained as the saved dollar goes to the bottom line while only the margin from the dollar earned makes it there!
The areas of focus when reviewing businesses operating efficiency are:
The allocation of activities between the levels of the organisation
The use of technology to reduce errors and people dependency
The clarity of vision and the communication and understanding of it
The behaviour, culture and capacity within an organisation to undertake and implement change including the ability to quickly ’self-correct’ when things go wrong.
The gains from efficiency are incremental but cumulative, and the business is able to increase capacity and to stretch the glass ceiling higher while creating more profit and more value.
There are opportunities to utilise support such as outsourced solutions, technology interface and alternate communication mediums in redefining how owners conduct their business.
In order to obtain More from Less through efficiency, business owners need to display real courage to address challenges that may require:
Halving the client base
Going on line
Changing the service proposition
Initially, Seaview Consulting expects only a small number of financial services businesses to take advantage of the opportunity FoFA will provide to implement lasting business change and transformation.
Ultimately, the importance of effective leadership, including the willingness and commitment of the leader to embrace the effort involved in implementing the necessary changes will be paramount to utilising FoFA as the catalyst for business transformation and long term business viability and success.