TWO STEPS TO SUCCESS:
If you even begin to answer the following two questions your business is on the path to becoming more; efficient, effective, and profitable.
- How many ways can we increase revenue without disproportionately increasing cost?
- How many ways can we reduce cost without reducing quality?
The answer to the first question lies in the pursuit of effectiveness and to the second lies in the pursuit of efficiencies.
I once had the great honour of meeting Peter Drucker, the preeminent business-management thinker of the 20th Century. I asked him did he think there was a universal ingredient that was necessary for business success.
“To be a business success,” he said, “the firm must be efficient and effective. Effective means doing the right thing and efficient means doing things right. A firm can survive being effective without being efficient but not the reverse and to be truly successful it must be effective and efficient”.
Michael O’Leary (CEO of Ryanair) is an excellent example of this approach, where his relentless pursuit of efficiency and effectiveness has resulted in ever increasing profitability.
Needless to say Michael O’Leary is only an example and the pursuit of greater efficiencies and effectiveness is best business practice for all firms, particularly SME’s. It is also the underlying policy that Enterprise Ireland has been promoting and, given the Brexit conundrum, its pursuit is now more important than ever.
If you would like to find out how we might assist you in improving your firm’s efficiency, effectiveness and profitability you can visit our website F. A. FITZPATRICK & ASSOCIATES for more information.