Operational performance can be defined as the ability of an organization to achieve the strategic objectives it has set for itself. All this while making optimized use of the resources at its disposal. This is a crucial issue for all companies because its impact is multiple: the activity itself, the costs, the daily lives of employees, etc.
It is therefore crucial to improve it, particularly by investing in systems like Trust pair, which reduce manual tasks for greater efficiency. Our platform protects companies from transfer fraud by carrying out automated checks of the payment chain. The key is savings in time and productivity.
Let’s find out how companies can improve their operational performance. Understand the challenges of operating performance in business.
Improving operational performance is a priority but also a challenge for most companies. It is difficult to achieve operational excellence, that is to say, to demonstrate speed, efficiency, productivity and profitability!
To fully understand, let’s start by defining a company’s operational performance. In reality, it is about its ability to achieve its objectives over a given period, using optimally the means and resources at its disposal.
According to Andy Neely, a British author known for his work on business performance management, there are five main operational performance goals. These are described in his book “Business Performance Measurement: Unifying Theory and Integrating Practice”: speed, quality, cost, flexibility, and reliability.
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The Rapidity
Speed refers to the ability of companies to be diligent in their response to calls for tenders and in their recruitment actions. Indeed, capturing the best profiles contributes to the company’s operational performance.
The quality
This objective refers to several aspects: the quality of recruitment, the quality of training, the quality of internal exchanges, the quality of the work provided, and the quality of the final products (if applicable).
The Cost
For the company, it is about optimizing its costs. There are two possibilities to do this: reduce profitability leaks (uncontrolled money losses due to poor management or a lack of resources) or reduce non-essential expenses. The implementation of digital tools makes it possible to avoid profitability leaks.
Flexibility
A company can adjust its actions according to circumstances. In other words, it demonstrates adaptability and anticipation.
Reliability
Reliability refers to the ability of a company to respect its commitments to its customers.
Generally speaking, to improve its operational performance, a company must know how to question itself in an increasingly constrained regulatory framework (GDPR, MiFID directive, etc.). The rise of digitalization also requires reviewing internal processes, financial data integration and reporting systems.
For example, for the finance function, this involves implementing automated processes :
Electronic invoicing,
Anti-fraud control in payment flows,
Carrying out predictive analyses,
Automation of financial transactions, etc.
Thanks to the time and productivity savings thus achieved, the company’s performance is optimized.
Tools and methods for improving operational performance
There are various methods and tools to improve a company’s operating performance
First, business process management (or BPM ) allows you to understand how tasks are carried out to achieve the company’s objectives. It also makes it possible to identify points of improvement and moments of loss of efficiency.
Then, implementing continuous improvement processes makes it possible to optimize processes using techniques such as Lean Six Sigma or Kaizen. The first is an approach that aims to improve the company’s performance by eliminating superfluity and downtime. The second is a method of progressive process improvement.
Project management can also set up and monitor operational performance improvement projects. Finally, using dashboards, monitoring performance indicators (KPIs), and implementing automation tools like Trustpair makes it possible to optimize processes.
By automating the control of third-party banking data, our platform saves valuable time and improves the efficiency of control processes. No more long hours carrying out manual controls: financial departments now have complete freedom to concentrate on more strategic and higher value-added tasks.
Finally, we must remember to continue training and pay attention to the well-being of employees, whose productivity and efficiency must be addressed. It is they who directly influence the operational performance of the company. As such, the quality of the working environment must be monitored.
Would you like to learn more about Trustpair and its role in improving operational performance? Contact one of our experts!
Critical success factors for sustainable improvement in operational performance
Improving the operating performance of a company requires taking into account several factors.
First, it is essential to implement a culture of continuous improvement in which methods and processes are regularly analyzed and verified, and employees are encouraged to propose ideas and experiment. As such, adaptability is essential to cope with the changes that arise. It is also important to remember the objective of continuous operational performance improvement.
It is also necessary to choose suitable software which makes it possible, for example, to automate specific tasks (issuing invoices, drafting contracts, RIB checks, etc.) and to relieve employees of the most tedious tasks.
In this same vein, process automation is crucial because it allows employees to reorganize their working time to prioritize the most strategic tasks for the company. Data analysis is a particularly dull and time-consuming task, yet essential.
Finally, open and transparent internal communication is of capital importance, whether to share the results obtained or discuss possible areas for improvement. The idea is to involve all employees, regardless of their hierarchical status.
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