No business is perfect. All businesses have room for improvement. The purpose and mission of management is to improve the business. Improvement is measured in dollars and cents, but it is facilitated by the Business Improvement Cycle. It is important to take the business through the Business Improvement cycle consistently, and frequently, to accelerate business improvement. This should be done, ideally, on a monthly basis, or at least quarterly for smaller businesses.
This brief is an overview of the Business Improvement Cycle, and will be followed by further expansion on the seven topics below in future posts. For now, invest about thirty seconds reading the steps in the process known as the Business Improvement Cycle:
1. RAW DATA: Receipts, invoices, bank statements, cancelled checks, etc., are all forms of raw data.
2. INFORMATION: Income Statements and Balance Sheets are the two main ways data is organized into information.
3. ANALYSIS: Information needs to be analyzed, or broken down, studied, and decoded by a professional.
4. CONTEXT: The results have to make sense to the owner(s) in order to have any meaning or value.
5. DECISIONS: Once the results are understood, decisions can more effectively be made.
6. PLANNING: Once the decisions are made, creating action plans comes next.
7. IMPLEMENTATION*: The final phase is to implement the action plan.
*Every implementation creates new RAW DATA, so the Business Improvement Cycle starts all over again. The power of the Business Improvement Cycle manifests as it is consistently implemented and repeated – in other words, FREQUENCY ACCELERATES SUCCESS.
Tune in for my next post during which I’ll cover steps one and two, above, in a little greater detail. If you have any questions, or need any help in the meantime, don’t hesitate to contact me.