Efficiency improvement tools and strategy – concept overview
Performance management is a tool. Strategy is the overarching umbrella. Efficiency improvement tools are deployed to achieve a strategic goal.
Consultants often advise companies to deploy performance improvement tools like six sigma, business process re-engineering, ERP, marketing, digital transformation, etc. HR consultants focus on performance management.
Technology consulting firms emphasize automation. They often use words like strategy, efficiency, and transformation in the same breath. Each of these words is a component of a strategy. In the end, these providers end up convincing companies to buy an automation solution.
The strategy should help a company achieve a sustained competitive advantage. Tools are deployed to further a defined strategy.
Tools improve efficiency and move the company forward. If competitors deploy the same tools or combine these efficiency improvement tools, they achieve strategic convergence. It is a state in which competitors operate at the same efficiency as others.
Customers now do not show a higher willingness to pay for the goods and services of a particular company. Services and products of competing companies are bought interchangeably. There is no preference for a particular brand. Market share in such conditions is divided amongst competitors.
Companies are often confused when faced with competing claims of various providers. Each provider claims that deploying their tools will help transform the company. Thus, digital marketers, HR consultants, IT service providers, business process re-engineering experts, and others claim to bring about business transformation.
Strategy planning helps the company break through this logjam and forge ahead of competitors. Next time a sales executive of these service providers approaches you, you know what question you should pose. Will you be able to help me achieve a sustained competitive advantage over others? If you are offering the same tool to multiple companies, how will that happen? The responses will help you determine who understands strategy and who is selling a tool.
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How do I make my business stand out amongst competitors?Are co-dependant business models sustainable in the long run?How can I measure the impact of a digital transformation strategy?The post Efficiency improvement tools and strategy – concept overview appeared first on Sudhirahluwalia, Inc.
