New Future Formula has been assisting organizations for 10 years. Over the years, we have supported companies in creating solid, sustainable improvements in all corners of their organizations. We have been sharing tips and tricks over a period of 10 weeks, and in doing so we hope to have managed to inspire you to continue your journey towards the top. In this final posting we address the following key questions: What should be the annual improvement rate of an organization? And how and why is CBI not only crucial for organizations but also valuable for the development of the individuals and critical for the long-term growth of our society.
New Future Formula, 10 years
9. CBI – to the benefit of the individual, the organisation and society...
On 1 April 2017, New Future Formula set out on its journey. Much has happened since then. New Future Formula has been dedicating the past few years to fine-tuning the many approaches to making business enterprises work in a better, faster and more intelligent manner. We call this “CBI – Continuous Business Improvement” because it embraces the entire organization and supports a variety of already on-going effectiveness-enhancing initiatives. CBI can therefore improve revitalization of on-going programmes, if this is required. Our CBI is also the ideal tool for companies looking for a simple yet powerful structure and sturdy tools for their future effectiveness-enhancing programme. We are celebrating our 10-year anniversary by serving you, the readers of New Future Formula's newsletter, 10 easily digestible titbits.
Using the CBI formula, organizations continuously achieve three things:
- Documented bottom-line revenue improvements to the tune of 4-16 %.
- Year by year, improvements that the customers can understand and which make sense for the staff.
- Year by year, people with enhanced skills and improved systems to see and to carry through improvements.
After nine newsletters it ought to be abundantly clear that CBI benefits your bottom line. Constant improvements will provide typically most organisations with annual effectiveness improvements to the tune of 4 to 16 %. As is evident from these figures, organisational results vary a lot. Among the reasons for this are the variations in the naturally inherent possibilities and the motivation exhibited by the organisations to realize them. However, experience has clearly demonstrated that the very best organisations reach their own key figures for the annual effectiveness increases. Key figures of a size that does not lead to ruthless exploitation of people and yet large enough to keep the organisation fit and in increasingly better shape, and with this successful. What is your figure for your annual effectiveness improvements? And is it appropriate? These are core questions that a management group must always be able to answer if it takes an interest in CBI and if it wants to keep its processes and services fit and in good health.
A private company always faces competition. If it creates 8% improvements and the CBI programme of its nearest competitor only manages 5%, the company gains a relative advantage and thereby acquires a range of options that may benefit us all. We can mention a couple: It company can lower its prices by say 3% to increase its market share and/or squeeze out the competitor. It could also invest in innovation and product development. It can build new sales companies. Or it can distribute a higher dividend to its owners, which boosts consumption in other parts of society.
Public service standards that results in happier users and lower costs through annual effectiveness improvement also create new opportunities for everyone. We can either lower taxes, improve the quality or increase the quantity of existing services or allocate funds to other areas. In practice, the choice is always between depressing cost savings, a healthy CBI programme or the unpopular higher taxes.
Whether the company is private or public, we are talking about human losses, financial losses and loss of opportunities when organisations fail to create continuous improvements at all levels and do not live the CBI way.
This means that the question is not whether to do CBI at all but how to do it in a manner that will provide sustainable, economic growth, improve qualifications and support the daily joy of going to doing your job for the individual and the organisations, and improve our work and our lives and make us happy and competitive from now on going forward.
Organisations that have been working successfully with CBI for years often come to the following conclusions:
- They had the initial impression that it would only last a year or so before they had introduced CBI through dedicated efforts. However, they have come to acknowledge that it took them years to get in under their skin. They also acknowledge that this will be a journey for life.
- When they first managed to make CBI a fun, educational and exciting process to everybody most of the time, they managed to get a breakthrough for their results which made them feel that it was and still is worth the trouble.
- They are aware of their annual effectiveness improvement figure and there are indications that it is higher than that of the nearest competition.
- They understand that there is in fact a critical socioeconomic aspect to CBI since working with CBI creates wealth and prosperity for the company and for society. CBI makes individuals and organisations develop themselves.
All managements should be able to answer a few basic questions concerning the CBI system:
- Am I able to give anybody I might come across a pitch about what CBI is and how the individual, our organisation and society at large benefit from CBI?
- Have I and my closest colleagues understood the meaning of CBI and why CBI is both vital and motivational? Do we actually realize what sort of active part we play ourselves?
- Do I personally live the CBI way? Am I personally constantly moving forward? Do I personally act like a role model?
You might want to address these questions at the next the meeting of your management group.
New Future Formula is dedicated to working with CBI - Continuous Business Improvement.
Together with our client:
- We design, introduce and support new CBI programmes.
- We inspire, evaluate and improve existing CBI programmes.
The CBI formula is our framework. To begin with we look at purpose, objectives and direction. Through continuous process improvements, employee development and system optimization we create a steady flow of results. This allows us to spread out the continuous effectiveness efforts to all corners of the company and its life.
Since 2007, New Future Formula has completed more than 8,300 improvement projects for more than 80 organizations with a documented effect on the bottom line in excess of EUR 148.6 million. In the process, more than 500 people have received training.