Business optimization is defined as “the process of identifying and implementing new methods that make the business more efficient and cost-effective.”

Sounds simple, right?

Wrong. The reality, as business owners and C-suite executives know, is that gaining the highest return for the lowest cost on all company expenses isn’t easy. While improving the bottom line by reducing rent is good, gaining similar savings by improving existing processes is better — much better. That’s because the more efficient process will pay back more and more as volume increases. And it can become a catalyst for reducing the operating cost of other related processes.

Experienced interim executives understand that business process optimization is the Holy Grail of cost reduction and business efficiency. They are action-oriented leaders who begin looking for ways to create value and deliver real results to the clients from Day One. They know how to find hidden value in existing products, processes, and systems, how to implement actionable strategies, and how to gain the alignment necessary to optimize the business.

As the adage goes, “Growth solves many ills.” Growing companies create more buzz, have an easier time attracting capital and talent, and overall have more opportunities than those in decline or with stalled growth. The two primary sources of top-line growth in revenue are sales to new customers and generating sales growth for existing customers. Both are most easily improved with fresh sales initiatives.

Yin to the yang of optimization efforts, maximization focuses on growing total revenue, market share, units, gross sales margins, and customers. It also focuses on maximizing the opportunities to sell products or services in properly defined and highly aligned channels, a process commonly referred to as the value chain. The value chain includes all activities from pre-sales to customer service that directly impact the customer base.

In his book, The Future of Your Company Depends on It, marketing expert Al Reis illustrates the power of focus using light energy as an analogy. The sun, emitting billions of kilowatts of energy will only give us sunburn, while a laser using a tiny fraction of that amount of light energy can cut steel. One key to optimizing organizational performance is ensuring complete strategic alignment of the business goals, creating laser focus on what matters most.

That requires looking at the alignment of human resources— from the executive team to front-line employees — as well as the alignment of products, assets, and strategic decisions. 

In the big picture, ineffective organizations struggle to gain results from solid strategic planning and execution while highly aligned organizations can see benefits even from weaker plans and strategy execution. Great companies find a competitive advantage in optimizing organizational structure to drive superior results. 

Interims understand the importance of strategic alignment. They view people, products, services, processes, technology, systems, methodologies, and other assets as investments that must yield a meaningful ROI and drive efficient operations and ever-increasing sales.