This is the first in a series of three articles (each article being published in two segments) about improving business profitability by implementing strategic measures for managing your work force. This article introduces the idea of using a structured “leadership system” for building a competent work force to achieve business goals.

Increase Profitability by Building a More Competent Work Force

“The Key to Business Success (Part 1.1)” offered the following three BizTips:

• BizTip #1 – Improve your business efficiency through structured human resource management programs.
• BizTip #2 – Build an effective “leadership system” to maximize profitability.
• BizTip #3 – Use a “competency model” as a blueprint for assessing employees.

Additional BizTips

BizTip #4 – Ensure that all your human resource management programs are integrated and competency-based.

Maintaining a successful business in today’s highly competitive world is no easy matter. The real key to success is to make good predictions about business matters and to make timely decisions based on these predictions.

In other words, companies can achieve a competitive edge in the marketplace if they minimize risk in all areas of their business, including those that relate to human resources. Implementing integrated human resource management programs is one of the most effective ways to eliminate employee “wild cards,” which usually affect efficiency and decrease business profitability.

Effective leadership systems involve management programs that “speak to” each other throughout the work life of employees, from the moment they are hired to the moment they leave an organization. Management programs also need to be “competency-based,” which means they should be designed to address or measure knowledge, skills, abilities, and traits required for job success.

Integrated, competency-based leadership systems ensure that business goals are achieved through well-designed selection, training, certification, performance management, and employee incentive programs.

BizTip #5 – Conduct an organizational needs analysis regarding your human resource management programs.

Companies don't always feel as healthy as they would like to feel. Often it's difficult, however, to determine exactly what might be causing the discomfort or pain. Sometimes there is a problem with organizational structure or organizational culture. And sometimes it's a matter of management.

A structured needs assessment can help to identify organizational effectiveness issues and provide options for taking corrective action. You can easily take your organizational pulse by completing our FREE Organizational Needs Analysis, a business tool that provides recommendations for improving your organizational health.

Conclusion

Companies that want to be leaders in their industry and become more profitable should not overlook a key component to the vitality of their business: their employees! Just as structured financial and operational systems are required to run a successful business, a systematic approach for managing employees is also n eeded to maximize profits. Building a more competent work force clearly contributes to business profitability.

Interested in Part 2 of this article? Read "Strategizing for Profitability: Are Your Employees Costing You Money or Making You Money?"