10 Benefits of Continuous Improvement

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he advantages of continuous improvement go beyond ROI.

From motivated
teams and reduced wastage to a stronger brand image, these are the 10
benefits that come with process excellence.
Written by: Deborah Biscomb, Head of Marketing

As your business traverses the world of continuous improvement it is always useful to reinforce the benefits that are
associated with this business management system.

While you can focus on explaining the details when it comes to value, as covered here, there are some universal
benefits which can be brought into any discussion about improvement.

Whether it is the business case for adopting continuous improvement, or motivating your project teams and wider
business, here are 10 benefits you need to know as you lead improvement in your business.

1. Embrace the 'new normal' 

Considerable conversations have been had around ‘the new normal’ thanks to COVID-19 in 2020, and that extends
beyond the where  we work into the how  and when.

In all actuality, workers have evolved beyond the tradition of 9-5, Monday-Friday schedules. Not only are we working
from home more often, but we’re also working non-traditional hours, secondments, job shares and fixed-term
contracts.

That shift in working pattern means companies must, and are, adjusting the structure of their employee’s contracts.

With continuous improvement your business will introduce projects into its working patterns. This change is often
swept under the rug as a benefit.

Projects open your business up to internal part-time moves, external talent who are only looking for seasonal work,
and means you can invest in continually improving your employees’ skill set and introduce new talent when, and
where, necessary.

2. Voice of the customer

The business world has evolved tremendously since the days of building products and selling them as a matter of
fact.

We are in the digital age where customers come first. They spend considerable time researching prior to making a
purchase.

To that end, continuous improvement rightly places the customer first. Metrics of success will be based on defects in
products, return rates, net promoter score, among others.

The voice of the customer is firmly in your ear, and for good reason. Not only to let you know of your performance to
day (outside of your share of their wallet), but they can and will feed your new product development and improvement
projects. 
 

3. Reduced errors and wastage

By adopting a continuous improvement approach you are making a commitment to identifying issues in processes to
limit the likelihood of errors.

That concentrated effort means that there’s less likelihood you will incur issues as you produce your product / deliver
your service.

That limited error rate, referred as defects per million opportunities in Six Sigma jargon, also reduces wastage.

As you reduce the number of errors in your processes, the consequences is that you become more proficient with
delivering a strong customer experience.

That means you’ll have less instances where you waste resources, such as a printing error which harms customer
relations, costs money in reprints, and in more severe cases, training efforts to ensure staff follow processes.

Operational efficiencies, and eventually excellence is the destination, and reducing errors and wastage are the
drivers to achieving that state within your business

4. Operational efficiencies and excellence

With a focus on removing the 8 wastes, such as wasted motion, spend, broken components and more, you will reach
a state of process efficiency.

When this process efficiency is achieved you can then look to transfer the new found knowledge to other processes
where applicable.

Operational excellence is achieved by implementing this systematic approach of measuring and improving across
your entire organization.

5. Stronger brand image

A natural benefit of continuous improvement is that your brand image will improve.

Why?

Because by putting in place concentrated efforts to optimize your processes and systems you will provide better
quality products and service.

You can consolidate different material and labor, and this will lead to less customer complaints and product returns.

6. More satisfied customers

The increase in brand equity through optimized processes has another effect in that you can divert once wasted
sources towards innovation and diversifying your product / service set to meet your customers’ current and future
needs.
The continuous improvement culture is not solely about process excellence, its roots extend into the world of
innovation by empowering your employees to suggest ideas and implement these, where appropriate.

By listening to the voices of your team you begin to encourage more ideas for streamlining and enhancing your
products.

Be it the product design, packaging, purpose or manufacturing, your team will have greater pride in the end product,
and that only means positive things for your customers.

7. Increased employee engagement

To set the scene, consider this statistic:

The number of employees who are disengaged at work has averaged 70% for near two decades
Emplify, 2020

And increased engagement does have its benefits...

Companies with a high level of employee engagement are more profitable by a factor of 21%
Smarp, 2020

Continuous improvement has people at its core. It is designed to empower employees to identify and solve problems
that hinder their daily work.

In fact, it serves to demonstrate that their voice and input is invaluable, and indeed it is.

With improvement as a company-wide lens, employees are no longer simply doers, instead they become central to
business processes, not just the outcome.

8. Lower staff turnover and associated costs

Turnover in your business is expensive.

On average, the cost of staff turnover is $30,000


Sodexo, 2020

When you consider the financial impact of having to recruit, train and then rehire staff who are disengaged or
unhappy, the cost of instilling improvement in an organization is relatively inexpensive.
A better working environment and engaged workforce means that these costs will inevitably fall.

By empowering your company to work better within their teams and across functions and divisions through
improvement frameworks and software, you provide new challenges and opportunities for growth and personal
fulfilment of your staff.

If your team members know they’re making a difference, that’ll make all the difference to their longevity in your
business.

9. Unified, passionate and knowledge-seeking employees

Continuous improvement acts as the glue which binds together your business as it seeks to deliver a better customer
experience.

Every part of your organization contributes to the success, and as such means a unified, passionate workforce.

By training and empowering your team to contribute it provides opportunities for knowledge-seekers to truly excel.

More broadly, with well-defined goals, communicated plans and easy systems to measure and course correct
performance, your business will be in a place where they can move beyond its comfort zone.

Optimizing processes and innovating across the business is a large change, but by using the right frameworks, tools
and people you can maintain and sustain a continuous improvement culture.

Adopting this approach improves your teams’ skills and knowledge, and ensure your business stays ahead of its
competition.

10. Increased profits

The conversation around revenue has been left to last in this benefit list as there is much more to be gained than
profit, but it is still an important advantage that cannot be left unmentioned.

If you can produce more products with less effort and costs and they sell, this increases your profits.

But, you can also consider adapting your pricing strategy.

Why?

Because if your product quality increases, as too your brand image, your consumers will be more likely to accept an
increased cost.

Continue learning about continuous improvement

The benefits of continuous improvement are far reaching and extend beyond monetary measures.

Whether it’s increasing employee morale through participation or variation in their work, or increasing the your
product’s quality, improvement is a system which truly delivers value.
Click here to learn more about continuous improvement, or take a look at these content recommendations:

 Continuous improvement in 2020 and beyond Watch how continuous improvement will evolve into the
2020s and how you can be successful.
 DMAIC v Six Sigma v Lean: Our guide to the steps and tools you'll need when driving process
improvement through one of these three methodologies.
 The Leader's Guide to Continuous Improvement: Download this eBook to get a comprehensive overview
of how DMAIC, Six Sigma, Lean, PDCA can support your business in finding competitive advantage.

About the author

Deborah Biscomb is Head of Marketing at i-nexus. Deborah has wide-ranging experience of markets such as retail,
manufacturing, financial services, public sector, telecommunications, energy and utilities, distribution and logistics. As
Head of Marketing, her drive is to raise awareness and understanding of the challenges facing enterprises in
controlling their strategy and driving superior results.

If you’d like to talk more about Strategy Execution, reach out to Deborah on deborah.biscomb@i-
nexus.com or connect with her on LinkedIn for the latest strategic insights.

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