According to SMO, Business Transformation in Australia is probably Australia's only serious business blogsite created specifically to encourage businesses to become more competitive.
Key result areas that really matter are:
* Profitable customer growth
* New product and service development
* Knowledge management
* Market intelligence
* Information delivery
* Talent development
* Organisational culture
* Stakeholder support
* Financial performance
* Regular planning and measurement
Why is this suite of KRA's so important? Because they're all related. Selecting one KRA is inadequate. Selecting a few is inadequate.
Profitable customer growth. New customers should mean new free cashflow. If they're not profitable, don't do it. Find a way to measure current customer profitability.
New product and service development. Markets evolve constantly. Competitors simply cannot be ahead in the new offerings stakes.
Knowledge management. When one analyses the critical factors why customers prefer one supplier over another, it's usually about the business improvement value you transfer to them. That means it is absolutely essential to protect strategic intellectual property and operational processes from potential loss as staff churn is experienced.
Market intelligence. First-to-market advantage provides a clear competitive edge. Operational priorities should not be prejudicing an opportunity to regularly scan what's happening in the relevant markets.
Information delivery. Poor information access and slow delivery costs everyone. Great information capability creates new cashflow opportunities and saves money. It's as simple as that.
Talent development. It's best to hire staff with the best potential and then develop them. If you hire the best it'll cost a premium and sooner rather than later, someone will pay more and it’s back to square one, often before they've delivered.
Organisational culture. Organisational cultures directly reflect the management style and attitudes of the leader. It is a key result area because key results are driven from the top. So it makes sense to meet competitors' leaders to understand the dynamics behind opposition's culture. Every general in history wanted to know who they were up against to exploit their weaknesses.
Stakeholder support. Stakeholders influence the provision of funds, intellectual or cash. Whether they're investors, creditors, advisors, staff and customers, they all need to be on-side, engaged and fully informed.
Financial performance. It's a given. Cash, creditors and customers. Robust systems are mandatory to manage history and transactional future.
Regular planning and measurement. If it can’t be measured, it can’t be managed. Plan first and measure often.