Balancing the scales: Why businesses should value both output and input for lasting success? by Sarah Tiffany
It’s that time of year when our young people have either just received, or are about to receive their examination results. This is the ultimate measurement, the output, of all their hard work over a 2-year period and also how we compare one school’s performance against the rest of the sector. I have 2 children currently progressing through the education system, and whilst we always recognise the success of the output (their results), we have made a conscious decision to place a higher value on their efforts in the preparation for and the sitting of the exams – the input. The work ethic, the dedication and commitment to try to do their best and above all to try, try and try again even if it doesn’t work out every time.
This got me thinking about the corporate world and how in a fast-paced, competitive market we are often completely focused on output – meeting targets, achieving sales goals, profitability, productivity and efficiency. In our latest blog, we discuss balancing the scales and think about the importance of both the input and the output in a business context.
For any business, of course, output is key. It represents the tangible results of a company’s efforts and demonstrates if the business strategies, resources, and employee contributions have been impactful. It also:
- Measures business success
Output is the way that a company can communicate, to key stakeholders, customers and the workforce, that the business is on the right track and helps identify where any adjustments can be made. It is a quantifiable measure of success which demonstrates if targets have been met and addresses many of the KPI’s required by shareholders. In addition, this success inevitably boosts employee morale and motivation.
- Drives efficiency and profitability
Good efficient output levels tells you how well a business utilises resources – materials, capital and people. High output with minimal use of resource can show that an organisation is operating efficiently, with limited waste and a good ROI. Clearly this has a positive impact on profitability as well as potentially improving sustainability.
- Enables growth
Organisations that consistently deliver strong output are often better placed to reinvest in and grow. This re-investment enables companies to increase production, launch new products, enter new markets and diversify, which in turn should both increase revenue and allow you to seize new opportunities.
These are strong drivers for any business, and it is not surprising that company reports often lead with these as the main KPIs and reporting measures. However, it is vital that the value of input is not overlooked. Sometimes, as with exam results, despite a student’s hard work and best efforts the outcome is not always as expected – a particularly tough test, a bad performance day, a disturbance in the exam room or a personal circumstance can all have a negative effect on the end result. In the same way, it is also vital that organisations do not overlook staff input. As well as boosting morale and engagement it is also what drives:
- Innovation and creativity
Front line employees are a valuable source of information – they interact daily with customers, processes and products. Recognising this contribution and encouraging them to share that direct knowledge helps to drive innovation around product improvements or find creative solutions to process problems. Valuing and implementing employee ideas where you can, acknowledges their input and contribution to the business and may just give you a competitive edge at the same time.
- Operational efficiency
As previously mentioned, your employees live and breathe the day-to-day operations of the company. Therefore, they will be among the first to spot any efficiencies, where processes could be streamlined or where costs can be reduced. Tapping into this knowledge can have a dramatic effect on the bottom line, enhance productivity and improve overall efficiency across the business.
- A collaborative culture
Asking your workforce for their input and feedback into how the organisation works – what is going well, what could be improved and what they value – feeds directly in to your business success. When employees feel valued for what they do and how they do it – it helps them to see the direct impact of their efforts on the profitability and reputation of the organisation. It can create a collaborative culture, where employees are enabled to share knowledge and best practices, work together as a team towards common goals and where managers are not distracted by a lack of cohesion or disagreements within the workforce.
In summary, output is of course vital to the survival and success of any business – it is the cornerstone metric. However, it is also important to remember the value that input has on an organisation in terms of innovation, continuous improvement, sustainability and workforce engagement. By ensuring that your organisation balances the scales and recognises both input and output, you can create a dynamic and resilient business and establish a continuous growth strategy for all.
If you would like to speak to a member of the h2h team about how to set your organisation up for business success through the development and recognition of your people you can:
call; 01347 879056
email; enquries@h2h.uk.com
