As a business leader, you want to influence the success of your organization. That’s why it’s important to understand how are you contributing to the organization and how can you increase your value.
What Does Adding Value Mean?
Value-added contributions bring results for the organization. In purely economic terms, you add value by:
- Either reducing the production cost of the product/service
- Attracting more clients/customers
To use an example, let’s say, you’re providing carpet cleaning services to your clients, and the average cost of providing this service is $200. If you reduce the cost of this service by 10% while maintaining the quality, you will add value to your business. Flip the coin. If you gain your company, happy customers without the extra cost, that’s also a competitive edge, and you will have added value to the company.
Adding Value Example#1: Website Speed Improvement
Take a look at these statistics:
- 47% of people expect a website to load in 2 seconds or faster.
- 39% of people will close the webpage if the images are loading slowly or if they don’t load at all.
- 44% of web viewers will leave your website if there is no contact information.
These statistics are pointing to improvement areas in an online business structure. The speed of the website, design, and navigation affect your sales department.
A common thing we have noticed and improved is the speed of the website. Take the example of a real estate property search website.
This data shows the relationship between the site loading time and the bounce rate. You can see, as the load time increases, the bounce rate also increases.
After analyzing the data, you might find that users are not interacting with the website because the speed is slow. If you can increase the site speed, user engagement will increase by 45%-90%. If that assumption is correct and you increase the website loading speed, then you can say, “increasing the speed has added value to your business.” You can measure the results to see the real value of this contribution.
You can analyze your business data to see how improvements will impact your business.
Adding Value Example #2: Business Process Automation
Is it worth the time and money to invest in a new business automation process? Will It make your organization a better place? Do you expect improvements in the performance after implementing the new solution?
Let’s see what the statistics have to say.
- ¾ marketers admit that the most significant benefit of process automation is saving time.
- 68% of users say that marketing automation has increased customer engagement.
Email automation is an example of process automation.
Without a doubt, the most significant benefit of business process automation is that it saves you both time and money. Take a closer look at individual business functions.
Where can you minimize the chance of making errors? How can you reduce delays? The answer will give you insights into the type of the automation process that is needed by your company.
Let’s assume you manually process invoices once a month, and it takes 5 hours. An online integrated accounting system can automate this task, and you can save those 5 hours. Read the story to see how a simple change in web infrastructure saves $500 and business resources.
Adding Value Example #3: Improve Data Security
Business data is created at a rapid speed which means the data is also stored at various locations. You have information stored in Dropbox folders, personal PCs and as email attachments. You have data on servers, databases and you’re sharing that data with your team. That means, your information is scattered, and you might face data security issues.
You might need to invest in a process that integrates and protects business data on all levels. Business data is of priceless value and protecting that information is crucial for the progress and stability of your organization. Needless to say, improving data security will add massive value to your company.
Identify and Improve Problem Areas
Name the top three improvement areas that are demanding your attention. Let's suppose you have found the solution to the problem. What are you doing now? How has solving the problem changed your future?
Write down the change and let this be the “added value.” Now, what resources can you allocate to achieve this goal? Identify them. Talk to your team and get to work.
Let this be the key takeaway of this post. You need to identify the top three improvement areas in your company. Business resources are precious so, you’re only allowed to choose three issues. Determine their value and start working to turn the ideas into reality.
Adding Value Through Contributions in Your Organization
Saving business resources, and solving problems are examples of adding value. Adding value doesn’t necessarily mean doing more work. It can be anything like automating a task or making information more accessible or enhancing data security. Any action or effort that makes the company a better place will add value to the organization.
In every company, there are performance areas that you can improve. However, you need to search for them. You must explore improvement areas because if you don’t search, you’ll never find possibilities that exist within your organization.