WHAT’S NEW
MANAGEMENT FOR DESIGN Autumn 2017
How to improve efficiency and increase your profit margins
Project-based businesses have two clear-cut ways to increase their profits — they can increase their prices or improve their operational efficiencies. If they choose to raise their prices, they risk losing clients and pricing themselves out of the competitive market. This ultimately makes improving operational efficiency the smarter and more effective choice. By following these five simple steps, you’ll be able to increase your profit margins without increasing your prices. 1. Assess current performance You can’t improve your operational efficiency until you understand your current performance. You need to analyse every aspect of your operations and identify the existing inefficiencies. During this process, you should implement a set of KPIs that will enable you to improve the way you manage your business performance now and in the future. 2. Manage capacity and resources accurately Having previously established your baselines of performance you now need to carefully assess your current human resource capacity. Your employees are your
