Achieve Operating Efficiency And Scale Through Development, Not Just Cutbacks

Empowering your workforce to optimize performance

Operating efficiency is top of mind for tech leaders in 2023. While many organizations have reduced the size of their workforces, and the media has paid great attention to this trend, it is not enough.

Reorganizing may well be necessary, but too often the focus is on role elimination only without a specific and larger focus on developing the organization. When leaders commit to empowering their existing workforce through tangible actions, margin expansion and top-line growth are both possible.
 

With that in mind, I’ll discuss why and how leadership teams should prioritize internal mobility, personalized development, and effective enablement this year to fuel efficiency.  

Prioritize Internal Mobility

Over 2 decades, with experience in 4 industries and across 70 countries I have noticed a definite trend toward risk aversion when evaluating promotions and internal candidates. How many times have you seen a person decline a new opportunity, only to then leave and thrive in a bigger role somewhere else? Ironically the relatively unknown external hire is more risky and costly when things don’t work out. An internal candidate is more likely to succeed in an environment that embraces talent risk with strong support.

Today over 20% of employees do not feel like they can openly discuss moving to another role or department with their manager. For Gen Z employees, this jumps to 37%. That’s why having a growth mindset, which prioritizes continuous learning and enables people to explore areas of passion is not a nice to have, it is a must-have within your organization.

Invest in Personalized Development Now

One size fits all training is easy to execute and seems scalable, which is very tempting to deploy if efficiency is the goal. However, the development needs of each person are different, which makes this type of training ineffective.

Personalized learning and development courses, which are increasingly accessible today thanks to digital platforms, have a direct impact on efficiency and innovation for the business. In fact, over three-quarters of employees are more likely to stay with a company that offers continuous training, which means your business can keep thriving while taking a more conservative talent acquisition approach.

To be truly scalable, organizations must leverage their people managers as owners of development for their teams. Luckily over half of the managers would like to participate in leadership development programs, which provide a platform to grow a culture of feedback and development. Similarly, you may consider investing in training your people on how to incorporate generative AI into their daily work to accelerate efficiencies on the individual level.    

Create More Effective Enablement Strategies

According to Gallup, it typically takes new employees an entire year to reach their full potential performance-wise. Organizations looking to streamline operating costs and become more efficient should double down on training and enablement, even if there is an upfront investment. For example, proper sales enablement reduces the time to first sale significantly and increases the value of that sale for new executives while decreasing discount rates. Additionally, your investment in quality enablement should extend beyond new hires and include ongoing training for all new products and services your company offers to expand margins and accelerate sales.

Ultimately, you should be pulling multiple levers to achieve operating efficiency and become more profitable. Across the board, training and development for existing talent is key: from providing upskilling opportunities to encouraging internal career shifts and enhancing enablement strategies. With a multi-faceted approach, your organization will thrive in 2023 and beyond.

Author Bio

Stuart Robertson is Chief Operating Officer and Chief People Officer at AvePoint.