Business Optimization Guide for Crisis Management

Business Optimization Guide for Crisis Management

Estimated read time: 7 minutes

Are you interested in a business optimization guide to help you lead your business in times of crisis?

In this blog, we will discuss business optimization for better crisis management. In a survey by PWC, 92% of business owners believed that a crisis is expected in the next two years, whereas 95% accepted that their crisis management strategies need improvement. 

So, let’s see how you can better optimize your business process for effective crisis management.

Why is Business Optimization Required?

An optimized process is able to better adjust to a new set of parameters without it violating defined constraints. The result of this flexibility within processes is maximum efficiency and minimum costs. 

As such, a business process optimization process increases the throughput or profits of a business by improving or optimizing business processes. 

For example, business optimization results in improved communication, reduced redundancies, and streamlined workflows when used together with business process management.

Business optimization provides multiple benefits. Some of these include:

Better Productivity: A business optimization procedure explores all the options to make business processes more efficient. For example, you may adopt new technologies to automate some tasks or reevaluate working models to map out more efficient approaches.

Better Return on Investments: Audits and examination of how well things are working is a major component of the business optimization process. By reducing operations that do not add value to the business, you reduce costs and inefficiencies and increase ROI in the longer run.

Better Profitability: When businesses streamline and optimize operations, the aim is to maximize profits and expand business optimization further.


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Common Business Optimization Techniques

Some business optimization techniques include the following:

Six Sigma Methodology

Six Sigma Methodology is based on the following:

  • Define processes that need to be optimized.
  • Measure baseline and target organizational performance.
  • Analyze data to highlight critical factors.
  • Improve procedures by optimizing output and reducing errors.
  • Control and monitor the progress.

Business Process Optimization

Business Process Optimization follows the following steps:

  • Initiate an optimization phase.
  • Plan optimization objectives and course of action.
  • Execute by organizing resources.
  • Control and monitor any deviations from the plan.
  • Close formally through documentation.

Some businesses prefer using a combination of process optimization techniques.

What does Crisis Management Mean for a Business?

While you are focusing on business optimization by improving business processes to gain more money, expand your business, and make processes more cost-effective, there is one other thing that you should always be prepared for – A crisis!

The way many businesses operate today is very different than even a few decades ago. Factors like globalization, advanced technologies, natural crises, etc., are making crisis management inevitable for businesses today.

Don’t forget that organizational and financial crises may appear unexpectedly.

A business crisis management plan consists of all the steps that a business takes to identify threats. It also includes action plans to fight these threats and minimize losses in case of crisis scenarios.

Prevent, plan, practice, and perform are basic components of an effective crisis management plan to reduce losses such as customer churn, data breach, reduced profits, the resignation of key employees, etc.

Business Optimization Step-by-Step Guide for Crisis Management

Next, let’s see how you can perform business optimization to help business continuity in case of a crisis to ensure minimized business losses.

1. Perform a Comprehensive Data Analysis

Gather data to perform a detailed analysis of how your business is performing. Invest in tools that help you with data collection and analytics. Depending on your business, data analytics procedures may include:

Website analytics: user traffic and engagement with your business website

Social media analytics: user traffic and engagement with your social media channels

Operational analytics: input and output of your production processes, etc.

Such analysis will help you decide which of your business processes need improvement.

2. Identify Potential Crisis

Locate all the potential crises for your business processes. They can be personal, financial, organizational, etc. Also, measure the impact of each crisis. How will your business be affected? 

An unsatisfied customer, a decrease in sales, and an increase in operational costs are all examples of negative impacts due to a crisis.

3. Reevaluate Performance

This includes performance evaluation of business processes. How operations are performing and generating ROI for your business will help you understand what parts of business workflows need to be optimized.

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For example, making production more efficient for increasing sales, etc.

4. Prioritize

Use your business data to prioritize your optimization tasks. See which processes require it the most. Also, take into account the associated crisis with each business process. Depending on the severity of the impact, optimize your business processes.

For example, to optimize customer support, you can cut out any unnecessary waiting periods, like filling out forms, etc. Focus on customer satisfaction. You will not only save your resources but also retain customers.

5. Perform Audit

Audits are a necessary part of a business process optimization strategy. Conducting audits of your business processes and resources in use will help you swiftly identify where there is an unnecessary expenditure. 

You can then utilize these resources in business processes you have already prioritized in the initial steps that require optimization.

6. Reset Your Goals and Create Plans to Achieve them

Now is the right time to reevaluate your business goals, both short-term and long-term. Reset testable goals in the light of predictable and unpredictable crises. Utilize your real-time business data, decide what you want to achieve, and formulate a plan to achieve them. 

SWOT analysis, brainstorming, feasibility analysis, and market research will help you redefine your business objectives in line with predictable and unpredictable crises.

7. Implement your plan 

Focus on strong decision-making, IT and software systems, and communication channels between team members to optimize your business process. Focus on cutting down unnecessary steps and increasing efficiency.

Use the latest technology like artificial intelligence, blockchain, etc., to create operations that alert you of any upcoming threat, internal or external. Moreover, use business automation techniques for repetitive processes that can perform efficiently without human intervention.

Moreover, refine them enough that they continue working even in case of a crisis with limited resources.

Develop a system to manage the crisis effectively by drawing up an immediate security risk audit, mitigating the damage, protecting the reputation of your business, etc.

8. Monitor and Improve your plan

Monitor the performance of your business by observing how each business process is responding to the set optimization metrics. 

Some prominent process metrics you can monitor for your business are:

Efficiency: Helps in figuring out waste of resources. It indicates accurate results achieved while using minimal resources.

Efficiency = production time / total process time

Productivity: It indicates how much of a process you were able to complete in a particular amount of time. It is often measured as a ratio between completed work and used resources.

Cycle Time: It gives the entire time a particular process takes to complete. It includes all the subprocesses. 

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Turnaround Time: It is often measured from a customer’s perspective. The time it takes to fulfill a customer’s request.

Throughput: Your rate of producing products or providing a service over time.

Throughput = products produced / production time per unit

Error rate: It provides a defect rate during a production cycle. Your product or services that failed the quality test.

Error rate = products produced / total number of errors

Quality rate: It gives you an estimate of how many of your products or services meet your quality standards. 

Quality rate = (total quality units / total units produced) x 100

If your business goals are not being met, there is always room for process improvement by adjusting optimization solutions.

Final Thoughts

When crises are bound to arise, you as a business leader are required to prepare for them.

An effective crisis management plan involves optimizing your business processes. Make them resilient enough to continue operating with limited supervision using the latest technologies.

An experienced business development team can help you with critical thinking and mapping out a plan to reduce unnecessary business activities, thereby decreasing operational costs and increasing profitability. 

Advanced IT systems can help you in multiple ways, from timely identification of threats to carrying out business operations efficiently through process automation.

If you are looking for such experienced project managers and software engineers, get in touch with DevTeam.Space via this form. One of our technical managers will get back to you to answer your queries regarding the development of a robust software solution. 

Top FAQs on Business Optimization Guide for Crisis Management

1. What are some techniques for business optimization?

Lean manufacturing, business project optimization, and Six Sigma methodology are commonly used business optimization techniques.

2. How to perform business optimization for crisis management?

Medium and small businesses should invest in deep data analytics. Use this data for identifying areas that need optimization. Develop systems robust enough to withstand a crisis situation by timely raising alert notifications and performing operation continuity.

3. How to respond to a crisis effectively?

A rapid crisis response would include operational flexibility, robust IT systems, close communication, short and long-term goals for business expansion, and making informed decisions to save time and costs.


Alexey Semeney

Founder of DevTeam.Space

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