How can you improve the management and profitability of your company?

It is common for managers and entrepreneurs to wonder how they can improve the profitability and efficiency of their company, whether through more efficient internal communication, improving management capabilities, or increasing market share. The lack of constant search for improvement can lead to the decline of the organization, and therefore, it is essential that companies, regardless of their size, adopt practices that can boost their performance. Below are some of the main strategies to achieve this goal:

1 – Make an assessment of your company

Doing a detailed organizational diagnosis is the best way to discover how to improve your company. This study will help to identify the problems that prevent the development of the true potential of the business and will also show what are the strengths and limitations of the organization.

2 – Create a strategic plan

Based on the diagnosis, it is possible to create a strategic plan that will define the company's objectives and guide employees on what must be done to achieve the desired results. For strategic planning to be effective, it is important that concrete actions are defined to address the real needs, as well as defining achievable deadlines, responsible parties and forms of monitoring.

3 – Involve the team

Motivation drives productivity and therefore, if employees are engaged in the work they do, they will perform better. To encourage commitment from your team, it is important that the management builds trust with them and involve them in the organization's strategic planning. In addition, it is essential to value both individual success and the positive results of the company.

4 – Optimize your internal processes

The three steps identified above allow you to leverage another very important step to improve your company's management, which consists of promoting the optimization of your internal processes.

For this, it is fundamental to map these processes, clearly presenting the workflows, responsibilities, which inputs are necessary for the execution of an activity and which outputs are expected with its execution.

After defining an organization's processes, it becomes easier to understand how a certain failure may have occurred and to promote continuous improvement, seeking to eliminate steps considered unnecessary and that consume a lot of time and effort from employees.

5 – Define KPI’s (Key Performance Indicators) or Process Metrics

KPI's or process metrics are tools used to determine whether an organization is meeting the objectives established in the strategic planning. Without defining and monitoring KPIs, it is very difficult to manage a company and understand its productivity and profitability.

Each organization must determine which KPIs are appropriate to the nature of its business sector and its objectives.

Below are some of the areas that should be considered when defining your company’s management KPIs:


Cost indicators make it possible to assess activities that use economic resources in different processes. This includes energy consumption, raw material cost, overhead costs, return on investment, and error correction costs.


Time indicators measure the time spent on an activity or process. This can be the time from start to finish of a process or a step in a process. Ways to measure time can be by the percentage of products or services delivered on time or by the percentage of late deliveries.


The productivity indicator allows your organization to measure the efficiency of the operation. This could include measuring the percentage of downtime of your equipment or machine experience.


The Quality indicator calculates the effectiveness of your processes. These numbers can be based on the number of errors that occur and the number of perfect or flawless processes. Other ways to measure it are the percentage of products that need corrective action and the number of satisfied customers.

Based on these indicators, it is possible for the organization to understand the best decision to take to improve the company's management.

Managers will be able to implement these phases with the help of ISO 9001 standard, known as the Quality standard, which serves as a fundamental guide tool to help the organization improve its management.

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