Business Efficiency and the Hype of AI - Get the Basics Right First

AI is not magic - you have to ask it for help and give it clear instructions on what you want it to do. Yet, many business owners are curious about what AI can do for them, even when their basic systems are a bit of a mess. In this month’s chat on “Software to Run Your Business,” we’ll explore why it’s important for businesses to get the basics right before getting too excited about AI.

Businesses have always relied on finding the right people to get the job done. It’s only when it becomes hard to find enough good people that businesses start to feel the pinch. We’re in that situation now. With low unemployment and rising wages, employees are exploring their options. If your business isn’t feeling this yet, consider yourself lucky, but don’t think you’re immune. Things can change.

This situation raises a few questions for business owners:

• How can I keep my current staff happy?
• How can I keep my business running smoothly or even speed up with the staff I have?
• How can I lessen the impact of staff turnover and make my business less dependent on individual employees?

The Research

Griffith University published a report on multigenerational workplaces. It suggests a number of key factors in keeping staff happy, but these are the top 3:

• Feeling valued, where staff have the chance to contribute to innovation and continuous improvement.
• Job satisfaction, where staff feel their efforts are making a difference.
• Work-life balance, where staff are able to contribute effectively at work while maintaining a good personal life.

Increasing the output of a business with the same number of staff is achieved by enhancing the effectiveness and efficiency of staff activity.

Reducing the impact of staff turnover involves ensuring that the knowledge of how things are done is accessible, up-to-date, relevant, and not just in someone's head.

Conclusion

The key to business efficiency, even before considering AI, is getting the basics right. Once the fundamentals are solid and continuous improvement is underway, then it’s time to evaluate, test, implement, and refine tools like AI.

Remember, AI isn’t magic; it’s just another tool in your toolbox, to be used when the time is right.

This brings us to systems. If you can answer ‘yes’ to the following questions, then you’re ready to start exploring AI:

• Do your systems already make it easy for your staff to do their job?
• Does your business already foster a culture of continuous improvement, with all staff encouraged to participate?
• Are your policies, procedures, and work instructions documented, regularly updated, relevant to each role, and readily accessible for your staff whenever or wherever they need?
• Do your systems enable staff to do their jobs effectively, whether they’re in the office, on the road, or working from home?

If you can’t answer ‘yes’ to all of these questions, I would argue it's better to revisit the basics before diving head first into AI.

I'm always up for a chat if you would like to discuss.

Until next time.