The Power Of Incremental Change

The Power Of Incremental Change – How Transformational Results Can Be Achieved In Receivables Finance

14 May 2021

In this article the EQ Riskfactor Consulting team show you how to set your focus, drive with force, make marginal gains, and create a circle of continuous improvement.

In our experience, receivables finance businesses can often feel overwhelmed when identifying and prioritising challenges. It can feel like there are just too many to deal with. The way to prioritise and achieve success is to have a clear goal, and consider the incremental steps along the way, as it is here that the fundamental transformation starts. Here’s our 4 steps to transformation.

Set Your Goals

1. Set Your Focus

Which areas do you want to focus on? Think about organisational structures, management, culture, systems and business processes. Do you have a burning platform? 

With any change or transformation, the success lies in planning, identifying and defining the right goals – the transitional steps - the plans that fit the vision. Goals that both inspire, motivate and, above all, are achievable.

Lots of big sweeping changes imposed will never get buy in …. With any change make the journey a purposeful challenge, not an overwhelming burden. Always transition by achieving marginal gains - you may have all bought into a new compelling future vision, but not everyone will have the same appetite for change or move at the same pace.

It is vital to understand the differing challenges individuals may face. Managers must manage with empathy. Understanding the varying attitudes to the transformation and coping with the highs and lows is a regular part of the process.

2. Driving Force

We are all familiar with the circuitous routes of Formula 1, where split-second timing has a huge impact on results, particularly when pulling in for a pit stop. The process and teamwork undertaken ensures delivery of absolute maximum efficiency – the difference that makes the difference.

How is this achieved?

3. Marginal Gains

The principle of Formula 1 is that you track, monitor and break down every element and component that goes into a pit stop. Then after the event, teams analyse all of the roles and individual activities of each team member, to identify improvements to each part in incremental steps. This delivers a significant increase in results when you put them all together.

A big goal or vision is not of much use on its own. Considering each component part and what is and isn’t working allows you to create a continuous journey of improvement.

Continuous incremental change can often make the most significant difference to the bottom line, something that’s particularly important just now.

4. How do you create a Circle of Continuous Improvement?

Having the strength and tenacity to deal with setbacks in achieving your goal is key. Programmes rarely run without a hitch or some form of derailment - having the agility to deal with those setbacks, explore solutions and maintain momentum is key. You must be flexible enough to recognise the need to act and make adjustments where required.

And just because you have completed that journey of change or transformation, don’t think you are done. Implementing a strong culture of continuous improvement ensures a constant emphasis on evaluating and maintaining focus and forward momentum in an ever-moving environment.

The secret of change is to focus all of your energy, not on fighting the old, but on building the new.

— Socrates

Find Out More

To learn more about our digital transformation capabilities please contact the EQ Riskfactor team.

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