Are you struggling to define the exact path your business will take in the coming year? You know where you would ultimately like your business to end up, but perhaps you’re struggling with placing the building blocks in the right places in the right sequence. You’re not alone. This is one of the biggest challenges business owners and leaders face as their businesses mature. The secret to creating this path lies in process-based capacity building.

Process-based capacity building has at its core the 5Ps of business: Purpose, Process, People, Product, and Profit. The functional alignment of these five core areas synergizes maximum business success. Most companies eventually face a predictable crisis of stagnation marked by drops in revenue and profit growth. Rarely is this because your business model has suddenly become outdated or markets have unexpectedly dipped. Rather, it is the result of small breakdowns in one or more functional areas or over stretching of key resources. Misalignments are occurring if you are hearing the “un’s, re’s, mis’s and dis’s” that impede growth – unreliable, unproductive, repetitive, reactive, misaligned, miscommunicated, disorganized, dissatisfied, to name a few. While you understand at some level that you must focus on fixing the problems behind these descriptors to stabilize and grow, emphasis on doing so is often lost in the business of day to day business.

Capacity building guides you through a process to:

  1. Systematically and repeatedly assess your current state.
  2. Compare that current state to your strategic goals and desired future state to identify gaps.
  3. Establish improvement initiatives to realign each functional area to growth and success.
  4. Shore up operational shortcomings.
  5. Ensure that your team members are working toward a unified vision with clearly defined tasks and in direct alignment with your strategic initiatives.

In short, capacity building means taking the right actions, at the right time, for the right reasons by “clicking out and back filling.” This means identifying the next best improvement initiatives to help achieve your strategic goals (clicking out) and what needs to be improved, shored up, put into place to achieve those specific improvements (back-filling). Focusing on building capacity in a process-based manner allows you to:

  1. Continually evaluate the degree to which you are delivering on your promises, both internally and externally.
  2. Recognize how well you understand and track operational strengths and weakness.
  3. See the extent to which you know your financial numbers and manage your KPIs.
  4. Develop and train your entire team to contribute to your vision.
  5. Grow your ability to stay connected as a team to your core mission.

Process-based capacity building is a framework for determining what your next best steps are to ultimately achieve your strategic goals. There are five steps to this process and our next blog post will address these steps.