When Budgets Shrink, Boost Profits through Better Operations
We’re all too familiar with marketing budgets being the first to tighten up when there's any hint of uncertainty on the horizon. And with average budgets dropping (down from 9.5% of company revenue to 9.1% in 2023), we have to get creative in doing even more with even less.
Like all challenging times, a bit of introspection to solve challenges could do us all some good — they do say growth is from within.
Whether it’s building a stronger team, streamlining chaotic operations, or getting better aligned on goals, we all have kinks in our systems that if adjusted could dramatically streamline inefficiency (and happiness).
Here are a few lost-cost ways to make progress from within:
Process: Poor internal processes lose businesses up to 20 - 30% in revenue every year.
Fix process inefficiencies: By doing an analysis of gaps and inefficiencies that exist within your current process, you can make adjustments that will not only have an impact on the bottom line but will bring more wellbeing and connection to your teams.
People: Focusing on people and what they need has been proven to have significant financial benefit. A study found that for every 1 point increase in employee happiness on a 5 point scale, it corresponded to $2-$3 Billion in profit (study is based on large companies).
Find out what people actually want: So many organizations struggle to listen and adapt toward what people want. Run research (not another google survey) to full grasp the root issues that exist within your system so you can truly solve them. This will be a differentiator for companies as they navigate the difficult talent road ahead.
Improve cross-functional collaboration: Breaking down the infamous silos within organizations requires time and energy – not necessarily money. By auditing and identifying how each function works, you will begin to see inefficiency more clearly, be able to solve tension through clarification and reduce the workload overall.
Clarify roles and responsibilities: A recent study we did with one of our clients found that 60% of people don’t understand their role and could use more clarity around what is expected from them. By spending time clarifying roles and expectations, you will see less duplication of efforts, increased accountability and higher job satisfaction overall.
Training and talent development: Well being has been proven to be one part how you feel now and one part how you feel about the future. By giving employees something to better themselves and their future can significantly increase retention and overall job satisfaction.
Tools: A recent survey we ran with one of our clients found that across 10 functional teams, there were over 50 unique tools being utilized.
Centralize your toolkit: Technology costs add up but so do inefficiencies in time when it comes to having a toolkit that is not centralized. When people are all using different tools we tend to see a significant increase in inefficiency – the time it takes to get something done and the training it requires to get people up to speed. By auditing your tools and streamlining your kit, you can not only connect teams better but save yourself a lot of time and money.
By focusing on improving communication, streamlining workflows, fostering collaboration, updating technologies, and investing in talent development, marketing teams can emerge from budget cuts stronger and more efficient.
When budgets eventually rebound, organizations that have invested in internal organizational improvements will be in an advantageous position. They can allocate funds more effectively, execute campaigns with precision, and respond swiftly to market changes.
Remember, in challenging times, it's often the internal changes that make the most significant difference.
Need support or someone to talk this through with, please don’t hesitate to reach out.