Process re-engineering to curb high business mortality in Nigeria
As businesses continue to die prematurely, experienced entrepreneurs have urged peers to think of re-engineering their internal processes rather than continue to blame the government or harsh business environment.
Rasheed Adegbenro, immediate past director-general, Manufacturers Association of Nigeria, gave this advice during a recent forum organised by MAN and Lagos-based consulting firm, Gold Elsh.
According to him, looking at internal issues have become necessary as small- and medium-scale enterprises (SMEs) now have a high mortality rate in the country as they rarely cross the 50-year threshold.
He specifically pointed out weak internal processes, microscopic and undiluted ownership structure, building businesses around personalities rather than institutions, competitiveness of businesses, limited market access, lack of innovation, near absence of corporate governance, among others, as issues that must now be taken much more seriously.
“Companies must think of new and creative ways to bring innovations to their products and service offerings,’’ he said.
“In a rapidly globalising world, with its attendant collapsing tariff barriers and the accompanying stiff competition, there is the need to be re-positioned for future growth while driving down internal cost,’’ he stressed.
‘’This means altering the approach to innovations, product development, life cycle management, supply chain operations, pricing strategies and incorporating the voice of customers,’’ he added.
Taiwo Olukunle, president/executive consultant, Gold Elsh, said entrepreneurs must be prepared to think competitiveness if they are willing to compete locally or internationally.
“There is need to put a stop to inability to access funds due to wrong processes and running businesses around one person, who hires and fires,’’ he explained.
Odedeyi Oyentunde, marketing excecutive, Gold Elsh, said businesses have gone beyond putting things together, but are now extending to evolving ideas and new approaches, adding that productivity on capacity upgrading, competitiveness, human capacity development, partnership ideas, among others, are all up for keeps for an innovative entrepreneur.
ODINAKA ANUDU