Improving your company’s performance: what are the most effective SMEs doing?

AI: results based on essential foundations

Today, everyone wants to benefit from artificial intelligence and implement it in their organization. But the reality is that leaders don’t always know where to start. Before reaping the benefits of AI, you need to build on a solid foundation. I summarize these foundations in the Operational Excellence System that I developed as VP of Operations at Goodfood, and that we now use with our clients at LevelOps. This system is based on three pillars: Team – Process – Tools. These are what enable the most effective SMEs to build sustainable performance and truly leverage new technologies such as AI.

1. Team: the right people in the right culture

The first pillar is the team. As Peter Drucker said, “Culture eats strategy for breakfast.” The best strategy or tool will be useless without a strong culture and committed people.

● A performance culture: focused on results rather than effort, based on continuous improvement and promoting open communication.
● The right people in the right roles: Jim Collins put it well in Good to Great: you must first “put the right people on the bus” before deciding where to go. Motivation and skills must go hand in hand.
● Each function of the organization is clearly defined: sales, operations, finance, etc. The Scaling Up method reminds us that strategic planning is based first and foremost on clear roles and responsibilities.

👉 Reflections: Would you rehire your team members today? Are you truly leveraging each person’s unique strengths? Are they in the right roles?

2. Process: structuring to support objectives

A strong team must be able to rely on clear processes. This is the second pillar of the Operational Excellence System.

Too many SMEs still operate using improvised or informal methods. When processes are not clearly defined, everyone ends up executing them in their own way—which quickly leads to inconsistency, wasted time, and errors.

  • Aligned with the company’s objectives: processes must be designed to support the strategy, not become an administrative burden, as highlighted by the Gazelles (Scaling Up) and EOS (Entrepreneurial Operating System) strategic planning methods.
  • Measure performance regularly: daily, weekly, or at whatever frequency is appropriate. High-performing companies use a Daily Management System to track indicators. Toyota, a pioneer in Lean Management, has made this a cornerstone of its performance, and many executives still draw inspiration from it today. The rule remains the same: if you don’t measure, you don’t improve.
  • Good enough rather than perfect: there is no need to strive for perfection. Simple processes that are understood and applied by everyone are much more effective than a comprehensive manual that is never consulted.

👉 Reflections: Are your company’s objectives clear and communicated to your team? Does each member have specific objectives? How often do you actually measure your results?

3. Tools: technology as a performance accelerator

The third pillar is tools. Technology is a powerful performance lever, but only when it is chosen and implemented thoughtfully.

  • Select projects with a clear ROI: every investment must be based on quantifiable and measurable objectives.
  • Designate key users: those responsible for data maintenance, documentation, and support, in order to ensure the tool’s long-term viability.
  • Monitor technological developments: stay alert to new solutions, with the support of external experts to make informed decisions.

👉 Reflections: What is the ROI of your technology projects? Who in your organization is responsible for ensuring that these objectives are met?

Conclusion: performance comes from implementing key elements

Sustainable performance is based on the implementation of the three pillars of the Operational Excellence System:

1. Team: the right people, in a performance-driven culture.
2. Processes: clear ways of working, aligned with objectives and measured.
3. Tools: appropriate technologies, chosen with discernment and focused on ROI.

Order is essential. Without a strong team, no process can hold. Without clear processes, even the best tools are useless. And without the right tools, the team and processes quickly reach their limits.

The most effective SMEs have understood that AI and new technologies are not an end in themselves, but rather a performance accelerator when they are based on these key elements.

During my presentation at Stratégies PME, I will share concrete examples of Quebec SMEs that have successfully implemented this system. You will discover how each of them laid the right foundations to take full advantage of AI and transform their operations in a sustainable way.

By Maxime Lavoie
Founder of LevelOps

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