Building blocks of business success: Infrastructure and process

In everyday life, we manage tasks using two key elements: necessary infrastructure and an exact process. For instance, cooking requires ingredients and utensils (infrastructure) as well as a recipe (process) to create a delicious meal.

Similarly, there are countless ways to make tea, each producing a unique flavour. However, consistent results require following the same process.

Organisations are like living entities with life and substance. In a previous article, I explained how they have a unique soul, mind, and body. The methods of organising the mind and culture of an organisation were detailed earlier. Now, let’s focus on the third component of institutional personality: the body.

The body of an organisation

An organisation's infrastructure represents its physical body, which includes facilities such as offices, vehicles, technology, and operational methods. A well-functioning body requires a clear mind (culture) and a strong spirit (vision).

Let's look at a food industry organisation that we studied. It revealed inefficiencies in both infrastructure and process:

Storage: Lack of adequate storage led to multiple daily trips to the market, causing delays and financial losses.
Transportation: Insufficient vehicles hampered food delivery, leading to customer dissatisfaction.

Office facilities: Poor work conditions deterred talented employees, impacting control and coordination.

Process adherence: Inconsistent processes, due to lack of knowledge or poor attitudes, undermined efficiency.

Technology: Outdated systems limited cost control and data management.

Solution

To address the above issues, the organisation implemented several key solutions:

Central kitchen and store: A new facility with a full-time storekeeper and surveillance improved efficiency and reduced costs. Stock was managed via new software, and operations in the kitchen and accounts departments were streamlined. Centralised purchasing allowed goods to be bought at wholesale prices, reducing costs by 10–20 percent.

Vehicle acquisition: Loans were secured to purchase new vehicles, improving reliability and cutting costs. Thanks to the company’s strong turnover and competitive interest rates, the vehicles also lowered maintenance and fuel costs, plus tax savings from depreciation.

Office upgrades: A modern office and new staff improved the work environment and maintained organisational culture.

Regulatory compliance: Legal compliance, including GST, income tax, labour laws, and food safety regulations, was ensured through organised registrations and filings.

How it helped

After implementing the above changes, the organisation became highly profitable. It was also able to build a solid reserve fund by investing a portion of the profits in mutual funds.

These practical steps can be adopted by small and medium-sized businesses to enhance operations and achieve long-term success. However, it’s essential to prioritise these corrections and implement them with patience.

Just as a harmonious mind, body, and spirit foster personal well-being, a well-structured organisation promotes growth, prosperity, and a positive impact on its employees and the community. 

 

(The author is the Director of Hanhold Consulting Pvt. Ltd. E-mail: [email protected] Web: www.hanhold.com Tel: 62386 01079)

*This article was originally published in Dhanam Business Magazine.