September 1, 2022

Top 5 Ways Teamwork Impacts Profit Margins

by Mike O'Neill

As a leader, maybe you feel like you don't have the support to foster a collaborative, teamwork-focused manufacturing environment. You require attention on higher level thinking involving sales and growth, but instead, you can't seem to get away from communication problems arriving directly from the line.

You understand that every team member is essential to an efficient manufacturing operation , but sometimes, communication becomes cloudy across multiple shifts. When team members lack direction, they may lack confidence and trust, not only in your leadership but also in themselves and their ability to perform their job.

Fostering a work culture around teamwork can help improve the overall multi-shift effectiveness of your manufacturing employees, thus improving your bottom line. As a former HR professional with more than 15 years of business coaching and consulting in manufacturing I've helped teams like yours come together with outstanding results. 

I will show you the top five ways teamwork impacts your profit margins so you can be aware of the areas that need improvement and those in which you excel at. I want you to succeed and generate more profits because that's the end goal – higher profits with high employee satisfaction and morale. 

1. Improve the Quality of Work Across Shifts

Do you find that your second and third-shift teams are less efficient while still taking over the same tools and machines as the previous shift? Are they performing similar job tasks but don't produce the same results?

It's not uncommon for multi-shift manufacturers to have more productivity and quality-related issues during the second and third shifts, where leadership communication is often overlooked. However, when leadership and teamwork remain at the same level across all shifts, your production quantity and quality remain relatively even.

An improved bottom line directly results from enhanced production capacity and quality across all shifts. Encourage team members to share ideas on how to improve communication across the shifts .

2. Delegate Work as a Team Leader More Easily

Put trust in your team members to perform the work they were hired to do. Team leaders who can more effectively  delegate work allow themselves more time to manage the bigger picture goals that will improve profits.

Team members engaged in more work delegated by their team leaders are also learning, growing, and improving their work processes. As a result, they gain valuable on-the-job experience and feel the real value they bring to the overall team environment.

Employee cross-training is a great way to improve productivity and profitability.  An excellent cross-training plan can allow for team members to have greater flexibility in their work assignments – which makes for more engaged employees. 

As your team gains valuable experience, they also become more autonomous. As a result, they will naturally become better problem solvers who require less direct guidance from you. A cross-trained team member will learn valuable skills from other team members, and leaders can delegate work when necessary.  

3. Increase Overall Operational Efficiency

Operational efficiency means – the business's ability to deliver quality products with the least amount of resources possible. Fewer resources, in turn, should bring higher profit margins. 

Smoother manufacturing operations result from teams of employees who know how to work together. The more effective your team becomes, the greater profits your business will generate. Therefore, it's okay to be rigorous in establishing operating systems for your manufacturing teams.

There is a correct way to improve operational effectiveness –  remember, everyone is in this together.

4. Create a Culture of Collaboration and Innovation

Innovation is a byproduct of a team culture that is open and transparent about communication and collaboration. So, where do you think the big ideas are hiding on your team?

Discussing where great ideas come from is an elusive concept at best. All ideas take time to percolate, and the best ideas aren't always found at the top of the management ladder. So, give value to every team member's opinion to discover where that next big idea might be.

Create opportunities for everyone to work together to bring different skill sets and creative problem solving under one roof.

5. Enhance Product Customer Service

When better teams are formed, manufacturing operations run smoother, more efficient, and more productive. A better quality product is created, thus creating a better overall customer service experience.

When your team can produce a high-quality product consistently and on time, customers are happier. So what is the direct result of a satisfied customer? A satisfied customer is likely a repeat customer. They become a brand ambassador for you free of charge when they tell their friends, family, and others about your product.

You've set a positive flywheel-like force in motion that directly benefits your business's bottom line.

Achieving the End Result

Profit – it's not a bad word. It's the lifeblood of your manufacturing business, and better teamwork is proven to increase profits.

If you want to unlock the impact of teamwork for better profit but still struggle with employee retention and building better teams. I have a Masterclass you should consider attending.

You've worked so hard to find the right employees. So let me help you learn how to keep them

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The only playbook you need to create a game plan for your growing company to achieve high profits, morale, and productivity in the manufacturing sector.

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