I just got a call very interesting. When he answered the phone, I immediately recognized the name of the company as a distributor more visible in the construction industry in a village about two hours, with the seat of my office. The owner explained how the seemingly invincible small company of 75 years, to show every year just for his reputation. Indeed, in recent years, five sales deteriorated by more than one third.
The Owner cited two main factors that he believed the cause: a strong national distributor to open their markets. A depression is looming just around the city with the closure of a major military base.
I asked the owner to let me interview and test each of their employees and interviews with several key customers. The owner has also agreed to submit the budget position of the company over the past five years.
The results should be a warning to all businesses:kill> administrative apathy is a business.
Among the psychological tests administered, we learned that the organization was not balanced. The inertia has set in there was no spark, no innovation. Nobody was going to change the introduction.
The employees were good people with excellent product knowledge and long experience. The problem is that only going through the same exercise year after year, expecting different results.
The financial statements show thatThere were more than five years operating costs have steadily increased, while sales and gross margin declined slowly, producing a large amount of red dye.
interviews with employees revealed that none of them had even a hint that the company was in difficulty. profitability management kept secret. Everyone worked hard but there was no one with a long-term planning or thinking or track.
The main problem was that the management had for years, growing at an average of 4-5%%regardless of their performance. Gross margin is not eroded, so that little by little, the bottom line.
The seller will not realize they lose a bit 'of money here and there, but spent little time had planned to replace them in a game.
Operations Manager acknowledged that the overtime has become a problem, but knew no bounds.
The buyer was hit by five rounds of inventory and thought it good enough for a company of approximately $ 60,000,000 in sales.
Thecustomer surveys showed that none of our customers a very good reputation for quality and service, but most customers are regulars had not seen the company representatives during the year. In short, the land was in crisis and ask the same customers year after year. The field can be described as the "content".
Can a similar situation in your company? For basic management principles currently in force, any company canAvoid disasters. Wait until you start trouble.
The most profitable, I work with a leader at the top. All companies have managers in place, but only the most advanced have a focus on leadership. While managers are responsible, they have more control over what I call the market. Just tell your people what to do to develop critical thinking, not leaders the skills necessary to determine the reason for yourOrganization can not be in the high scenario.
For example, if your sales force does not produce enough income for your business keep pace with market growth, ie, your company is losing market share to competition, critical thinking is needed to determine why this case.
It is common for owners and managers are so close to the company no longer observe objectively. They are an important part of "daily life"Not a step back and see the business analysis. If this is the case with you as owner or manager, it would be desirable to maintain or to invite an expert, the owner or manager of colleagues whom I respect a critical look at your business and proactive recommendations.
Executive Success can be achieved by a leader who can ensure maximum effectiveness, measured in good times and in times of recession. No management apathyStolen and your business success it deserves.
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