Keys to drive Profitability and Financial Solvency
By
Prudent Decision Making & Solution Implementation Best Practices
With the past year placing so many businesses in financially difficult positions, prudent decision making on solution implementation to lessen the financial bleeding is critical to the fiscal viability of most companies. It is incumbent for all leaders from time to time to review the solutions they have implemented in order to ascertain if they are working or adding further complications.
Quite some time ago I was given the opportunity to attend a mangers training at one of the companies I worked for. During this weeklong training I got chance to have lunch with the Vice President of Finance. From this meeting I was given an exercise to read and analyze with respect to business the nursery rhyme “There Was an Old Lady Who Swallowed A Fly”. After a week, the best I came up with, was that as a leader you should ensure that your business is protected from outside influences.
I was applauded for my efforts and then asked to consider the following.
Internal/External Customer Feedback.
The nursey rhyme is written from an observation perception. The words “I don’t know why” are so frequently heard by customers and patrons, especially in companies who have little or no staff/customer survey programs. These programs are vital to keeping up with the changing needs of your customers and how they view your product the old tried and true and the newly introduced. They create greater customer loyalty when the customer sees an idea they have suggested has been considered and implemented. If two heads are better than one in finding the best solutions, then how much better off will you be receiving ideas from your greatest assets your employees and the many valued clients that patronize your business.
Why a Fly?
Sometimes because as leaders so much emphasis is placed on the big fires that need focus those little embers are not paid the much-needed attention. However, to the customer internal and external these seemingly little problems can be very annoying and frustrating like little flies. There is also the thought that if there is one, there maybe more around somewhere. Never forget that one slowly dripping drop of water can cause serious damage if left unchecked for hours.
Culture Imbedded
We all can empathize with how disgusting it may feel to Swallow a fly. There may even have been times when we have seen persons reaction when they feel they may have ingested one. They want to do everything they can to get it out of their system. A customer sitting a table looking across may see gum underneath another table, notices that his/her fork is dirty, uses the restroom and recognizes the same will undoubtably feel that there exists a culture of uncleanliness in that establishment. Before a band-aid is slapped on a problem in one department be sure that the infection has not spread throughout and become a part of the operational culture.
Over Thinking the Solution
“Perhaps she’ll die!” With the same focus it took to not underestimate the significance of the problem, the same energy should be applied to being prudent in the overthinking of the solution. Two key questions that should be asked of any solution is, (1) is this a solution a want or need and (2) is this solution appropriate. If we start choosing wants over needs and not considering the appropriateness of the solution, we will end up like the old woman becoming transfixed on fixing the problem and throwing everything and anything at it to fix it. Most problems may occur because of the box the company may find itself in, it then may require an outside of the box solution. Always be opened to stretch your vision to encompass diverse and uncommon solutions.
The Root Cause.
Did she die because of the fly? Did she die because of the horse? Or did she die because of her own personal obsession? Personal obsessions should have no place in solution implementation, it can as shown lead to the neglecting of other areas, even to the detriment of the whole company. With the sluggish economic climate, combined with the many other added pressures it can be extremely easy to fall prey to this vulture. Now is not the time for rash and hasty decisions. It is the time for teams to share insightful, realistic, sensible, workable and balanced solutions to problems as they are faced with them, thus ensuring those numbers will change from red to black, bringing back profitability and financial solvency.
Keith M. Dean
CEO & Founder
The BusinessofU
www.thebusinessofu.co