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You Can Target Problem Areas By Comparing Key Business Issues
Too often business owners realize that their company is having trouble but can’t point to the specific area that’s at the root of the problem. Many business issues are so interrelated that it helps to step back and look at each business area or issue to know what to target.
And today it is the lucky business that has only one problem area. Many companies today are faced with multiple problems. Defining the problem areas, then placing a priority order on them only causes more delay in implementing needed solutions.
Identifying problems, then placing a value on their urgency helps business owners to place the issues in a priority order. The accompanying table has been developed by the George S. May International Company management consultants, a firm that’s been assisting small and mid-size businesses for more than 75 years with identifying and implementing solutions to business problems.
"Throughout our consulting history, but even more so today with the growing number of independent businesses, we see companies needing help in focusing on key issues," explained Donald J. Fletcher, president of the management consulting firm.
"There are so many business operation issues that can distract an owner it is imperative that business people keep focused on solving the problems that really matter," Fletcher said. "Getting side tracked at best delays needed solutions. At worst these distractions can become so time consuming that the owner looses a leadership perspective."
The key business issues listed in the table are general to cover most types of business operations. If they don’t work for your particular company, simply use ones that are more relevant. This type of table listing key issues and giving them a value can also be used in troubleshooting different departments or sections of a larger company.
Simply place a check mark in the column that best describes the status of that particular business issue. When you’ve considered all 10 issues, compare the placement of checks in each column. This will give you an indication of the urgency of the problem. By multiplying the number of checks in each column by the Problem Value and totaling them gives an overall picture of your business health.
The George S. May International Company is one of the first management consulting firms in the United States. It has been serving businesses from small and mid-size to major corporations since 1925. May International is headquartered in Park Ridge, Ill., with offices in San Jose, Calif.; Montreal, Canada; Mexico City, Mexico; and Milan, Italy. Web site address is www.georgesmay.com.
More information from our News Section.
Beleaguered Impression Makes Customers Think Your Business Is Failing
Businesses affected by the soft economy need to be very careful not to cause themselves additional damage by making it look like the business is having difficulties.
The perception that a business is in trouble can make a difficult situation for a company even worse. The appearance of problems can turn into a self-fulfilling prophecy. Companies should do all that they can to present a positive, upbeat appearance to customers.
Both consumers and business customers alike respect and prefer to do business with successful people. While they may feel sorry for a business that is having hard times, it is dangerous for a company to show its difficulties. If it does, customers will begin taking their business elsewhere.
This reaction is part human nature and part business nature, and it is very difficult to turn that impression around once it is made.
Part of the reason for this concern is the fact that businesses are expected to have a selection of appropriate goods or services. They also have presented themselves to be problem solvers for their customers. However, when selection is cut back or the problem solver is seen as having problems of its own, customers begin to look elsewhere.
Customers have expectations. If these are not met, customers will sense something is wrong and go elsewhere. They'll forgive an occasional lapse. But if it becomes a general trend, they'll start to shop elsewhere. Customers may say it is just to "check out" the other guy. But if they try and like the other guy, the first business is in serious danger of losing that customer.
Having the appropriate inventory on hand and a suitable number of employees for conditions are important issues. Reducing these haphazardly can have a boomerang effect when the economy picks up. Careful analysis of the situation is needed so a business doesn't compound its problems with short-term attempts at a solution.
Strategies to Face A Slowing Economy
No matter whether the country is in for a "soft" or "hard" landing of its slowing economy, the question for business owners is: "What actions should I take to prepare for whatever type of landing occurs?"
The president of the George S. May International Company recommends three basic areas for any business person to look at when times are uncertain: sales, costs and people.
Sales are often viewed as the solution to all business problems, but sales can only be a solution for businesses ready to handle the increased sales. If they aren't, the additional sales simply cause more problems. Businesses need to focus on retaining and growing the customers they have. However, do not become captive to one or two large customers or clients. A change in the way those key customers operate could spell disaster for your business.
The cost of doing business should be an ongoing focus for your management. Too often companies wait until times are tough to control costs, and by then many are out of practice. But how do you get into practice? Find out what value or contribution each business activity brings to your bottom line.
People make your business work, and a slowing economy can help businesses get needed employees because a downturn will likely end several years of a very tight labor market. However, employers need to carefully look at the quality and experience of the available labor pool. Know the skills you need and have a solid list of job criteria the open job.
Worker Shortages Focus Attention on Management of Current Employees
An exclusive survey by the George S. May International Company shows that 74 percent of mid- and small-sized company owners say they find it difficult to hire new employees. Yet, 82 percent of these companies are using existing staff to handle the increased workload brought on by increased business.
The survey shows that four out of five companies are absorbing additional work with their current workers. Only 18 percent are turning away work. Too often the knee-jerk reaction to more business is to hire more employees, but this solution is only cost-efficient when the current employees are effectively managed and work to their full potential.
The survey results also show that most workers are not working to their potential. If they were, they would not be able to handle additional work in normal business hours. The true problem spotlighted by the survey is effective management and motivation of current employees, not hiring additional employees.
Good Economy Results In Short-Sighted Business
Too many businesses become complacent and satisfied with their performance during good economic times. Instead, they should concentrate on using this economic opportunity to make improvements and ensure long-term success.
An exclusive survey from George S. May International Company shows a trend among businesses owners to accept and be satisfied with good times, effectively using them as an excuse not to improve basic business operations.
The survey shows that 72 percent of the medium and small businesses surveyed have no formal quality program - a key element in the improvement process. This high number shows an alarming lack of interest and does not bode well when the economic conditions no longer provide easy success.
For the companies that do have a quality improvement program, more than two-thirds responded that the program is working as hoped (45 percent) or working better than expected (23 percent).
Are You Ready for Team Management?
Management is the art of getting things done through other people. Teams now tackle more and more work. How well do you and your managers "team manage"? How ready for team management promotions are your good employees? Answer the following the questions and see how well you do.
- Can you delegate responsibility and share authority, and are you comfortable sharing leadership with other team members?
- Can you make the thought transition from self-awareness to team-awareness; saying people work with you, not for you?
- Can you engage in team problem solving and conflict solving?
- Can you encourage member involvement and not dominate the team's thinking?
- Do you promote trust among your people?
- Do you encourage innovative and creative thinking and provide a climate of team motivation?
- Can you bring people together without regards for rank, title or cultural background?
- Do you view mistakes as positive learning experiences or negatives?
- Do you understand group dynamics and the behavior forces operating within the team?
- Can you communicate information effectively, as well as elicit feedback?
Top Goals of Business Executives
What are the top goals of medium- and small-sized business owners and executives?
According to research by the George S. May International Company, they are most interested in achieving significant personal wealth, along with making time for family and personal growth.
Nearly 70 percent of the people surveyed say they have written quantifiable business plans to achieve those goals. Their ideas include: marketing more aggressively to expand their customer bases, linking annual goals to their long-term business plans, and carrying out timesaving measures.
No one likes to deal with complaints. Yet mid- and small-sized businesses get one to five complaints a week, according to a recent survey conducted by the George S. May International Company.
The biggest complaints target pricing and billing. More than 64 percent of business owners across all industries (except retailing) said pricing was their customers' largest issue. Retail storeowners said quality was their top complaint.
How do you avoid complaints? Review your work processes to uncover problem areas before they effect your customers. Most business owners said they would redo work or replace a product to rectify a complaint. Among retailers, 80 percent said refunding was the preferred method.
The survey also found that salespeople receive the bulk of grievances. This reinforces the need for effective customer relations skills. After all, you may not get second chance to make a good impression with that customer.
Laying Down the Law Gives Managers the Blues
Disciplining employees is the number one problem for business owners and managers, according to an exclusive study by May International. Following discipline, the next 10 most unproductive tasks, ranked in descending order were:
- Correcting mistakes by others
- Doing work employees should accomplish
- Teaching others what they should already know
- Dealing with auditors and/or regulatory agents
- Taking excessive breaks
- Making phone calls
- Holding meetings
- Waiting for information
- Reading mail and reports
- Having unnecessary conversation