By working with many organizations I have found a broad opinion on “what matters the most”.
When in financial trouble, it is usually obvious that “Cash is King” and profit is secondary.
When struggling to ship product, it is usually obvious that the “Just Get It Done” mentality is the answer and worrying about why it was running late is the afterthought.
My business experience in both large multinationals and smaller private companies tells me that this is not the right or best thinking.
Many times, the pursuit of one thing drives a bad outcome in another. The drive for profit by buying in bulk at a lower price uses valuable cash. The drive to ship product to satisfy the customer can be rewarded by poor quality, and the belief that the cost is the cause for low profits stops the rational-minded to look at price. The idea that we just need to get better without understanding the background does not work at all.
Having a balance is imperative; a thriving business cannot rely on one metric alone. Driving to improve cash without a plan to slow the spending would be a recipe for the same results. Driving to ship product without understanding the causes for slowness and wanting to reduce cost to improve profits without understanding if price is at the correct point, are all disasters waiting to happen.
Lastly, insisting on improvements without at a minimum, collecting rudimentary data, is like reaching for the impossible dream.
So what does matter the most?
No one item should be considered as part of the business wheel, what you would place in your spokes as key metrics? What is causing your business the most pain?
It could be one or more of those mentioned above or:-
The Business Wheel
List all of those you can think are your top priorities, No matter what, you ultimately decide what is important for you and your business. Just remember…
“No one thing matters the most”.
© 2016 By Steve Wardleworth (Wardleworth Consulting LLC) All rights reserved