Monthly Archives: March 2015

By the Numbers

I’m going to go out on a limb. I know what talent is lacking in more of your employees than any other. It’s an ability to understand and work with numbers. Expense budgeting, price analyses, sales forecasting, reviewing a profit and loss statement or a product line margin analysis, understanding cash flow or a balance sheet, comprehending both the value and the burden of debt.

Whatever your business, I’m sure you have some really good employees,who do their jobs really well, whether they are dealing with operations or marketing or whatever. You’re able to get away with financial incompetence in most positions in your company. But if your management team lack facility with the numbers, we probably have a problem, Houston. 

If your succession plan or exit strategy relies on managers who are not able to read a balance sheet; who do not understand the long term impact of pricing to achieve volume; who do not appreciate the value of debt as a tool, or the suffocating crush of too much debt – if the keys to your successful retirement are in the hands of such staff, then both you and your business are in a bit of trouble.

If you are guilty of tolerating financial ineptitude, you owe it to yourself, your business, and your employees to turn it around. You may not have the capacity to personally teach a key employee how to deal with the numbers, but it really is your job to find some thing or some body that can. 

I Love You, but…

CEOs cannot lose focus on customer service

Love is a many splendored thing

I love you.  Strange title for a business blog, isn’t it?  But it’s true, assuming that you’re a business owner.  Here’s what motivated me to make that declaration.

A couple days ago I went to hell and back.  You’ve been there.  I called the help line at a major corporation because of a small glitch in the operation of my new mobile phone.  This particular visit to hell took almost two hours of my not unlimited time.  I will spare you the details because you’ve been there.  I’d rather talk about love anyway.

I love business owners and that’s why I’ve devoted the past thirteen years to working with them.  Privately owned businesses tend to serve customers well and to get things accomplished quickly.  Many entrepreneurs started their own business precisely because they could not find the quality of service that they craved.

A customer service process that works is a thing of beauty.  A dysfunctional process will suck any beauty out of both customer and company.

So my love for you is conditional.  You might get big faster than you can control.  Or you might get complacent.  Or you might turn catatonic under the stress of sustaining your own business.

Next time you visit the hell that I have described here, I want you to pledge anew that you will not let your company slide into customer service dysfunction.  Promise?