There is an pandemic out there and it has nothing to do with a virus. It kills more profit, more businesses than I would imagine any one other thing could ever do. Are there stats? No – unfortunately not but most people who have worked in these companies will tell you the same thing – the left hand didn’t know what the right hand was doing!
So I have no real, tangible, measurable proof. However, you can test it for yourself.
Ask most managers to describe precisely what each person on their team is doing and how each job interlaces with everyone else’s work on the team and within the company. Most managers and executives will not be able to tell you. Why? Because they just don’t know. Why? Because they are concentrating on meetings, measurables, reports, marketing – all the things which are easy to put on paper – gathering information as they did in university to create a paper.
The most important thing is ignored – their operations, their structure and worst of all . . . . their people. They have no understanding of their operations and their systems. They just don’t know.
Any small business must start out on the right foot in creating their business and that means understanding the basics. Understanding how much time they really have. Understanding who they are. Understanding how little they understand about putting together an efficient and effective small business so they spend the majority of their time making money. It’s so intricate the dance of the small business person, but, like a symphony orchestra all the pieces must be there, interlocked in sync and working for them rather than against them.
Most small business people simply don’t know how in the same way that most managers don’t know how because the concentration is elsewhere.
I can tell from experience having worked with a multi-billionaire and multi-millionaire business people, if you don’t understand what you do, what your people do and how your organization is structured, you will never make as much profit as you would like and you’ll be chasing your tail most of the time. You won’t understand why you have so many people working for you but you are still doing a lot of the work yourself. You won’t understand how your sales are through the roof but you’re not making the right profit. You won’t understand how to restructure in a down cycle. You won’t understand what is happening day to day which is killing your business.
Think about it – very seriously before it’s way too late.