Are We Too Busy To Stop & Fix It?
In this issue:
Too Busy? Really? Fix It.
425 words – Total reading time less than 3 minutes
It’s a little like wanting to run fast but not stopping to tie your shoes laces.
Many CI owners say to us “we are making plenty of money”. We’ll pass.
Performance is more than just making money. It can be about gaining the mgmt. bandwidth to operate better; about hiring the talent to expand the business; about having the profit to invest or to absorb a downturn. It certainly can be about putting your company in a position to be favorably evaluated by outside buyers, banks, or investors if you ever need to pursue any of the above.
Admittedly, it is hard to STOP and FIX IT. Particularly, when you don’t think anything is majorly broken.
Here’ what we know: 98% of the CI companies run 8 profit points or more below their operating potential. And, 100% of them don’t know more than one set (their own) of data points to validate their performance.
So what does it take? We think 5 basic steps apply:
COUNT It. If you are not on a production based revenue recognition process you are not counting correctly and you are missing an opportunity to better understand your business. Solution: Adopt a standard charts of accounts (Ours); Classify revenue; Progress billing, Project manage from this data; collect money ahead and separate cash collection from internally billing.
SEE It. Get fresh data presented in informative graphics to make priorities and guide the improvement areas. Solution: bi4ci does this automatically for QB desktop users; providing tried and true metrics custom for the CI business.
FIX It. Pretty data is cool and eye-catching but you need to take action. Go ahead and fix it. Solution: Assign measurable action items to key members of the team; manage & expect results.
IMPROVE It. All the improvement trends are captured on your dashboards. The impact of your actions will be fed back monthly and progress can be made faster than you think. Solution: Have your whole team adopt the objectives that are now so visible in the business.
COMPARE It. Ok now how to validate you are a top performer? Use the comparison page of 12 metrics to see how you are doing against peers on the system. Knowing there is no upward limit will stretch the team like never before. Solution: Get started on bi4ci today!
The tool to be better and create more bandwidth for your company is here.
You can continue to go it alone or benefit from the collective Know-How of others.
www.bi4ci.com to order the basic service, or inquire about coaching and collaboration options.
Keep It Vital,
Paul & Steve