2016: Resolution
Jan 18 2016
Danah Head
Midnight has passed; the party streamers are torn down, the glitter has been washed from your hair, it’s suddenly January 2, 2016… you have work tomorrow…
I can tell you that I love my job. I’m not just saying that because my boss will read this. In my job, I get to help people grow and learn in their careers. Others of us, and me in the past, maybe don’t always think that work is the greatest way to spend 8+ hours a day. I mean, who wants to be away from family and friends and… football!
According to US News and Report, the top resolutions for 2016 are to get healthy, pay off debts, and get organized. Making and breaking resolutions in our private lives is easy. We tend to think only about what happens before 8:00 am and after 5:00 pm. Some of us keep our resolutions and some of us… ok let’s move on… My question though is, what about at work? Should we make resolutions for 2016 at work? A good justification for corporate resolutions can be found in the 40+ hours a week and each of the 48-50 weeks a year we work those 40 hours or more. Thinking that way, it’s not too hard to consider company-based resolutions for the coming year.
Resolution 1: getting healthy
A healthy company doesn’t mean just giving away gym memberships to the crew. Cash must flow through the company doors and into the bank account exactly like blood flow in a healthy body. This may seem simplistic, but how can we make sure the money keeps flowing properly? One way of course: sell more! Well yes, this is a great idea and a perfect start. In theory, selling more does equal more cash. Unless, of course, your capacity is too small and your customers can’t pay you in a timely manner and you don’t have enough employees to deal with it all. Honestly, to sell “more,” your company has to be healthy enough to handle the uptick. One way to do this is to make sure that everyone in your company understands the concept of cash flow.
Resolution 2: pay off debts
The only way to pay off debts successfully is with that healthy cash. Again, the idea that might pop back up: sell more! However, we are really getting into the same issue as getting healthy. Selling more means more everything: people, inventory, space, expenses…
Resolution 3: get organized
This is my personal favourite. I love to organize. Even though some people close to me might disagree, I am very organized (in my own special way). As the new year starts, all sorts of things can be organized in your company to help smooth the flow of business. My thought on this: what if your cash was better organized? What if you could easily find cash and place it in the areas of your business that make the best sense? If your company could use less and save more, this would allow for debts to be paid off and then truly be a healthier company.
Maybe a good thought would be to ask yourself: does everyone in your company really talk about the cash lost in excess inventory? Does everyone know about the negative effects of past due accounts receivable and random discounting? Customer profitability, overhead costs, sales and other important concepts of business? If not, why?
Educating your people on important business issues can help everyone feel that they are an important team member. If everyone in your warehouse physically understood surplus inventory, investments, net profitability, and how they impact this, maybe they could buy into your vision. One of the great “ah-ha” moments when people are educated in their roles is when they start to question the system. The thought of having pickers and packers questioning your warehouse set-up could feel like a scary moment, but why not?
People who have never even considered or seen a Strengths, Weaknesses, Opportunity, and Threat (SWOT) analysis might actually create a good one. Well, they will if you tell them it was important to you. What if everyone could really show you what they see every day? This is where you are going to find your cash. There is no way that any of the computer software or spreadsheets would ever at any time give you the insight that your on-the-ground employees can.
Most importantly, each person will know why they should incorporate your vision into their daily work life. The goal is to make sure that you have cash hunters in your company that will not only find cash but protect what you already have. Employees who are armed with knowledge will understand that a paycheque is not the only reason to work for your company. The reason they are there is to fill an important role and help the wheels and gears turn for even more cash savings. There is no reason why your operations team should be the only people in charge of hunting down savings and cash. Even if you only show percentages or rankings, people will engage and want to be the best for you.
The Distribution Team wants to wish you a great and prosperous 2016! We hope that we can help you keep cash in, loss out, and all your New Year’s resolutions for your company on track. Feel free to drop me an email and let me know how I can help.
Danah Head is an Executive Advisor for The Distribution Team. Danah has earned both her MBA in Technology Management for Supply Chain and MAED in Adult Education and Corporate Training. While pursuing her education, she worked in different purchasing and supply chain roles within the manufacturing industry. She has real world experience and technical training to help find the best solutions for warehouse and distribution companies. For more information, call (918) 992-5022 in Tulsa, Oklahoma or e-mail Danah@Distributionteam.com. Also be sure to visit The Distribution Team online www.thedistributionteam.com. Now: @Distribution_Tm on Twitter.
More from Danah Head in CEW…
Loss, Theft, Damage… What is the Cost?
Customers = Profitability… Right?
Loss, Theft, Damage… What is the Cost?
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