16
January
Converting Numbers to Actions

In the state of "nonexistence", "danger" and "state of emergency" are now many small and medium-sized businesses due to the lack of a management model and overload of the owner. According to the theory of conditions, a company may have only 12 of them, but now we will touch upon only six of them, the most significant ones. In addition to those already mentioned, this is “normal activity”, “abundance” and “power”.

 Classification of these conditions is not just a linguistic exercise. Determining the current state of the company makes it possible to resort to one or another set of measures proposed by the technology that owners at the School of Business Owners fully give , to draw up a plan and patiently implement it, improving the condition.

The most important source data to determine the state of the company provides statistics. For its accumulation, both large and small companies, it is necessary to collect information about changes in the cost of the provided product, income, income / expense ratio, margin and operating profit. Ideally, each company should have at least 21 basic statistics, since the organizing scheme should have 21 departments ensuring the smooth operation of the company. We help to develop an organizational chart and a system for measuring results within the framework of the School of Business Owners project .

Certainly, statistics cannot be called a new tool for company management. Formula of states, that is, a set of recommendations for committing actions, are considered an innovation of the theory.

Nonexistence

For example, “non-existence” for a business is almost the bottom, which is extremely difficult to rise from. The statistics trend looks like this:

If you focus on the statistics of the cost of a product or service, then these are, as a rule, very low indicators. So, if the manufacturer previously supplied 3 thousand tons of products, and now only 300 tons, then we are talking about "non-existence" that occurs when the company has no contact with the consumer. This suggests that he was either not found, or for the product in its current form, the consumer simply does not exist. According to the formula of this state, the first step to exit is to search for a communication line. To find it means to understand who the consumer is and how to communicate with him. The next recommendation is to get you to know about, establish contact with potential and existing customers. In other words, the company should work hard to find out what kind of product consumers need here and now: its type, cost and quality. When you begin to provide this product, you are very far from profit at the moment, because all you get in this way is some understanding of what your customers really want. As a result, you will reach a state of "danger" ..

Danger

This condition, in turn, threatens the company with a sharp decrease in the level of production of a valuable final product. According to the formula in such a situation, the first step should be a workaround. You need to get around habits and established practice. A habit has led to this condition. It is necessary to cope with the situation and any danger in it. The word "situation" here means "deviation from the correct state of affairs." “Cope” - do something right now, not necessarily long-term and smart, just cope in any way. Then assign yourself a state of danger. That is, the owner must tell himself: I am in danger, and this is not a joke. He must fully realize that he is in danger. ”The further plan of action involves the reorganization of the life of the organization as a whole and its management in particular, so that a dangerous situation does not arise constantly. This is one of the first calls that you should undergo specialized training, for example, a workshop on developing a company’s structure or reading one of my books .

State of emergency

The third difficult condition for companies is the state of emergency. When it appears on the horizon, they need to actively promote their products, change the course of action, save, strengthen discipline and so on. The only reassuring thing in this case is that no unusual promotion actions are required. For example, if a company has come to a “state of emergency” from a state of “normal activity”, then you just need to continue to implement the usual business activities to promote the product, but in no case experiment. In other words, if earlier they received important clients by meeting and talking with them, then you just need to return to this practice, while holding twice as many meetings. The state of emergency, as a rule, does not require any new ideas, you need to use what worked before.

 

The following three conditions characterize successful performance with good performance. In statistics displays, they will look like this:

Normal activity

Abundance


Power

In order to determine the state of the company on the basis of statistical data, it is necessary to analyze the information at least once a week. This is not so much - 52 times a year to evaluate activities and adjust plans. The captain, who adjusts the course of his ship once a month and at the same time receives information about his coordinates with a delay, is useless. If someone tried to control the ship in the high seas like that, they would call him crazy, and this is considered acceptable for business.

Statistics is just one of the tools that will help your business reach a new level. If you want to know more, check out my project School of Business Owners . Within the framework of this project, my best consultants and lecturers help owners become competent and successful, and make their business organized.

 


Author: Alexander Vysotsky
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