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Copyright 2012. Phil Symchych. All rights reserved.
March 26, 2012—Issue #4
This week’s impetus: Is technology helping you to get more done or slowing you down?
When I was involved in a large financing transaction, a senior lawyer working on the deal told me that deals used to get done faster, before the wonderful invention of email and word processors. People (and their lawyers) would sit down in a room, negotiate and finalize the deal. Now, she said, “the negotiation takes much longer.”
It’s technology’s fault, because of all of the minor changes are being sent back and forth with the ‘track changes’ feature enabled, and both sides making minor changes. When you combine the fact that many professionals charge by the hour, thereby rewarding them with higher billings and fees, the technology enables the advisors to be ‘productive.’ However, they may not be adding value.
They’re certainly not speeding things up, and that’s reducing value, in my opinion.
As the client, you can demand that things are done within a certain time frame, and that you’ll only pay for one version of edits. Get it done right the first time.
Monday Minute: “Everyone needs deadlines.” Walt Disney
Privacy statement: Our subscriber list is never sold, rented or shared with any other party.
Contact information: info@symcoandco.com
http://www.businesssuccessforlife.com/
Copyright 2012. Phil Symchych. All rights reserved.
March 26, 2012—Issue #4
This week’s impetus: Is technology helping you to get more done or slowing you down?
When I was involved in a large financing transaction, a senior lawyer working on the deal told me that deals used to get done faster, before the wonderful invention of email and word processors. People (and their lawyers) would sit down in a room, negotiate and finalize the deal. Now, she said, the negotiation takes much longer. It’s technology’s fault, because of all of the minor changes are being sent back and forth with the ‘track changes’ feature enabled, and both sides making minor changes.
When you combine the fact that many professionals charge by the hour, thereby rewarding them with higher billings and fees, the technology enables the advisors to be ‘productive.’ However, they may not be adding value. They’re certainly not speeding things up, and that’s reducing value, in my opinion.
As the client, you can demand that things are done within a certain time frame, and that you’ll only pay for one version of edits. Get it done right the first time.
Monday Minute: “Everyone needs deadlines.” Walt Disney
Privacy statement: Our subscriber list is never sold, rented or shared with any other party.
Contact information: info@symcoandco.com
http://www.businesssuccessforlife.com/
Copyright 2012. Phil Symchych. All rights reserved.
How long does it take you to achieve business success?
One of the most important factors in business success, especially for growing businesses, is speed. Small businesses and mid-market companies have significant advantages over larger companies because of their nimbleness and responsiveness.
We can register a domain name, for example, faster than a big company can send a formal request to their legal and marketing departments.
When you customers ask you for something, you should be thinking, “How quickly can I provide this value to my customer?”
Customers value speed. Ironically, any company that charges by the hour has a disadvantage in the speed zone because their model doesn’t incent them to provide value faster, even if their customer is willing to pay for it. My plumber charges the same fee whether I have an emergency or not, provided that he can fit me in to his schedule. Of course, evenings and weekends cost more. The plumber’s core strategy driver isn’t service, its queue management.
Here are key measures for success:
Total Days to Profit
How long does it take to generate profit? Measure inputs such as labour, materials and overheads and then compare these costs to how long it takes to generate a sale. For example, if it takes a company one month to produce inventory, it sells $250,000 of product each month and the total inventory is around $500,000, it’s taking three months to generate profits (one month to produce and two months to sit on the shelves). That’s a long time and that’s why inventory build up is dangerous.
Reducing your inventory build up, responding quickly to customer orders and minimizing costs that don’t add value will enhance your total days to profit.
Total Days to Cash
In addition to measuring profit, an even more important measure is Total Days to Cash. You pay your employees every two weeks. You probably pay your suppliers monthly. How long does it take to get paid from your customers? The best businesses have negative days to cash in that they get paid in advance and before they incur significant costs. Using the above example, and allowing your customers to pay you “net 30 days” and suddenly it’s four months or 120 days until you get paid. Many companies underestimate their Total Days To Cash.
Taking deposits and offering discounts for early payment can dramatically accelerate your total days to cash.
Total Days To Strategy
How long does it take to convert a new idea into a viable new product or service and a new revenue stream? Rapid prototyping and testing with your customers can accelerate your strategy and success. Your existing customers already know you and trust you. By listening to them and responding quickly to their requests, you have an opportunity to quickly develop successful strategies.
Remember, strategy is the intentional alignment of your resources to provide focused and differentiated value to your customers. That means that your strategy needs to focus on your customer and not on your technical expertise or methodologies.
A great idea that is implemented quickly and presented to a customer can generate success in days, not months.
What can you do to accelerate your Total Days To Success?
Copyright 2012. Phil Symchych. All rights reserved.
Spring is almost two months ahead of schedule compared to last year. And we’re very happy about that.
The winter of 2010/2011, we had a mountain of snow and much spring flooding that resulted in our lake being six feet higher, submerging the marina and eliminating most of the beaches. Many farm fields were too wet to seed, resulting in reduced farm production and hurting the economy. This past winter was relatively mild with little snow and many record warm temperatures.
Here are the signs of spring in my neighborhood.
I saw the first robins of the year.
The geese are migrating back up north.
Lola is enjoying sunning herself on the deck and on guard against the squirrels. She has chased several squirrels up the side of our stucco house but, alas, she has never caught one. A couple of weeks ago, a squirrel was looking into the kitchen door when Lola was looking out. Once we released the excited hound onto the deck, we realized that the squirrel had a distinct advantage: it could fly. The squirrel lunged itself off the deck up to the tree. Lola, since she can’t fly, was limited to running down the steps and then barking up at the squirrel, who chattered nervously but safely from his elevated perch.
Note the shovel in the background. We don’t put the shovel away until July 1st!
A friend moved here from the U.K. and found himself without a car snow brush one fine May morning when his car was covered with snow. I let him in on a Saskatchewan secret: we always keep the snow brush in the car, year round.
I’ve put the table and chairs on the deck, ready for afternoon sessions in the sun.
What are your spring traditions?
Copyright 2012. Phil Symchych. All rights reserved.
March 19, 2012—Issue #3
This week’s impetus: Life is a team sport. The best part is that you get to choose who you want on your team. Great team member’s are sincerely happy for your successes, will be brutally honest with you, and have the courage and character to share their stories and challenges with you.
A great team makes all of its members stronger and more successful. It’s focused on results and success. Team members don’t try to change or improve other team members. They focus on improving themselves and leading by example.
Chad Barr, Phil, Guido Quelle
I’ve learned many things from the awesome people on my team, including Chad Barr and Guido Quelle, pictured above. The most important things include:
Who is on your team? Do you need to add anyone to your team? Is there someone who is bringing you down and needs to step up or be let go? Are you avoiding a difficult conversation with anyone on your team?
A great team wins together by constantly sharing and supporting each other. My team includes family, friends and paid advisers, who have been there and done that. We win or lose as a group, we have fun, we hold each other accountable and we contribute to, and for, each other’s benefit. Thanks, team!
Monday Minute: “You want people around you who can tell you when it wasn’t your fault and when it was. You want people who can help relieve the strain and pressure, but who can also demand accountability and responsiveness.” Alan Weiss, who is my mentor and consultant, writing in The Consulting Bible (Wiley, 2011)
Privacy statement: Our subscriber list is never sold, rented or shared with any other party.
Contact information: info@symcoandco.com
http://www.businesssuccessforlife.com/
Copyright 2012. Phil Symchych. All rights reserved.
On a recent trip, my daughters offered these tips of advice:
Thanks, girls.
Copyright 2012. Phil Symchych. All rights reserved.
One of the magical parts of Disney World is how they manage long lines of peoples. Disney engages and entertains their customers while they wait for the next show, ride or event.
Here are some examples of things to look at while you wait:
To reduce your waiting times, you can purchase a Fast Pass that gives you a designated time range to attend your event or ride and a special entrance or lane that gives you priority access.
What can you do in your business to make the waiting process more enjoyable or useful for your customers, or to reduce the wait time altogether?
Here are some ideas:
You can minimize your customer’s wait time and increase your profits by making sure that your business is set up, strategically, to offer different levels of speed. Customers will select the wait time they want. Managing your customer’s expectations by giving them choices and clear service parameters will improve their perception of your quality.
Copyright 2012. Phil Symchych. All rights reserved.
A friend sent me this comment about his Air Canada woes.
Therefore, I’m pleased to announce that Air Canada deserves its own DUDS award!
Fortunately, we have an unlimited supply of DUDS, that is, large companies will continue to provide us with fodder forever.
I’ve come up with a new tagline for the airlines: “Over-sold and under-served”
Here are the Air Canada stories (yes, there’s more than one) from my friend:
I was flying from Regina to Ottawa and had purchased a first class ticket. Before going to the airport in Regina I received a phone call from Air Canada advising that they substituted a different aircraft which did not have first class and they had reseated me in coach. They also said I would be reimbursed for the fare difference. I knew I had paid and premium of $800 for first class. Air Canada’s offer was $40. I told them they must be joking. After emails that brought automatic responses saying I would get a real response in 15 days and phone calls to more answering machines than I could count I was getting more and more frustrated. There was no way to talk to a real person.
On the way back from Ottawa I expressed my frustrations to a very friendly flight attendant. She gave me a direct number to her supervisor. She knew she could not help but could find me someone who could. She did. I had a person in “customer service” who I could explain the unreasonableness of the offer. Through much discussion and several calls we agreed on a $400 voucher. To get my money I had to fly with Air Canada again.
So on my next trip to Ottawa I booked a first class ticket to Ottawa and used the $400 voucher. The adventure began again. Our flight to Toronto was delayed and the connection for Ottawa was very tight. I got to Ottawa but my luggage did not arrive until 2 days later. Then on the way home they (Air Canada) decided to downsize the aircraft from Toronto to Regina again and again I did not have a first class seat. This time I had the number to call and was again offered a $400 voucher. I refused saying I would never fly with Air Canada again and I wanted cash. Eventually I got the cash.
Whatever happened to “customer service”.
——
Feel free to send me your DUDS. Maybe, just maybe, these big companies will start listening to us, their lowly, paying customers.
Copyright 2012. Phil Symchych. All rights reserved.
Have you bundled up your annual business information and sent it to the accountant?
After a few back and forth questions to clarify the information and finalize your statements, you will probably (hopefully) meeting with your accountant to review your financial statements.
Now, you can have the accountant read your financial statements to you, line by line. Or, you can have a useful, powerful conversation and access their great advice. The choice is yours. But, you need to take control.
You can take control by asking questions. Here are questions to ask your accountant.
Your accountant has a very unique and powerful skill set that can help you to improve your financial management skills and results. They have many clients in many industries and see what works and what doesn’t. They know the story that your financial statements tell. You want them to tell you that story.
Copyright 2012. Phil Symchych. All rights reserved.
