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Jan 04
2010
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During winter each year, football fans everywhere are hoping their favorite football team wins the championship. I can’t tell who will win the college or pro bowl games in any given year, but from my days of playing, I can tell you what type of team will win.
We’ve probably all suffered through a football game where the star running back rushes toward the line only to discover there is no hole, no place to go. That player is quickly stopped at the line of scrimmage or thrown for a loss. On third and long we’ve seen the quarterback get sacked yet again before a receiver broke free. A game where lackluster performance rules the day is not fun to watch. You might find yourself thinking the coaching staff must be absent.
The team which will win is one that has all players focused on doing what they have been assigned to do and doing it well. The lineman opens up the hole in the line for the running back to advance the ball. The linemen hold off the charging defenders to give the quarterback time to successfully pass the ball to the receiver (who hopefully doesn’t drop it). No one great player is enough to win the game. It takes eleven all working together, focused on the goal line and a great coach to call the shots..
So it is for businesses. In manufacturing, for example, it takes a determined effort to make everything flow smoothly. Engineering needs to release product structure accurately and timely and design tooling so production can take the ball and make the product. A glitch in the line – an overloaded work center or purchasing dropping the ball for delivery of raw material or parts can cause a fumble. Sales must line up the customers and promise delivery dates to meet their needs, lest the competition intercept the order and take business away. Shipping has the ball last, hopefully getting the product to the customer when promised and in proper working order. At that point the finance department had better do the invoicing to the customer and collect the cash or everyone is working for nothing. To win, the coaching staff, headed by the CEO, needs to be on its top game.
How is your throughput? How long does it take your company to use its resources to produce and sell its products and bank the cash? Just one bottleneck in any business can hinder the process and unnecessarily build inventory levels. Every employee must be focused and properly trained. The longer the cycle of production or provision of service, the more resources your company needs, translating to higher costs and less profit. Sometimes a bigger balance sheet is not a better balance sheet.
A B2B CFO® partner can meet with you and help develop a focused game plan to shorten the cycle and increase productivity and profitability. Call today.
