EPISODE A5.002 Analysis of Stage IV Performance

Introduction
New week, same perspective with greater conviction.

After being attentive to the weekend news about the continued arbitrary government response to COVID19, there is only one course for the business owner - ignore their word salad of concern and work around it. 

Being passive and waiting for the right decision will put you out of business. There are only two ‘people’ who have that right - you and the customer.

IBGR is committed to your success and our programming is for legal aggression (OK, I’ll make it nicer - assertiveness) to open, stay open, and be profitable.

Unlike the rest of society - we have your back.

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Show Objectives
​As a Business Owner this is a critical time. The Growth Stage represents when the business has achieved (or should have) its maximum value. It was  hard to achieve and it is unwise to leave too much on the table - growth you could have achieved is Stage IV and didn't. There is nothing that can be done about it now except shift your emphasis from revenue to profit.

Key Questions:

1. How close to the capacity goal did we reach in Stage IV?
2. What are the margins for each major product & service line?
3. What are the margins and share of wallet achieved for the major accounts,? and
4. What was the cost of doing business in the area of fixed costs?

What You Need to Know
Capacity Goal

• Based on your Stage III estimates in Marketing, Sales, Service, Production - how close did you get in each area?
• If you didn't reach 90% of the goal, what are the potential reasons for Marketing, Sales, Service, Production?

Margin Goal

• Based on your Stage III estimates in Marketing, Sales, Service, Production - how close did you get in each area?
• If you didn't reach 90% of the goal, what are the potential reasons for Marketing, Sales, Service, Production?

Fixed Costs

• Based on your Stage III estimates for back office operations - how close did you get in each area?
• If you didn't reach 90% of the goal, what are the potential reasons for each of the back office operations?

What You Need to Do
​1. Agilean Root Cause Analysis for ​Marketing, Sales, Service, Production, and Back Office.

• Methods (Standard Operating Procedures)
• Manpower (People)
• Materials (Required to Produce a Product or Deliver a Service)
• Machines (Equipment)
• Management (Direction , Priorities)

2. Research your answers and select the highest probability causes.
3. Implement or Schedule for Implementation each solution.

• Methods: write or update SOP's to eliminate the cause;

• Manpower: review hiring and development processes for improvement, write or update training methods;
• Materials: improve the buying process, change suppliers or vendors;
• Machines: create or increase preventive schedules, overhaul or replace the equipment;
• Management: decrease or eliminate surprises, implement or improve panning (MBO) process, spend more time in the affect areas.

Written by: William Eastman
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Next Show
Episode A5.003: Review all Customer and Supplier Contracts, amend and authorize as necessary