Line Flow Technology knowledge for anyone ... anywhere ... anytime.
Profit margins are the key to a healthy bottom line. In today's competitive business environment, it takes
more than quick fixes, outsourcing and downsizing for companies to
consistently achieve their growth and profit objectives. While these
options may yield temporary financial relief, they will not lead the way
to long-term business success. For businesses to consistently exceed
growth and profit expectations, they need to fully understand and
effectively execute the business basics of profitable growth.
While many elements of these basics have been documented
and presented in hundreds of management articles, books, video
presentations and seminars, their fundamental relationship and synergistic
importance to achieving solid growth and healthy profits has not been
effectively defined and communicated.
Line Flow Technology knowledge for anyone ... anywhere ... anytime.
Over the past 30 years, we were led to believe that computerized systems
would provide the solution to all our growth and profit problems. In
manufacturing and distribution, systems like ERP were to provide the
computer sophistication to significantly improve our delivery chain
performance. In engineering, Computer Aided Design (CAD) systems were to
be the high-tech innovation for improving engineering design and speeding
the time-to-market process. In sales/service, Microsoft Office was to
provide the
missing link in effective business communications while e-commerce
software was to improve order sales capture rates and order processing
speed.
In their efforts to draw closer to customers, many business management
teams have lost focus on what should be a company's primary success
target-- profitable growth. They have pursued Total Quality Management
(TQM), Enterprise Resource Planning (ERP), Business Process Reengineering
(BPR), ISO-9000, and Six Sigma with each respective guru
reassuring them that if they followed their program ... the bottom-line
would take care of itself.
Line Flow Technology knowledge for anyone ... anywhere ... anytime.
Well, it hasn't happened! Like most perceived panaceas, each of these
programs received a lot of hype but produced few success stories. While
these programs contributed to better quality and improved customer
service, they accomplished little towards helping companies identify and
achieve their full growth and profit potentials.
For a measure of their shortcomings, one needs only to spend some time in
a manufacturing facility -- especially during the last weeks of the final
financial quarter. In a typical company, you'll find that converting the
quarterly financial forecast into reality still requires costly overtime,
internal/external expediting, last minute "on-the-run" product
changes and even a little "smoke and mirrors." Results are
scrap, rework and warrantee costs that negatively impact profitability and
production problems that hinder growth.
Line Flow Technology knowledge for anyone ... anywhere ... anytime.
Companies have spent many thousands of dollars in
pursuing MRP/ERP and ISO-9000 certification, only to see their business
decline due to uncontrolled operating costs that produced noncompetitive
pricing. Other companies have won the Malcolm Baldrige Award for Quality
and Business Excellence and subsequently fell far short of achieving
growth and earnings expectations.
So, after introducing all these computer systems and more, why is it that
most businesses are still struggling to sustain profitable growth and are
no where close to achieving their full growth and profit potentials? The
first reason is simple --the results achieved by any computer system are
only as good as the people at the controls and the integrity of the data
they provide.
The second is complex -- most business managers
facing major day-to-day problems and constraints adopt a totally reactive
management style. Consequently, their time is consumed with
"band-aiding" and/or finding ways to work around system and
process problems -- leaving them little or no time to analyze and
eliminate the root causes of ineffective systems and processes.
How does one turn around such a classic, "cart before the horse"
syndrome? What's required is a top down, in-depth understanding of the
fundamental importance of the business basics of profitable growth and a
total commitment to their consistent and tenacious implementation.
Line Flow Technology knowledge for anyone ... anywhere ... anytime.
Like Vince Lombardi, who achieved success by having his team focus on the
mastery of football basics -- we need to have our business teams focus on
the mastery of business basics. Proactive planning and tenacious execution
of the basics requires leadership above and beyond just satisfying
"day-to- day" accountabilities. Some managers can't envision the
benefits of mastering business basics, other simply can't find the time.
Like practicing blocking and tackling in football, it's not glamorous, and
like most football heroes, managers prefer to run with the ball. But
without the tenacious and flawless execution of business basics, companies
will never achieve their full potential.
While many business gurus have identified one or more of these business
basics as important to the successful pursuit of business excellence, the
fundamental importance of these basics has been lost in the proliferation
of buzz words and the mania of systems sophistication. It is time for
companies to put a hold on sophisticated systems development that cause
self-inflicted, day-to-day chaos. In its place, they should immediately
initiate an action learning program for gaining a company wide
understanding and acceptance of the importance of business basics.
Once buy-in and commitment have been achieved,
aggressive planning and
tenacious implementation must follow. In short, let's put the "horse
before the cart" -- such a program will build a solid foundation for
redefining and revitalizing a company's pursuit of growth and profits.
