Issue link: http://read.dmtmag.com/i/255289
On the Numbers February 2014 | Construction Equipment Distribution | www.cedmag.com | 57 Blind spots. Where are yours? Business leaders develop blind spots all the time. It is those little things you forgot about or didn't think of that mess up anticipated results. With all the distractions surrounding us these days, especially those related to social media, it is easy to fall behind on projects and lose focus on goals requiring your attention. Last month, we talked about risk management, and getting control of your blind spots would certainly qualify as a risk management action. Let's face it, no matter what you do to improve your focus and efficiency, the better off your company will be. If you haven't read any of Dan Kennedy's books on productivity and time management, they are worth the time. Dan is a marketing and sales consultant who marches to his own tune, but he is very effective in terms of getting results, whether sales or operating goals. In the end, Dan's big theme is to focus on the task at hand and not let anything else get in the way. No smart phone, no text, no e-mails. So don't bother trying to send him anything of the sort. A fax, however, will work, if sent to his assistant. Even if you like Dan's approach, it may not be for you. There are ways, however, to avoid the blind spots by having your management team assume more responsibility in terms of setting company goals. If you have the right people in place they will jump at the chance to grow their departments by learning all they can about changes in their industry affecting both your company as well as your customers' companies. It is not unreasonable to expect department heads to know the industry benchmarks against which they should be measuring their depart- ments, as well as how to manage the policies and processes to adjust results and improve their operating results – and meeting or exceeding industry benchmarks. In fact, department heads should report at least monthly on where they stand compared to budget and benchmarks. CEOs who aren't getting this information must force the issue on department heads, and if there is not a timely response changes have to be made. Hitting KPIs and benchmarks is only part of the equation to avoid getting blindsided on sales, market share, operating profits and cash flow. In many cases, you can only change the current system so far before system changes have to take place to allow for further improvement. There is little doubt that techno- logy will change the way you do business and come at you at a faster and faster pace as time goes by. I see this situation as a blind spot for every CEO, because not making these changes will cause a loss of business as your competitors find ways to deliver a higher level of service to your customers. The key point here is to encour- age management to embrace the technology available to them and find ways to improve their value- added proposition to customers, and then come back to the CEO with a summary of anticipated benefits, an implementation plan, and potential ROI analysis. Can your team do this to help remove that blind spot you have? If not, you may have some things to think about. Part of this process is how manage- ment gets exposed to systems and equipment that improve efficiency or contribute to the value-added propo- sition. They must read publications for the equipment, rental, and construc- tion industries. They should also be allowed to attend training programs moderated by industry experts. They should, if possible, attend networking events with the idea of swiping some ideas from other attendees. If they are not taking any of these steps it is hard to imagine how your company will keep up with market changes. Once the ideas surface, the C-level team needs to evaluate the options and select those that are doable and affordable. Accountability is next. It must be assigned and monitored to avoid wasting time and dollars. Here is where the Dan Kennedy techniques come into play – the project leader's focus is to provide a workable solution on time. To eliminate blind spots, a CEO's management team must be capable of leading the charge to improve systems and procedures as well as improve the company's value-added message to customers. Without this system in place, the CEO will find (s)he has too many distractions to deal with to make meaningful, timely improve- ments to company programs that will lead the company to become a high profile player in their market. How to Remove the Blind Spots Harness the creativity and intelligence of your management team to develop better profitability this year. BY GARRY BARTECKI GARRY BARTECKI (gbartecki@ aednet.org) is AED's vice president of Finance.