This sections outlines the aspects of your business that
Statistical Dynamics can analyze to ensure your success. Also,
here we will present some key points to remember, to make your
business the most successful and profitable it can be.
Management concerns that are addressed by conducting
a thorough analysis of the current business model:
- Executive Appraisal
- Committee Assignments
- Supervision of Execution
- Company Policies
- Profit Planning
- Margin Percentage
- Rate of Overhead Absorption
- Capital Management
- Executive Development
- Short & Long Range Goals
- Economic Studies
- Feasibility Surveys
- Product and/or Service Pricing
- Management Reports
- Competitive Activity
- Financial & Operational Analysis
- Employee Benefit Programs
- Pension Plans
- Profit Sharing Plans
- Combination Pension & Insurance Trusts
- Long Range Incentive Plans
- Product Line Analysis & Evaluation
- New Product Research Planning
- New Product Development
- Strategic Planning
- Organizational Studies & Structure
- Executive Motivation
- Internal/ External Communications
- Management Reports
Operational Concerns that can be readily addressed by proven
quantitaive techniques and statistical analyses:
- Plant Capacity
- Material Handling
- Cost Reduction Programs
- Product Planning & Scheduling
- Plant Layout
- Quality Control
- Methods Improvement
- Preventive Maintenance
- Automation Analysis
- Supervisory Training
- Organization analysis
- Work Measurement
- Work Simplification
- Cost Control Planning
- System & Procedure Analysis
- Records & Forms Control
- Committee Assistance
- Wages & Salaries
- Supervisory Management
- Employee Training
- Wage Incentives
- Supervisory Incentives
- Operation Analysis
- Job Evaluation
- Job Standards
- Time & Motion Studies
- Procedures & Controls
- Inspection (receiving)
- Inventory Managment
- Records Development
- Value & Analysis
- Specifications & Standards
- Production Bottlenecks
Statistical Dynamics 10 Rules for Growing Your Business
in any setting or mode:
- Create a strategic plan for growing your business. Establish benchmarks for performance, and hold your managers accountable for the numbers.
- Don't wait for annual reviews to make adjustments to your business plan. Markets don't wait for annual planning reviews, nor should you.
- Every business owner must make a personal transformation from technical expert to master strategist for the enterprise.
- Adopt the 3 cardinal principles of business growth: Drive the numbers higher today; drive the numbers higher tomorrow; and drive the numbers higher this week. If you focus on growing your business in the short term, you won't have to worry about growth over the long run.
- Develop a financial and operational reporting system that allows you to track all your critical numbers. If you don't measure it, you can't manage it.
- Hold a daily management "huddle" with all department heads to go over the numbers and make adjustments to daily action plans.
- Control your costs when growing your business by budgeting percentages rather than dollars.
- Identify all the key people who are driving your business and create incentives for each of them to grow your business for you.
- Throw out the old management model you started your business with and create a new one. Innovation in management systems is the key to out-distancing your competitors in the race to the top.
- Growing a business is like competing in a championship sport. Play the game the way a championship athlete plays: Play to win instead of playing not to lose . . . and enjoy the game.
Ten Reasons Why Businesses Fail
(This Year 500,000 New Businesses Will Start And 400,000 Will Fail)
- Inadequate accounting records
- Disregarding or misinterpreting financial records
- Not controlling costs
- Inviting fraud through poor internal control
- Failing to aggressively sell
- Insufficient working capital
- Not carrying adequate and appropriate insurance
- Failing to adequately train and develop employees
- Improper strategic planning
- Not seeking advice or professional help when necessary
3 Transformations Every Business Owner Must Make To Join the
Ranks of the Best Managed and Most Profitable Companies in Business Today
- You must transform yourself from "technical expert" to "master strategist."
- You must transform yourself from a "gut" decision-maker to a "fact-based" decision-maker. The key to success in business is to manage by fact rather than expediency:
--Weigh the costs and benefits
- You must transform the business from a partnership model to a functional responsibility decision-making model.
- The person with functional responsibility must make all the decisions within his/her area of responsibility.
- Owners/Partners should be involved only when the risks are high.
What is the Best Business Decision?
Should you focus on increasing your sales or reducing your costs to increase your profits by $1,000?
The following table will help you answer this question.
A. What is your profit percentage?
B. What amount of incremental sales is needed to increase profits by $1,000?
C. What amount of cost reduction is required to increase profits by $1,000?
|Net Profit %
||Required Sales Increase
||Required Cost Reduction
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