We struggle to balance business. Balance the right number of employees and materials to make and deliver what we sell. Some days I’m trying to keep people busy. On other days to get things out the door on time. I’m not sure if I’m paying enough, too little, or too much to get the job done.
Thoughts of the Day: Balance business growth is exciting. It would be nice if every day was the same in operations. Set a steady pace, you need to know how much time it really takes to get specific products or services built and delivered. Build a file of reliable sub-contractors. Assign menial tasks to temps. Ask managers to play a role on the line. Know when it’s time to charge a premium because everyone has too much work.
Balance business too little or too much
Operations are the guts of the business. It’s the part of the business that makes and delivers what your salespeople sell to your customers. Make sure you know who is assigned to operations. Clarify each person’s role with the goal of eliminating duplication of effort, wasted energy, and people working at cross purposes.
Mandate weekly planning meetings – more often in the busy season, but keep them short and sweet. Go over details of what has to be delivered today, this week – next week, this month – next month, this quarter – next quarter. Plot deliveries on a calendar where it’s easier to see resource shortages and opportunities.
Figure out what an average pace through the month would need to look like to meet overall demand. Look at historical data to figure out busy and slack times. Is it Monday and Friday that are crazy, or is it mid-week that demand is highest? When during the month do things slow down or speed up?
The Goldilocks problem
Too much, too little, or just enough? Tell salespeople to limit commitments during the busiest times and steer customers towards lower volume periods. Tell customers they’ll get more attention and encounter fewer problems at slow delivery times. Negotiate delivery dates to ensure you have enough people to go around, enough product to get out the door, enough trucks to meet the demand.
Be ready to ramp down as quickly as you ramp up. The minute that demand slows down re-assign staff to prepare for the next busy period. Let temps go. Back off from the least committed sub-contractors.
Be realistic when estimating the time and resources needed to make and deliver what’s been sold. It’s unrealistic to expect everything will go without a hitch. The busier it is, the more likely you will run into problems. This also means you need to plan time into the schedule to allow for recovery from glitches.
When it’s slower, work on backup resources. Test out new subs on simple projects to be sure they can meet your standards. Line up more backup than you think you’ll need.
Enough or searching for more?
While sub-contractors can be invaluable, keep in mind that they may also get busy when your company gets busy. By planning out the workload well in advance, you can keep the subs from committing themselves elsewhere. Flex up staff with temporary workers and interns who can handle simple jobs and relieve more skilled workers to do higher-level tasks. Look at all the tasks your people do every day. Make a list of the most menial tasks, and when operations staff starts approaching the need to work overtime, implement a temporary worker solution.
Make sure your managers know that when it gets busy they’re expected to get their hands dirty. There’s no room for prima donnas, it won’t hurt anyone to pitch in now and then to get an order out the door. Multi-tasking is an essential skill in any small – mid-sized business. Adding a few extra hours to the line each day or each week can make the difference between success and failure.
Some industries experience peak seasons when just about everyone is fully maxed out. Know the seasonal cycles of your business. If it’s hard to find anyone to do the work on certain days, weeks, or months of the year, have a price plus fee schedule for that timeframe.
Prioritize your best customers and do your best to meet their needs. Know that some customers will gladly pay to get what they want when they want it. Avoid the customer who is hard-headed about wanting what they want when they want it and who is unwilling to pay a premium to get it. They are probably the delivery headaches just waiting to happen. Send them to your worst competitors for them to deal with.
Looking for a good book? What To Do When There’s Too Much To Do: Reduce Tasks, Increase Results, and Save 90 Minutes a Day, by Laura Stack.
