Issue link: https://www.e-digitaleditions.com/i/964617
January/February 2018 47 Positive Cash Flow One thing for sure in business today is that deals, contracts, alliances, cost reductions and additional services all contribute to a cash-to-cash cycle that is diff erent than it once was. It is very easy during this demanding-customer and demanding- supplier arena to loose sight of this very important element of our business. Businesses do not fail because of a lack of business, but because of a lack of cash. Dealers must look more closely and more often at the cash cycle in their businesses. A Realistic Constant View of the External Environment A distorted view of where our customers are headed, what their expectations are and will become, what role our suppliers need and expect us to play in the market, and what competition we face is not uncommon in our industry. Business relationships are changing. Value is defi ned in diff erent terms and with diff erent measures. Costs of doing business are still unknown to most of us, and until we get a handle on those costs we are extremely vulnerable. While the environment doesn't cause change, it can strongly infl uence how we respond to it. Managing for Performance Variations on performance management have been around for some time. "Management by Objectives" was one of the fi rst to get the attention of our industry, and its principles were continued in most Total Quality Management systems. Two or three factors jump out as we look at the failure of most 'systems' based solutions. First, the intent and the process are rarely communicated throughout the organization. is creates a great deal of confusion among employees trying to implement something they not only do not understand, but also do not know the intended outcome. Second, measurement systems do not refl ect outcome, instead they refl ect either eff ort or attitude. I really believe that most systems-based processes are not systems at all, but a group of loosely-tied functions hopefully reinforcing a common output or yield. Before one can eff ectively manage for results or performance, the conditions to reinforce the performance must be fi rmly in place. We continue to wonder why performance doesn't change even though we vary our mission, vision, tactics and techniques. Performance management is truly about communication. Managers who want performance must get a handle on the new-work defi nitions held by employees today. We must focus on increasing their employability, focusing their intents, managing their expectations and rewarding their outcomes. Management sciences all still agree that master communicators do three things well. First, they know their intended outcome. ey are very clear on the results they expect to accomplish, and know what those results will provide. Second, they have the fl exibility to vary their communication style. If what they are doing isn't working, they can change what they are doing or the way they are doing it. ey have multiple styles and techniques for approaching the same goal with diff erent people at diff erent times. We've all seen how eff ective coaches use diff erent techniques with diff erent players at diff erent times to get desired results. ird, they have an awareness of the responses to their communication. Being able to see and hear are major abilities of eff ective managers. ey are responsive to the reactions of the people with whom they are involved. Management skills have changed very little. Attitudes, goals, measurements and needs have changed a great deal. Attempting to achieve performance without being attuned to these diff erences is very frustrating, costly and ineff ective. Customer-Based Measurement Dealers must know, within their customer portfolio, which businesses they serve are customers and which are consumers. Which of these contribute to net profi t, and which do not. Off ering the same services to the same consumers at the same prices is costly. Dealers that are seriously lacking in their understanding of customer characteristics, behaviors and preferences put themselves at risk of failing to make the most of each interaction and allow competitors to disrupt the relationship and leverage future opportunities. To know which ones you can profi tably serve, and which ones you and your suppliers should approach diff erently will be paramount in continuing channel integrity. Changing the Way You Cook since 1990 800.988.8103 360.650.1111 woodstone-corp.com Discover what the Wood Stone Gas Plancha can do for you. Visit gasplancha.com to learn more. Introducing T H E W O O D S T O N E Gas Plancha Stone Hearth & Specialty Commercial Cooking Equipment Available in Three Sizes 4-Zone Gas Plancha | 48" 3-Zone Gas Plancha | 36" 2-Zone Gas Plancha | 24"