Monthly Archives: February 2014

What Price Sochi?

Posted on February 23, 2014 by John F. Dini

In business, there is a danger that a big new project, landing a giant customer, or an unexpected personal event will draw your attention away from the job of running your business. When an owner is the driving force behind day to … Continue reading →

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When a Salesman isn’t a Salesman

Posted on February 16, 2014 by John F. Dini

A business owner decides to beef up his company’s sales talent. He forks out a hefty salary for a “proven performer” from another industry; then…nothing. The salesman (or woman) is glib, professional and hard working. The owner devotes more resources … Continue reading →

Posted in Management, Marketing and Sales | Tagged , , , , | 2 Comments

2 Responses to When a Salesman isn’t a Salesman

  1. Ray says:
    February 17, 2014 at 3:02 am

    Excellent article and very true.

    Reply
  2. David Basri says:
    February 17, 2014 at 9:02 am

    The days of the order-taking IBM salesperson of the 1980’s are long gone. While sales people can and should be well compensated, the majority of it should never be because of a hefty salary. Sales compensation may need to take into account a spin-up period, but most of the compensation should be commission or profit sharing, not salary. Order taking can be done by computers or employees in Accounting.

    David Basri
    http://www.pointent.com

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Four Generations’ Embrace of Technology

Posted on February 9, 2014 by John F. Dini

Technology is pervasive in the workplace. That isn’t a news flash; it’s just reality. When we have an IT or Internet malfunction, my employees are probably less than 20% as effective without their computers. They will catch up on some … Continue reading →

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Measurement Isn’t Necessarily Management

Posted on February 2, 2014 by John F. Dini

“You manage what you measure” is axiomatic in business ownership. “Employees respect what you inspect.” Understanding performance and productivity by comparing it against past performance, industry norms or internal benchmarks is useful, but measuring something doesn’t mean that you are … Continue reading →

Posted in Entrepreneurship | Tagged , , , | 4 Comments

4 Responses to Measurement Isn’t Necessarily Management

  1. David Basri says:
    February 2, 2014 at 11:30 am

    I would agree that putting too much credence into deep numbers analysis is counter-productive. Mark Twain’s quote that, “There are three kinds of lies. Lies, damned lies and statistics.”, comes to mind.

    However, over time analytics can indicate trends in employees. One who consistently performs below other employees in whatever KPIs are being measured, needs remedial action. Trends can indicate employees who have a propensity for too much, or too little, risk. And so on. . . .

    While it is no substitute for management, experience or intuition, there is a role for analytics.

    David Basri
    http://www.pointent.com

    Reply
  2. Todd says:
    February 7, 2014 at 4:35 pm

    You assertion that “you manage what you measure” maybe accurate in the extreme of over measuring and producing an avalanche of data that hide the reality of a situation but “you can’t manage what you don’t measure” seems to be a bigger problem with small businesses.

    Reply
  3. Joel Fay says:
    February 15, 2014 at 8:39 am

    Yes. The quantitative stuff that’s easy to measure is often not the important qualitative stuff to measure.

    When you measure something in your business…you’ll probably get the behavior you expect, and then some…

    • Is the measurement of “sales time with customer” getting higher sales? Lower sales? Or, more sales of easier-to-sell stuff?
    • Is the measurement of “customer service time,” driving faster service, or more errors and irritated customers?
    • Is the measurement of ancillary sales creating an erosion of the core brand?
    • Is the measurement of errors, increasing the inspection costs of a process?
    • Is the measurement of an already low “bad debt” cost driving policies hurting customer relations?

    Measurement of stuff in your business can be good. Just be careful about what you measure, and how it’s implemented. Be sure to ask…

    • What’s the goal?
    • How much will it cost to measure it?
    • How will it help the customer and the sale?
    • And, what will be the unintended consequences?

    Reply
    • John F. Dini says:
      February 15, 2014 at 8:45 am

      Excellent response, Joel. Measuring the impact of measuring is a sensible first step. Too often we put in “controls” without sufficient thought to whether we will be controlling the right thing.

      Reply

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