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Watching the Bottom Line is Your Responsibility
In today's economic environment, businesses both large and small are feeling the pinch as consumers curtail spending. Even those businesses with little consumer contact share in the economic slow-down by proxy - a ripple effect if you will. Companies need to watch every strategic move they make and every dollar they spend. The health of the company does not simply rest on the shoulders of the senior managers. The truth is that every employee needs to be paying attention to the bottom line.Years ago I worked for a large multi-national which had a saying: "If you don't directly affect sales or support someone who directly contributes to sales, you might want to rethink your career path". These words, as strong and appropriate today as they were 15 years ago, really summarize where employees minds need to be.
In the consulting business, I have seen many "improvements from the trenches". That is, those slight changes that line employees make to products, processes, or procedures, often done without much fanfare, yet have a huge impact to the bottom line. These slight changes, either singularly or in combination, can amount to huge bottom-line dollars. We need to encourage our employees to speak up when they spot inefficiencies as this is where many a corporation has been saved. Further, by encouraging our employees to take it upon themselves to root out inefficiency we are, in effect, empowering the individual to seek and make changes - to take on the responsibility for the well being and future of the company.
So what can you do today to start building a culture of improvement in your organization? Here are some simple steps that I have used over the years with my clients:
- Improve communications throughout the organization. Encourage open and honest, two-way discussion on a broad range of business topics. This should be so much more than email blasts from an ivory tower. Consider roundtable discussions, open forums, one-on-ones, and team building events. Even little things like an anonymous suggestion box will pay big dividends. These should be two-way discussions, where management peels back the curtain to foster that sense of cooperation. Remember the more information that is provided, the more employees feel dialed-in and want to contribute themselves.
- Take action on what you are being told. Nothing will stiffle the communication process more than lack of action on information that is received. When given (and I do mean "given", because it is a gift) information from a line employee, management must take action. Look into the situation or suggested course of action with a critical eye. Determine if there is merit and if it should be pursued, prioritizing it accordingly. Finally, make sure to follow-up with the person who provided the information (if possible), thanking them first and then disclosing what actions you will/won't be taking.
- Reward behavior that contributes to the organization. Employees not only like to see people being rewarded for their suggestions, they need to see it. Recognition is a huge motivational tool and should be used accordingly. But should it be done publically? Perhaps, depending upon what information was provided and what the bottom-line impact was to the organization. Additionally, you should take into account the individual who will be recognized -- perhaps they would not be altogether comfortable in such limelight. Sensitivity here will go a long way.
In looking at the businesses that I consult for, I have yet to come across a manager who doesn't want to squeeze just a little more out of their business. What's more, I have also come to believe that most employees want to see their organization excel. The real question is "Are we going to empower everyone with the same sense of bottom line responsibility or are we going to continue with the tops-down managerial approach?" That challenge rests with open and honest communication from manager and line worker alike. Or perhaps a career choice may be in order.
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About the Author:
Jim Jensen is a Partner at True North Services, a professional consulting and outsourcing firm specializing in marketing, management, and operational activities. He can be reached at his offices in Fort Collins Colorado or by email at jim.jensen@truenorthsvs.com.
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