Thursday, 17 November 2011

Bottleneck For Business Management

Simple and effective business management

In every business, every time one or more bottlenecks, which have an influence on the trade situation. Bottleneck oriented business management seeks to early detection of bottlenecks and remove them to allow the optimization of business development. Knowing at all times what the company is missing and to be able to add the missing things are now a key competitive advantage. Bottlenecks can be, for example:

lower revenues from the sale

high debts or accounts of delay

low liquidity (cash, etc.)

a large amount of debt

small number of customers

new customers too

for large capacity

defective administration or management

and much more.

These examples show that bottlenecks not only the negative conditions, but may also apply to positive commercial development. If a company exports a lot of new customers, this will lead to new orders, which lead to other conditions, including any over-capacity utilization. If more than the rate of use for longer stays, this could lead to lower motivation, since the recession of the atmosphere with the company, which then can lead to less quality of work.

Because an information system that many companies have timely care to achieve desired business development. However, a periodic analysis of the same or annual reports are not sufficient to control a company today. In dynamic markets these evaluations today are too static, too focused on developing commercial past, which had been reached. Also, the cost accounting shows that what happened in the past. The current direction in which a company is running can not be seen.

Imagine a company car. If you sat in a car, you want to receive information from the instruments of the past year or month? Probably not. You want to get concrete information about the content of the fuel tank, coolant temperature and more. Bottleneck-oriented business management should be exactly the most important information and practical information on a company for you, including the so-called early warning signals (Screenshot abenetis ERS-Diagram).

Data to the past for early warning systems?

Work of an early warning system needs data, which are not oriented to the past, such as cost accounting or year-/month-end-closeings. It requires information on the so-called early indicators that have been collected in different areas of society. Of course, the figures of finance and accounting department belong to an early warning system, but have only a subordinate role, because they are past-oriented.

Today, the message is to demonstrate the current situation of the sector. In many companies, spending time reporting has increased considerably, due to the flood of information today. Aggravatingly added to this, the selection is truly significant indicators that allow a proper view of the current business situation. Too often, reports are written, that does not give to anyone, since it is not necessary for business development consulting.

There has already demonstrated a relationship between business systems, companies should take over. Go back to the car, however, imagine that you have only an instrument in front of you, that shows the value "35". What does this mean? Can not recognize how many fuel exists, as the coolant temperature is or how fast the car is driving, etc.

In this example, you can not recognize the expression of a unique business relationship. This demonstrates the importance of using a good business relationship, to be a connection between them and have a different temporal origin. However, many business-type systems are mainly based on past data.

This is often the problem that the information is not available immediately, providing the real situation in a company. But there are alternatives to reduce the period of the past. What would a week instead of analyzing the data every 4 weeks? This would lead to what you could trade a few weeks before, if something should go a little inclinedly.

Only few data are required to receive assessment information. This is also a relatively self. If you drive your car, you only get a small, well-chosen set of information, and despite a true picture of the situation. This is possible also for businesses as well!

As a motorist we receive only a fraction of the data acquired by the system of the car, and just these fraction of information is sufficient for us to reach the desired destination. When you travel often, we are well prepared, but the principle of the preparation is often overlooked in the running of a business. Such as travel with the ultimate goal must be clearly indicated by the direction of affairs. This can be done by the data planing. Only differences target / actual relative in the commercial development will be recognized.

Unfortunately, many small businesses renounce to use data from the flight plan. Moreover, it is not to cut the flight plan information into smaller pieces, but only a rough picture of what the company wants to achieve. It 'quite possible to use a business based on the previous year's data, however, use these figures of the past, commercial development should be taken into account. So the previous year should be improved in order to adapt the new objectives. It completed the database design and management of operational risk is provided. Yet, it is important to know the real bottlenecks in the business world.

Recognize problems and take action!

One of the most important aspects of management is the early recognition of problems and potential. There are bottlenecks in every business, which could have serious consequences. Financial difficulties can lead to failure, for example. Therefore, the symptoms are recognized early, in order to turn off a potential crisis and to ensure the future of business. Also available as possible, the analysis should be done regularly. Today, products and services may not be sold forever, because product cycles are becoming shorter because of the dynamics of the market. The opportunities for recognition and development of the utmost importance, so as not to lose already been reached on the basis of the business.