How to pilot a business

1. Increase sales
1.1. Increase salesforces availabity. 1.2. Increase salesforce activity. 1.3 Increase prices.
1.4. Add offer features that sell. 1.5 Advertise. 1.6 Increase product availability.

2. Reduce costs
2.1. Abandon non-profitable activities. 2.2 Gain from processing. 2.3 Automate, subcontract, delocalize.
2.4 Decrease labor costs. 2.5. Decrease costs of goods sold. 2.6. Decrease transformation costs

3. Optimize margins
3.1 Increase customer satisfaction. 3.2 Increase employee satisfaction. 3.3 Invest in projects and processes.
3.4 Select the business rules. 3.5 Select a strategy SFN/TFC/GFP. 3.6. Generate free cash

How managers use this site to manage simply

From the key words list,
1. Select the set of business rules that fit your situation, amongst the 9 sets
2. Select the business rule want to apply. Measure the indicators.
3. Engage indicators improvement projects

To decrease costs, decrease inventories

Decrease inventories using the just-in-time supply chain process.

The limit of inventories reductions should not be set by financial indicators like capital or time in inventories but rather by the customer satisfaction on the time to deliver.

If the use of the "zero inventories" and "build-to-order" processes  increase the "time to deliver" up to a full red "Customer Moving Away" index, reconsider rebuilding some stocks.

Beware specially with impulse buy products lile portable computers. Customers buy them when they see them, touch them and bring them back home immediately.


Review your job descriptions to reduce your fix costs

Redesign your jobs descriptions in a way that all one-person jobs will produce tangible, valuable, measurable outputs

  • Better people motivation
  • Potentials for variable compensation
  • Self-management

Increase the measurability of the job descriptions to reduce your fix costs

All your job description documents should include six figures as quarterly targets for the six key performance indicators of that job.

To increase sales, add customer segments

Create more versions of your products for different categories of your customers.
Segment them, their needs vary by age, gender, professional functions, social classes, potential returns for you,...

The six steps of profit making

A. The 6 steps / business rules sest of the process of making profit

1. Get profit
1.1 Customer / marketing. Start with selling
1.2. Protect profit with costs decrease. Buy what you sold at lesser costs.

2. Get resources and innovation productivity
2.1. Resources: human and information
2.2 Innovation gathering

3. Get transactions. Operate at low costs and stable quality level
3.1 Sales automation
3.2 Production flexibility

Identify and automate your Business Rules

Favorite business rules in 6 sets
  1. Sales
  2. Production / quality
  3. Resources / productivity
  4. Innovation
  5. Customer  / marketing
  6. Profit / costs

Match compensation variability up to sales revenues variability

Link more and more compensations to results: pay-for-performance, consultants or sub-contractors replacing payroll employees. Increase your compensation variability to match your market variability, but not over.

Your sales revenues may vary according to the day of the week, the season, economic downturns, customer moods.