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Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
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Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
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Website |
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www.cfoplus.net
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I
recently visited a restaurant that we love for its
consistency and price point for good food. My husband
and I have been dining there for more than 10 years.
We visit regularly because we are a good fit for
them and them for us.
Over
the years, one of the only things that
bugged us was that they served cold drinks, such
as iced tea or water, in small glasses. These
16 ounce tumblers, when filled with ice, hold
very little liquid. This caused several things
to happen: 1. the wait staff had to make multiple
trips to the table to refill our glasses, 2. we would stay longer than intended sometimes due to waiting
for our glasses to be filled so we could wet our
palette, 3. when we would get our iced tea just
where we wanted it (with lemon and sweetener),
the wait staff would fill ‘er back up in an attempt
to save steps.
It
seems like such a simple thing, yet my husband
and I, on occasion, would speculate as to how
much those glasses were costing the company. It
all adds up. The extended stay of guests, the
wait staff running back and forth repeatedly –
sometimes at the cost of not properly attending
to other guests, longer waits for guests waiting
on tables, even increased usage of sweeteners
(due to the number of refills, we routinely used
more than we would have otherwise).
Given
all of this, imagine our surprise when we found
the restaurant moved to a larger-sized tumbler.
This one was great. I think we had one refill
each and used only one packet each of sweetener.
The service was good, as usual, and we noticed
that the wait staff seemed more attentive overall.
It
is often the “little things” that add up over
time. Here are areas within virtually every business
that can hamper productivity, dampen profits and
put a lag on morale.
- Exchanges
too many hands. How many people does it
really take to place an order? Look at your
systems to see if it would be beneficial to
reduce the number of people needed to perform
a function.
- Employees
don’t have all the information needed. When
employees can’t remember the particulars, they
often go seeking answers to their questions.
This takes the employee’s time, the person’s
time for answering the question and, sometimes,
the customer’s time. Most businesses can benefit
from documenting information in a common place,
such as a notebook with guidelines, procedures,
etc. This also provides a map for new employees
to quickly learn the lay of the land.
- Chaos
rules. Clutter around the office or business
is one thing, but another is having a workspace
that is unorganized. Supplies that are out of
place, forms that are mixed in with other papers
– all mean extra steps and more effort to achieve
one task. It takes only minutes each day to
keep workplaces in tip-top shape for doing business.
- Stopping
and starting woes. It takes more time to
perform a job when a person is interrupted and
must begin again. While some people welcome
interruptions throughout the day, this can wreak
havoc on personal productivity. Eliminate unnecessary
interruptions by breaking down job functions
so time can be maximized, removing interrupters
such as a candy bowl at a person’s desk (put
the bowl in a common place for all to enjoy,
but that doesn’t invite impromptu conversations
throughout the day) and save time away from
your desk or station by combining trips (restroom
break with a trip to the supply cabinet, for
example). Don’t forget to set a specific
time each day to check e-mail, too!
- Take
a break. Taking a true break from the workplace
will deliver you back to the office or company
in top mental performance. Working through lunch
at your desk, while it may seem productive,
actually lessens your productivity throughout
the afternoon. Take a break – even if it is
only to walk outside for 10 minutes – to improve
concentration and achieve peak performance.
It
all adds up. Improved productivity throughout
the days, weeks and months will yield a performance-driven
year. For more ideas on how to achieve your company’s
best, give us a call today.
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Performance
Advantage Success Story
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Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
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Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
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Website |
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www.cfoplus.net
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Concentrated
Efforts Enhance Profits for
Public Relations Firm
The
Challenge
The
owner of a successful public relations firm was
concerned that she was so busy working in the
business, she could not take her business to the
next step. In the past, she had not taken the
time to determine where she could enhance profitability
or measure the value of each client. To invest
in the future of her firm, this business owner
chose to join a Business Performance Roundtable,
where a Business Performance Advantage specialist
would teach her and other business owners how
to utilize performance measurement to improve
their businesses.
“When
you are a sole proprietor, it is difficult to
think about the future of the business because
you are so busy with the day-to-day work for the
services you provide. I couldn’t go farther,
but I knew that there was potential for growth,”
the public relations firm owner says.
The
Results
After
one year and 12 monthly sessions of working with
the business performance team,
this firm enjoyed a 25 percent increase in their
gross revenue and, more importantly, a 40 percent
increase in profits.
The
Performance Measurement Solution
The
business owner joined the Business Performance
Roundtable with the goal of identifying areas
where she and her team could – and should – concentrate
their efforts to enhance profits. The fact that
the Business Performance Roundtable was offered
by the firm’s CPA firm, whose professionals know
the public relation firm’s financial situation,
added a powerful dimension to the process. The
program offered a structured curriculum designed
to help each participant pinpoint facets of their
company’s operations that inhibited growth. The
group also gained the benefit of “hands-on” support
from other business owners and the business performance
team of consultants as they progressed through
the sessions.
“One
of the benefits of a Roundtable situation is that
many of the participants experience similar problems
and can offer ideas of what has worked for them
in the past and what has not,” states the lead
business performance specialist. “When we discuss
and apply the performance measurement process
within the group, they are able to not only monitor
their business changes but also see the progress
made in other businesses as well. The synergy
of the Roundtable team that the public relations
owner participated in was so dynamic that the
members also shared referrals and began to do
business with each other as well.”
During
the 12-month program, the group moved through
individual business investigations, developed
a Mission and prepared a detailed Vision of where
they would like to take the business in the future.
Next, they tracked their relationships with their
customers to find opportunities to increase return
business and improve the retention of these customers.
At this stage, each business owner identified
interactions that are key to the success of their
relationships with their customers and uncovered
problem areas where they were losing business.
Throughout
the year, participants studied Roundtable topics,
which ranged from Optimizing Human Assets, Financial
Literacy and Streamlining Operations to Targeting
Marketing Efforts. With each step along the way,
each participant searched for activities that would
allow them to measure the results of their efforts.
These performance measures were compiled in a Flash
Report that helped the business owners stay abreast
of the Key Performance Indicators (KPI’s) of their
success. “I
was able to focus on my business and utilize tools
that were provided to help us streamline and refine
our operations, thus making us more profitable.
Through this process, our employees gained a clearly-defined
picture of what is expected of them, and as a
result, we have more productive employees,” said
the public relations business owner. “I highly
recommend the Business Performance Roundtable
to any business owner that is looking to improve
their bottom line, grow their company and be successful.”
In
addition to meeting this client’s accounting needs,
the relationship continues with ongoing executive
coaching and strategic planning and implementation.
The business performance specialist concludes,
“We are partners in the success of our clients’
businesses and when they succeed we both win.”
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Analyze
Your Business: Management |
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Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
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Website |
: |
www.cfoplus.net
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By
Michael E. Gerber
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The more you examine what is true about your
business, the better you will be at prioritizing
the areas that demand your attention. Here is a
series of questions you can use as a starting point
for identifying potential problem areas in your
company's management system.
This
is not intended to be a full analysis, but rather
a tool you can use to focus your attention. It
may be helpful to print this page, and actually
write down your responses. Take one question at
a time and really think about your answers. This
is not a test. There are no right or wrong answers.
There are only responses that reflect your truthful
objectivity about the state of your business.
1. |
How
many locations do you have? How many employees
do you have? How many people are in a management
position? |
2. |
Have
you created an organizational chart that defines
the functions of your business? |
3. |
Do
you have a consistent recruiting and hiring
system in place? |
4. |
Do
you have a documented training system? |
5. |
Do
all of your people have documented accountabilities
and standards? |
6. |
Do
they know that they're accountable?
Have they agreed to be accountable?
How is it documented? |
7. |
Are
you getting the results you want from your
people? |
8. |
Can
you calculate the dollar cost for unproductive
staff due to lack of clarity, confusion about
accountabilities, or lack of adequate training? |
9. |
How
are your people compensated? |
10. |
Look
at the other work you've done evaluating your
business (either additional Business Needs
Analyses, or other business development
work you've completed). What's missing in
the structure of the business? |
11. |
How
many people directly report to you and what
are the results you hold each accountable
for? |
12. |
What are you accountable for and
what are the results dependent on you? |
13. |
What
is the maximum number of people reporting
to any one manager at any one time? |
14. |
How do you address job violations? Are you
monitoring the results? |
Now
go back and review your answers. Are you uncomfortable
with any of the answers you gave? If so, then
you've identified the primary areas of focus for
your business performance efforts. Begin today
by calling us!
Michael
Gerber is chairman and founder of E-Myth Worldwide.
He reminds you that the opportunity is to go to
work ON your life not IN it, and in the process
to experience the sweet, radiant, extraordinary
joy of the fully-lived moment. His Web site is
www.emyth.com. |
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Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
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Website |
: |
www.cfoplus.net
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By
John W. Turnage |
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Sometimes
it’s the little things that really drive you crazy.
Small things like 23 toll-free numbers to a single
company. Which one do you use? Or what about those
ATM service charges, which cost anywhere from
a buck fifty to three dollars, that financial
institutions conveniently charge so you can get
access to your money. Remember the days
when ATMs were going to save us money because
the bank would need fewer tellers if people did
their own banking? Yes, it’s the little things
that drive us over the edge.
I
guess that’s why when I read Mike Hammer’s book,
The Agenda, I immediately connected with
his concept of becoming easy to
do business with (ETDBW).
In a nutshell, Hammer suggests that today’s clients
have grown more sophisticated and are savvier
than those of yesteryear. The new client demands
a working relationship that is inexpensive and
effortless. This does not mean the client demands
your services be inexpensive
only
that the cost of doing business with you be exceedingly
low in cost.
Wow.
This really makes sense. After all, the cost of
our service or product is only a fraction of
the actual cost. Once you factor in all the billing
phone calls because invoices are sent out in an
ambiguous manner, the time spent with inexperienced
or lackluster sales representatives or professionals,
the amount of time it takes in voice mail to actually
get to a person, and the investment of learning
how to interface with the company in the
first place, it’s no wonder clients are getting
wiser. Increasingly, this is a competitive strategy
to manage performance across companies.
So
how do companies find themselves floating as an
island
disconnected from the way their clients view them?
It all starts innocently enough. First, the company
divides into departments to better manage performance
or focus more intently on departmental goals.
Perhaps they move from departments to being considered
a “profit center.” Now, it’s the departments’
responsibilities to turn a profit. Soon, these
departments are vying for open resources and shutting
out other department requests because it doesn’t
“add” to their overall vision. And then, before
long, the department only relates to its departmental
goals, the company only relates to itself from
its internal goals, and the clients’ view of the
company is dust in the wind.
So
where do you go from there? The first step is
to take a day
or longer
to walk in your clients’ shoes. How do they think
of your services? Do they have to dig to find
the services or products they need from you?
Does it take more than five phone transfers to
get a live human being? Is your billing process
so mysterious that from month to month clients
aren’t sure what they are paying for? And
what about appointments? Do they trek to your
office or do you take the wide loop to theirs?
It
simply isn’t enough to give the client what you
think they want. You must find out what you can
do to make it easier for them to do business with
you. Then, you must commit to implementing procedures,
processes, and paradigms that deliver these to
your clients
consistently and profitably. After all, your clients
want you to be as successful as you help them
to be.
Hammer
makes a great point: If your ways of doing business
are built around how your company operates, then
your customers pay the price, and ultimately you
will as well. You exist to solve customers’ problems.
Customers do not exist to do business with you.
Whether
you put together a client advisory board or conduct
a simple client service survey, the effort you
put into this important task promises to pay you
back in spades. So, the next time you are at an
ATM paying yet another fee, think about the little
things that are driving your clients crazy
then commit to change them.
John
W. Turnage is a regular columnist for CPA Magazine.
He writes often about consulting solutions. This
article appeared in the December 2002 issue. Learn
more about CPA Magazine at www.cpamag.com.
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Get
Savvy About Cell-Phone Plans
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Our mission is to provide information and strategies
to business owners and managers for improvement
in the effectiveness of its business management
so that key objectives can be realized.
|
|
Ted Hofmann
- Principal/Senior Consultant
John Morre - Principal/Senior Consultant
Linda Panichelli - Principal/Senior Tax Consultant
CFO Plus, LLC
1450 Grant Avenue, Suite 102
Novato, CA 94945-3142 |
Home Office |
: |
415-898-7879 |
Toll
Free |
: |
866-CFO-PLUS
or 866-236-7587 |
Fax |
: |
415-456-9382 |
Email |
: |
thofmann@cfoplus.net
jmorre@cfoplus.net
lpanichelli@cfoplus.net
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Website |
: |
www.cfoplus.net
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Since
when does it take a Ph.D. to figure out a cell-phone
plan? Just the other day, a friend commented on
how her cell-phone bill went from $200 a month
to over $600 a month. She wanted to get more peak
minutes (those that occur during the business
part of the day), so she changed her calling plan.
What she didn’t realize is that when she made
this switch, her peak time period also changed.
This meant that instead of her night and weekend
rate starting at 7 p.m. as she was accustomed
to, it started at 9 p.m. So, even though she added
to her monthly peak minutes, she quickly used
them during what she thought was an “unlimited”
weekend time frame from 7 to 9 p.m.
When
it comes to cell-phone contracts, lots of areas
abound to wind up in the hot seat. As a business
owner, who may use the friends and family feature
(this is an option that does not charge when the
caller places a call to a phone on the same plan),
there are many other options to consider before
signing on the dotted line. To save time, money
and exasperation, follow these guidelines when
selecting a new cell-phone provider, renewing
a contract or changing your calling plan.
Know
your hours. Peak hours for some cell-phone
plans begin at 7 a.m. and end at 7 p.m. Others
begin at 8 a.m. and end at 8 p.m. Still others
can begin as early as 7 a.m. and end at 9 p.m.
If your cell-phone habits call for a maximum number
of peak minutes, be sure that you are choosing
a plan that will give you the most bang for your
buck. And, don’t assume that once you have a good
plan in place that when you renew you will automatically
have the same hours. One national carrier, reportedly,
let customers know their peak hours were going
to change through their bill. The carrier asked
for customers to call if they did not agree to
the new terms, customers who did not call were
considered to accept the new conditions. Don’t
assume that changes will appear on the first page,
either. This carrier put the change information
in the back of the bill, following the call summary!
Look
before you leap. Since cell-phone carriers
offer new plans almost weekly, chances are that
within a few months of signing up, a new plan
may be available that you like more than the one
you started out with. The primary issue to consider
when changing calling plans is that it may require
an extension of your current contract. Ask how
many months the change extends your contractual
obligations. Often, it is at least one year.
Read
the fine print. There are endless issues associated
with calling plans. Be sure to read the fine print
don’t simply take the sales associate’s word for
it. In the end, you are responsible for the contract
you sign. Ask questions about add-on charges for
caller ID, an itemized call summary each month,
even how each call is counted. Does the carrier
charge in intervals of 10 seconds are do you get
charged for a full minute, even if you only use
a fraction of it? Roam charges can drive up a
bill very fast for those who travel often.
Negotiate
the term. If you are contemplating changing
carriers, it may be worthwhile to ask for a trial
period where you “try out” the plan. Some may
go for this, but others won’t. If you are concerned,
ask about the minimum monthly fee in case you
decide to stick with your current carrier. In
most instances, cell-phone carriers offer a $19.99
security plan for those customers who only carry
a phone in case of emergency. Generally, the minimum
term for a new plan is one year, but carriers
sometimes will offer deals to sweeten the pot
so you will sign for longer than one year. Ask
for all the offers and then make an informed decision.
To
return or not to return. Ah, this is the question
for those who may want to cancel a plan early
or even at all. Is that freebie phone really free?
Do you own it or do you have to return it at the
end of the plan term? Find out up front so you
don’t end up paying more later.
Ask
and ye shall receive. Your monthly statement
isn’t likely to advertise the latest and greatest
calling plan options
those offers are geared toward NEW customers.
From time to time, call in to see if there’s a
better plan available for your calling habits.
Just dial 611 on any phone to access customer
service.
Cash
in on loyalty. Cell-phone carriers love loyal
customers. There are all kinds of loyalty discounts
available
if you ask for them. From discounted phone upgrades
to sharing the same great calling plan you signed
up on (that may no longer be available) for your
business partner. Phone discounts usually depend
on a minimum term earned and generally require
a term extension, but hey, if you love the company,
why not?
Cell-phone
issues and frustrations can hamper performance
in a big way. Use these tips to minimize cell-phone
headaches and maximize cell-phone approval ratings.
When you are ready to tackle other performance
issues, let us know; we can help.
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