Most business owners know there is little room for error right now. So, with which areas of your business do you have to be especially careful?

It is undisputed that your people are your most valuable asset. From efficient operations to new ideas for generating revenue, the contribution your employees make to your organization cannot be overlooked. Ideally, your staff is contributing positively to your company now. But don’t assume that they, and you, are functioning at the peak of your capabilities. This is the perfect time to invest in additional training. Whether it is broad staff development, like leadership or management skills, or something more technical, an investment in yourself and your employees will generate the best return.

Unfortunately, some employees may not be contributing positively to your business. You’ve worked with them, explained your expectations, offered training or some accommodation. But they’re just not on board. Don’t let a negative situation linger too long. These people are more of a drain on you and the rest of your team than it is worth. Help that employee find a better situation by moving them on. We prefer employees who self-select out. But if that doesn’t happen, you have to bite the bullet and let them go.

If you can redistribute the responsibilities of the departing employee to others, do so. Often times, necessity brings out creativity and you’ll find ways perform tasks more efficiently. If you need to re-hire, take your time, know what you need, and hire wisely. You’ve got an excellent opportunity to strengthen your company with a good hire.

I tell my clients, “Hire slowly. Fire quickly.”

The next area to focus on is your plan. We don’t need to discuss here why a written plan is so important, especially when the economic climate is challenging. I do want to emphasize how important it is to have specific and measurable performance objectives. Your plan must include a few targets for your key performance indicators. Key performance indicators are those statistics that best measure the health of your company. They could include revenue dollars per employee, widgets produced per hour, or cash available to pay bills.

Successful business management, and your ability to grow during challenging times, requires a familiarity with your numbers. You must have at your fingertips more than last month’s financial reports. You need the key performance targets and your progress toward attaining them. This information will give you the ability to make operational decisions and to evaluate the effectiveness of those decisions.

Put the quality and development of your staff and knowledge of your numbers at the top of your list of things to do during these economic times, and you’re odds of success will improve immensely.

This entry was posted on Saturday, January 17th, 2009 at 12:01 pm and is filed under General Management, Planning. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.