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For the elevator company management, eat the top 10 invisible killers of profits

Aug 08, 2018

If you can find these "invisible killers", it is undoubtedly like finding a "pathogen", then the next "prescription for the right medicine" must be the time to take off again. If we can sum up a variety of "hidden forms" that companies often have, companies can conduct self-inspection.

Are you still "invisible" today?

Find out, don't let a small company get a big business disease~

1. Meeting cost

If everything in time is a process, then time must be the most precious thing. The operation of a company is nothing more than a process of racing against time.

Meetings are a collective activity for companies to solve problems and issue orders, but they are also a high-cost business activity. Because this activity is often a group activity involving many leaders. Every minute, it means the number of minutes of the total number of participants, and many managers of the company do not have the skills to meet. There are "no preparations before the meeting, no topics in the meeting, no execution after the meeting, no need to participate in the meeting, the world There is no control, no speech, no boundaries.

When paying monthly salary and summing up income, the figures in the financial statements always become the "insomnia drugs" that the operators are miraculous. It is not known that a large part of this "medicine" is the meeting.

2, procurement costs

Procurement has different ways in different companies, but this is an important part of the cost that affects business operations. We often only focus on this cost on the price and quantity of the purchase, and it is difficult to see other factors.

There used to be a company that had a working cost of 80,000 yuan per day when doing a new project. However, on the eve of the product launch, the procurement department spent a week to purchase more than 100,000 yuan of packaging. The reason was Find low-cost suppliers to save on procurement costs. The entire marketing team therefore waited a week to sign up with the customer.

And this phenomenon actually exists in many companies. The blind pursuit of reducing the direct cost of procurement ignores the "hidden formation" that coexists at the same time. Of course, reducing the direct cost of procurement does not conflict with this article. Here, we are talking about the procurement department of the enterprise. It is necessary to comprehensively weigh the various indicators from the perspective of the overall operation to truly control the cost of procurement.

3. Communication costs

In today's turbulent economic environment, the business rhythm of the company is also getting faster and faster. Everything has certain limits. The fast-paced operation has brought many troubles to the enterprise. Communication is an important part of business operations. Many companies are doing a lot of system training and spiritual level training, but most of them do not have "communication ability" training.

In most companies, you will find that in the process of communication between colleagues, there will be serious distortions, or the words will not reach the point, or answer questions, or hundreds of people... This phenomenon is small, let many processes Become an invalid process or lose many important opportunities. If it is said, it may bring hidden dangers to the company. This is a typical cost increase caused by poor communication.

4. Talent flow costs

There are many companies that are lacking in manpower management. They believe that talents are infinite and become "iron-plated camps." Employees naturally become the "waterborne soldiers."

It cannot be said that the departure of an employee is a cost to the company, because the company has to bear the initial investment in the training fee for the employee, and also bear the upfront cost of recruiting the new employee, and also assume whether the new employee is suitable for the post. The risk of leaving the old employee may also result in the loss of important internal information or information due to professional literacy, and after leaving the company, it is likely to enter the company of its competitors. Lean Production Promotion Center.

Therefore, the loss of employees, especially old employees, will undoubtedly bring the company several times more than its income. After many small businesses have been operating for many years, you find that they have always been such a small team, and no one except the boss has been left from the company. I think this may be an important reason why it can't develop.

5, process costs

There are too many chaos in enterprises because of the process, which is a common problem in enterprise management. For enterprises with slow development, the process must be chaotic or unreasonable. They bear a high cost for this, but they have always turned a blind eye.

The process is the industrial chain of enterprise operations. Like the assembly line, there is no scientific and reasonable process, and it loses systematic control over various work. Many jobs are abandoned halfway, and there is still a lot of work that needs to be reworked. But I have to admit that this will become a mess that wraps the company forward.

6, corporate culture costs

Some people say that corporate culture is like the soul of a company, and it will be reflected in the spiritual outlook of each member. This culture was established in the early stages of the establishment of the company. He was influenced by the culture, habits, skills, occupations, likes and dislikes of the founders of the company. Therefore, some people say that corporate culture is the boss culture.

But to say that corporate culture will become a cost, perhaps many people do not agree, but it is. We will find that the employees of some enterprises are in a low spirit and the efficiency of doing things is extremely low. No matter how good the employees just enter, they will either leave soon or become like that. We cannot help but say that this is an "environment" problem. And this "environment" is the corporate culture of this company. Lean Production Promotion Center.

Corporate culture is like the life of an enterprise. It will accompany the life of the enterprise. It can only be adjusted and cannot be rebuilt.

7, stagnant resource costs

Stalled resources can be said to be the most extensive "hidden formation" in the enterprise, such as idle equipment, backlog of inventory, low-utilization job occupation, idle funds, and shelved business. Although they may not continue to consume the company's investment, they are part of the company's assets, and the company will bear the interest and other costs.

Therefore, in a company, the amount of resources stagnation reflects the level of enterprise resource utilization.

8. Credit cost

This is a cost involved in long-term returns, and integrity management is like honesty. We have found that many companies are accustomed to defaulting on suppliers' fees, accustomed to defaulting on their salaries, accustomed to deducting others, and accustomed to defaulting on bank loans, etc., which is considered to reduce the pressure on corporate liquidity.

But in the long run, this will become a serious hidden form of business management:

 ◆ First, the supplier must calculate the time cost in its quotation, and such companies cannot purchase the lowest price raw materials or services.

 ◆ Secondly, employees are in arrears in wages, violate labor laws, and are in danger of being punished.

◆ When you owe a bank loan and deduct others, it will greatly reduce its creditworthiness. When the company encounters difficulties one day, it will be embattled. Undoubtedly, companies have to pay a heavy price for this, but in fact they have not received any benefit.

 9, risk costs

Pushing the business to the fast lane is the dream of every entrepreneur. However, the risk factor has also increased in tandem. Especially for large and medium-sized enterprises, although they are developing rapidly and have a good income, once a crisis occurs, it will be disastrous.

A number of cases have proven that many of the risks of enterprises are caused by inadequate or poor management, and they are buried before the risks occur. Many large companies or well-known companies die out because of one risk. It can be seen that risk is an important and important form. This phenomenon is not obvious. It is really "no sound, it is a blockbuster."

10. Entrepreneur costs

“Entrepreneur cost” refers to the cost that the boss of the company itself brings to the enterprise. There is a good word, the soldier is a bear, and will bear a nest. Entrepreneur is like the leader of an army, and it is the employee with the highest cost of payment. The bosses of many private enterprises have turned themselves into the "emperor" of the enterprise. Everything has their final say, and all employees have become the machines of execution. However, the shortcomings of entrepreneurial personal factors will add a heavy cost burden to enterprises.

This phenomenon is mainly reflected in small enterprises, but there are also such phenomena in large enterprises. We can also extend this cost to every department of the enterprise or even every employee. Because everyone is responsible for their work, we often emphasize that in your scope, you are the leader and you have the right to make decisions.

And many leaders have always centered on themselves, which will greatly reduce the team's combat capability and increase the high amount of hidden costs. I remember saying to a boss who complained about the company’s lack of talent: "What your company lacks is not talent, but the wisdom of discovering and making good use of talent."

Conclusion, it can be seen from the above that in business management, enterprises often have to bear a lot of burdens, and the hidden form is the most important burden. Finding and effectively reducing the above-mentioned hidden costs may be a powerful measure for enterprise progress, which is also the real drawback of many enterprises.

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