Cover All the Bases

Sometimes, companies neglect potentially beneficial ways to save expenses and maintain good business. Streamlining or otherwise improving existing work processes may be overlooked. For example, changing a process before automating it can account for half or more of the savings or other improvements in that change (such as time saving, or reduction in material losses or rework ).

Additionally, though growth is always important, there are certain precautions to be taken during growth periods. I try to keep people from only chasing growth. That is, I expect them to also manage for some efficiencies and plan for the future, including eventual leaner periods. Once again, the inevitability of change in every shape and form must be kept in mind.

We manage substantially the same during a downturn as otherwise. The only thing I emphasize is to make decisions as quickly as possible, avoiding the tendency during better times to allow an extra review or re- examination in the next measurement period. This enables us to quickly, but still efficiently , find the crease in the market into which we best fit and arrive there before a competitor.

Someone once said that management is decision making in conditions of uncertainty. We apply this logic more forcefully in tough times. It is also important to make reversible decisions very quickly and gather more information selectively for those that are irreversible. Understanding the difference often comes only from experience, and our more experienced managers serve us well.