Automotive & HD Business Management Articles.
Bob Greenwood. February 25, 2015. ( over 3 years ago ) 3,440 views
Perhaps it’s time to define the change required into a mathematical formula format. As everyone knows, math does not lie, but the formula must be understood and one must practice it to “master” the outcome desired.
NET PROFIT = SLE
CS + RBM
SLE – is your “Service Level Execution Squared – we must execute our service levels at the highest level of standards in order to “WOW” the client and earn their TRUST and LOYALTY.
CS – is “Competent Staff” – today it’s all about building a competent team. Just hiring bodies to fill a position doesn’t work anymore and can put the business at risk of failing.
RBM – This is “Right Business Measurement” – Measuring a service shop using a “cost accounting” method does not work today. This is a very complex business, so the shop must move to “management accounting” practices which measures the right numbers in the business to tell management “what” is really happening with the business and where exactly to spend your time on improving the most important weakness to drive net income.
Consider the formula that you use to drive NET PROFIT. Is it still working or is it truly time to re-evaluate the business?