Tag Archives: organizational chart

The 8 Traits Of Great Companies! Traits 1 through 4

Vision | Targets & Goals | Organizational Structure | Profits
Part 2
 
Trait #1 – Start with an exciting vision!

What do you want to happen with your company and where do you want it to go? Leading companies start with an exciting focused passionate vision connected to the specific results they want. Some companies have a vision to be the best company in their marketplace with the biggest market share. Others want to be known as the best service provider, provide the best quality, or offer the lowest price. Great companies ramp up their visions with more excitement. Exciting visions of great companies read like these: be recognized as the leader in customer service, being number one in building difficult technical projects, finishing jobs ten percent faster than our competition, or being known for helping customers make a profit. Bill Gates of Microsoft had a big vision to put a computer in every home. Ask the people who work for you and a few customers, “What’s the vision of our company and what are we trying to accomplish? If they don’t know, you’ll never become a great company. What is your passionate vision that will excite your customers and employees?

Trait #2 – Write and track your targets and goals!
After defining your exciting vision, specific results must be written down and targeted to quantify exactly what’s expected for your company, departments, people, and projects. For example, if your vision is to be the best service provider, determine what specific measurable results would enhance your bottom-line. Some targets you can track include obtaining a referral from every customer, only five percent callbacks, no installation errors, or 98% on-time completion. What specific targets and numbers can you shoot for to realize your vision & get the results you want? Without specific clear targets, your people really don’t know what ‘try to make ten percent gross profit’ or  ‘try to do quality work’ or ‘try to be the best’ really means.

What are your top priorities and specific targets your company is shooting for? You need to then monitor and track the progress if you want to achieve your company, department, and project goals. Ask your people what results are important. You’ll probably get 17 different answers if you have 17 people working for you. To get the results you want, write down and track your targets to get everyone on the same page from top to bottom.

Trait #3 – Draft your structured organizational chart!
Company managers and employees who don’t have written detailed job descriptions, don’t know what they’re 100% accountable for, don’t have authority to make decisions, and don’t have an understanding of the clear lines of communication in your company, can’t be held responsible for producing the results you want. Without a structured organizational chart and a list of accountabilities for every position in your company, your people will wait for their boss to tell them what to do next. This limits employee’s growth, enthusiasm, production, and efficiency. Plus it stalls the company so it can’t grow beyond the owner’s ability to make every major decision for everyone.

It doesn’t take a lot of time to layout your perfect organizational chart. Each position’s duties and responsibilities must be considered, detailed, described, outlined, and assigned listing the accountabilities and expected results desired and required. Only with these clear descriptions can people help the company grow and become great.

Trait #4 – Know your numbers and make big profits!
Many business owners are too busy to be bothered with watching and tracking their numbers. Can you imagine the CEO of a major company not focusing on or knowing their company’s revenue, direct costs, fixed costs, and profit? You can’t make a profit if you don’t know what to charge and how much you need to bring in. Many companies shoot for moving targets by attempting to make ‘as much money as possible’ or ‘more’ than they are currently making. ‘As much money as possible’ is not a target. ‘More!’ More than what? These are not clear targets or goals. 5%, 10%, or 15% are not clear targets either. As your sales and job costs vary each month, your total markup earned changes, while your fixed cost of doing business remains the same. This causes your net profit to move up and down like a roller coaster.

The owners of great companies spend a lot of time making people accountable to achieve the numbers. They set specific targets and keep track of the progress towards them. Annual sales of $5,000,000, overhead target of $600,000, and a net profit goal of $200,000 are specific fixed targets you can shoot for and hit. Not More! Not as much as possible! With specific targets for sales, costs, overhead, accounts receivables, cash flow, and net profit, you stay focused on the lifeblood of your company.

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The 8 Traits Of Great Companies!

Earn More, Work Less, Live Life!

Good news! Now is the best time you’ll ever have to take a hard look at how your company does business. Why wait? When you start a company, you’re happy getting some work and making a little money. Then it grows into the company it is today by doing what it does relatively well for the few customers it has acquired. As an expert on entrepreneurial companies, I can tell you this is not the right way to design and build a great company that maximizes its’ potential market share, resources, people, and bottom-line profits.

When studying market-leading companies, you’ll find they have eight traits that make them stand out and stay at the top of their field. Make a list of top companies who are leaders in their marketplace. Your list might include: Apple, Caterpillar, Wal-Mart, Microsoft, McDonalds, Ritz Carlton, BMW, FedEx, Forbes, Star-Bucks, or Google. What sets them apart from the rest of their competitors and allows them to continually maintain market share, growth, and profitability?

Owning a company that offers the same basic services or products as most of your direct competitors will keep you busy during good economic times. But as the economy struggles or shrinks, business becomes more difficult, harder to grow, and make a profit. Especially when you offer almost exactly the same thing as most every other company you compete against. In order for your company to become the leader in your marketplace, you have to offer something unique or different than your competitors do. You also have to be passionate about your vision and where your company to go. You need organized systems and a professional management team that consistently delivers the same results for your customers every time. And you must be clearly focused on hitting your targets, goals and financial numbers. With these characteristics, your company will make an above average profit margin and have extra funds leftover to invest in wealth building opportunities.

IS YOUR COMPANY GREAT?
Take this True / False Test to determine if your company has the eight traits of great companies.

1. Our company has a written passionate vision that is prominently displayed for all of our customers and employees to see. Every manager and employee knows exactly what the company stands for, its’ values, and where it’s going.

2. Our company has written targets and goals for the overall operations, each department, and every project. These goals are tracked every month so adjustments can be made quickly.

3. Our company has a structured organizational chart clearly describing the accountabilities and responsibilities for each position in the company. Every employee knows exactly what they’re responsible to do and is fully accountable to make it happen.

4. Our company owners and managers are focused on achieving the numbers required for the company to hit its’ financial targets and goals. Our company makes a very large profit compared to the industry average and our competitors.

5. Our company has a unique or different delivery system, product, or service that attracts customers who will pay more to buy from our company than our competitors.

6. Our company has an ongoing, systemized, and pro-active sales and marketing program to find, contact, attract, retain, and service our customers. Our sales and marketing system has allowed our company to grow at least fifteen to twenty percent, or more per year.

7. Our company has written operational systems and procedures for all employees to follow that insure all workflow is completed in a similar standardized manner by all employees without exception.

8. Our company’s bottom-line delivers significant excess profits that allow us to seek investments and find opportunities to grow and build our equity and wealth. Continue reading